Question 1

Is the shift toward streaming services still hollowing out the free-to-air audience?

Accepted Answer

No, reach actually rose in FY24 as a surge in BVOD uptake successfully offset traditional broadcast declines. In contrast, SVOD subscription growth has stalled following price hikes in FY22 and FY23 and increased pressure on household budgets.

Question 2

What is the financial outlook for the television advertising market over the medium term?

Accepted Answer

We forecast FTA TV ad revenue to grow at a 0.9% CAGR over the next five years as viewing patterns begin to stabilize. The combined revenue for FTA and Pay TV is expected to grow at a more modest 0.6% CAGR through the same period.

Question 3

How much are broadcasters still spending on original content and news?

Accepted Answer

The commercial TV industry maintains a significant $1.6 billion annual investment in local news, sport, and content production. This spend remains a critical defensive moat as the average viewer still spends 99 minutes per day consuming FTA content.

Question 4

What regulatory changes should we be preparing for in the next 12 months?

Accepted Answer

The government is preparing a Discussion Paper for early 2025 to address industry regulatory obligations and future form. This follows new anti-siphoning arrangements and a proposed staged reduction in gambling advertising, which we expect to be eliminated within a decade.

FTA TV’s FY24 viewing data bucks the narrative of decline

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