COVID-19 impact on ANZ media: major structural and regulatory change now inevitable

Structural and regulatory shifts in ANZ media are now inevitable as COVID-19 disrupts advertising and live sports.

David Kennedy · Venture Insights1 April 2020Period: April 20208 min read

Last updated 10 June 2026

-80%↓

Southern Cross Media share price change (Feb 1 to April 15 2020)

12.2M→

Netflix subscribers in Australia (February 2020)

Locked

+2more stats

Companies covered:NetflixStanFoxtelSky TVOptus SportSpark SportKayoNine Entertainment Co.Seven West MediaPrime Media GroupSouthern Cross MediaFacebookAmazonDisney+YouTube Premium

Abstract

This report analyses the profound impact of COVID-19 on the Australian and New Zealand media landscapes, forecasting inevitable structural and regulatory changes. It highlights the 'perfect storm' facing specialised sports streaming platforms and the severe financial pressure on Free-To-Air (FTA) broadcasters due to the simultaneous loss of advertising revenue and live sports content. Conversely, SVOD platforms like Netflix and Stan are positioned as more robust, benefiting from deep content libraries and a lack of advertising exposure during the economic downturn.

Key Takeaways

Australian media stocks have seen dramatic valuations drops, with Southern Cross Media falling 80% and Seven West Media falling 56% between February and April 2020.
SVOD platforms are significantly more robust than FTA, with Netflix leading the Australian market at 12.2 million subscribers compared to Foxtel's 4.8 million.
Sports rights fragmentation is accelerating as weakened FTA broadcasters lose their dominant position to SVOD players like Optus, Spark, and Amazon.

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Frequently Asked Questions

The impact is critical, characterized by a dual collapse in advertising revenue and live content. Southern Cross Media saw its share price drop by 80% between February 1 and April 15, 2020, highlighting the extreme vulnerability of Free-To-Air broadcasters.

Yes, these platforms face a liquidity crisis as live events remain suspended. Kayo lost 32,000 customers in the quarter ending February 5, and 19% of survey respondents are now actively seeking monthly refunds for sports subscriptions.

SVOD platforms like Netflix, which has 12.2 million Australian subscribers, are the most resilient due to their ad-free models and extensive content libraries. However, total market growth will be capped as consumers look to reduce overall monthly subscription spending.

The downturn accelerates a pre-existing trajectory of decline. Sky TV NZ recorded a revenue CAGR of -3% between 2015 and 2019, making structural and regulatory intervention a necessity rather than an option.

COVID-19 impact on ANZ media: major structural and regulatory change now inevitable

Abstract

Key Takeaways

Frequently Asked Questions

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