Question 1

How large is the revenue opportunity in the Australian streaming market over the next few years?

Accepted Answer

The SVOD market is projected to reach A$848 million by 2020, expanding at a 33% CAGR from 2015 levels. This growth is underpinned by a significant shift in consumer spending, with pay-lite services expected to grow from 6% to 25% of total paid subscriber revenue.

Question 2

Will one player dominate the subscriber base or is there room for competition?

Accepted Answer

Netflix is forecast to increase its subscriber market share from 50% to 60% by 2020. Despite this concentration, IPTV providers like Fetch are successfully defending an 18% revenue share through platform aggregation strategies.

Question 3

What does the typical subscriber profile and spending look like?

Accepted Answer

Market penetration will hit 35% of households by 2020, totaling 4.5 million subscribers. While the average household will take 1.3 services, ARPU is expected to decline to A$16 as the market shifts toward lower-priced pure SVOD options.

Question 4

Is streaming content spend high enough to threaten traditional TV networks?

Accepted Answer

SVOD content investment remains relatively small at A$400-500 million compared to the A$3.5 billion spent annually by traditional broadcasters. However, SVOD players are successfully targeting consumer preferences, with users valuing TV series 1.9 times more than movies.

SVOD Market Outlook – the new kid on the block can approach $1b

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