Advertisers are finally beginning to take on-demand TV services seriously, with advertising revenue for the sector skyrocketing in Australia.
Industry body ThinkTV reports that both dedicated streaming services like Kayo and Foxtel Binge, and traditional broadcasters’ catch up services, like 7Plus and 9Now have enjoyed revenue growth of 74.8 per cent year-on-year, to hit $145 million for the first half of 2021.
Growth for the entire FY21 was up 63.4 per cent, to $278 million.
These figures suggest that the current six-month period will be the most lucrative for the sector to date.
“BVOD continues its impressive run as Australia’s fastest-growing media channel, with a growth rate exceeding all expectations,” ThinkTV CEO Kim Portrate said.
There’s still a way to go yet, considering all Australian TV advertising combined amounted to $3.85 billion for the 2021 financial year, up 12 per cent.
Total TV advertising figures, which includes metropolitan free-to-air, regional free-to-air, subscription TV and BVOD, recorded a combined revenue of $3.85 billion for the year to June 2021, up 12 per cent year-on-year. The figure excludes SBS.
“Australians have turned to TV through all the twists and turns of this horrible health crisis; whether to watch trusted, timely news or, when it all gets a bit overwhelming, for light relief, entertainment or to cheer on their favourite sports teams,” said Portrate.
“The resulting increase in viewing is reflected in the growth of Total TV revenues for both the half and the full year.”
