Is the Australian video entertainment market still growing?

Total household video spending is projected to reach a peak in FY25, following a total average spend of $746 in FY24. Future growth is increasingly constrained, with two-thirds of SVOD revenue gains expected to come from price increases rather than new subscriber acquisitions.

How significant has the shift been from traditional cable to streaming?

The transition is near total, with SVOD spending surging from $7 per household in FY14 to $423 in FY24. Over the same period, Pay TV spending collapsed from $293 to $199 as low-end consumers migrated to cheaper digital alternatives.

What is the outlook for physical media and cinema?

Physical media has effectively vanished, with annual household spend dropping from $148 to just $10 over the last decade. Cinema spending will remain stable only because higher ticket prices and premium offerings are offsetting a structural decline in per capita admissions.

What does the current consolidation in the market suggest for the future?

The sale of Foxtel to DAZN signals a strategic exit as growth for local platforms like Kayo and Binge begins to plateau. Operators are shifting focus from volume to margin, as the market reaches a saturation point in household penetration.

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SVOD dominates household video as pay TV slumps

Australian household video spend will peak in FY25, driven by SVOD price hikes as Pay TV continues its long-term structural

David Kennedy · Venture Insights11 July 2025Period: FY254 min read

$423↑

Average Australian household spend on SVOD in FY24

$199↓

Average Australian household spend on Pay TV in FY24

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Abstract

Next week, we will publish our 2025 Video Entertainment Outlook. This week, we offer a preview. Australia video spending per household will reach a peak in FY25. This is mostly driven by SVOD, which has recovered from a reversal of subscription growth in FY24 and has seen strong price increases since FY23. It will continue to expand, mostly driven by price further increases. In contrast, Pay TV will continue to decline, while cinema spending will stabilise as declining per capita admissions are offset by higher ticket prices.

Key Takeaways

Australian household video spending is expected to reach a peak in FY25, primarily driven by SVOD price increases.
SVOD has grown from a $7 annual spend in FY14 to $423 in FY24, now dominating the household video budget.
Pay TV spending has slumped from $293 in FY14 to $199 in FY24 as low-end subscribers switch to cheaper SVOD options.

What's Inside

Household video spending now stable

Why does this matter?

Findings

2 figures& data tables inside

Charts, tables, and data visualisations

Figure 1.

Abstract

Key Takeaways

What's Inside

Household video spending now stable

Why does this matter?

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