Stream On! There’s Room For One More In Australia’s SVOD Market
As the dust settles on another Olympics, the attention now turns to what’s next for the local media industry.
After 7plus posted record streaming numbers during the Tokyo Games, Australians can now expect more digital video options, with Paramount+ officially launching in Australia today.
Paramount+ comes into the local market as a rebrand of what was once 10 All Access, but as 10 ViacomCBS’s chief Sales Officer Rod Prosser recently told B&T, it will put the instinctively recognisable Paramount brand right in front of Australians.
With a host of top Paramount picks, original content and a smattering of live sport thanks to a $300 million broadcast deal between 10 ViacomCBS and Football Australia, Paramount+ is launching as a product ready-made for the Australian market.
But it is also launching into a streaming market that is increasingly crowded.
Canstar recently found that the average Australian household is spending $42 per month on streaming services.
At $8.99 per month or $89.99 annually, Paramount+ is slightly cheaper than Netflix ($10.99 per month for a basic subscription), Stan ($10 a month for basic subscription $10 a month to add Stan Sport), Binge ($10 per month for a basic subscription), Kayo ($25 a month for basic subscription) and Disney+ ($11.99 per month)
Only Amazon Prime ($6.99 a month) and Apple TV+ ($7.99 per month) are more affordable.
It is this pricing edge that 10 ViacomCBS SVP head of streaming Liz Baldwin hopes can encourage Australians to sign up for one more subscription video on demand (SVOD) service.
“Our pricing will be key,” Baldwin told B&T.
“We’re very competitively priced at $8.99 a month, or at $89.99 for a year. We’ve deliberately gone in at a very accessible price point and we think it’s incredible value for money in terms of that price point versus the incredible breadth and depth of content that the service will have.
“We feel pretty confident that when people say what we’ve got that there’ll be a strong uptake.”
An over-crowded market?
Although much has been made about the crowded nature of the SVOD market in Australia (and globally), data suggests there is plenty of subscriber spend to go around.
News Corp revealed last week that Foxtel Now, Binge and Kayo now have over 2 million combined subscribers (with Binge reaching 733,000 subscribers in a little over 12 months), Nine revealed Stan reached the 2 million subscriber mark in August of 2020, while recent reports suggest Netflix now has around 5.4 million subscribers in Australia.
It’s something 10 ViacomCBS’s head of programming Dan Monaghan describes as a local “appetite for streaming”.
“The thirst for content in this market is unparalleled in most markets,” he told B&T.
“We have such a thirst for content – local and overseas content – here that people really will seek out to find the best. And we believe the programs that we have are the best.”
Criteo’s managing director ANZ Colin Barnard told B&T he has been surprised by the continued growth of Australia’s SVOD market.
“In the early days, I thought this might be a bit like classifieds, in that there will be one or two players, and everyone just sticks to those,” he said.
“I’ve been quite surprised by the proliferation of the different platforms.”
Barnard also pointed to the importance of content in keeping consumers interested in signing up for new platforms.
“It’s about the content,” he said. “Obviously with what’s happened in the background with mergers of the different media properties, Paramount+ has access to a ton of really good quality content.”
He also applauded Stan’s efforts in advertising its content offering and suggested Paramount+ would have to do the same in order to enjoy the same success.
Finding savings
Although many households around Australia might happily pay the average of $42 per month to access their favourite content, there is risk that consumers will start to drop off as this fee creeps higher.
To manage this, Barnard said he expects we might see consumers start adding and cancelling their subscriptions more frequently, in order to access content when they want it.
“You’re going to start having people peel off and say: ‘I’ll cap my budget and pay $30 a month for one or two of these, and then I’ll dip into these other services either for free trials or the ones that are ad-supported’.
“I think we underestimate the savviness of consumers. Even though a lot of us are quite lazy in not cancelling stuff, when it starts to hit your monthly budget at that sort of level, then I think you can see some stuff dropping off.”
Ad-supported models
If consumers are to start limiting their monthly expenditure on streaming services, there is a clear business case for ad supported services.
Catchup services such as 9Now, 10play, SBS On Demand and 7Plus have each demonstrated an appetite for ad-supported content in Australia.
Just this week 7Plus revealed it now has 9.2 million registered accounts, after experiencing a 44 per cent increase during the Tokyo Olympics.
Globally, the face of ad-supported streaming services is Tubi, which was acquired by Fox Corp last year.
Tubi, which is now available in Australia, bills itself as the perfect add-on to your Netflix, Stan and Amazon Prime subscription – free of charge and hours of content.
In Fox’s most recent quarterly earnings, Fox Corp’s CEO Lachlan Murdoch revealed the Tubi acquisition had bolstered the company’s wider advertising business on the back of 900 million hours of watch time.
The ability to target viewers with programmatic ads created “a very high rate”, explained Murdoch.
He also said: “We have no interest or plans to invest in high-cost programming to acquire subscribers.”
According to Barnard, the Tubi business model is one that we can expect to see more of.
“There is a higher much higher tolerance for ad-supported models than people might think,” he said.
“From the consumer point of view, if you’ve got enough content and you cancel your Amazon Prime subscription or Netflix subscription, and you’re either a lighter TV viewer, or you’re less interested in what’s being offered on the platform you’re subscribed to, then you might be tempted onto one of those other platforms,”
The ability to serve targeted ads also creates an ecosystem where the consumers, streaming services and advertiser each benefit.
“There’s a win-win-win out of all of this,” Barnard said.
“Users get ads that are more relevant to them, so they’ll be more tolerant.
“It creates ads that are relevant for the advertiser to bother to spend money on, which brings in higher CPMs, which means the platform gets more money to then invest in more and better content.”
With Kathleen Farmilo
Latest News
Enjoy A Hahn Solo… And May The Fourth Be With You
This May the fourth Hahn will celebrate alongside Star Wars fans rewarding their passion via a giant Hahn travelling solo through the sky. It’s the one day of the year when all sci-fi fans rejoice and giggle to themselves and Hahn in partnership with Thinkerbell, UM and Affinity is celebrating with an out of this […]
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.