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.
The Real Media Collective (TRMC), the Australian industry association representing the interests of companies in the paper, print, publishing/media and related distribution sectors across Australia, has challenged Coles Supermarkets for using the environment as a reason in its announcement today outlining its plans to cease sending catalogues to Australian homes from September. In the announcement, […]
Network 10 is set to undergo a massive restructure, leaving a number of high-profile journalists out of a job, including Kerri-Anne Kennerley, Natarsha Belling and Tim Bailey, B&T understands. As first reported on The Sydney Morning Herald, the restructure was announced to staff on Tuesday. As part of the restructuring, the presentation of the weekday […]
Alcohol & Drug Foundation (ADF) has launched a new national health campaign with Campaign Edge aiming to tackle COVID-19 drinking. Funded by the Australian Government, Break the Habit reveals that it takes only around 66 days to form a habit – roughly the same amount of time many Australians spent in lockdown. It’s a fact most Aussies are […]
Paul Roach (pictured below) is a business strategist and coach who has worked with hundreds of SMEs across many industries to supercharge their cashflow. Roach is also author of the book Smarter Business Stronger Cashflow. In this guest post, Roach gives his top tips when the cash taps start to be turned off… Cashflow is like […]
Sydney and Melbourne based PR, Talent & Digital agency One Daydream has extended its client portfolio to include alcohol. The category expansion comes as One Daydream joins the agency roster of Pernod Ricard, working on a project basis to manage strategic PR and digital campaigns. The global drinks group boasts one of the most comprehensive and prestigious […]
Commtract today expanded its marketing, advertising and digital offering in response to a growing number of CEOs outsourcing to ‘gig-workers’ amid COVID-19. According to new research, 40 per cent of Australian CEOs are planning on outsourcing to freelancers in the contingent workforce. Commtract, which launched in 2016, has more than 4,000 communications experts on its platform, and has already placed over 800 roles. […]