Question 1

Is the total Australian video market expanding or contracting?

Accepted Answer

The market is entering a structural decline, contracting at a 2% CAGR to reach A$5.5 billion by 2024. This downward trend is driven by consumers migrating from high-cost legacy formats to lower-priced digital streaming alternatives.

Question 2

How is the shift to streaming impacting consumer spending habits?

Accepted Answer

Average annual household spend on video entertainment will drop from A$599 in FY20 to A$516 by 2024. Despite a 34% YoY revenue surge for SVOD during FY20 lockdowns, the lower price points of digital platforms are reducing the overall wallet share captured from households.

Question 3

What is the growth trajectory for streaming services compared to traditional TV?

Accepted Answer

SVOD revenues are forecast to grow at a 9.3% CAGR to A$2.1 billion by 2024, supported by a subscriber base reaching 13.7 million. Conversely, premium Pay-TV is facing a sharp -11.1% CAGR decline, with revenues falling to just A$1.6 billion over the same period.

Question 4

How dominant is Netflix in the current competitive landscape?

Accepted Answer

Netflix maintains market leadership with over 5 million Australian subscribers, backed by a massive US$4.4 billion global spend on original content in 2020. However, the platform faces increasing pressure from Disney+ and Apple TV+ as the SVOD sector matures.

Video Entertainment Market Outlook

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