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Australian SVOD Market Hits 12.3 Million Subs


Australians have a “growing taste for sports and video entertainment content,” according to research firm Telsyte, driving the SVOD services market to reach 12.3 million total subscriptions at the end of June 2019.

This represents a year-on-year increase of 29 percent, according to the Telsyte Australian Entertainment Subscription Study 2019. Today, more than half (55 percent) of Australian households subscribe to SVOD services, with 43 percent having more than one SVOD service, up from 30 percent in 2018.

Netflix is the market leader in Australia, with around 4.9 million subscriptions, and Stan passed the 1.7 million mark at the end of June, remaining the second largest single-service provider. Telsyte research shows one in four Australians (and 37 percent of existing SVOD users) are interested in subscribing to the new Disney+ service.

The sports SVOD category saw continued strong demand, driven by the adoption of Kayo Sport, Optus Sport and AFL, FFA, Netball and NRL Live passes via Telstra. Telsyte estimates the total sports SVOD category (excluding Foxtel Now, as it provides a mix of sports and other entertainment content) had around 4.4 million subscriptions at the end of June, up from 3.6 million in the year-ago period.

Telsyte’s latest consumer survey shows those willing to pay for video subscription services have an average monthly budget of around $30. The same survey also shows one in three Australians have no set limit to the number of paid video subscription services they would simultaneously subscribe. “Subscriptions will be a critical way entertainment and technology brands connect with and monetize their customers,” said Telsyte’s managing director, Foad Fadaghi.

SVOD services have proven to be “highly sticky” in Australia, as Telsyte’s latest consumer survey shows nearly half of existing SVOD users believe there will always be enough new content to keep them interested and will not cancel their service, regardless of how many hit TV shows the service has to offer.

Total SVOD subscriptions in the country are forecast to reach more than 21 million by the end of June 2023. Telsyte believes the demand of existing and new SVOD services will be driven by key content rights during the next 12 to 24 months as more studios and content producers prepare to launch direct services.











About Kristin Brzoznowski

Kristin Brzoznowski is the executive editor of World Screen. She can be reached at kbrzoznowski@worldscreen.com.

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