takes lead in race for subscriptions - 7th April 2015
one in five Australians either intends to subscribe
to Netflix or is already using it, giving it a major
head start in the battle for the subscription video-on-demand
market in Australia, new research shows.
research, commissioned by Authentic Entertainment
which provides syndicated music services and operates
the Vevo online music video platform, suggests there
is a sizeable market for paid over-the-top video services
in Australia. And that they are likely to gain traction
represents the new world of viewing, Authentic
head of research Beth van Koesveld said.
can pick your time: TV and video fit around life.
The brands that are defining (the landscape) are completely
different than five years ago.
in three (65 per cent) Australians watch short clips,
catch-up TV services or long-form video online, and
14 per cent of those had subscribed to the US version
of Netflix by the end of last year, with 9 per cent
signing up to local service Quickflix.
additional 14 per cent intended to sign up to the
Australian version of Netflix, which launched last
month, while 18 per cent was thinking about using
Quickflix, according to a study of the over-the-top
video market, or video delivered online rather than
via broadcast, cable or satellite.
penetration levels are likely to grow by 30 per cent
from 65 per cent of the total population to 85 per
cent within two years, according to Authentic marketing
and strategy director Jonathan Hopkins. Thats
before smart TVs are connected to the internet in
big numbers; while about 29 per cent of Australians
own a smart TV, very few have connected them to the
internet. It is the next frontier, Mr
viewing has moved increasingly to mobile devices,
and it is now consumed in every room in the house,
as well as in snackable serves while on the go.
OTT video consumers Netflix had the highest brand
awareness at 58 per cent, followed by Quickflix (54
per cent) and Fetch TV (52 per cent).
the research was conducted in December last year,
new local streaming video-on-demand services including
Fairfax and Nines joint venture Stan, and Foxtel
and Sevens JV Presto have also launched. At
the time they did not rank highly for intent to purchase,
revealing the scale of the marketing job ahead of
them. The challenge they face is how hard is
it to get Stan on the big screen, Ms van Koesveld
said. Its not necessarily clear to consumers.
said while sport, news and big-event viewing would
remain on broadcast TV, the move to an on-demand mindset
spells trouble for the traditional (broadcasters).
than eight in ten (86 per cent) of 16 to 24 year-olds
watch video online and at 30.3 hours a fortnight,
it dwarfs their television viewing of 21.5 hours over
the same period.
younger demographics free-to-air networks dont
have the same kudos as they do for the people that
were brought up on them, Ms van Koesveld said.
17-year-old girl interviewed for the study, which
included in-home ethnographic interviews and an online
survey of more than 1700 people, had several VPNs
to view international OTT video services, watched
broadcast TV only on a time-shifted basis and preferred
British shows to Australian product.
do they call it catch-up TV? she said of the
free-to-airs own video-on-demand services. I
havent missed anything.
penetration levels are heavily age-dependent, even
among those aged 55 and older, one in two - 54 per
cent - watch video online.
under half (48 per cent) of respondents admitted to
watching pirated content a figure Authentic
believes is likely to be understated. Half of those
cited cost as a factor, but being able to watch high-quality
video was more important than not having to pay.
most subscription video-on-demand services are ad-free,
Authentic believes they also present an opportunity
for advertisers, with one in two people preferring
to watch ads rather than pay for SVOD. It probably
means a new focus for advertisers, Ms van Koesveld
said. Consumers seek out premium content,
she said. Advertisers should too. (The