Prime Video, Kayo and Paramount+ were the fastest-growing streaming platforms in FY24, according to Telsyte data.
Paramount+ took the top spot with a massive 18% leap in a year, reaching 1.8 million subscribers, while Kayo experienced a 14% increase to 1.6 million users. Prime Video also saw a massive leap in subscribers, jumping by 7% from a year prior to a total of 4.8 million.
Both Disney+ and Netflix saw a 2% increase. Stan, on the contrary, remained flat with 2.6 million users. A further 3.7% of Australians used other, more minor streaming services such as Optus Sport and Britbox.
In terms of total subscribers, Netflix remains the clear leader with 6.2 million subscriptions at the end of June 24, followed by Amazon Prime Video (4.8 million); Disney+ (3.1 million); Stan (2.6 million); Paramount+ (1.8 million); Binge (1.6 million); Kayo Sports (1.6 million); and YouTube Premium (1.0 million).
The total number of Subscription Video on Demand (SVOD) services grew by 4 per cent year-on-year, reaching 25.3 million in June 2024. Subscriber growth is attributed to a population increase, the introduction of more affordable ad-supported plans, and strong consumer interest in diverse content across multiple services. Revenue growth was driven by subscription cost increases and increased service adoption.
The long tail of more minor services (below 1 million subscriptions) collectively increased by 1 per cent, driven by consumer interest in diversified content at affordable price points, sometimes under $10 per month.
Among all services above 100,000 subscriptions, Britbox saw the fastest growth in FY2024. Anime-focused Crunchyroll and reality TV-focused Hayu also showed strong performance.
Excluding dedicated sports services that serve ads during live sports broadcasts, Telsyte’s research found there are some 2.5 million SVOD subscriptions subsidised by advertisements (June 2024), up from around a million a year ago. Ad-supported subscriptions now account for 11 per cent of the total SVOD services.
Offered by Netflix, Binge and Paramount+, ad-supported plans are the most affordable base tier and come at a time when consumers are increasingly tightening their wallets.
This growth is set to continue as the study found consumers are increasingly receptive to advertisements on their SVOD services if it can help subsidise the subscription cost. Close to 1 in 2 (45%) of SVOD users are interested in such a plan, a sharp 9 per cent increase from a year ago.
Telsyte estimates that introducing more ad-supported plans could lift the average number of subscriptions per household closer to 3.7 (currently 3.5) by 2028.
While demand for video subscription entertainment remained strong, paid SVOD services rank 8th among areas where consumers had reduced spending in the last 12 months, compared to 10th a year ago, according to Telsyte’s consumer spending insights.
“People are looking at their video entertainment and having greater scrutiny towards that, and that’s reflected, I guess, in the flat results from Netflix and Disney,” Telsyte managing director Foad Fadaghi said. “I think we’re at the end of the cycle. The time of ‘all-you-can-eat content on a streaming video service through the internet’ is coming to an end.”
“We’ve long known that sport brings people together and Kayo Sports has certainly become a household utility app for sport fans and families. It’s been a fantastic year for Kayo with our major sports all seeing record audiences this season leading to subscriber highs. At the same time, we’ve enhanced the viewing experience with the launch of 4K alongside our ad-free during live play proposition. We have incredible momentum and an excellent schedule coming up with India touring over Summer and then into our winter codes again starting with NRL in Las Vegas and then kicking into our landmark 2025 AFL rights coverage,” said Executive Director of Kayo, Cate Hefele.
“Hubbl is well positioned for growth as streaming apps become utility entertainment items in households, even through difficult economic times. Hubbl offers users choice and convenience by fusing all major streaming services with free-to-air apps into one easy to use interface making it easier than ever to find content you love. Hubbl is also unique in offering ongoing savings on monthly subscriptions through Hubbl Stack and Save,” said Dani Simpson, Executive Director at Hubbl. “The report shows that future growth will come through bundling and this year you will see Hubbl make a number of bundling options available to customers, unlocking savings on devices as well as content subscriptions”.
B&T contacted Prime Video, Disney+, Paramount+ and Stan, none of which responded to the request for comment prior to publication.
