The future of free-to-air television Part 2: Profiting from New Frontiers

Broadcasters must adapt to on-demand shifts where 74% of online Australians now watch VOD weekly to avoid irrelevance.

Gabbi Stubbs · Venture Insights1 November 2016Period: November 201612 min read

Last updated 10 June 2026

9.15%↓

Decline in peak night TV audiences (2015)

80%↑

Share of global internet traffic from video (2019 forecast)

Locked

+1more stats

Companies covered:CiscoNielsenYouTubeFacebookNetflixGoogleAmazonTwitterTelstraNine Entertainment CompanySeven West MediaSBSDisneyHulu

Abstract

This report analyses the structural shift in the Australian media landscape as free-to-air (FTA) television transitions from a dominant linear model to a fragmented digital environment. It identifies five key video trends, nine strategic opportunities, and six digital success strategies for broadcasters. With peak night audiences down 9.15% in 2015, the analysis emphasizes that revenue will inevitably follow the shift toward on-demand consumption, requiring a total reimagining of traditional broadcast business models and measurement metrics.

Key Takeaways

Peak night television audiences declined by 9.15% in 2015, signaling a structural shift away from linear FTA TV.
Video-on-Demand reach is forecast to hit 67% of online Australians by the end of 2016, driven by high engagement in younger demographics.
Global consumer internet video traffic is expected to reach 80% of all traffic by 2019, up from 64% in 2014.

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Frequently Asked Questions

Peak night TV audiences fell by 9.15% in 2015, signaling a permanent structural shift toward digital consumption. Revenue will follow this migration, as 59% of online Australians now utilize video-on-demand services.

Video will account for 80% of all global internet traffic by 2019. Network operators must prepare for a 32% CAGR in internet video delivered to television sets through 2019.

YouTube has achieved a reach of 15 million Australians, rivaling traditional broadcast scale. Broadcasters must adapt to this competition immediately as demand for on-demand content remains effectively uncapped.

Consumer behavior is changing across the entire audience profile, necessitating a total reimagining of business models beyond just Millennial-focused strategies. With VOD reach at 59% among all online Australians, the transition is a broad-market phenomenon.

The future of free-to-air television Part 2: Profiting from New Frontiers

Abstract

Key Takeaways

Frequently Asked Questions

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