Pay-TV penetration has been stuck below 30% of Australian homes for years- but PwC predicts a massive upswing in subscriptions.
Australian entertainment and media spending grew by 4.5% in 2013, below the global average, and the sector’s growth rate is projected to be even lower in the next five years.
Foxtel and the other established pay-TV operators face years of minimal growth in subscribers and revenues, due primarily to competition from online services.
Worldwide entertainment and media revenues will rise at a compound annual growth rate (CAGR) of 5.1% over the coming five years, from US$1.74trn in 2014 to US$2.23trn in 2019, according to PwC’s Global entertainment and media outlook 2015–2019.
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.
Australia’s free-to-air broadcasters are facing stagnant advertising revenues over the next five years despite the growth of their catch-up platforms and viewing on mobile devices.
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.
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.