OTT, IPTV services key to Australia's new TV landscape
Rebecca Hawkes
| 25 June 2014
Australia's broadcasting sector is being reshaped with the digitisation of free-to-air frequencies, increased availability of pay-TV, and the 'hotting up' of the IPTV market and TV everywhere, according to research from BuddeComm.

"With subscription TV household penetration still languishing below 30%, we are seeing more content available over-the-top (OTT) through the IPTV service providers. Telstra, the largest, has more than 600,000 customers to its bundled pay-TV service," the researchers said.

"Other providers in the growing paid-for IPTV market include FetchTV, Quickflix, EzyTV, FOXTEL's Presto, while some overseas companies including Netflix are eagerly watching the market ... but BuddeComm remains pessimistic about the current commercial IPTV business models," said the company.

Some traditional television companies are already struggling, and BuddeComm suggests they "need to move faster if they are to remain viable towards 2020 when the NBN rollout should see most Australians with fast broadband that allows full-streaming digital access".

At that point, subscription video-on-demand (SVOD) content may help to return revenue to the traditional broadcasters through viewers keen to pay for catch-up services they currently access for free.

"There is a correlation between the availability of high speed broadband and IPTV usage, and BuddeComm estimates that further increases in high speed broadband penetration will drive new IPTV developments. The rapid growth of smartphones and tablets is also giving this market a boost, as well as new business models like pay-per-view," the researchers add.