In 2017, the Australian television market was undergoing significant transformations as the rise of digital content platforms led to shifts in consumer behavior. Pay TV subscriptions, traditionally dominated by providers like Foxtel, began to see a decline, while newer platforms like IPTV and SVOD experienced substantial growth. This article explores the number of subscribers to Pay TV, IPTV, and SVOD in Australia in 2017, offering a detailed analysis of the shifts in the Australian media landscape during that period.
Overview of Subscription Numbers (2017)
In 2017, the television subscription landscape in Australia was marked by notable trends. Pay TV subscriptions were on the decline, IPTV had seen steady growth, and SVOD services had exploded in popularity. The table below provides an overview of the subscriber numbers for each platform in 2017.
| Service Type | Number of Subscribers (2017) | Growth/Decline |
|---|---|---|
| Pay TV | 3.2 million (approx.) | Declining due to competition from SVOD and IPTV |
| IPTV | 1.5 million (approx.) | Steady growth due to increased internet penetration |
| SVOD | 7.1 million (approx.) | Rapid growth, led by Netflix and local services like Stan |
Pay TV Subscribers in Australia (2017)
Pay TV services, particularly those provided by Foxtel, were experiencing a decline by 2017. Foxtel remained the dominant provider of traditional cable and satellite television in Australia, but subscription numbers dropped to approximately 3.2 million. This decline was largely driven by the increasing competition from more flexible, lower-cost options such as IPTV and SVOD services.
Several factors contributed to the downturn in Pay TV subscriptions:
- Higher subscription costs: Pay TV was often seen as expensive when compared to streaming services.
- Content fragmentation: Consumers were becoming less inclined to pay for bundles of channels, many of which they never watched.
- The rise of streaming platforms: The availability of on-demand, flexible, and more affordable content on platforms like Netflix was a major factor in the reduction of Pay TV subscriptions.
Foxtel had attempted to address this issue by diversifying its offerings, adding streaming services, and introducing lower-cost packages. However, it still faced stiff competition from the growing SVOD market.
IPTV Subscribers in Australia (2017)
IPTV services, which deliver television content over the internet rather than through traditional satellite or cable infrastructure, had gained steady traction in Australia by 2017. Major Australian telcos such as Telstra and Optus were the primary providers of IPTV services, with subscriptions reaching around 1.5 million by the end of 2017.
The rise of IPTV was largely driven by the following factors:
- Improved internet infrastructure: The ongoing rollout of the National Broadband Network (NBN) ensured that a larger number of Australian households had access to high-speed internet, making IPTV a viable option.
- Bundling with broadband packages: Many telcos began offering IPTV as part of broader internet service bundles, making it an attractive option for customers already subscribed to broadband.
- Greater flexibility: IPTV allowed users to select specific channels and content, unlike Pay TV, which typically required purchasing large bundles of channels.
Despite its growth, IPTV was still overshadowed by the more popular and convenient SVOD services in Australia, but it continued to maintain a strong presence in the market.
SVOD Subscribers in Australia (2017)
SVOD services saw the most significant growth in Australia during 2017. By the end of the year, it was estimated that over 7 million Australians were subscribing to SVOD platforms, which was more than double the subscriber base from just a few years earlier. Netflix was the dominant player, but local services like Stan, Foxtel Now, and Amazon Prime Video also saw substantial growth.
Several factors contributed to the massive rise of SVOD services:
- Affordability: SVOD platforms were significantly cheaper than traditional Pay TV services, with basic plans from Netflix starting at just $10 per month.
- Convenience and flexibility: Consumers could watch content on demand, from a wide range of devices, without being tied to rigid broadcast schedules.
- Exclusive content: Netflix invested heavily in original programming, which proved to be a significant draw for Australian viewers. Shows like Stranger Things and The Crown became global phenomena and were not available on traditional TV.
- Global reach: The availability of international content, including movies, TV shows, and documentaries from around the world, made SVOD services more appealing to Australian audiences who were looking for a wider variety of content.
By 2017, it was clear that SVOD platforms were transforming the television consumption habits of Australians, offering a more personalized and cost-effective viewing experience.
Trends Impacting Subscription Growth in 2017
The Decline of Traditional Pay TV
The Pay TV market in Australia was facing a sharp decline in 2017, particularly in urban areas where internet infrastructure was more developed, and consumers were more likely to embrace alternatives like SVOD. The shift away from Pay TV toward cheaper and more flexible viewing options was a central trend during this period.
- Cost and content restrictions: Pay TV providers like Foxtel were often criticized for offering expensive packages that contained a large number of channels many subscribers did not watch. The high cost for relatively limited content was a major deterrent, especially when compared to the extensive libraries of on-demand content available through SVOD platforms.
