Australian data centre market outlook \ VI and MTN partner to supply Webscale Network Operator reports \ Disney to remove content from Foxtel \ ACCC warns the NBN on business broadband


In this week’s edition, we look at the market outlook for Australian data centres, Venture Insights’ partnership with MTN Consulting to provide Webscale Network Operator reports, Disney’s plans to pull content from Foxtel and the ACCC’s warning to the NBN on business broadband.


 Outsourced data centre revenues by segment (%)

Source: Venture Insights, company annual reports, press releases, industry interviews

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Australian data centre market outlook

Data centre revenue by segment ($m)

Source: Venture Insights, company annual reports, press releases, industry interviews

The Australian Data Centre market is forecast to grow at a rapid pace driven by improved international connectivity enabled by the deployment of subsea cables. Venture Insights forecasts the local market to double by 2026 to over A$3bn with both domestic and international data centre operators expanding their capacity. Majority of the growth will be driven by the hyperscale segment due to growth in cloud services and data intensive applications like streaming video. Within Australia, we expect Sydney to remain the largest market for data centre build outs with strong growth coming from Perth and Brisbane as driven by increased subsea cable traffic terminating nearby and cheaper land prices compared to Sydney. For a more detailed look at the Australian data centre market, key market forecasts, market share and winners and losers, click through to read our report.

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VI and MTN partner to supply Webscale Network Operator reports

Following the release of Venture’s Australian datacentre market outlook – which highlighted strong growth from hyperscalers, Venture Insights is pleased to announce that we will be publishing a series of 8 Webscale Network Operator (WNO) reports under a new partnership agreement with MTN Consulting. WNOs are web-centric companies whose operations and services rely heavily on hyperscale data centres and supporting connectivity. They typically have tens or hundreds of millions of customers/users and rely heavily on scale and network effects in their quest for profitable growth. The 8 WNO reports will analyse the network infrastructure spending and financial positions of Alibaba, Alphabet, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent. MTN Consulting is an independent industry analyst firm founded in 2017. Their mission is to provide best-in-class data, insight, and strategic support to network operators and their suppliers. Venture Insights’ delivers high-quality, independent and locally relevant research and consulting services across the digital, media and telco sectors in Australia and New Zealand.

Disney to remove content from Foxtel

Walt Disney Co plans to launch its new Disney+ service in Australia in November, making Australia one of the first countries outside the US to gain media and entertainment giant’s new streaming service. Ahead of its launch, Disney has announced that it will remove certain content from Foxtel, following a similar move earlier in the year to remove content from Nine Entertainment owned SVOD player Stan. This means that the Disney Movie Channel which includes content from Disney Animation, Pixar, Marvel and Lucasfilm will no longer be available from 7th November 2019. Disney movies will still be available on Foxtel through pay-per-view. The Australian SVOD market is becoming increasingly crowded with multiple SVOD platforms in play or set to launch in the next few months. Foxtel, which has been at the receiving end of the SVOD onslaught is rumoured to be a few months away from launching its own SVOD service focused on drama and entertainment content. Venture Insights believes that Foxtel faces a tough balancing act and a number of challenges in its quest to transition from Pay-TV to SVOD. For more detailed analysis on Foxtel and the hurdles it needs to cross, click through to read our report.

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ACCC warns the NBN on business broadband

As previously reported, Venture Insights believes that NBN’s entry into the business broadband segment will impact current and future enterprise segment revenues for several players including Telstra, Optus, Vocus &  TPG – since it will enable a large number of smaller players to access this market segment. ACCC Chairman Rod Sims has said that NBN’s entry into the wholesale enterprise market has improved competition particularly in areas where Telstra is the only fixed-line provider. Venture Insights expects the competitive intensity in the enterprise segment to ramp up as the NBN makes further inroads into the business broadband space. Click through to read the ACCC’s press release.

Click to read press release