Streaming Services Will Be More Popular Than Pay TV In Less Than A Year

Image: iStock

More than 3.7 million Australians are now subscribed to streaming services, according to a recent Telsyte survey - that's an increase of 30 per cent on last year.

And that's not all - Streaming Video On Demand subscriptions are on track to overtake traditional Pay TV subscribers by June 2018.

The Australian SVOD Market Study 2017 found almost half (49 per cent) of Australian households currently subscribe to either Pay TV or Subscription Video On Demand services, with 11 per cent subscribing to both, an increase from 38 per cent in 2015.

By 2021 subscriptions are expected to exceed 6 million. Telsyte puts this down to the popularity of exclusive and original content, as well as live streaming.

Image: Telsyte

When it comes to specific providers, it's not just all about Netflix. Stan, Amazon, YouTube Red, Foxtel and Optus Sport all have firm footing in the market, and don't appear to be going anywhere.

Netflix exceeded 2 million subscriptions at the end of June 2017, with Stan in second with 867 thousand, and "others" making up 769 thousand.

Around a third of Pay TV subscribers also have at least one SVOD subscription, and 46 per cent of SVOD subscribers claiming to "rarely" watch free-to-air TV.

The average SVOD subscriber watches nearly 26 hours of video content a week across FTA TV, Pay TV, SVOD, Online TV on demand (Catch up TV and live streaming TV), and other video content sources (including non-streaming videos), compared to around 21 hours for the average Australian.

"SVOD adoption in Australia has started to reach a scale which has strategic significance to media and telecoms companies alike," Telsyte managing director Foad Fadaghi says.

SVOD subscribers typically use 61 per cent more mobile data (3G/4G) than those who do not stream SVOD on smartphones. At the end of 2016, the rate of uptake of SVOD by NBN users was 25 per cent higher than non-NBN users.

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    Does this take into account sports subscribers?

      That still falls under "Pay TV". Why would it be seperate?

    As I'm about to “look” at “upgrading” to the NBN in the next few months I've had to flick Netflix because at peak traffic times I cannot get a decent download speed now (something that's progressively gotten worse over the last 3 months or so). That's on a pretty constant 14 meg ADSL2 connection through Telstra and it's something that my housemates Foxtel has no issues with (on satellite btw). When we finally commit to NBN I will hopefully have fast internet and will not have to put up with watching $100+ /month Foxtel with it's myriad of fucking ads!

    Last edited 10/08/17 10:15 am

    Happy for this to happen, but not if we end up with a fragmented market where there's loads of streamers and I'm paying $15/mth for each of them. It's already starting to trend that way.

      Yep, Disney to enter the market soon with their version.

      Yup. Called this before Netflix came to Australia. Content makers lose money through Netflix. So they will just all create their own streaming platform and you'll be back to paying over 100$ a month to get all the content

    No wonder free to air (FTA) appears to be dying a slow death. FTA's distinct lack of quality viewing content which has shifted its focus only on trashy "social experiments" and the like. News reporting/delivery is being overtaken by advertorials focused on viewers getting "free" money. Terrible. That's why I only watch streaming services like Netflix and YouTube Red and no longer watch FTA.

      It's also FREE to air - it relies entirely on advertising revenue, of course they're not going to be pushing through big-budget stuff like Netflix or even Foxtel. I don't know why you expect them to match subscription services, they simply can't afford to.

      That said the obsession with reality TV needs to stop, especially since crap like MasterChef is no longer cheap to produce.

    I don't understand why people would pay to watch old movies. I can do that on free to air tv.

      Because they want to watch movies when they want without advertisments at a time of their choosing. Not what FTA Stations choose.

        Fair enough. I'm one of those bad people that Pirate. I've got a great collection of movies and it keeps getting better.

          I used to pirate a lot as well. But i find it easier if the movie is on netflix rather than trying to find a good quality torrent and then waiting for it to download. Plus netflix has allowed me to discover a lot of movies i would not have normally watched.

            I use pop corn time and it shows all the covers, tells me what's the films are about and even gives me a trailer if i want. Try it, its great. If it was a legal streaming site I'd sign up straight away. Everything in one place.

              Yeah no, Not touching popcorn time as long as it exposes my IP to companies tracking torrents. I use seedr instead which downloads the torrent to an external sever and then you just stream the torrent file from that server.

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