Christopher Hughes
Research expert covering Australia and New Zealand
Over the last few years, subscription-based services have become commonplace globally across several industries, from music streaming to food delivery, and everything in between. Media services, including video streaming and subscription video on demand (SVoD), as well as gaming subscriptions and music streaming services have grown exponentially in recent years, proving popular by giving consumers access to a vast library of content in an instant.
Netflix is one of the most successful SVoD services globally, including in Australia. The company holds a market share of around 50 percent, more than three times that of its nearest rival Stan. Netflix’s subscribers are predicted to continue to grow year-on-year until at least 2025.
Despite this, Australians still seem to watch more freely available content than paid. For example, a recent survey indicated that most Gen Z respondents watched around 8.5 hours of paid content in an average week, compared to 14 hours of free content.
Video streaming services in Australia
Australia’s SVoD market has enjoyed significant yearly growth since 2015, and it is estimated that the market will continue to increase in value every year for the foreseeable future. Additionally, the share of Australians with a subscription to an SVoD service has increased significantly over the last ten years, starting at just six percent in 2012 and eventually reaching 70 percent in 2021.Netflix is one of the most successful SVoD services globally, including in Australia. The company holds a market share of around 50 percent, more than three times that of its nearest rival Stan. Netflix’s subscribers are predicted to continue to grow year-on-year until at least 2025.
Consumer habits
With subscription services proving to be so popular in Australia, it’s hardly surprising that the average overall monthly spend for consumers comes in at around 55 Australian dollars. Notably, it’s the older generation that spends more on monthly subscriptions at a little over 60 AUD, around 10 AUD more than the Gen Z monthly average spend.Despite this, Australians still seem to watch more freely available content than paid. For example, a recent survey indicated that most Gen Z respondents watched around 8.5 hours of paid content in an average week, compared to 14 hours of free content.
