Australia’s subscription entertainment market grew 5% in the year to June 2025, reaching nearly 54.6 million active services, despite rising living costs.

Australians now hold an average of 3.3 subscriptions each, spending an average of $42 a month, up 18% from last year, according to research from technology analyst firm Telsyte.

The Subscription Video on Demand (SVOD) sector drove growth, boosted by more affordable plans, cross-sector bundles and the launch of HBO Max.

While Netflix, Amazon Prime Video and Disney+ remain the top players, Kayo Sports was among the fastest growing services, recording a 6% rise in subscriptions. This puts Kayo alongside Amazon and Disney in terms of momentum, despite its smaller base.

Stan, meanwhile, failed to grow despite major investments in rugby and Premier League soccer.

“Sport is a growing differentiator in the market,” said Telsyte Managing Director Foad Fadaghi, “but success now requires more than just content rights.”

Despite the closure of Optus Sport, around one in five subscribers to Australia’s top SVOD platforms (excluding dedicated sport services such as Kayo) now cite sport as a key sign-up reason.

Two-thirds of Australians also believe access to free sports via free streaming services such as BVOD should be guaranteed, mirroring existing protections for free-to-air TV.

Paramount+ topped growth charts among major SVOD players, while new entrants and niche services also posted strong gains.

HBO Max entered the top 10 within three months of launch, and beIN Sports and Crunchyroll grew rapidly, fuelled by bundling and niche content demand.

Ad-supported models also surged, with subscriptions more than doubling to 6.4 million, led by Amazon Prime Video.

Australians are increasingly rotating services to manage budgets, with exclusive content and ease of sign-up now key factors in subscription choice.

Local content remains highly valued, with 58% of subscribers saying it is important to have programming representing Australian stories, voices, culture and values.

Outside SVOD, streaming music subscriptions grew 6%, and games-related subscriptions rose 7%, driven by cloud gaming and new console launches.

The rise of creator-led content, including vodcasts and Twitch subscriptions, is further reshaping Australia’s entertainment landscape.

Telsyte said it excluded Optus Sport from its June 2025 reporting given the imminent closure and the ongoing subscriber transition to Stan Sport.