Streaming subscriptions growing in Australia despite cost-of-living crisis
Streaming subscriptions have risen in the Australian market despite tightening budgets due to the cost-of-living crisis, according to a new study by global growth consultancy Simon-Kucher.
The consultancy’s annual Global Streaming Study found the Australian streaming market remains strong, with significant shifts visible in subscription dynamics, screen time and content preferences.
The Australian market continues to expand, despite going at a slower pace. Overall, the number of subscriptions per person in the country rose from 2.5 to 3.1.
However, users are increasing their subscription consumption five percentage points less than last year, and 39% of subscribers said they have too many subscriptions, and are likely to cancel at least one service in the next 12 months. More than half claimed it was for content-related reasons.
Paid subscriptions make up 62% of streaming time, up 13 percentage points from last year. Use of free online services, such as 7Plus and 9Now, has decreased by seven percentage points.
“Streaming is at a fascinating crossroads,” said Chris Petzoldt, managing director of Simon-Kucher Oceania.
“Number of subscriptions per person increased by 22 percent in Australia but budgets declined. While there’s still an appetite for streaming services, a significant share of subscribers feel that they spend too much on streaming and that they have too many streaming subscriptions.
“Despite slower growth, the increase in paid subscriptions and demand for unique content creates a real opportunity for providers to innovate and differentiate themselves.”
Most Australian streaming providers are perceived to have similar value and price, except for Foxtel Now, which is perceived to be overpriced.
Ad-supported tiers from streaming services have seen significant growth, remaining an effective lever to keep engaging price-sensitive users. With Netflix experimenting with games on the platform, 23% of subscribers stated they would be more inclined to sign-up for a service if games were included.
“The streaming landscape is continuously evolving, and content remains the primary differentiator,” added Petzoldt.
“Providers must strategically adapt to these trends. They need robust content offerings capitalising on new commercial levers to stay competitive and cater to shifting consumer preferences.”
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Lauren McNamara is the associate editor at Mumbrella, covering the creative and PR beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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