Local subscription OTT services in Australia are continuing to see strong growth amid increasing competition from global players, driven by attractive licensing deals, key sports rights and competitive pricing, Ampere Analysis noted in its latest report. In fact, Stan, Binge, Kayo Sports and Optus Sports surpassed a combined 5 million subscriptions in the third quearter of 2020, and Ampere forecasts that between them they are on track to hit almost 10 million subscriptions by the end of 2026.
With prices for Binge and Stan starting at just AUD10 ($7.41) per month, the services, owned by Foxtel and Nine Entertainment, respectively, offer a very low entry point, below the $10.99 ($8.14) price for a basic Netflix subscription. Binge also has exclusive streaming rights to HBO content in the nation, as well as access to Foxtel original content such as “The Great Australian Bake Off,” otherwise only accessible via Foxtel’s more-expensive pay TV subscriptions, which start at AUD49 ($36.30) per month.
Sports rights also serve as a key differentiator for local services. Kayo Sports, priced at AUD25 ($18.52) per month, has the Australian Football League (AFL), which according to the latest Ampere Consumer survey is the most enjoyed sports league in the country, and also the one consumers are most willing to pay for. While Paramount+ offers the Australian Premier League, fewer than 2% show a willingness to pay for this league, according to Ampere’s Consumer survey. Optus Sport, priced at AUD14.99 ($11.11) per month, offers the English Premier League, while Stan Sport, which costs an additional AUD10 ($7.41) per month on top of a basic Stan plan, offers Rugby Union and the UEFA Champions League.
“However, while local OTT players are currently well placed, they are more reliant on licensed content than the global players, which have been increasingly investing in original content. In order to stay competitive, local streaming services must ensure they remain attractive to consumers by creating additional valuable partnerships and investing further in original content,” noted Rory Gooderick, Analyst at Ampere Analysis and the author of the report.