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Report: Netflix in 8% of Australian homes, changing perceptions about paying for content.

New theories suggest Aussies are becoming more inclined to pay for TV content, as total subscription numbers rise.

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More data on the number of homes subscribed to Streaming content has been issued by Roy Morgan Research and poses a new theory: Streaming isn’t necessarily seeing Pay TV subscribers cancel Foxtel, but trial it as an add-on or perhaps as part of a package downgrade.

Netflix is also shifting an Australian reticence to pay for content, whereas Foxtel had been unable to move much beyond its 30% market penetration.

Netflix has hit 8% of Australian homes with 737,000 subscribers reaching 1.89 million people 14+ in July*, Roy Morgan Research claims.

Streaming services, including Stan and Presto, have seen subscription TV, in one form or another,  in almost 3.1 million homes -a rise of almost 30% since the start of 2015.

Foxtel’s share of total subscription has fallen dramatically from 95% to 76%, yet the size of its customer base is almost unchanged (2,346,000).

In July, 7.3% of Foxtel’s homes (171,000) were also subscribing to Netflix, suggesting that many of its customers are, for now at least, trialling Netflix as an add-on.

Tim Martin, General Manager – Media, Roy Morgan Research, says: “Our ongoing month-by-month research is already giving some early indications of the newly competitive pay TV marketplace.

“For many years prior to the arrival of Netflix, total uptake of pay or subscription television had remained steadily in the region of 25-30% of households, unable to break through to a wider audience. Clearly, there was plenty of space for the market to grow.

“In just four months, Netflix has expanded the total market up to over a third of all homes. So far, it appears Foxtel hasn’t been damaged by the arrival of Netflix. It may turn out to be that the two are not direct competitors after all: Foxtel subscribers will view Netflix as an add-on provider, and non-subscribers were never going to get Foxtel anyway.”

Yesterday Citi Research estimated that SVOD households will reach 3 million by 2018, estimating it had 1.6m active users in Australia (including free trials).

*The final monthly figures for Netflix in May and June are slightly different than previously published early indicators. In May, Netflix reached 419,000 homes and 1,161,000 Australians 14+; in June, 571,000 homes and 1,533,000 people. These new published figures for July are equivalent to these updated results for May and June.

5 Responses

  1. So far, it appears Foxtel hasn’t been damaged by the arrival of Netflix.
    ========================
    Oh yes it has,it released the bugged prone IQ3 because of them!!

  2. So Netflix in 8% of homes is changing perceptions about paying for content, whereas 30% of households more paying for Foxtel didn’t?

    Netflix, using streaming on top of already held expensive broadband accounts, is simply setting a lower marginal price point for video.

  3. I notice there is a funniest cat show on tonight. Why would you want to pay for content when you have great programming like this. Or is that the plan. FTA want us to pay for content. A brilliant plan!

  4. People have been saying for years that they’d happily pay for content if it was timely and properly priced, and that they’d in effect been ‘forced’ to choose copyright infringement due to a lack of of options.

    Looks like they weren’t lying after all…

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