Swimming upstream: Competition from streaming services is causing revenue declines

The Pay Television industry has contracted over the past five years. Competition from subscription video on demand (SVOD) services, such as Netflix and Stan, has diverted viewer attention away from traditional media platforms, such as TV. Foxtel, the industry's dominant player, has been forced to slash its subscription prices to attract customers and retain existing ones. Consumers have become increasingly discerning regarding when and where they consume content, often demanding a range of options including TV, tablets, laptops and smartphones. This has been a challenge for industry operators, which have struggled to keep up in an increasingly changing media landscape. As a result, industry revenue is expected to fall at an annualised 0.4% over the five years through 2017-18, to $3.8...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Consumers have become increasingly discerning regarding when and where they consume content
  • Foxtel has consolidated its position as the industry's dominant player over the past decade
  • The Australian media landscape will become increasingly fragmented over the next five years
  • Industry Report - Industry Locations Chapter

    Most industry establishments are located in New South Wales, mainly due to infrastructure access. As a result, the spread of establishments compared with Australia's population distribution is extremely skewed, with Victoria and Queensland having much smaller shares of establishments than their populations would suggest. Only a few operators are part of the industry, and these all service national and regional markets using cables and satellites.Industry revenue is generally distributed according to each state or territory's share of households. However, over 90% of pay-TV networks are located in New South Wales, Victoria and Queensland, while these states account for 77.1% of Australia's total population. As ...purchase to read more.

    Additional Insights for the Pay Television Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pay Television Industry are

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

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    What's in this report

    What is the Pay Television Industry?

    Industry companies primarily broadcast TV programs on a subscription or fee basis. These services are generally delivered through cables or satellites. Online subscription TV services are not included in the industry.

    Industry Products
  • Light entertainment and lifestyle
  • Drama and movies
  • Sport
  • News and current affairs
  • Documentaries
  • Children and family
  • Music
  • Industry Activities
  • Pay television network operation
  • Pay television broadcasting
  • Cable or satellite television network operation
  • Cable or satellite television broadcasting
  • Subscription television broadcasting
  • Table of Contents

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

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Pay Television Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pay Television 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
  • Motion Picture and Video Distribution
  • Telecommunications Services
  • Temporary Staff Services

  • Products & Services
  • Sport
  • Light entertainment and lifestyle
  • Drama and movies
  • News and current affairs
  • Documentaries
  • Children and family
  • Music
  • Chart: Pay Television Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Subscribers aged 55 to 64
  • Subscribers aged 40 to 54
  • Subscribers aged 25 to 39
  • Advertisers
  • Subscribers aged 65 and older
  • Subscribers aged 18 to 24
  • Chart: Major Market Segmentation for the Pay Television Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Program amortisation
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Pay Television

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pay Television Industry

  • Industry Globalization
    Foxtel Group, Telstra Corporation Limited,
  • Table: Foxtel Group - financial performance
  • Table: Telstra Corporation Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pay Television 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 Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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 live 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?

    IBISWorld’s Pay Television market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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