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Platforms Focus on Profitability in Australia, Asia-Pacific’s Most Mature Streaming Market, Says Study

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Disney+ and Amazon Prime Video compete for second position behind Netflix in Australia, the Asia-Pacific region’s most developed streaming market. But, increasingly, all premium SVOD suppliers are focusing on profitability rather than simple growth.

A new report from consultancy and research firm Media Partners Asia, “Australia Online Video Consumer Insights & Analytics” shows that Australian consumers streamed 24 billion minutes of premium online video between January and August this year. SVOD platforms accounted for 70% of viewing time, while broadcaster-operated platforms (BVOD) claimed 30%. The numbers reflect a mixture of measured usage and a panel of viewers.

The report indicates that SVOD subscriptions reached 22.1 million at the end of August 2022, up from 19.4 million in the third quarter of 2021. Netflix retains pole position with 30% share of subscriptions, while expanding its lead in consumption share from 38% in 2021 to 50% in Jan-Aug 2022. “Disney+ and Amazon Prime Video compete for second place with 17% share of subscribers each, while maintaining consumption share,” the report said.

“As the Australian SVOD market matures, platforms are increasingly focused on monetization. Netflix, Binge, Kayo and Stan have all raised prices over the past year and lower-cost, ad-supported tiers are expected from Netflix, Disney+ and potentially Amazon as platforms look to unlock new revenue streams,” said Vivek Couto, MPA executive director.

The market share of Stan, the Australian-operated streamer now wholly owned by Nine Entertainment, has seen its share of streaming time shrink from 18% in 2021 to 8% in the first eight months of 2022, as competition for first-window U.S. dramas has intensified.

Disney and Paramount, now both operating their own platforms, “have ceased or limited licensing their content, placing pressure on local general entertainment platforms Stan and Binge to secure popular dramas, while Stan and Foxtel’s Kayo continue to leverage key sports to drive average revenues per users (ARPUs),” said Couto.

According to MPA’s breakdown, the platforms have significantly varied shares of subscriptions and viewing time. Netflix accounts for 30% of subscriptions in Australia and 50% of premium streaming viewing time. Disney+ has 17% of subscriptions and 16% of viewing time. Prime Video has 17% of subscriptions and 9% of viewing time.
Foxtel’s OTT collection (including Kayo, Binge and Foxtel Now) accounts for 12% of subscriptions while Kayo and Binge accounted for a 14% share of viewing time. Stan accounts for 11% of subscriptions, but only8% of viewing time.