BVOD slows down Free-To-Air’s free fall in Australia: PwC

Australia’s linear TV revenue in 2020 fell 12.1% to A$3.1 billion as a sharp reduction in marketing budgets led to a fall in adspend across Free-To-Air but Broadcast Video on Demand (BVOD) mitigated that drop with 38.8% growth in revenue to A$229 million, according to PwC’s latest Australian Entertainment and Media Outlook.

Why it matters

The key media consumption locations – the lounge room, the bedroom and in transit – are changing dramatically as the era of specific devices having control over a specific location is over, with BVOD and SVOD (Subscription Video on Demand) growing at the expense of traditional media like cinema, and compounded by lockdowns that have forced Australians to stay home.

Five findings

• BVOD grew audience and ad revenue – average total monthly hours consumed rose by 39.9% YoY from July to December 2020.
• SVOD revenues set to grow at 20.4% CAGR through to 2025 to US$81.3 billion globally and A$3.3 billion in Australia.
• Factors driving SVOD and BVOD players and platforms are increased availability, sector breadth and catalogue depth.
• Increased competition between sports streaming services is seen continuing beyond 2021, in particular for football.
• The shift in weighting from ad revenues towards consumer-generated revenues has accelerated, forcing key players to rethink their business model.

Quote

“The lounge room – once the domain of linear television and appointment viewing – now offers consumers the additional options of streaming, broadcast and premium video on demand, as well as gaming, largely thanks to the growth in connected televisions and a much simpler user interface.” – Laurence Dell, PwC Australia partner and technology, media and telecommunications consulting leader