Australian Demand For Streaming Services Doubles In 2016
Subscriber management specialist Paywizard released the Australian findings of their 2nd annual global report into television viewing trends in the lead-up to Christmas, revealing Australian demand for on-demand subscriptions for services such as Netflix has doubled in just one year.
Paywizard’s research found that paying subscribers to Over-the-Top TV services such as Netflix and Foxtel Play rose to 40% of Australian consumers ahead of Christmas with another 14% of Australians planning on trial an internet TV service for the first time in the approach to the holiday season.
However, retention rates suggest that new pay-OTT subscribers in Australia are uncertain about making a long-term commitments with 59% those planning to subscribe to internet TV for the first time this Christmas intend to cancel within six months.
According to Bhavesh Vaghela, Chief Marketing Officer at Paywizard, “The last few years has seen Australian consumers gain access to a lot more pay-TV options and, although the market is growing slower than others we surveyed, the pace of adoption is consistent. With this competitive landscape, consumers can expect to benefit from more aggressive pricing and more general and specialist content. And providers have to find ways of building loyalty.”
Vaghela adds that “the Australian pay-OTT market has seen strong growth for early mover Netflix but it is unclear whether subscribers will stick with this service for the long run in the face of so much competition. For example, of those planning to subscribe this Christmas, 32% named Foxtel Play as their choice and others such as Stan have built strong market share. ”
Unsurprisingly, research reveals the younger the Australian consumer, the more likely they are to use a mobile device for viewing their holiday TV, with more than 50% of each demographic under age 45 doing so.
Meanwhile 37% of consumers intend to use a mobile device of some type for at least part of their Christmas TV viewing, while 88% are planning to use a TV or smart TV.
Vaghela concludes that “the big takeaway for pay-TV operators in Australia is that there is still a huge untapped market that is waiting to be unlocked – 44% of Australian households don’t yet pay for TV services. This suggests that operators need to do more to meet the needs of a largely underserved audience, which means they need to find better ways of both cultivating and keeping strong subscriber relationships.”