Australia’s free-to-air television networks are grappling with declining revenues and shrinking profit margins, as they struggle to compete with global streaming giants like Netflix, Disney+, and Amazon Prime Video. Unlike Foxtel—now owned by European sports streaming powerhouse DAZN—traditional broadcasters are falling behind in technology investment, content creation, and viewer engagement.

While streaming platforms pour millions into original content and advanced user experiences, free-to-air stations such as Ten, Nine, and Seven face mounting pressure from changing viewer habits, advertising challenges, and technological shifts.

One key challenge is the transition to more modern broadcasting standards, like MPEG-4, which the ABC has already adopted. This shift requires updated television equipment that many Australians, particularly those with older TVs, may not have—adding another layer of difficulty for commercial networks already struggling to retain their audiences.

In contrast, Foxtel’s acquisition by DAZN has sparked a significant technological revamp aimed at reducing local costs and expanding global reach. The company is also positioning itself as a cutting-edge advertising platform, offering brands highly targeted audience capabilities using the latest digital tools.

From Ubiquity to Obsolescence

Once reaching 99% of the population through the Digital Terrestrial Television (DTT) platform via DVB-T signals, free-to-air services are now losing ground to streaming alternatives accessed via devices like smart TVs without tuners, laptops, tablets, and smartphones. These devices often bypass traditional TV altogether in favour of streaming apps.

Today’s commercial broadcasters offer up to 15 digital channels, including HD versions of their main networks. Yet, that variety pales in comparison to what’s available through streaming.

Since Netflix’s arrival in Australia in March 2015, the streaming sector has exploded. In 2025, the global video streaming market is valued at over $811 billion, with projections to surpass $2.66 trillion by 2032. Australians have embraced this shift: more than 70% of households now subscribe to at least one streaming service, with an average of 2.3 subscriptions per household.

Streaming leaders like Netflix, Amazon Prime Video, Disney+, Stan (owned by Nine), Kayo, and Binge dominate the digital entertainment space—many of which initially promised ad-free experiences but are now integrating advertising to drive profits.

Adapting to a New Advertising Era

As the streaming market matures, the focus is shifting from subscriber growth to profitability. This includes monetising through ad revenue, sports rights, bundling, and loyalty incentives.

Meanwhile, Australia’s free-to-air networks remain bound by strict advertising regulations. Under the Commercial Television Industry Code of Practice, commercial stations are limited to 15 minutes of advertising per hour during prime time (6:00 pm to midnight) and 16 minutes at other times. They must also adhere to audio standards, ensuring ad volume doesn’t exceed an average of -24 LKFS, creating a consistent audio experience for viewers.

In contrast, many streaming services—particularly foreign-owned ones—are not held to the same regulations, leading to growing concerns about consumer protection and fair competition. Observers note that streamed ads are increasingly louder than the content they accompany, disrupting the viewing experience.

California Takes a Stand on Loud Streaming Ads

In response to similar issues, California has introduced a new law requiring advertisements on streaming platforms to match the volume of the primary video content. This builds on existing U.S. federal laws governing broadcast and cable TV ad loudness.

The entertainment industry initially pushed back. The Motion Picture Association and the Streaming Innovation Alliance, which represent platforms like Disney and Netflix, argued that streaming services lack the ability to control ad volume across all devices.

Streaming ads often originate from multiple sources, making standardisation difficult, said Melissa Patack, VP of State Government Affairs at the MPA. Similar challenges are seen in Australia, where ad content frequently comes from international or third-party sources.

The California bill was eventually amended to prevent individuals from suing platforms over violations, reflecting the complexity of enforcement in the digital space.

Conclusion

Free-to-air television in Australia faces an uphill battle against a rapidly evolving digital entertainment landscape. As audiences continue to shift toward on-demand, ad-supported, and algorithm-driven streaming services, legacy broadcasters are being left behind—hampered by outdated technology, tight regulation, and declining viewership.

With the streaming industry now rewriting the rules of content delivery and advertising, urgent policy reform may be needed to level the playing field—and preserve a place for free-to-air TV in the media ecosystem of the future.