Tablets and other smart devices clear winners in a fragmenting entertainment market. The broadcasting markets-FTA TV, STV, IPTV, Digital TV and Mobile TV have seen a number of changes over the last couple of years. Changes have included digitalisation of the Free-to-Air transmission frequencies, digital radio roll-outs and continuing trials, increased availability of subscription TV, hotting up of the IPTV market and more TV viewing on mobile devices. As a result of this tightly contested market we have seen some lowering of access charges for some of the subscription-based services. Often the audiences are altering their viewing patterns using available technology some legal and some questionable, with apps as well as online access to suit lifestyles and their viewing preferences rather than what the industry prescribes them to do.
Also in 2014 the online advertising sector is gaining a further percentage of revenue and it overtook the revenues of the FTA industry. Many of the traditional TV companies are already struggling and will now need to move faster if they are to remain viable towards 2020 when the NBN rollout should see most Australians with fast broadband that allows full-streaming digital access.
The broadcasters are now hoping that subscription video on demand distribution of content bring back revenue to them as they try to convert their catch-up viewers to this paying model from the current free replay services that they also provide.
With subscription TV household penetration still languishing below 30%, we are seeing more content available over-the-top (OTT) through the IPTV service providers. Telstra, the largest, has more than 600,000 customers to its bundled Pay TV service.
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