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Statistics - 2015

Digital Business

Australian consumer spending on digital video, whether via Pay TV VoD, digital retail, digital rental or digital subscription, experienced rapid growth in 2015, climbing 49% to almost A$395 million compared with a year earlier. IHS expects the strong growth to continue over the forecast period with the value of the Australian digital video market forecast to reach A$1.1 billion in 2019.

Digital rental still holds the lion’s share of consumer spending on digital video accounting for 30% of total spending in 2015 followed by digital retail (27%), digital subscription (26%), and Pay TV VoD (17%).

Digital subscription, commonly referred to as Subscription Video-on-Demand (SVoD), grew rapidly from a small base to generate consumer spending of A$103 million in 2015. Driving growth was the launch of new services Netflix and Stan as well as the relaunch of existing service Presto.

Australia: Digital Video Spending 2009-2019

Digital transactional video volume and value increased 12.3% and 12.1% respectively in 2015 compared with a year earlier, generating consumer revenue (consumer spending minus Goods and Services Tax) of A$187 million after consumer transactions totaled 29 million.

Movie EST and VoD transactions also increased, up 17.6% to 3.0 million and 13.9% to 19.9 million respectively in 2015, whilst TV EST revenue rose 10.1% to A$50.0 million after consumers made 5.9 million transactions over the same period. TV content consumed on a rental basis (TV VoD) remains niche. TV VoD consumer revenues reached A$636,000 in 2015 from 226,000 transactions.

Movie VoD transactions continue to hold the lion’s share of total digital consumer transactions in Australia. Movie VoD increased its share by one percentage point to account for 69% of digital transactions in 2015. Movie EST remained steady at a 10% share whilst the rise of Movie VoD transactions came at the expense of TV EST transactions, which saw its importance decline one percentage point to 20%.

Australia: Consumer Revenue 2011-2015

EST content holds a significantly higher share of revenues than transactions due to the higher price point charged to own rather than to rent a title. As a result, Movie and TV EST accounted for a 21% and 27% share of consumer revenues from digital transactional video respectively in 2015. Despite EST’s price premium, Movie VoD still held the majority share of total consumer revenue (52%) in 2015.

Physical Business

The physical disc retail market generated $904 million in value in 2015, making it the largest of the video home entertainment markets. The market has shown a downward trend since its peak in 2009 as consumers have diversified the way they watch their video entertainment content.

GfK Retail Tracking: Physical Retail Market size

GfK Retail Tracking: Physical Retail Market Value by Format

In 2015, the physical DVD and Blu-ray retail channel sold over 50 million discs, for a total value of $904 million. This represented a drop of 8% in value, though the rate of decline actually slowed from the -10% recorded in 2014.

The volume in the market was more stable, showing a 6% decline, with market prices dropping slightly in 2015 following a slew of cheaper blockbuster movie releases.

There were some big movie releases in 2015 and it doesn’t get any bigger than the dinosaur epic, Jurassic World. Jurassic World was the top selling title for the year, leading the way for Universal who registered the top 3 titles for the year.

Digital Content Guide