Streaming is now Australians’ preferred way to watch TV, with new research conducted by the VFC, in partnership with YouGov, showing 66 per cent of Aussies prefer streaming services for TV content.
The findings come from the inaugural State of Streaming report from the Video Futures Collective (VFC), which provides a view of the Australian streaming video market across ad investment, growth drivers, viewer profiles and effectiveness evidence.
Drawing on the latest proprietary and industry research current to October 2026, the report shows streaming has reached a tipping point in Australia. Two thirds (66 per cent) of Australians now prefer streaming to watch TV content; and 94 per cent of ad-supported streamers have watched TV in the last week, four percentage points above the nationally representative population.
The report is the first industry research to specifically isolate ad-supported streamers – people who consume streaming services including SVOD, BVOD, AVOD and FAST with commercials – across a range of findings. The aim is to provide advertisers with a clearer picture of the audiences they can reach through streaming.
Streaming’s share of viewing continues to grow. Within Samsung Smart TV households, streaming accounted for 73 per cent of viewing in Q3 2026, with streaming viewing increasing by two per cent year on year while linear viewing declined by five per cent.
“Streaming has moved from being an emerging part of the TV landscape to a central part of how Australians consume video. For advertisers, that shift makes understanding who is watching, how they behave and what impact advertising has increasingly important,” said Toby Dewar, CEO of VFC.
“The State of Streaming report is designed to bring those signals together in one consistent view, giving the industry a clearer picture of where the market is heading and where the opportunities are emerging. By updating the report quarterly, we can track those changes as they happen and help advertisers make more informed decisions in a market that is evolving rapidly.”
According to IAB’s Video Advertising State of the Nation 2026 report, investment in VOD continues to gain momentum, growing 10 per cent year on year, with 71 per cent of advertisers indicating they intend to increase their spend. WPP’s This Year Next Year 2026 Mid-Year Forecast predicts this momentum will result in VOD investment growth of 21 per cent in 2027.
The State of Streaming findings shed further light on the audiences behind this growth, revealing distinct demographic and purchasing characteristics among people consuming ad-supported streaming.
Ad-supported streamers are more likely than ad-free or non-streamers to be university-educated, work full-time, have a higher income and own their own home. Conversely, ad-free or non-streamers are more likely to be students or retired, rent their home and have limited or no disposable income.
This translates into greater purchasing propensity across a broad range of categories. Compared with ad-free or non-streamers, ad-supported streamers are 26 per cent and 22 per cent more likely to purchase paid accommodation and flights respectively, 20 per cent more likely to purchase non-alcohol beverages, and 18 per cent more likely to purchase QSR. The research also identifies higher purchasing propensity across travel and leisure, alcohol, personal care, sports betting, financial services, vehicle rental and retail purchases.
“The research shows that ad-supported streaming audiences are not only distinct in profile, but also demonstrate stronger purchasing propensity across a range of categories. That points to a broader opportunity for advertisers to understand the value of these audiences beyond reach alone,” said Jo Moses, head of research, VFC.
“By bringing these insights together over time, State of Streaming report will help track how streaming audiences evolve and provide a more consistent evidence base for planning and investment.”
The report also points to the quality of the streaming viewing experience as an important driver of audience growth. More than half of streamers (57 per cent) say they choose streaming because they can watch content whenever they want, while 42 per cent cite access to shows unavailable on traditional TV broadcasts. More than three in ten (33 per cent) say streaming makes it easier to find what they want to watch, while 18 per cent say the viewing/quality experience is better.
Separate attention research completed by Amplified and included in the report found streaming video on connected TV generated significantly more active attention than all other measured media environments except cinema. It was higher than linear TV, YouTube mobile and scrollable social platforms such as TikTok and Instagram.
The State of Streaming report will be released quarterly, providing advertisers and agencies with an updated view of streaming investment, growth, audiences and advertising effectiveness as the Australian market continues to evolve.
