International players to enter as streaming consolidates, PwC predicts

The streaming market is expected to consolidate as international players such as Disney and Apple target viewers.

Fox Sports News presenter Alissa Smith at a Kayo Sports "Euro" event in Sydney.

The Australian streaming market is expected to consolidate as new international players such as Disney and Apple target content-hungry consumers, accord­ing to advisory firm PwC.

PwC’s 18th annual Australian Entertainment & Media Outlook report, released today, says “Australians are spoiled for choice” when it comes to streaming video-on-demand services such as Netflix, Stan, Foxtel Now, Kayo Sports, Amazon Prime Video and 10 All Access.

“Launches from much-anticipated international heavy hitters Apple and Disney are rumoured. In the small Australian market, this level of competition will likely prompt further consolidation,” according to the report, which cites Presto, a joint venture ­between Seven Network and Foxtel, as an “early casualty”.

With US streaming giant Netflix seen as a must-have for consumers, the big question is “who will win the coming battles for the second SVOD service: will Stan, Foxtel Now, Kayo or Amazon Prime give way to Disney or Apple TV+?”

Stan, which is owned by Nine Entertainment, is keen to continue its content partnership with Disney after its one-year deal with the US giant expires in ­December.

Disney’s long-awaited streaming service Dinsey+ is scheduled to launch in the US in November, but management are tight-lipped about their international plans. Apple TV+ will launch in the US later this year, but little is known about its international plans.

PwC Australia partner and ­entertainment & media outlook editor Justin Papps told The Australian that Stan had acknowledged it was an aggregator of con­tent, and Netflix had recently shown its commitment by setting up a local office.

“Netflix has finally opened their own Australian office, which I think is a good indication on how serious that they’re now taking our part of the world,” he said.

Mr Papps said content and a great viewing experience were key to future success. He singled out Foxtel’s sports streaming service, Kayo Sport, as a good example, noting it had been “very successful” since its launch at the end of last year.

“The quality of their interface is really strong. You can watch multiple streams through the same device. The way they have actually really keyed into that sports fan is evidence of just how well they understand their target audience,” he said.

Foxtel’s biggest shareholder, News Corp, reported last month that subscriptions to Kayo, dubbed “the Netflix of sports”, had doubled to 209,000 in the March quarter, taking its total to 239,000 since launch in November last year.

Australia’s entertainment and media industry is forecast to grow 4.2 per cent a year to $12.61 billion by 2023.