UBS Conference: What could the media landscape look like in 5 years?

Australian media operators pivot toward BVOD and consolidation to compete with global tech giants and shifting consumer habits.

Vinay Chhoda · Venture Insights1 November 2018Period: November 20184 min read

Last updated 8 June 2026

66%↑

Projected digital share of total ad market by 2022

49%→

Current digital share of the Australian advertising market

Locked

Companies covered:UBSJC DecauxMagna GlobalSMIWPPNine-FairfaxFoxtelFox Sports

Abstract

This report analyzes key takeaways from the 2018 UBS Investors Conference media panel, focusing on the five-year outlook for the Australian media landscape. While digital remains the primary growth engine, traditional operators are aligning offerings with customer preferences through BVOD and addressable TV. The market faces headwinds from falling house prices and banking sector shifts, yet digital ad spend is forecast to grow from 49% to approximately 66% of the total market by 2022, driven by mobile and online video.

Key Takeaways

Digital advertising is forecast to capture 66% of the total Australian market by 2022, up from 49% in 2018.
Free-to-air operators are pivoting to BVOD to offset linear declines, though they remain behind SVOD players in user experience.
The Australian media sector faces a 5-7 year consolidation cycle to build the scale necessary to compete with global tech giants.

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Frequently Asked Questions

Digital advertising is projected to capture 66% of the total market by 2022, up from the current 49% share. This expansion is driven primarily by the rapid growth of mobile and online video platforms.

No, the media industry is currently at the beginning of a consolidation cycle expected to last between 5 and 7 years. Local businesses must achieve significant scale through these mergers to effectively compete with global technology giants.

Broadcasters are pivoting toward Broadcast Video on Demand (BVOD) and addressable TV to align with changing consumer habits. This transition is essential for maintaining relevance as digital spend scales toward two-thirds of the total advertising market.

Out-of-Home (OoH) media is becoming increasingly personalized through contextualized executions. This shift allows physical assets to compete more effectively for the digital ad spend that will dominate 66% of the market by 2022.

UBS Conference: What could the media landscape look like in 5 years?

Abstract

Key Takeaways

Frequently Asked Questions

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