SVOD Set To Overtake Foxtel, As More Aussies Happy To Pay For Ad-Free Content

SVOD Set To Overtake Foxtel, As More Aussies Happy To Pay For Ad-Free Content
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The latest report into the SVOD habits of Australians has found that 3.7 million os us were legitimately subscribed to at least one of the players in June this year, which is a 30 per cent increase from this time last year.

Tech analyst firm Telsyte’s SVOD Market Study also predicted that the number of Australian streaming users would overtake the number of pay TV customers within the coming 12 months.

The report found that just shy of half of Australians have either an SVOD or a pay TV subscription and 11 per cent of households have both showing Aussies have an increased appetite to pay for good content that’s often ad-free.

Worryingly, the Telsyte’s report found that 46 per cent of people who subscribed to an SVOD said they rarely watched free-to-air TV anymore.

The report noted: “Popularity of exclusive and original content, as well as live streaming, is expected to continue to the drive the market to 2021 when subscriptions are expected to exceed 6 million.”

Netflix remains the most popular of the SVOD providers in Australia with more than two million local subscribers as of June this year. Stan was second with 867,000.

The remaining 21 per cent of SVOD subscribers were spread across a range of smaller players that included Amazon and niche sports players such as NBA League Pass, UFC, AFL, NRL and Cricket Australia products.

However, the report noted that Netflix couldn’t expect to have everything its own way, with a number of new competitors set to join the Australian market. “Telsyte believes consumers will consider multiple providers, leaving room for services from Stan, Amazon, YouTube Red, Foxtel, Optus Sport, and a long list of others to encroach on Netflix’s market leadership,” the report noted.

Amazon’s arrival in the Australian market would also shake things up as the e-commerce giant offers its streaming service for free when customers sign up to a $99 per year Prime offering, where purchased goods are delivered for free.

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