Video streaming services like Stan and Netflix are set to overtake Foxtel and other traditional pay-TV services in market share over the next two years.
As competition for the dollars of Australian subscribers grows, the local subscription TV market is tipped to increase at a 2.9 per cent compound yearly rate from 2019 to 2023, bringing with it $4.6 billion in value.
These forecasts are based on PwC’s 18th annual Australian Entertainment and Media Outlook, which was released today.
While Netflix and Stan are forecast to grow 13.7 per cent, News Corp’s embattled Foxtel is expected to fall 2.9 per cent.
Co-author of the report, Justin Papps, told the SMH the findings from the report speak more to the “strength of video on demander rather than any deficiency of a box,” adding that it’s a “behavioral change from customers.”
The report revealed in the last 12 months, the subscription streaming video market has increased 31 per cent, with many Australians willing to pay for multiple streaming platforms.
Papps also said smart TVs mean Australians have more content available to stream, without having to order or a box or having something specifically installed.
The 27.7 per cent growth forecast for BVOD apps like Nine’s 9Now, Network Ten’s 10play and Seven West Media’s 7plus can also be attributed to smart TVs.
The out-of-home sector is also expected to see significant growth over the next five years, with a projected annual growth of 8.4 per cent.
According to the report, most sectors in the media industry, bar newspapers and magazines, are expected to grow overall by 2023.