Please wait while we enable your Account


Contacting Amazon Web Services
Deploying Cloud Servers, Storage, Transcoding & Database Servers
Deploying Global CDN
Deploying Firewall & Enabling Security Measures
Deploying the CMS & Admin Module
Deploying Website, Mobile & TV Apps framework
Creating your FTP account
Finishing up all the modules
Preparing for launch

Viability of streaming services questioned

Roshan Dwivedi Published on : 15 June 2015


Despite the surge in sign-ups for video on demand streaming services, the SVOD industry faces two key challenges: low revenues per-subscriber, and the prospect that many consumers will drop out when the free trials end.

That’s the cautionary view of PwC, which has just released its 14th annual Australian Entertainment & Media Outlook 2015-2019.

The report forecasts subscription TV household (STV) penetration will improve from below 30% to reach 37.4% by 2019.

Over that period it expects IPTV services, which include Netflix, Stan, Presto and Fetch TV, will jump from 2.6% of pay households to 18.5%.

That would translate to total consumer spending of $2.9 billion by 2019, but of that, cable and satellite subs would account for $2.85 billion and IPTV just $82 million.

Outlook editor Megan Brownlow agrees with industry estimates that Netflix may have upwards of 500,000 subscribers. Stan has said it will soon reach 300,000 gross sign-ups.

Brownlow observes, “We are seeing a lot of people sign up in these early trials. But given that Australians traditionally have been reluctant to pay for digital content, it will be interesting to see how many move from the trials to paying.”

The report notes, “SVOD providers earn a relatively low ARPU (average revenue per subscriber). Achieving the scale required to cover marketing, distribution and content costs, especially ‘hero’ content to attract subscribers, will be a challenge.

Read the entire story here.

Written by: Roshan Dwivedi

Add your comment

Leave a Reply

Your email address will not be published.

Try Muvi One free for 14 days

No Credit Card Required
Your website will be at, you can change this later.

Upcoming Webinar
August 08

9:00AM PST

Muvi TV – Sell video/audio instantly with just 9% rev share.

Muvi TV is a revolutionary platform designed to help creators like you turn your videos into a profitable venture. With Muvi TV, you can effortlessly sell your videos…...

Event Language: English
30 Minutes