Why it matters

Australian viewers – particularly younger and wealthier ones – are consuming ever-greater amounts of video content via on-demand services. Media owners and brands will benefit if this viewing occurs on ad-funded platforms, rather than ad-free subscription services like Netflix.

Takeaways

  • According to Ampere Analysis figures, ‘lost’ consumers make up an average of 4% of commercial broadcasters’ overall audiences.
  • By introducing streaming services, commercial broadcasters will not only engage more of the channel’s core audience, but also recapture audiences which don’t otherwise watch linear TV channels.
  • Over the coming 12 months, platforms such as Hulu, Peacock and Quibi may prove the benefits of a ‘hybrid’ model, with customers willing to subscribe and watch ads at the same time.

In Australia, 66% of households have a streaming service. The region is the most highly penetrated Netflix market in the world at 51%, even higher than in the US, according to figures revealed by Ampere Analysis' Guy Bisson at the Future TV Advertising Forum (Sydney, February 2020).