Question 1

Is the traditional TV advertising market still a growth area?

Accepted Answer

No, the market is entering a structural decline. Advertising revenue is forecast to contract at a -1.0% CAGR, falling from $3,789 million in 2015 to $3,610 million by 2020.

Question 2

How significant is the shift away from traditional TV sets among younger viewers?

Accepted Answer

The shift is drastic, particularly in the 18-24 demographic where TV set viewing has fallen to just 59% of total consumption time. This fragmentation is driving a surge in second-screen usage, with 25% of all viewers now using mobile devices to interact with live content.

Question 3

What is the primary driver of rising operational costs for broadcasters?

Accepted Answer

Escalating premium sports rights are the dominant cost pressure, with recent AFL and NRL deals increasing by 68% and 70% respectively. These costs are forcing broadcasters to seek scale through M&A and regulatory relief to sustain margins.

Question 4

How quickly do audiences migrate to catch-up services after a broadcast?

Accepted Answer

Consumption is highly front-loaded, with 46% of catch-up viewership occurring within the first 48 hours. By the fifth day, 70% of the total 16-day viewership window has been exhausted, requiring advertisers to front-load their digital campaigns.

Australian Entertainment and Media 2016 - 2020: Free-to-air television

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