New research has found that demand for subscription video on-demand services (SVOD) will remain stable despite three-quarters of Australians citing cost-of-living challenges.
The stats come from Deloitte’s TMT (Technology, Media and Telco) Predictions 2025 study and show that bundling and ad tiers will play an important role as consumers face up to these rising costs.
The consultancy reckons 15 per cent of non-bundling consumers will bundle their subscriptions in response to cost pressures and subscription fatigue. Growth in ad-supported streaming is expected rise from 11 per cent in 2024 to 18 per cent in 2025.
When it comes to content creation, Generative AI will help drive efficiencies and unlock value for studios but IP concerns will limit content use cases.
Deloitte added that women’s sport continues to attract more investment with audience interest and its ability to deliver financial returns at an all time high. Australia will become one of the top three revenue-generating elite women’s sporting economies per capita. Meanwhile, sponsors of Australian women’s teams will see a significantly higher return on every dollar invested compared to sponsors of men’s teams.
Deloitte’s research also said that the TMT sector is on the verge of a significant leap forward, largely powered by rapid AI adoption. But to get there, the industry will need to find the right balance between emerging opportunities and challenges including: addressing gender disparities in gen AI usage, managing the energy consumption of gen AI data centres, and tackling trust concerns surrounding deepfake content.
The report found that the gender gap in AI adoption persists with lower trust, education and employment participation driving the shortfall. Half of all women in the Australian workplace use and trust generative AI compared to almost three quarters of men.
In 2025, Australian women will account for two-fifths of AI-related educational enrolments and a fifth of AI employment participation, driven by educational institutions and businesses continuing to promote initiatives specifically designed to increase female participation.
Another trend is the growing power consumption of AI data centres and the additional strain it places on the grid with data centres predicted to consume eight per cent of national electricity by 2030, up from five per cent in 2024. This is forcing operators to consider more sustainable, innovative and reliable energy solutions. In 2025, 90 per cent of data centres currently in development will seek to attain NABER’s 5-star environmental performance rating while reducing their Scope 2 emissions by up to 10 per cent through the use of liquid cooling solutions.
Deloitte Australia national industry and sector lead, Bec McConnochie said: “The 2025 TMT Predictions show we are at a pivotal moment where the choices we make today will have a significant impact on the future of the sector.
“This presents a unique opportunity for us to make sure that future is based on trust, inclusivity, and sustainability so that industry advancements not only benefit the current generation, but all those who follow.”
Autonomous generative AI agents are impacting the TMT sector but Australian businesses will take a cautious “wait-and-see” approach to AI agent deployment, reflecting the country’s broader trend of slow Gen AI adoption. Uptake is expected to enhance efficiency particularly in the manufacturing, retail, professional service, and health care industries. But despite the hype for AI agents, investment in local start-ups is expected to remain subdued with total funding estimated to remain below $50 million until 2027.
When it comes to on-device generative AI, it’s estimated more than half of Australian smartphones will be AI enabled by the end of 2025. This is driven by the dominance of premium brands like Apple, with its market share of 55 per cent locally compared to a quarter globally. The growing adoption of AI-enabled smart phones will push out device upgrade cycles. The average premium smartphone will be replaced every four years, an increase of six months from 2023.
The rise of deepfakes is another trend that stands out. Deepfake attacks are expected to double in 2025 impacting over two-fifths of Australian businesses, with increased use of social engineering tactics to bypass human controls. The number of consumers targeted by deepfake scams is expected to rise from just over a third in 2024 to half of all consumers in 2025. Women are being disproportionately impacted by deepfake harassment with nine of every ten incidents targeting females.
“This year’s report reflects a TMT landscape in transition. Generative AI is redefining productivity and creativity. Content discovery is increasingly shaped by algorithms and ecosystems, not channels. And sustainability, once a side narrative, is now a board-level priority across the sector,” said Deloitte Australia lead partner of telecommunications, media and technology, Peter Corbett.
“As we move into the next phase of digital evolution, the most resilient companies will be those that can cut through complexity, spot signals early, and move with intent. The best way to navigate uncertainty is not to wait—but to prepare.”
