Tuned out: Foxtel's pay-TV services have lost market share to newer internet-based operators

The Pay Television and Internet Protocol Television Services industry has grown rapidly over the past five years, driven by the success of subscription video on demand (SVOD) services such as Netflix and Stan. SVOD and IPTV services have moved from relative obscurity to general acceptance over the period, with Australians having over nine million paying subscriptions to online video content as at December 2018. Increased internet penetration and faster broadband have allowed SVOD and IPTV services to become genuine substitutes for traditional pay-TV and free-to-air television. These services offer consumers the convenience of watching what they want, when they want on a device of their choosing, and all for a competitive price...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
6.8%
Forecast Growth 19-24
Profit
Employment
4,138
Businesses
58
Market Share of Companies

Industry Threats & Opportunities

  • Consumers have become increasingly discerning regarding when and where they consume content
  • Traditional pay-TV operators have lost market share to new SVOD services, such as Netflix
  • The Australian media landscape will likely become increasingly fragmented over the next five years
  • Industry Report - Industry Products Chapter

    The Pay Television and Internet Protocol Television Services industry's services can be segmented based on the method of content delivery. Traditional pay-TV operators, such as Foxtel, primarily deliver content via cable or satellite, although Foxtel and Fetch TV also offer subscription services via the internet. SVOD operators, such as Netflix and Stan, offer services exclusively via the internet. The industry's methods of content delivery have changed significantly over the past five years as SVOD services have increased in popularity.Satellite subscriptionsPay-TV content can be delivered by satellite. Satellite networks tend to be more reliable than cable networks, and deliver higher quality HD signals. Fox...purchase to read more.

    Additional Insights for the Pay Television and Internet Protocol Television Services Industry

    IBISWorld has determined the most important Key Success Factors for the Pay Television and Internet Protocol Television Services are:

  • Superior financial management and debt management
  • Must have licence
  • Having a large supply contract
  • IBISWorld analysts also discuss how external factors such as Internet subscribers and TV density in the Pay Television and Internet Protocol Television Services industry impact industry performance..

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    What's in this report

    What is the Pay Television and Internet Protocol Television Services Industry?

    Industry firms primarily broadcast movies and TV programs on a subscription or fee basis. These services are delivered through cables, satellites or via the internet. The industry also includes operators that provide live, catch-up or on-demand versions of free-to-air television; provide digital rental or purchases of movies or television content via the internet to download; or resell pay-TV services. The industry excludes physical sales of movies and television shows.

    Industry Products
  • Digital subscriptions
  • Cable subscriptions
  • Satellite subscriptions
  • Other services
  • Industry Activities
  • Pay television network operation
  • Pay television broadcasting
  • Cable or satellite television network operation
  • Cable or satellite television broadcasting
  • Subscription television broadcasting and streaming
  • Online video broadcasting
  • Online rental or purchase of downloadable video content
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Internet subscribers
  • TV density
  • Real household discretionary income
  • Demand from free-to-air television broadcasting
  • Total minutes of TV watched

  • Current Performance
  • The rise of

    digital television

  • Traditional operators
  • Content acquisition
  • Chart: Revenue Growth

  • Industry Outlook
  • Digital growth
  • Foxtel changes
  • Changing sports landscape
  • Table: Pay Television and Internet Protocol Television Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pay Television and Internet Protocol Television Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pubs, Bars and Nightclubs
  • Social Clubs
  • Hotels and Resorts
  • Motels
  • Media Buying Agencies
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Internet Service Providers
  • Motion Picture and Video Distribution
  • Telecommunications Services
  • Temporary Staff Services

  • Products & Services
  • Satellite subscriptions
  • Digital subscriptions
  • Cable subscriptions
  • Other services
  • Chart: Pay Television and Internet Protocol Television Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals aged 35 to 54
  • Individuals aged 55 and older
  • Individuals aged 18 to 34
  • Advertisers
  • Chart: Major Market Segmentation for the Pay Television and Internet Protocol Television Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Pay Television and Internet Protocol Television Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pay Television and Internet Protocol Television Services Industry

  • Industry Globalization
    NXE Australia Pty Ltd, Netflix Australia Pty Ltd,
  • Table: NXE Australia Pty Ltd - financial performance
  • Table: Netflix Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pay Television and Internet Protocol Television Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pay Television and Internet Protocol Television Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hd
  • High-definition (HD) is a digital TV broadcasting system with a higher resolution and quality compared with standard definition.
  • Internet Protocol Television (Iptv)
  • A system where television services are provided via the internet.
  • Multi-Channel
  • Broadcasting more than one channel from the same network, potentially across a range of media, including TV and internet.
  • Subscription Video On Demand (Svod)
  • A subscription service that allows consumers to watch stored content on a range of digital platforms for a set fee.
  • What Our Customers Say

    Why buy this report?

    The Pay Television and Internet Protocol Television Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pay Television and Internet Protocol Television Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pay Television and Internet Protocol Television Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pay Television and Internet Protocol Television Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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