Stan Growing, Netflix Challenged
Netflix Challenger Stan, has revealed it had 600,000 active subscribers or households, 1.4 million sign-ups and an estimated 1.5 million active users.
Netflix is refusing to reveal their numbers which are estimated to be around 1.6 million.
In an investor presentation, last week, Stan, which is 50-50 owned by Nine Entertainment and Fairfax Media CEO Mike Sneesby said that after 18 months the pay entertainment market has three clearly defined segments: traditional premium pay TV, mid-tier skinny bundle packages and pure-play subscription video on-demand, where Stan sits.
Competition is tough in SVOD, Foxtel was recently forced to kill off their Presto service due to poor demand. At the same time ChannelNews recently revealed that Amazon is looking to launch their Prime Service in Australia.
This could come as early as next month with a visit by former, Top Gear hosts Jeremy Clarkson, Richard Hammond and James May who recently left the BBC to shoot a new car series for Amazon.
Recently content network HBO signed a long-term agreement with Foxtel and Showtime with Stan.
Netflix is targeting 50 per cent of its content to be original productions – the streaming giant is expected to spend more than $US5 billion on programming this year.
“Amazon and Netflix are increasingly production houses and studios themselves, the net result of that means they are spending less money acquiring content and competing more as a studio,” Mr Sneesby said.
“The Hollywood studios are really supportive of independent local leaders like us.”
Last week, Stan launched the second series of its original production No Activity and has several other new shows in development.
The company said its conversation rate from free trials to paid subscribers was 73 per cent to 75 per cent and churn has dropped significantly over the last 18 months. Stan expects to cash break-even in the second half of the 2018 financial year.