In recent years, Australia has witnessed a seismic shift in how its residents consume entertainment, with a notable surge in the popularity of streaming video services. This transformation is underscored by a comprehensive study from the Australian Communications and Media Authority (ACMA), revealing that a staggering 42 percent of Australian households subscribed to five or more online video services by mid-2024. This enthusiasm for digital content consumption translated into a remarkable expenditure of $3.5 billion on subscriptions during the 2023/24 financial year.
As Netflix celebrates a decade of its local launch, the Royal Melbourne Institute of Technology (RMIT) has released an insightful study titled “10 Years of Netflix in Australia: Streaming Players and Local Content.” This report not only chronicles Netflix’s ascent to the forefront of the streaming landscape but also highlights the emergence of local competitors that have carved out their own niches. Interestingly, while Netflix was the first paid streaming service to launch in Australia, the landscape was already evolving, with public broadcasters like ABC’s iview offering streaming options as early as 2008.
Prior to Netflix’s arrival, many Australians resorted to piracy to access content, often using virtual private networks (VPNs) to bypass geographical restrictions. However, the legal availability of streaming services led to a rapid adoption of Netflix, with one million subscribers joining within just three months of its launch. This remarkable uptake laid the groundwork for Netflix to maintain its position as the dominant player in the Australian market.
Yet, it is crucial to note that Australians have not exclusively embraced Netflix. The local streaming service Stan, which launched in 2015, has steadily built a unique identity as the “national streamer.” Although Stan’s subscription numbers initially lagged behind Netflix’s, it has grown to capture 25 percent of Australian households, demonstrating that local content resonates deeply with viewers.
The competitive landscape of streaming video-on-demand (SVOD) has evolved significantly. Research from Roy Morgan indicates that SVOD subscriptions have surpassed those of traditional cable and satellite providers like Foxtel within just 18 months of Netflix’s entry. By 2020, Australia had become the most penetrated Netflix market globally, with 63 percent of homes having access, compared to 50 percent in the United States.
However, the rise of streaming services has not come without challenges for traditional broadcast television. The ACMA reports that the number of Australian adults watching free-to-air TV fell to less than half (46 percent) for the first time in 2024. Despite this decline, free broadcast video-on-demand (BVOD) platforms, such as 9Now and 10Play, have garnered substantial audiences, indicating that while traditional viewing is waning, there is still a demand for accessible content.
Interestingly, the interplay between streaming and traditional broadcasting is evolving. A recent RMIT study found that approximately 71 percent of smart TV users in Australia combine free-to-air viewing with streaming apps from broadcast channels, suggesting that many consumers are finding value in a hybrid approach rather than fully abandoning traditional television.
On the production front, Australian content creators have found themselves in a precarious situation. In January 2023, the government proposed a five-year plan to boost local arts, including mandates for Australian screen content on streaming platforms by July 2024. However, by November 2023, this initiative was indefinitely shelved due to fears it could violate existing free trade agreements with the United States. This setback raises concerns about the future of local production and the potential impact on the diversity of content available to Australian audiences.
Despite these challenges, Netflix has committed to investing in Australian content, spending over $1 billion on local productions between 2019 and 2023. This includes significant investments in children’s programming and adult dramas, with notable titles such as “Tidelands,” “Heartbreak High,” and “Nanette” emerging from its Australian studio. Similarly, Stan has made its mark with local productions, including the acclaimed “Wolf Creek” and “True History of the Kelly Gang,” solidifying its standing as a major player in the creation of Australian drama.
Nevertheless, not all streaming services have thrived in this vibrant ecosystem. Quickflix, which initially launched as a DVD rental service before transitioning to streaming in 2014, struggled to compete and ultimately ceased operations in 2021. Other platforms, such as Femflix and the brief-lived Presto, have also faded into obscurity, illustrating the cutthroat nature of the streaming industry.
In conclusion, as Australian households continue to embrace a plethora of streaming options, the landscape remains dynamic and competitive. While Netflix retains its crown, local challengers like Stan are thriving by tapping into the unique tastes of Australian viewers. The interplay between streaming services and traditional broadcasting is evolving, and the future of local content production remains uncertain. However, one thing is clear: Australians are hungry for diverse and engaging content, and the race to satisfy this appetite is far from over.
