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‘Fragmentation is not slowing down,’ says ABC’s Emma Turner on how Australians consume media

As Australia emerges from the pandemic, we are seeing shifts and changes in the way audiences consume media, shifts that have been accelerated through many of us spending enforced time at home.

“There are three very real drivers of change that have had a significant influence on audiences,” ABC’s insights manager, Emma Turner said in a session on Thursday at Mumbrella360.

(left) ABC’s Emma Turner and Leisa Bacon (right)

“The first is technology,” she said. “The acceleration of digital adoption has removed barriers to accessing content and has fundamentally changed people’s behaviours. The globalisation and fragmentation trend is not slowing down.”

Turner explained we are operating in a period of “accelerated media disruption like no other”, which is driven by a shift to digital consumption and a highly fragmented market.

“Lastly, the pandemic impact. The pandemic irrevocably changed media habits. The impact of isolation forced us into increased use of technology and flexible schedules, changing media behaviours,” said Turner.

Meanwhile, according to ABC’s internal insights, Australians have an average of 21 devices per household, with the home an essential media hub. This is grown considerably over time really shaping media consumption. Access to content is at an all-time high with the ability to engage with multiple people, across multiple devices, within the same household at the same time.

“In a couple of years, it’s forecast that 88% of homes in Australia will own a smart TV,” said Turner. “In fact, it will be harder to purchase a non-smart device. Smart TVs are already the dominant device for video viewing, even for key on-demand services such as YouTube and across the SVOD suite.”

She added this really speaks to the fact that Australian audiences are really favouring that big screen experience, just in more of an on-demand fashion.

“In the same space of time, half the population will own a smart speaker,” she said. “Among those who already do, they’re listening to more audio. Smart speakers have successfully tapped into the lucrative market of families. They are more likely to know your next move which really speaks to the convenience factor and shared nature of these devices.”

Interestingly, entertainment subscriptions across SVOD, gaming, and music, are forecast for strong growth, to an average of ten per household.

“SVOD will continue to make up the biggest portion of Australian subscriptions,” she said, “yet gaming will actually drive most of the growth. Music, while strong, will be led by a handful of key global players, and I think we already know who they are.”

Despite the upward trajectory of on-demand subscription entertainment, Turner explained ABC anticipate growth to slow down in the coming years as likely market consolidation will occur.

“Last year, the average number of VOD services subscribed to was under four. Whilst Netflix remains the market leader, the market share is shrinking,” she said.

“We have hit a saturation point and in these inflationary times, services will have to drive value, otherwise risk losing customers. It’s clear that the current state isn’t sustainable, as the market will force consolidation and better value through those remaining services.,” said Turner.

“We actually now have parity between broadcast TV, and video-on-demand (VOD). Australians are actually spending close to a third of their weekly time with video. Free-to-air TV makes up the biggest piece of that pie, however, we know that it’s in decline, with many of the video-on-demand channels up year on year.

“We know that younger audiences are spending a lot of their time on TikTok, which exploded throughout the pandemic. Despite all these shifts in fragmentation, engagement with video has never been stronger. Just where, and how has changed, and getting that cut-through is becoming harder.”

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