Online TV subs to drive Oz media growth

Louise Duffy | 30-07-2012

Within four years, more than a quarter of Australians will have signed up to an online TV subscription service, according to a report by PricewaterhouseCoopers (PwC).

Its annual media report also forecasts that IPTV, other subscription entertainment services and new mobile media apps will drive growth of 18% in Australia's media and entertainment industry over the next five years.
It forecasts a compound annual growth rate of 4.1%, but warns revenues will continue to decline in newspapers and magazines, despite the partial offset of new digital subscriptions.
PwC media analyst David Wiadrowski said: "These new business models require time and patience to be bedded down properly. It would be a mistake to look for instant or short-term success when experimentation is crucial at times of change."
By 2017, 27% of Australians will have switched to an IPTV subscription service, close to the current 30% penetration rates of pay TV, the report says.
Wiadrowski added: ''This makes IPTV a strong market contender among the boxes vying to control content shown in Australian living rooms. It also raises a key question: will IPTV grow the market or replace existing content services?
"While we expect IPTV to provide an attractive alternative to the more expensive cable or satellite delivered subscription TV service, its success will depend on what content IPTV offers. Niche content such as foreign language channels should work well in the IPTV environment.''