The overall Video Entertainment Market is in the midst of material change in how video is consumed and paid for…
The rise of SVOD platforms has driven a significant change in viewing habits with viewers having an unprecedented choice of video content.
Video revenues by platform (A$m)
We anticipate the Australian video market to marginally decline from A$5.48bn in 2018 to A$5.33bn in 2023 driven by a deflationary shift from traditional to digital platforms.
While we don’t expect the overall size of the video entertainment market to decline materially, we do expect platform share to change dramatically over the next five years.
Pay-TV will remain under pressure as the way video is consumed and paid for changes. Foxtel will offset some of this pressure by its participation in the xVOD market albeit this market will be heavily contested with multiple new players emerging.
We forecast that on-demand will account for the majority of TV viewing by as early as 2020 driven by an increasing proportion of original content and changing consumer preferences.
While the TV screen remains the primary device for viewing video, mobile devices are increasing in share with YouTube the most preferred video service on mobile.
Physical media will continue its structural decline driven by increasing uptake of SVOD platforms.
Cinema spends will decline moderately driven by a declining admissions rate and as ‘direct to SVOD’ releases increase in number.