As of June 2015, over 2 million Australians are using subscription videos-on-demand services, according to IT consultancy firm, Telsyte. Just roughly six months before, in December 2014, Australia has had a recorded 315,000 SVOD users.
Free trials of the services, it appears, have prompted the use of SVOD services. Netflix, Stan, Presto and Quickflix have provided the latest releases at the comfort of the users' homes. Netflix has copped 296,000 subscribing households within the first month of its release in Australia. It remains to hold the largest market among the four.
Roy Morgan, a researcher of television trends, said in a research published last month that as of that time, Netflix has garnered 1 million subscribers. The competition has appeared to be lagging behind. But it is important to note that households can have multiple subscriptions. Individual subscriptions can mean that a household has availed all four top SVOD service providers.
And IT company Telsyte said that SVOD service business is very competitive and also seasonal. The situation is not likely to have only one winner emerge. Partnerships with mobile carriers and availability to mobile users are also key factors to thrive in the competitive market.
The big jump on subscription number is believed to be a result of the country's attempts to fight piracy. Site-blocking laws have been implemented. This means piracy sites will be blocked, forbidding people from illegal downloading.
When a household or individual subscribes to an SVOD service provider, internet-connected devices (powered by the SVOD app, of course) can stream TV shows and movies. Users are billed monthly for their use.
Communications Minister Malcolm Turnbull has stressed the importance of a legitimate source of the contents that are frequently pirated. He also noted how availability to overseas countries is vital to promote use of these alternative sources. SVOD services provide recent content and are engaged in a legal business. It's only a matter of time before many other countries all over the world take to SVOD services.
