The Australian screen industry can expect minimal growth in filmed entertainment over the next five years as the boom in on-demand services is offset by the continued decline of DVD sales and rentals.
PricewaterhouseCoopers has released the Australian Entertainment and Media Outlook for 2010-2015
After being stuck at around 30% since 2008, pay-TV penetration of Australian households is forecast to reach 35% by 2017- but most of that growth will come from IPTV services, not Foxtel.
The overall Australian entertainment and media market is projected to grow steadily over the next five years, driven primarily by the online and subscription TV sectors.
Pay-TV penetration has been stuck below 30% of Australian homes for years- but PwC predicts a massive upswing in subscriptions.
Despite the surge in sign-ups for streaming services, the SVOD industry faces two key challenges: low revenues per-subscriber, and the prospect that many consumers will drop out when the free trials end.
Box-office revenues are likely to surpass physical home entertainment sales next year but the overall Australian filmed entertainment market can expect minimal growth in the next five years.
The screen industry can expect slow growth in the filmed entertainment market over the next five years, and SVOD revenue will continue to skyrocket amid a grim outlook for free-to-air television, PwC’s annual media forecast has found.