Streaming Services Overtake Free-to-air TV For First Time in Australia; What Does it Imply

The entertainment industry, like over-the-top (OTP) streaming services such as Hulu, HBO Max, Amazon Prime, Netflix, and Disney Plus, has significantly made strides and is constantly releasing eccentric, spell-binding, and compelling content for the viewers and Australians do not want to feel left out!

Due to the Australians' endless love for streaming services, these platforms have overtaken free-to-air (FTA) television for the first time. Although these streaming platforms offer trendy and unorthodox content, you will have to unblock streaming services in Australia via an excellent and premium VPN or Virtual Private Network to stream geo-restricted content without an issue.

So let's discuss the possible reasons and the different pieces of evidence as to why the use of free-to-air (FTA) television is currently declining!

What Does Research Have to Say About the Sudden Drop of Paid and Cable TV Viewership?

In previous years, Australian viewers of over-the-top (OTP) streaming services and free-to-air (FTA) television were almost the same. However, in recent years the BCARR (Australian Bureau of Communications, Arts and Regional Research) found that by the end of 2020, the OTP streaming services' popularity grew by 70% among Australians, which is triple the amount as of 2016.

The report further compared the viewing of FTA television content in 2016 and 2020 among Australians. It showed that 90% of Australians used to watch FTA content in Australia in 2016, but the percentage dropped to 82.5 in 2020.

Moreover, the Department of Infrastructure, Transport, Regional Development, and Communications highlighted that the use of online video and subscription services had increased considerably among Australian adults, around 83% in 2021. It also showed that there was an uptick in the use of OTP services among Australians as it increased two points from 60% in 2020 to 62% in 2021.

In addition, it also emphasized that the consumption of free-to-air content among Australian adults downtick from 80% to 77%, and commercial free-to-air services also took a nosedive from 61% in 2020 to 58% in 2021. Thus, it clearly indicates that subscription services are significantly making waves and are ahead of commercial television for the first time.

Which Streaming Platforms are Currently on the Rise in Australia?

Out of all the over-the-top streaming services used in Australia, Netflix is the most popular choice and dominates the Australian streaming market. Besides Netflix, there is substantial audience growth on Stan, Amazon Prime Video, and Disney+. Around 67% of Australians have subscribed to Netflix, and Disney+ comes second with 27% of Australian subscribers.

Furthermore, according to the BCARR data, there is a sudden drop in the consumption of OTP service Foxtel Now among Australian residents. However, the newest streaming platforms, like Binge and Kayo, are heading in the opposite direction and are burgeoning.

Moreover, Australians are big sports aficionados. According to the report cited in EKAS Market Research, 80% of Australians watch free-to-air TV, while only 55% use paid sports services like Foxtel's Kayo. So when it comes to sports and news, free-to-air televisions are still on the top.

Also: Read about the ten most important factors you must consider when choosing a streaming service.

Why are Australians Relying on Streaming Services?

The different avant-garde and hyped-up content can make anyone hooked! The constant transformation and upgrade of streaming services have increased accessibility, and the impressively whopping streaming service options have provided variety. These video-on-demand platforms can be streamed via various devices like gaming consoles and smart TVs, making entertainment streaming extremely accessible, convenient, and enticing.

Moreover, Australians opt for streaming services because they love the idea of freedom. According to a survey, around 89% of Aussies use and rely on streaming services because they allow you to choose between different programs and can watch any content whenever they want.

Another plus point that attracts Aussies is that streaming services have minimum to no advertisements. Therefore, they eliminate the need to sit through those boring ads to watch your favorite content. In addition, these platforms offer international content from various content libraries and provide high-quality streaming of the latest programs.

Not to mention, the Department of Infrastructure, Transport, Regional Development, and Communications report showed that younger generations mostly preferred to use online subscription services. At the same time, older adults favored free-to-air television. Since the main source of entertainment for children is streaming services, there is a notable decline in the use of free-to-air television.

Streaming Takes Over Free-to-Air Television in Australia; What Does it Imply? - Final Thoughts

It generally means and indicates that streaming services have successfully captured the audience with their versatile content library.

The constant need for engaging and enticing content and watching something interesting all the time has pushed Australians, especially youngsters, to subscribe to diverse streaming platforms with excellent content galore. Since they provide various perks, high-quality streaming, convenience, and accessibility, OTP services are becoming popular among them.

Although several streaming platforms are raising their subscription costs, their spell-binding features, like inexpensive ad-supported tiers, password sharing, free plans, etc., have lured entertainment lovers to stream their favorite content through the desired streaming platform.