As demand for subscription entertainment shows no sign of slowing, and content continues to fragment across multiple existing services, some very clear opportunities are emerging in Australia, according to Deloitte Australia’s latest “Media Consumer Survey” report.
Digital entertainment subscriptions in the country are no longer “a nice-to-have” and they are almost a household utility now, with 80% of respondents paying for at least one digital entertainment subscription of one sort, and an average monthly household spend of A$55.
“Younger generations lead the way – 95% of all Gen Z have at least one paid digital entertainment subscription service, closely followed by 93% of Millennials, and 60% of both Gen Z and Millennials having more subscriptions now than a year ago. We are well and truly in the age of the entertainment subscription – but how many can we have before both the experience and our budget break,” queried Leora Nevezie, National Media Sector Leader and Partner at Deloitte Australia.
Furthermore, the report revealed that 70% of Australian respondents have a TV/movie streaming subscription, and of those that do, 87% have Netflix, 29% have Disney+, 29% have Amazon Prime Video, 26% have Stan, 13% have Apple TV+, and 9% have Binge. Nevertheless, Nevezie advised: “Managing and consuming multiple services is becoming complex and expensive. The race is on to lead the way on audience experience”.
In total, there is an average of 2.3 paid TV/movie services in each household. Furthermore, the average time Australian people spend each week watching paid TV/movie streaming services is seven hours. However, 58% are concerned about the costs of multiple services, and 27% have in fact “re-churned” (cancelled a subscription service and then rejoined).
Regarding specifically pay TV, 18% have a subscription. Sport is the top reason pay TV subscribers keep their service, while subscribing to a TV/movie streaming service instead was the top reason for cancelling or intend to cancel.