Has SVOD Peaked In Australia (As Seven West Reportedly Eyes Presto Exit)?

Has SVOD Peaked In Australia (As Seven West Reportedly Eyes Presto Exit)?
SHARE
THIS



Netflix aside, it appears Australians’ appetite for subscription video on demand (SVOD) services may be starting to peak amid suggestions the local market is over-supplied with players.

According to Deloitte’s Australian Media Consumer Survey released late last week, about 22 per cent of Australians pay for an SVOD service. However, the numbers grew rapidly from (a base of zero) from about 18 months ago but are showing signs of peaking.

When the concept launched in Australia in 2015, a number of local players quickly jumped into the market to try and steal a march on the all-conquering Netflix.

However, The Australian is this morning reporting that Seven West Media wants to pull out of Presto, the SVOD joint venture it has with Foxtel.

The OZ is reporting that Seven is reluctant to invest anymore dollars into the JV which is a distant third in terms of Australian subscribers behind Netflix and (the Fairfax-Nine JV) Stan.

However, according to the Deloitte’s survey, it’s not that Aussies don’t like the idea of SVOD, it’s just we can be a little hesitant to pay for it with the majority still preferring to be entertained by free-to-air.

Deloitte financial advisory leader Clare Harding said, “It’s still early days for SVOD in Australia, with respondents experimenting with what these subscriptions have to offer. In order to access their desired content, 18 per cent of SVOD subscribers have more than one service, with two-thirds of multi-subscribers expecting to maintain two or more services in the future.”

When consumers are willing to pay, however, it’s because they are looking for more in-depth news analysis (52 per cent). This desire for more detail has increased significantly from 33 per cent last year, replacing ‘trust and association with the brand’ as the most compelling reason to pay.

Harding also said that while more of us are choosing to pay for the content we want, we’re still multi-tasking, in fact more than ever.

“88 per cent of us are multi-tasking whilst watching TV, up from 60 per cent in 2012. Having said that, either because we’re more immersed in the content or because the smartphone does so much for us, we are using fewer devices when multi-tasking – down from two to one this year,” she said

According to Harding the uptake of SVOD subscriptions shows an increased comfort in paying for video content, which may be influencing our multi-tasking behaviours. Some 70 per cent of respondents believed they pay closer attention to content that they have paid to watch.

Please login with linkedin to comment

Latest News

Twitter Australia’s MD Reveals Plan To “Double Down” On Video In 2018
  • Media

Twitter Australia’s MD Reveals Plan To “Double Down” On Video In 2018

Social media giant Twitter has no intention of reducing its focus on video this year – in fact, it wants to double the amount of video content on the platform. Speaking to B&T, Twitter Australia managing director Suzy Nicoletti (pictured above) said live streaming is going to be of particular importance. “What we’ve found is Australians […]

by B&T Magazine

B&T Magazine
International Creative Services Redesigns Business Model To Broaden Talent Offering
  • Advertising
  • Marketing
  • Media

International Creative Services Redesigns Business Model To Broaden Talent Offering

Marketing consultancy International Creative Services has announced a new roster of diverse creative and production talent to provide a fully integrated solution for advertising and branded content. The roster includes a broad range of global and local directors, animators, illustrators, motion designers, visual artists, light projectionists, photographers and cinematographers – many of whom Australia will […]

Dirty Data Done Dirt Cheap
  • Opinion

Dirty Data Done Dirt Cheap

Does the mere thought of data fog the brain and stuff the sinuses? Decongest immediately with this lozenge-like read.

Opinion

by B&T Magazine

B&T Magazine
Johnny Ruffo & Lynne McGranger Host Emotive’s New Video Series For HelloFresh
  • Campaigns
  • Marketing

Johnny Ruffo & Lynne McGranger Host Emotive’s New Video Series For HelloFresh

HelloFresh Australia, together with content agency Emotive, have launched a new video content series hosted by Home & Away actress Lynne McGranger and entertainer Johnny Ruffo. Dinner Diaries showcases the talent eating their way across the country as they drop into HelloFresh customers’ homes to see what the nation are cooking at dinnertime. The campaign […]

AppNexus Appoints VP Of Diversity, Inclusion & Community Experience
  • Advertising
  • Technology

AppNexus Appoints VP Of Diversity, Inclusion & Community Experience

Independent advertising technology company AppNexus has announced the appointment of Antoinette Hamilton as its vice president of diversity, inclusion and community experience. Filling a new position at the company, Hamilton (pictured above) will spearhead initiatives to promote a diverse and inclusive global community within AppNexus, broaden the range of the company’s talent pipeline, and drive […]

Mango Melbourne Appoints New Head Of Comms
  • Advertising
  • Marketing

Mango Melbourne Appoints New Head Of Comms

If you were to lick your computer monitor while reading this Mango story, it may actually taste like a computer monitor.

by B&T Magazine

B&T Magazine
Pac Mags Appoints Sales Leadership Team
  • Media

Pac Mags Appoints Sales Leadership Team

Look, it's not one but two positive stories about the magazine industry today! You wouldn't read about it, would you?

by B&T Magazine

B&T Magazine
Three Ways To Propel Your Career Now
  • Advertising
  • Marketing
  • Media

Three Ways To Propel Your Career Now

Need a career kick-start without having to wear a feather boa and shake maracas about the office? Read this and pronto.

by B&T Magazine

B&T Magazine
Aussie Cycling Label Attaquer Launches New Racing Kit Via SPLINTR
  • Campaigns
  • Marketing

Aussie Cycling Label Attaquer Launches New Racing Kit Via SPLINTR

Cult Australian cycling label Attaquer approached SPLINTR to present its new Race Ultra+ Collection to the world, and just 24 hours after the brand film launched, the kit was sold out. Attaquer’s new cycling kit aimed to attract not only its current core customer, but also the extreme performance-driven end of the market. Stevan Musulin, […]

Blockhead VFX Hires Richard Betts As Lead Flame Artist
  • Media

Blockhead VFX Hires Richard Betts As Lead Flame Artist

Visual effects and post-production design company Blockhead VFX has announced the appointment of Richard Betts as lead flame artist across its Sydney and Auckland studios. Before the completion of his recent five-year tenure at Fin Design + Effects, Betts completed a seven-year stint at post-production facility The Mill in London. Blockhead co-founder Stefan Coory said: […]

BRICKX Builds Marketing Team With New Hires From Domain & Amaysim
  • Marketing

BRICKX Builds Marketing Team With New Hires From Domain & Amaysim

Property platform BRICKX has announced new marketing hires from Domain Group and telco Amaysim to support its growth. Asok Boopathy (pictured above) has stepped into the role of group director of product role at BRICKX, following two years as head of product at Domain. Boopathy has also previously worked at PayPal, Bigcommerce and Silicon Valley’s […]

Posterscope Helps Transport Accident Commission Increase Relevance For Mobile Drug Testing
  • Advertising
  • Campaigns
  • Media

Posterscope Helps Transport Accident Commission Increase Relevance For Mobile Drug Testing

Out-of-home (OOH) specialist agency Posterscope has deployed Liveposter to help the Transport Accident Commission (TAC) roll out a dynamic digital OOH component of its drug driving campaign. Across a number of high-profile APN Outdoor and QMS digital large-format locations on key arterials in Melbourne, the campaign will be displayed to increase the relevance and immediacy […]