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Australian Pay TV market under increasing threat from Video Streaming market
Saturday, August 20, 2016 7:44:37 AM America/New_York
The digital TV and video streaming industry has changed beyond recognition and it continues to evolve in 2016. Consumer habits are shifting from broadcast TV to on-demand content – especially streaming. Traditional TV viewing is increasingly facing competition from other viewing platforms such as smart phones, tablets, and Smart TVs
Choice is the key. Pay TV across the various platforms – including cable TV, IPTV, and satellite TV – continues to rise in popularity, and this trend is reflected in the market’s increasing service revenues. IPTV is the fastest-growing pay TV platform from a global perspective.
Within the Australian market, although there has been steady growth in subscription TV services into 2016, in coming years customer viewing on the platform will have been greatly changed following the launch of services by OTT providers such as Presto, Stan and Netflix as well as SVoD options being marketed by FTA broadcasters.
Although FOXTEL has seen steady revenue growth during the last few years the company has struggled to increase pay TV penetration in Australia. The FTA broadcasters as well as marketers and advertisers who need a return on investments are watching the available content options. The distribution advantage held by FOXTEL is slipping away as the NBN becomes built out over a greater number of premises, so expanding the reach of capable broadband infrastructure which enables subscribers to access OTT and IPTV content
Driven by the successful US-based Netflix video streaming service, several Australian companies have launched new video streaming services or updated their services. As the demise of local operator Quickflix in 2016 has shown, there is insufficient room for all of the video streaming players. Netflix has emerged as the dominant operator, but both Stan and Presto have built up a significant customer base, and both have the substantial financial resources of their backers at their disposal. This should enable both players to continue investing in content in a bid to keep up with Netflix’s international buying power
For more information see - Australia - Video Streaming, Broadcasting and Pay TV