- Bundling vs. Unbundling: While Pay TV services were traditionally sold as bundled packages, streaming services embraced the “unbundling” model, allowing consumers to pay only for what they watched.
The Role of the National Broadband Network (NBN)
The rollout of the NBN in Australia significantly impacted IPTV and SVOD services. With faster internet speeds and more reliable connections, Australians were increasingly able to stream content in high quality, further fueling the growth of IPTV and SVOD services.
- Faster and more reliable internet: The NBN provided faster internet speeds, which allowed consumers to enjoy high-definition streaming with minimal buffering, leading to increased adoption of services like Netflix, Stan, and IPTV offerings from Telstra and Optus.
- Remote and rural access: The NBN also helped extend IPTV and SVOD access to rural and regional areas where broadband connectivity was previously limited.
The Impact of Mobile and Multi-Screen Consumption
Australians were also consuming more television content on mobile devices, which contributed to the rise of on-demand services. Tablets, smartphones, and laptops became essential for viewing content, with platforms like Netflix and Stan offering apps that allowed users to watch on the go.
- Mobile-first culture: With the proliferation of mobile devices, Australians increasingly favored on-the-go viewing options. The shift from traditional TV screens to smartphones and tablets reflected changing consumer preferences toward more flexible and mobile-centric entertainment.
- Multi-screen viewing: The ability to stream content on multiple devices simultaneously became a key differentiator for streaming platforms, especially among younger viewers who preferred the flexibility of watching content across various devices.
The Competition Between SVOD Providers
As Netflix led the way in terms of subscriptions, local players like Stan and Foxtel Now found opportunities to grow by catering to local tastes. Stan, which launched in 2015, gained significant traction by offering Australian content, including exclusive deals with major Australian production studios and local networks. The rivalry between global giants and local players contributed to the rapid evolution of the streaming landscape.
- Exclusive Australian content: Local SVOD services like Stan focused on offering content that was tailored to Australian audiences, including partnerships with local networks and production companies.
- Amazon Prime Video: By the end of 2017, Amazon Prime Video had launched in Australia, further intensifying competition among streaming services. Amazon’s large catalog, including exclusive original series and movies, posed a direct challenge to both Netflix and local services.
Conclusion
In 2017, Australia’s television subscription market experienced a significant shift. Pay TV subscriptions continued to decline, with around 3.2 million subscribers, due to the rising popularity of alternative services. IPTV subscriptions reached approximately 1.5 million, driven by improved internet infrastructure and bundling strategies from telcos. Meanwhile, SVOD services saw explosive growth, reaching over 7 million subscribers by the end of the year.
The rise of internet-based television platforms, especially SVOD, reshaped the media landscape, and the competition between Pay TV, IPTV, and SVOD providers intensified. As Australian viewers increasingly opted for more affordable, flexible, and on-demand content, the traditional Pay TV model began to lose its grip on the market. This trend has only continued in the years following 2017, with SVOD services becoming even more embedded in daily entertainment consumption.
Key Insights:
- Pay TV subscriptions saw a decline, falling to 3.2 million.
- IPTV services had steady growth, reaching 1.5 million subscribers.
- SVOD services surged to 7.1 million subscribers, with Netflix leading the way.
- The National Broadband Network and mobile-first consumption played a significant role in accelerating these trends.
These insights paint a clear picture of the media consumption habits of Australians in 2017 and highlight the growing shift toward internet-based services that continue to dominate the landscape today.
Here are five frequently asked questions (FAQs) based on the content provided:
How many Pay TV subscribers were there in Australia in 2017?
In 2017, there were approximately 3.2 million Pay TV subscribers in Australia, which showed a decline due to increasing competition from SVOD and IPTV services.
What was the subscriber count for IPTV services in Australia in 2017?
In 2017, IPTV services in Australia had about 1.5 million subscribers, with steady growth driven by improved internet infrastructure and bundling with broadband packages.
How many people subscribed to SVOD services in Australia in 2017?
By the end of 2017, there were approximately 7.1 million SVOD subscribers in Australia, with Netflix, Stan, and Amazon Prime Video leading the market.
What factors contributed to the decline in Pay TV subscriptions in 2017?
The decline in Pay TV subscriptions was primarily due to high subscription costs, content fragmentation, and the growing popularity of flexible and affordable SVOD and IPTV options.
How did the National Broadband Network (NBN) impact IPTV and SVOD services in 2017?
The rollout of the NBN in 2017 provided faster internet speeds and better connectivity, which supported the growth of IPTV and SVOD services by enabling high-quality streaming without buffering.
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Credit Website: www.immi.homeaffairs.gov.au