We’re in the middle of an entertainment revolution with a massive switch from broadcast TV to broadband TV with subscription video on demand services expected to more than double in Australia by 2022.
Ovum’s OTT (over the top) Video Forecast has predicted seven million Australians will have an SVOD account in five years – that’s an increase of 170 per cent on the 2.6 million currently subscribing with revenues hitting more than a $1 billion.
Netflix and Stan are expected to take 70 per cent of that profit.
Ovum’s findings match up with Telstye’s 2017 Digital Consumer Study which shows 46 per cent of the country has relied on the internet as their main source of entertainment.
But renting or purchasing a movie or TV show has decreased by 19 per cent in the last 12 months with viewers choosing to stream content on demand instead.
Netflix is the clear winner in the SVOD space with 69 per cent market share followed by Stan (20 per cent) and Foxtel Play (8 per cent).
NBN’s Network Traffic Data Report shows homes connected to the NBN are downloading more content than ever before.
On average, an NBN-connected home uses 148GB of data per month – that’s 32 per cent more than last year.
“Access to fast broadband is enabling the online video streaming revolution to thrive in Australia as we move from broadcast to broadband TV consumption,” said NBN’s executive general manager, product and pricing Sarah Palmer.
“The significant increase in usage over the NBN network tells us the more bandwidth Australians have, the more content we want to consume.
“Online video services deliver a host of content that appeals to everyone in the household.
“It’s important for households who stream a lot of online content to speak with their service provider and choose a plan which suits their needs so they can enjoy the best internet experience possible.”
At present one in three Australian homes has access to the NBN with the rollout due to reach the halfway mark by mid-2017.
The NBN is scheduled to be completed by 2020.