2021 Video Entertainment Market Outlook

COVID-19 has provided a massive boost to SVOD at the expense of other video formats

Contents

Executive Summary

Summary

Average household spend on Video Entertainment to decline driven by the shift to streaming platforms

Digital continues to grow with overall market declining through to 2024

Premium Pay-TV

Foxtel continues to face structural hurdles even as new SVOD players with deeper pockets emerge

Premium Pay-TV – Kayo and the risks of cannibalisation

Rise of sports streaming apps and 5G could threaten Foxtel in Live Sports

SVOD

The SVOD market is set for a renewed bout of competitive intensity driven by the entry of multiple new players

Netflix to remain the largest SVOD player but will face increasing competition from new players such as Disney+

TVOD/EST

Growth to continue

Physical Media

The ubiquity of streaming platforms will accelerate the decline of physical media

Cinema

Revenues are projected to decline gradually over the next 4 years primarily due to cheaper substitutes on offer for consumers

Glossary

Methodology and Definitions

Figures

Fig 1: Household spending on video entertainment

Fig. 2: Video revenues by platform (A$m)

Fig. 3: Video industry revenue forecasts by platform (A$m)

Fig. 4: SVOD pricing by platform (A$ per month)

Fig 5: Premium Pay-TV Forecasts

Fig 6: Will Kayo cannibalise Foxtel?

Fig 7: Rising competition in sports streaming

Fig 8:  SVOD revenue and pcp growth (A$mn, %)

Fig 9: SVOD Forecasts

Fig 10: SVOD subscriber market share (%)

Fig 11: Estimated original content spending in 2020 – Netflix vs Disney (US$b)

Fig 12: TVOD/EST forecast (A$m)

Fig 13: TVOD/EST revenue mix (%)

Fig 14: Physical Media forecasts

Fig 15: Number of Video Releases on DVD, VHS and Blu-Ray

Fig 16: Cinema revenues, FY17 – FY23 (A$m)

Fig 17: Admissions per Capita (2006-2018)