Video, music and gaming subscriptions grow: Telsyte

By

Streaming services seen as essential.

Australian’s use of subscription services like streaming, gaming and music is on an upward trajectory with adoption growing 16 percent over the past 12 months.

Video, music and gaming subscriptions grow: Telsyte

In a new report from Telsyte, it shows that the total number of services has increased by more than 6 million to 48.4 million between June 2021 and June 2022.

The Telsyte Australian Subscription Entertainment Study 2022 found streaming video on demand (SVOD), streaming music and games-related subscription services all experienced solid growth during the measured period (22 percent, 17 percent and 19 percent, respectively), while the exodus from traditional pay TV continued with a 9 per cent year-on-year decline.

Telsyte’s research found streaming entertainment is now considered “essential” for more than half (54 percent for SVOD and 52 percent for music) of Australian users.

Despite macroeconomic headwinds and “cost of living” pressures, Telsyte continues to forecast growth for all sectors, with games growing the fastest to 2026.

Alvin Lee, senior analyst at Telsyte said as the pandemic eases it would be very unlikely to see a drop in subscription numbers.

He told Digital Nation Australia, “Streaming video on demand (SVOD) services are still considered essential by more than half of the users with increased consumption across their services.”

Australian SVOD services reached 23.4 million at the end of June 2022, an increase of 22 percent from 19.2 million in June 2021.

More than 70 per cent of Australian households now have at least one SVOD service, up from 62 percent a year ago. The number increases to 77 percent among households on NBN.

Telsyte forecasts the total number of SVOD subscriptions could exceed 30 million by June 2026, driven by a content boom, growth in consumers having multiple subscriptions, new market entrants and the introduction of ad-supported plans.

SVOD market revenue was estimated at $2.7 billion for FY2022, an annual increase of 27 percent.

With Netflix planning on bringing advertising to its platform, Lee said it shouldn’t impact uptake at all.

Around 35 percent of SVOD users are interested in the more affordable ad-supported service plans, and 23 percent of non-users interested to begin using ad-supported SVOD services.

He explained, “Telsyte anticipates introducing ad-supported SVOD plans will lift the overall SVOD service adoption, driven by new users and multiple subscriptions. The research shows around 1 in 4 non-users are interested in taking up ad-supported SVOD services (compared to 34 percent of SVOD subscribers with at least one service).”

Video game subscriptions

Gaming is another area where adoption has continued to grow, the Telsyte study found Australians had taken up 8.3 million games-related subscriptions at the end of June 2022, up 19 percent from a year ago.

Video game subscriptions have been the primary growth segment, growing 56 per cent to 4.8 million in June 2022.

Microsoft’s Xbox Game Pass remains the leader in the category with Sony recently re-launching its revamped console subscription – PlayStation Plus, which now also includes a selection of titles in its higher-tiered plans.

The next frontier remains cloud gaming, or the ability to play AAA titles without the need for high-end hardware.

Telsyte estimates the total number of games-related subscriptions could grow to over 14 million by June 2026, as services become increasingly attractive with more perks, new game trials and AAA titles.

Lee said, “Video game subscriptions offer incredible value to gamers and are set to rapidly change the games industry like music and video before it.”

Cloud gaming is beginning to take shape in Australia and Telsyte estimates around half a million gamers have adopted services such as xCloud (part of Xbox Game Pass’ Ultimate plan) and Geforce Now. Cloud gaming remains highly sought after amongst hardcore gamers that play video games for more than 3 hours a day.

Over the next 12 months, cloud gaming could see a bigger uptake, according to Lee

“Cloud gaming has enjoyed rapid growth in the last year and Telsyte estimates around half a million gamers have adopted services such as xCloud and Geforce Now,” he said.

"It could potentially close to double in the next 12 months with better availability of fast and low latency Internet connections, including 5G or high-speed NBN plans optimised for gaming.”

Got a news tip for our journalists? Share it with us anonymously here.
© Digital Nation
Tags:

Most Read Articles

Westpac pilots AI to analyse inbound call content

Westpac pilots AI to analyse inbound call content

ANZ explores agentic AI opportunities

ANZ explores agentic AI opportunities

Northcott to explore AI summarisation

Northcott to explore AI summarisation

BHP sets up AI hub in Singapore

BHP sets up AI hub in Singapore

Log In

  |  Forgot your password?