Netflix is serving as the “gateway drug” for subscription video on-demand (SVOD) users in Australia, as it’s often the first service consumer’s trial before adding others.
A report from Roy Morgan Research points out that other services in the market, like Stan, benefit from continued Netflix growth.
More than three-quarters (77%) of Australian adults use mobile phones to access the Internet, more than on laptops (75%) desktop computers (61%) and tablets (54%), according to a report from the Australian Communications and Media Authority (ACMA).
That growth is being driven, in large part, by the increasing consumption of online video, a trend that is having a major impact on the communications industry.
Australian streaming video service Stan this week told investors it had more than 600,000 subscribers, up from 332,000 in May and 50,000 from numbers shared in September, and also said it expected to reach 1 million paying subs by the middle of Fiscal Year 2018. And, said the 16-month-old startup, it expects to reach the breakeven point by the second half of FY 2018.
APAC’s subscription video on-demand (SVOD) subscriber numbers will more than double to 157.8 million by 2021, up from an anticipated 76.1 million at the end of 2016, a new report says. That’s an increase of 279% from the 41.7 million subscribers the region had at the end of 2015.
The rapid scaling comes as an increasing number of services launch in the region and as the Netflix deployment to the entire region in January of this year begins to gain traction.
The 2016 Emirates Melbourne Cup, one of Australia’s most followed Thoroughbred horse races, will be streamed to a global audience thanks to a deal between the Victoria Racing Club (VRC) and Twitter.
The partnership for the Nov. 1 race, the richest two-mile handicap in the world, is the first live-streaming deal Twitter’s made for a major event outside the U.S., although it did stream this year’s Wimbledon matches after they were completed.
Another SVOD service that launched to go toe-to-toe with Netflix is shutting down, the victim of an extraordinarily competitive Australian video market. Presto, the JV between free-to-air broadcaster Seven West Media and Foxtel, News Corp.’s pay-TV group had an estimated 200,000 paying subs and was a distant third to Netflix, which has about 1.9 million subscribers in Australia. Both launched about a year and a half ago.
Indonesia and Malaysia are among the leaders when it comes to programmatic ad spending growth in the Asia Pacific region, and a new study says APAC’s six largest markets are expected to see a surge in spending over the next several years.
Business models are an ongoing issue for pay-TV and OTT service providers, that are working to devise plans that better appeal to consumers than traditional ad-supported or subscription services have.
It remains a moving target, with more operators throwing any combination of hybrid models hoping to hit a bull’s-eye.
Australian households that subscribe to SVOD services have increased the number of services to 1.7 from 1.5 a year ago, with more than 2.7 million new active subscribers by the end of this month, an increase of 46% compared to the same period a year ago.
Amazon Prime Video, which has firmly established itself as Netflix’s No. 1 competitor in the U.S., U.K. and German SVOD markets, could launch as early as Q1 2017 in Australia, according to published reports.
ChannelNews is reporting that the company will battle local streamers Stan and Presto for rights and that Fetch TV already is planning to have Amazon on its platform.
While traditional TV viewing remains the most popular way to consume video content in Australia, cracks are beginning to widen as more consumers watch over-the-top video on connected TVs, computers, tablets and smartphones.
Nearly half (48%) of Australian marketing execs say they use programmatic buying, helping to push the APAC region’s programmatic use to 41%. Just trailing, at 46%, are advertising execs in Japan and Singapore.
Forrester Consulting said nearly all of the respondents (96%) to its survey who already were using programmatic said they plan to continue investing in the ad technology over the next two years, with 82% saying they were satisfied or highly satisfied with their experiences.