We used to be lacking content options, but now we’re almost spoilt for choice with a long list of IPTV services available. While Australians were quick to take to early streaming services, they’re clearly prepared to draw a line in the sand when it comes to how much they’ll spend each month.
The newest 2 entrants, Apple and Disney could have a tough time breaking into the crowded local streaming video market, with less than a quarter of Australian households prepared to pay for more than one subscription video service each month.
Australians have certainly developed a taste for all-you-can-eat streaming video services, with the majority of Australian households prepared to pay for content rather than stick with free-to-air broadcast television and catch up services, according to Australian comparison site Compare Broadband’s Streaming Services Spend survey.
Only 44% limit themselves to free-to-air content, according to the survey of almost 2000 respondents, while 56% are happy to spend at least $15 per month on a single service to expand their entertainment options.
Netflix and Stan are pushing this to the limit, with their four-stream Ultra HD subscriptions costing A$19.99 and A$17 per month respectively. Meanwhile, Apple TV+ and Disney+ deliver Ultra HD for a single pricing tier of A$7.99 and A$8.99 respectively.
Other services jockeying for position in Australia include Amazon Prime Video, 10 All Access, YouTube Premium and Hayu.
Unfortunately for them, appetite to hand over more money each month drops away quickly. Only 24% of respondents are willing to pay at least A$30 per month for two subscription video services. Meanwhile, a mere 12% are prepared to pay at least $50 each month for three or more services.
Considering this price sensitivity, new competitors like Apple and Disney may struggle to pry open Australian wallets, says Compare Broadband chief executive Scott Kennedy.
Alternative, Netflix and Stan may have priced themselves out of the market as new, more affordable rivals bump them out of Aussie lounge rooms.
Considering this price sensitivity, new competitors like Apple and Disney may struggle to pry open Australian wallets. Alternatively, Netflix and Stan may have priced themselves out of the market as these new, more affordable rivals bump them out of Aussie lounge rooms.
“The bills stack up and at Compare Broadband we’ve seen that many Australians are on the lookout for a better broadband deal, as finding the right broadband plan can save you more than $30 per month – money which you can put towards great content.
The question is whether Australians decide to stay loyal to the likes of Netflix and Stan – which are two of the more expensive services – or whether they’ll decide to make the leap across to newer players, especially when Disney has taken back so much of its own great content like Marvel and Star Wars.”Compare Broadband chief executive Scott Kennedy.