DVD, Streaming Video Up Aussie Home Entertainment Spending 4% in 2019

Packaged media is not dead down under. Consumer spending on TV and video in the home in Australia is projected to increase 4% in 2019, according to new data from Futuresource Consulting.

The London-based research firm said Australian consumers continue to show a preference for entertainment ownership, with electronic sell-through of movies to own (EST) continuing to outperform transactional VOD movies.

Notably, physical media (DVD, Blu-ray Disc) continues to play a role, generating nearly two-thirds of transactional home video spend in 2019. However, following global trends, the Australian market is moving towards digital with transactional digital spend exceeding physical by 2021.

Subscribe HERE to the FREE Media Play News Daily Newsletter!

“The Australian market is delivering a solid overall performance, but despite the continuing upsurge, its key components are experiencing wildly varying fortunes,” physical analyst David Sidebottom said in a statement. “SVOD is the country’s shining star, with our forecasts indicating a net subscriber increase of over 2 million expected in 2019 and consumer spend poised to break the AU$1 billion barrier for the first time.”

Sidebottom said Netflix is expected to increase its investments in Australia, as it seeks to maintain growth and increase ARPU. By 2023, the number of Australia households with at least one SVOD service is set to reach 80%.

“That’s one of the highest levels on the planet,” he said.

Futuresource found that Google Play and improved set-top box functionality for pay-TV operators have combined as key drivers in the digital transactional home video market.

“The increased visibility of movie purchasing on YouTube has also helped maintain healthy levels of EST movie growth, capitalizing on the significant YouTube audience,” Sidebottom said. “Our forecasts indicate consumer spend on transactional digital video will grow by 12% this year, the strongest year of growth since 2015, when the market was considerably more embryonic.”

Total video entertainment spend is projected to climb from AU$5.2 billion in 2018 to AU$6.1 billion by 2023, driven primarily by the rise of SVOD.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

3 × three =

This site uses Akismet to reduce spam. Learn how your comment data is processed.