Question 1

Is the Australian streaming market still expanding?

Accepted Answer

The market has reached a saturation point and is now entering a period of contraction. While average household subscriptions grew to 2.2 in June 2023, total subscriptions are forecast to fall by 6% over the next year as consumer sentiment cools.

Question 2

How severe is the current churn problem for providers?

Accepted Answer

Churn has reached critical levels, with 20% of consumers reporting they cancelled an SVOD service in the last 12 months. This trend is set to accelerate, as 20% of households plan further cancellations against a low 14% intention to sign up for new services.

Question 3

What is driving the sudden shift in consumer spending?

Accepted Answer

Rising cost-of-living pressures and aggressive price hikes have exhausted consumer discretionary budgets. Households are actively reducing their media spend, moving away from the 2.2 subscription average seen in mid-2023 to protect their wallets.

Question 4

Which platforms will benefit from this market correction?

Accepted Answer

Free-to-air TV, BVOD, and AVOD providers are the primary beneficiaries as viewers seek no-cost alternatives. This shift is driven by a 6-percentage-point deficit between those planning to cancel services and those intending to subscribe to new ones.

SVOD facing a consumer revolt?

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