Australian Streaming Video War Gets Hotter
The Streaming Video-On-Demand landscape is becoming more volatile, with Deloitte predicting at least 150 million SVOD subscriptions will be cancelled globally next year, but Australian numbers continue to grow, with subscriptions hitting 42 million in June 2021, up from 37 million in June 2020.
Meanwhile, subscription fees have become a burden to many. As a result, customers are looking at less expensive options, with a study finding 21 per cent of subscribers had either decreased engagement with SVOD or opted out all together in favour of other video services, such as free advertising-supported video on demand (AVOD).
In June this year, 78 per cent of households here had at least one entertainment subscription, up from 65 per cent three years earlier, with a household subscribing to an average of 4.3 entertainment services, mainly SVOD, up from 2.7 in June 2018.
Gaming subscriptions are expected to rise, too, catching up to music and SVOD. All up, entertainment subscriptions are expected to pass 60 million by 2025.
The main players in the local SVOD market are Netflix with six million subscribers, Amazon Prime Video with 2.9 million and Disney+ with 2.6 million. Indeed, Australia is one of the most competitive SVOD markets in the Asia Pacific region
SVOD revenue is set to hit US81.3million globally by 2025, with Australia reaching $3.3 billion.
Meanwhile, Foxtel are finding success by branching out. The box-subscription service may have lost 267,000 customers in 2020, but their sport streaming service Kayo has landed 624,000 paid subscribers, and Binge has 431,000 paid subscribers, giving Foxtel a 12 per cent total growth.
With sports – especially football – split across Stan Sport, Optus Sport , Ten/Paramount+ and Foxtel/Kayo, it looks like we’ve barely hit halftime in the battle.