The subscription video on demand (SVOD) service revenue in Australia is expected to increase at a compound annual growth rate (CAGR) of 8.2% from US$1.9 billion in 2022 to US$2.8 billion by 2027, driven by a healthy growth in SVOD subscriptions, and steady rise in the average monthly revenue per unique SVOD household, according to data and analytics company GlobalData.
GlobalData’s latest “Australia Subscription Video on Demand (SVOD) Forecast (Q1 2023)” report reveals that the SVOD subscriptions in the country will increase at a CAGR of 7.6% over the period, in line with the acceleration in cord cutting trend among the traditional pay TV viewers and their migration towards on-demand video services.
“The widespread availability of high-speed broadband services in the country and an increase in fixed broadband household penetration will also facilitate the widespread adoption of subscription video on demand services in Australia,” commented Srikanth Vaidya, Telecom Analyst at GlobalData.
Regarding platforms, Netflix will lead the Australia’s SVOD market and will account for largest share of SVOD subscriptions through the forecast period. “The profound library of US originals and English language drama and comedy series, movies, documentaries, and kids shows will help the company maintain its leadership position in the market,” Vaidya explained.
On the other hand, Disney+ and Prime Video are the other global platforms that are quite popular in the country when it comes to subscription video on demand offers. Unlike most of its competitors, Disney+ has a single pricing plan with all the features available in one subscription price.
“Sports related content plays a big role in Australian media. Hence, most operators maintain sports theme SVOD platforms. For instance, Stan and Optus both maintain sports theme SVOD platforms: Stan Sports and Optus Sport,” Vaidya concluded.
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