Australia’s SVOD services hit 17% market penetration

The rapid take-up of subscription video on demand (SVOD) in Australia has already reached 17% market penetration, according to a report commissioned by the Australian Communications and Media Authority (ACMA).

The survey, covering the six months to June, found that 3.2 million adult Australians accessed SVOD services. 78% of these (2.5 million) favoured US platform Netflix for movies and TV shows to local services as Stan and Presto. The study, of 1505 Australians, did not note if they were subscribers or casual viewers.

The ACMA said SVOD is quickly becoming an increasingly popular way to watch video content. “SVOD services provide users with unlimited access to a wide range of video on demand content that can be viewed at any time, for a flat monthly fee. SVOD services are distinct from other online video services such as pay-per-view, catch-up television or other professionally-produced online content,” it maintained in its report.

Interestingly, the ability to access content whenever or wherever is not a high determining factor when it comes to viewing screen of choice. 59% used a TV set, followed by a desktop/laptop (41%), tablets (21%) and smartphones (12%).

According to ACMA, near 60% users are aged 18-34, most likely in full time employment, with a degree, earn over $100,000 a year, and own an Apple TV.

34% of people living in a household with children are SVOD users, compared to 17% of those in a household with no children.

One in three in the 18-34 demographic watched a SVOD service in the six month period. However the figure fell to 11% in the over-35 group.

In the last week of June, the 18-34 group watched 9.9 hours of SVOD content, while it was 5.2 hours for over-35s. In the seven days, 88% of users chose Netflix.

Most users (78%) expressed satisfaction with the technical quality of the content, with a high 40% saying they were “very satisfied”. But 55% experienced technical problems of some kind in the last week of June.