Video Entertainment Market Outlook – March 2022

SVOD growth continues to dominate other video formats as the total market grows at a 6.5% CAGR through FY25.

David Kennedy · Venture Insights1 March 2022Period: March 20228 min read

Last updated 10 June 2026

6.5%↑

Australian video market CAGR (FY21-25)

10.5%↑

SVOD/IPTV revenue CAGR (FY21-25)

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+2more stats

Companies covered:FoxtelNetflixDisney+Amazon PrimeStanBingeKayoFetchOptus TVHoytsJB Hi-Fi

Abstract

This report provides a comprehensive outlook on the Australian video entertainment market, forecasting growth to A$7.0bn by FY25. Driven by a 10.5% CAGR in SVOD revenues, the digital shift is offsetting structural declines in Premium Pay-TV and physical media. The analysis examines the competitive landscape between incumbents like Netflix and Stan against new entrants like Disney+, while detailing the post-pandemic recovery trajectory for cinema and the steady growth of TVOD/EST services through 2025.

Key Takeaways

The Australian video market is forecast to grow at a 6.5% CAGR to reach A$7.0bn by FY25, primarily driven by SVOD penetration.
SVOD revenues are expected to grow at a 10.5% CAGR over FY21-25, reaching A$3.7bn as households adopt multiple services.
Premium Pay-TV revenues will decline at a -3.9% CAGR to A$1.69bn by FY25 as high-ARPU customers migrate to digital platforms.

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Frequently Asked Questions

The total market is forecast to reach A$7.0bn by FY25, growing at a 6.5% CAGR. This expansion is fueled by digital gains that outweigh the structural decline in legacy formats like physical media and premium Pay-TV.

Average annual household expenditure on video entertainment will rise from A$543 in FY21 to A$662 by FY25. This increase is driven by the adoption of multiple SVOD services per household, pushing total SVOD revenues to A$3.7bn.

Netflix's subscriber market share is projected to collapse from 59% in 2018 to 27% by 2025. Intense competition from Disney+, which is expected to capture a 22% share, is the primary driver of this fragmentation.

Premium Pay-TV revenues will contract at a -3.9% CAGR, falling to A$1.69bn by FY25. High-ARPU customers are migrating to digital platforms, contributing to the 10.5% CAGR seen in the SVOD and IPTV segments.

Video Entertainment Market Outlook – March 2022

Abstract

Key Takeaways

Frequently Asked Questions

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