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Young people drive Netflix’s surge

Subscribers to Netflix and other streaming services are watching on average eight hours of SVOD content per week.

And those aged 18 to 34 watch almost double the hours (9.9 hours on average) than those aged 35 and over (5.2 hours on average).

That’s according to the ACMA’s report Subscription video on demand in Australia 2015 released today.

Over four in ten (44 per cent) SVOD users spent more than five hours watching content online via a subscription service in the last week of the survey.

While the research did not quantify the impact on free-to-air viewing, the stats suggest the rise in streaming is coming partly at the expense of the FTA broadcasters, and perhaps Foxtel.

An ACMA spokesman tells IF, "Given SVOD use is highest amongst younger age groups (18-24 in particular), this is where there is the largest impact on time spent viewing free-to-air television live."

The survey of 1,505 adults in May and June found an estimated 3.2 million (17 per cent) watched video content via SVOD in the six months to June, and 2.2 million (12 per cent) in the last seven days.

Younger people—those aged 18 to 34—account for more than half (58 per cent) of SVOD users. An estimated 2.5 million people streamed TV shows or movies on Netflix in the six months to June.

That accords with Roy Morgan Research for October which found the number of homes subscribing to Netflix rose by 11.4 per cent to 1.039 million, equivalent to 2.677 million people. Some other industry executives believe Netflix has closer to 2 million subs.

According to ACMA, amongst SVOD users, 78 per cent used Netflix Australia in the six months to June 2015, and 88 per cent in the past seven days.

That appears to leave very little room for rivals Stan, Presto and Quickflix. However the ACMA says many SVOD subscribers do subscribe to more than one service.

There will be some analysis of individual VOD services, and the relative time spent watching TV content compared with online video content services, in the ACMA’s annual Communications report, expected to be released in early December.