New Research Says Netflix On A Winner, Foxtel In Trouble, Viewers Want TV Over Movies

New Research Says Netflix On A Winner, Foxtel In Trouble, Viewers Want TV Over Movies
SHARE
THIS



The launch of another subscription video-on-demand (sVOD) service, Netflix, in the Australian market could have a large impact on Foxtel. The success of these sVOD services relies on the convenience of the service and delivering high quality TV content. Netflix (US) and Stan have stronger awareness and interest than their sVOD rivals, according to a survey released today by Venture Consulting.

Around 250,000 Foxtel subscribers are at risk of downgrading or cancelling their service

35% of Foxtel’s subscriber base have said that they are considering subscribing to an sVOD service over the next three months.

34% of these have stated they will either cancel or downgrade their service on subscribing to sVOD. This equates to around 250,000 Foxtel subscribers.

TV content is the key driver of subscription for sVOD subscriptions

Access to a wide range of quality content and convenience are the two main reasons why consumers would consider subscribing to any sVOD service .

TV content is nearly twice as important as movies – 58% of users/considerers subscribe for TV content compared to 30% for movies.

TV content is particularly strong for females.

This also partly explains the stronger interest in Stan (20% of interest amongst all those considering sVOD services) which predominantly has more TV content, as opposed to Presto (7% of interest amongst sVOD considerers) whose content library is largely made up of movies.

Interest in sVOD is high – Netflix (US) and Stan have the strongest awareness and interest of all sVOD services

The sVOD market is still relatively nascent, but awareness is growing very quickly

Around a month following launch, Stan already had 25% awareness among online Australians

Netflix (US service) had 32% awareness even before commencing any marketing in the Australian market

Once aware of the service, Stan and Netflix have the strongest appeal to consumers (of those aware of Stan, 28% are considering subscribing in the next 3 months).

According to Phil Codrington, report author and senior manager, Venture Consulting, “Foxtel has a lot at stake with around 250,000 subscribers at risk of downgrading their package or leaving Foxtel altogether in response to SVOD competition. Foxtel have a fine balancing act between playing in the SVOD market and managing the cannibalisation of its core revenue base.”

Codrington added, “The Australian SVOD market is unlikely to sustain more than two players longer term – being one of the top two in the market is critical. TV content is going to be a key differentiator for Netflix, Stan and Presto to strengthen their competitive position. This will mean having a broad range of TV content, a depth in quality and especially having new and exclusive TV content. So far, Stan and Netflix US are clearly driving stronger interest from consumers than Presto or Quickflix. It will be interesting to see the extent to which Netflix can transfer its strong brand equity to its Australian service, which will likely have significantly weaker content than its US counterpart”.

Please login with linkedin to comment

Bloke Fetch TV

Latest News

AFR Remya Ramesh head of digital experience at Coles for BOSS Young Executive of the Year  Wednesday 16th June 2021 Photo by Eamon Gallagher
  • Media

AFR BOSS Names Winners Of 2021 Boss Young Executives Awards

In a year where ‘business as usual’ is anything but, AFR BOSS reveals six of Australia’s most inspirational and outstanding young leaders who excelled during the pandemic. The six have been crowned the 2021 BOSS Young Executives in the prestigious awards program, now in its 18th year. Run in conjunction with global leadership consulting firm […]

QMS Renews Contract With Manboom
  • Marketing

QMS Renews Contract With Manboom

On first inspection, B&T was hoping to bring you some manboobs news here. But as you'll see, it's a girdle-free read.

Marketing strategy on digital mobile platform - cross-device tracking programmatic advertising and multi targeting with laptop and mobile phone gadgets.
  • Technology

Index Exchange And MediaMath Join The Human Collective

HUMAN Security (formerly White Ops) today announced two new founding Human Collective members: Index Exchange and MediaMath. Together they participated in thought-provoking panel discussions during the recent IAB Tech Lab CTV & Video Advertising: Growing with Standards virtual event where they emphasized how important it is to work together in the fight against fraud on […]

by B&T Magazine

B&T Magazine
SCA Appoints Cathrine McVeigh To Head Of Audio Production And Operations
  • Media

SCA Appoints Cathrine McVeigh To Head Of Audio Production And Operations

SCA has announced the appointment of Cathrine McVeigh to head of audio production and operations. She will be part of the content leadership team. In the newly created role, McVeigh will oversee the creation of SCA’s new audio production and content operations hub and lead a combined team across the country to deliver a rapidly […]