Against the stream: Competition from streaming video services has negatively affected revenue

Operators in the Free-to-Air Television Broadcasting industry have faced various challenges over the past five years. Industry revenue is expected to decline at an annualised 3.6% over the five years through 2018-19, to $4.4 billion. Many Australians are shifting away from watching free-to-air TV programs, instead choosing to consume media on a range of different platforms. In response, some advertising agencies have moved towards more lucrative online advertising markets, limiting demand for advertising timeslots on free-to-air TV networks. Foreign entities, such as Facebook and Google, now command an increasing share of advertising revenue in Australia. This trend has negatively affected traditional media outlets, particularly TV more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Foreign entities are commanding an increasing share of advertising revenue in Australia
  • Changes in an individual operator’s profit margins can affect the industry’s profitability
  • Changes to media regulations will alter the industry’s structure over the next five years
  • Industry Report - Industry Analysis Chapter

    The Free-to-Air Television Broadcasting industry has struggled over the past five years, as operators have faced ongoing structural changes and competition from alternative forms of digital media. The industry’s performance heavily relies on advertising revenue from media buying agencies, as broadcasters offer their programs to viewers free of charge. Free-to-air TV networks have also battled against changing consumer preferences, as Australians have increasingly shifted towards viewing TV content online.Revenue and profitabilityIndustry revenue is expected to decline at an annualised 3.6% over the five years through 2018-19, to $4.4 billion. Dem...purchase to read more.

    Additional Insights for the Free-to-Air Television Broadcasting Industry

    IBISWorld has determined the most important Key Success Factors for the Free-to-Air Television Broadcasting are:

  • Access to highly skilled workforce
  • Close monitoring of competition
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Demand from media buying agencies and Internet subscribers in the Free-to-Air Television Broadcasting industry impact industry performance..

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    What's in this report

    What is the Free-to-Air Television Broadcasting Industry?

    Industry players broadcast visual content on free-to-air TV. Players broadcast TV programs at no cost to consumers.

    Industry Products
  • Australian sport
  • Australian light entertainment
  • Overseas drama and other programs
  • News and current affairs
  • Children’s programs, local dramas and other content
  • Industry Activities
  • Commercial free-to-air TV network operation
  • Public or government free-to-air TV network operation
  • Community or volunteer free-to-air TV network operation
  • TV broadcasting station operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from media buying agencies
  • Internet subscribers
  • Total minutes of TV watched
  • TV density

  • Current Performance
  • Revenue and profitability
  • Digital dominance
  • Shifting strategies
  • Structural changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Media reforms
  • Online competition
  • Table: Free-to-Air Television Broadcasting Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Free-to-Air Television Broadcasting Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Advertising Agencies
  • Media Buying Agencies

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Motion Picture and Video Distribution
  • Motion Picture and Video Production

  • Products & Services
  • Australian sport
  • Australian light entertainment
  • News and current affairs
  • Overseas drama and other programs
  • Children’s programs, local dramas and other content
  • Chart: Free-to-Air Television Broadcasting Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Metropolitan advertisers
  • Regional advertisers
  • Federal Government
  • Chart: Major Market Segmentation for the Free-to-Air Television Broadcasting 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 Free-to-Air Television Broadcasting

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Free-to-Air Television Broadcasting Industry

  • Industry Globalization
    Seven West Media Limited, Nine Entertainment Co Holdings Limited, Ten Network Holdings Pty Limited, Australian Broadcasting Corporation,
  • Table: Seven West Media Limited - financial performance
  • Table: Nine Entertainment Co Holdings Limited - financial performance
  • Table: Ten Network Holdings Pty Limited - financial performance
  • Table: Australian Broadcasting Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Free-to-Air Television Broadcasting 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 Free-to-Air Television Broadcasting Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Free-To-Air (Fta)
  • General TV broadcasting that is available via an appropriate TV signal receiver at no cost to consumers.
  • Internet Protocol Tv (Iptv)
  • A system that provides TV services over the internet.
  • Narrowcaster
  • A broadcaster that aims media messages at specific segments of the public based on values, preferences or demographics.
  • Pay Tv
  • A multichannel TV service available on a paid or subscription basis.
  • Resolution
  • The degree in quality of an image’s reproduction.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Free-to-Air Television Broadcasting market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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

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