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The Drum

Subscription video-on-demand outstrips TV in Australasia, says research

Subscription video-on-demand outstrips TV in Australasia, says research

Australasia is seeing a consistent rise in the subscription of video-on-demand (SVOD) and has already outstripped pay-TV, according to research by Ampere Analysis.

In the Australian market, almost half (49%) of those with SVOD at home subscribe to one service, one third (31%) subscribe to two services, and 21% take three.

The research further advises the players to focus on localisation to combat Netflix in the region. According to the analysts, Australia as a hugely advanced market for streaming services and provides an interesting test case for the transition from traditional forms of paid TV distribution to the new.

SVOD has also surpassed pay-TV elsewhere in APAC including Thailand and Singapore - with Malaysia on the brink of achieving the turning point, the report mentioned.

Ampere predicts the household penetration of SVOD to reach 88% in Singapore, 64% in Australia and 42% in New Zealand by the end of 2019.

Ampere Analysis analyst and director Guy Bisson, said: “It’s no surprise that Disney has chosen Australia and New Zealand as two of the first four international markets for its direct-to-consumer streaming launches.

"If they are to stop Netflix dominating, local broadcasters need to evolve their own streaming platforms in order to maintain market and competitive position, leveraging strengths around local production and potentially co-operating on joint services and aggregation and navigation as well as exploring hybrid (mixed subscription/advertising) streaming business models.”