Total TV Market Down 5.9% In Ad Revenue, While BVOD Grows 43%
The total TV market has posted $1.95 billion in ad revenue for the first half of the financial year, with BVOD takings growing a significant 42.8 per cent, according to ThinkTV.
Amidst overall challenging market conditions, for the first half of FY2020, the total TV market – which includes metropolitan free-to-air, regional free-to-air, subscription TV and BVOD – recorded combined revenue of $1.95 billion for the period, down 5.9 per cent compared to the same period the year prior.
ThinkTV CEO Kim Portrate said: “Changes in the total TV advertising market, the most effective medium for driving business growth, reflect the state of the Australian economy and the impact of weaker consumer and business confidence.”
Growing consumption of content across BVOD platforms 7Plus, 9Now, 10 Play, Kayo and Foxtel Now, sees rapid revenue increase with BVOD up 42.8 per cent for the six months to December 31, 2019.
“The performance of BVOD continues to buck general market performance trends retaining the title of Australia’s fastest-growing advertising medium which demonstrates a growing list of advertisers who recognise the value and effectiveness multi-platform TV provides. This is an achievement all the more noteworthy given the challenging economic conditions the wider advertising landscape is currently grappling with,” added Portrate.
For the 12 months to December 2019, the total TV market recorded $3.86 billion in advertising revenue, down 4.8 per cent compared to the 12 months to December 2018. For this period, BVOD saw an increase of 38.9 per cent.
| Performance by sector | ||||
| 6 mths to Dec 19 | % change | 12 mths to Dec 19 | % change | |
| Total TV (ex SBS) | $1,952,579,234 | -5.9% | $3,862,357,185 | -4.8% |
| Metropolitan FTA | $1,324,109,900 | -7.0% | $2,615,664,731 | -6.1% |
| National | $197,333,289 | -9.9% | $394,324,777 | -7.0% |
| BVOD | $87,347,296 | 42.8% | $154,458,021 | 38.9% |
| Regional FTA | $343,788,749 | -7.4% | $697,909,655 | -4.9% |
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