Pay TV in Australia and New Zealand: will the OTT growth offset legacy pay TV's decline?

If historically the Australian and New Zealander pay TV markets have mainly been counting DTH homes, things might significantly change in the next five years. Besides, like in other regions of the world, COVID-19 could have set the cat amongst the pigeons, when it comes to cord-cutting and OTT adoption.

 

Despite being available for several years, OTT pay TV offers have struggled to gain traction in Australia and New Zealand in the past. For instance, Foxtel Now and Kayo Sports, respectively the SVOD and the sports OTT pay TV offers of Foxtel, the leading pay TV operator in Australia, only accounted for 10% each of Foxtel's pay TV mix in 2019. Eighteen months later, Kayo Sports alone accounts for almost 30% of subscribers, while in the meantime DTH subscriptions, which accounted for two-thirds of the total, collapsed to 43% of the mix.

In fact, global streaming subscribers (Kayo Sports, BINGE, Foxtel Now) now account for more than 50% of the Foxtel Group's total subscribers, according to News Corp CEO Robert Thomson, in June 2021.

But can we expect this trend to last and accelerate in the coming years? The answer is complex. In terms of figures, OTT subscriptions are indeed expected to overtake DTH by 2026. But in terms of content providers, only a few OTT pay TV services offer skinny bundles or extensive pay TV bouquets in the two countries.

In this sense, Fetch TV, one of the early OTT players in Australia which started to provide an extensive TV offer, widely distributed among NBN providers and retailers, should have grown significantly over the last three years. But in reality, the OTT operator has struggled to win market shares, partially due to the high prices of its additional subscription packs. The OTT service finally diversified its app catalogue in order to become the broadest OTT library in the country. This aggregation strategy could prove successful for Fetch in the coming years, as Dataxis forecasts Fetch TV to account for 20% of the Australian OTT market by 2026.

In the end, DTH markets are expected to remain strong in Australia and New Zealand, respectively accounting for more than 40% and 66% of the total pay TV subscriptions in the two countries.

Dataxis will host a digital conference dedicated to pay TV and OTT markets in Australia and New Zealand on November 18th 2021. You can find more information about the speakers and the key topics here: Nextv series | AUSTRALIA & NEW ZEALAND

The related data and analysis are included into:

Market Intelligence Services

Latest Research

Digital Events & Webinars

Upcoming

Oct-26

9:00 AM PDT / 6:00 PM CET (GMT+2)

Webinar
1 hour
English

The future of Android TV: what is Widevine CAS and how to use it?

We’ve all heard about the booming interest in Android TV. But that’s not the only Google-developed technology that is taking the pay TV industry by storm. What is all the fuss about Widevine CAS? Why are pay TV operators around the world starting to switch to this cloud-based conditional access ...

Sponsored by:

Upcoming

Nov 3-4, 2021

9:00 GMT -5

Virtual Event
2 Days
Spanish

Next Audio Latin America

Next Audio Latin America is the first event in the region focused on the latest business trends, technology developments, challenges and opportunities in the digital audio industry. Streaming radio strategies, the new podcast revolution, the future of virtual assistants & smart speakers, addressable & programmatic audio advertising and content discovery ...

Upcoming

Nov 9-10, 2021

10.00 CET

Virtual Event
2 days
English

Nextv Series Europe & CEE Nov

The Nextv Series Europe & CEE regroup 350+ executives and decision makers from the TV, Telco, Video, OTT & Entertainment Business in the European region for two days of conferencing and online networking to discuss the cutting-edge trends and future technology insights that will transform the global broadcasting ...

Upcoming

Nov 23, 2021

09.00 CET

Virtual Event
1 day
French

Nextv Ad France

Digitalization has considerably changed the TV and entertainment landscape over the last few years, providing new opportunities for advertisers to reach their audiences with advanced ad products and targeted campaigns. On TV screens, digital ads facilitate campaign automation, audience tracking, effectiveness measurement and even push new technical solutions for ad ...

Upcoming

Nov 25, 2021

09.00 CET

Virtual Event
1 day
English

Nextv Ad CEE & DACH

With a growing number of connected TV sets and a significant penetration of IP based TV & video services, advanced advertising products keep on being deployed across Europe. CEE and DACH markets’ operators and broadcasters have been leading the way for advertising innovations in Europe over the last few years ...

Cart
  • No products in the cart.