Streaming services edge out commercial free-to-air TV for first time
Australians’ consumption of online subscription services surpassed that of linear commercial free-to-air television for the first ever time in 2021.
Australians’ consumption of online subscription services such as Netflix and Binge surpassed that of linear commercial free-to-air television for the first ever time in 2021, marking a seismic shift in established viewing trends that will likely provoke further disruption to media policy.
The second annual media content consumption survey, commissioned by the federal Department of Communications and conducted by the Social Research Centre, found that 62 per cent of Australian adults reported watching screen content on an online subscription service in 2021 (up from 60 per cent in 2020), while 58 per cent said they viewed linear commercial free-to-air television at some point in 2021 (down from 61 per cent in the previous year).
It is the first time a survey of this magnitude has found that more Australians watch online subscription services than linear commercial free-to-air television.
There was also a decrease in viewership in 2021 of publicly owned free-to-air television (excluding catch-up TV), dipping to 50 per cent from 53 per cent in 2020. Nearly three in five respondents (56 per cent) used free video streaming services such as YouTube, Twitch or Tubi.
Communications Minister Paul Fletcher said the rise in popularity of streaming services was continuing to shake up the media industry.
“As this survey shows, we are seeing continuing and significant shifts in the way that Australians consume screen content, with the take-up of online and on-demand platforms … growing strongly,” he told The Australian.
“Australian consumers are responding enthusiastically to ever greater choice in content offerings. Australians are generally early adopters of new technologies and that has once again been the case with streaming video.
“These trends have important implications for media policy and regulation. Such regulation should be platform-neutral as far as possible, including in relation to such issues as local content requirements.”
Alison Hurbert-Burns, executive director of streaming service Binge (part of the Foxtel Group), said the survey reflected a continuing shift in viewer behaviour.
“You’ve got these consumer trends that have been happening for a while now, this is not the first chapter of online video and streaming. These are trends that have been building but I think we’re now at the tipping point of trends becoming preferences,” Ms Hurbert-Burns said.
“Covid has fast-tracked the bedding down of this behaviour because you’ve had captive audiences with restrictions, so you’re probably seeing Australia catch up to the realities of what’s already happening overseas.
“The convenience of watching what you want when you want it – they’re long-term behavioural shifts that I would argue aren’t going anywhere.”
Ms Hurbert-Burns also said TV’s biggest events were increasingly featuring on subscription platforms.
“Some of (the) most talked-about water-cooler TV moments of last year like the Friends reunion, Squid Game, the big crime whodunits – they were all happening on subscription streaming.”
Bridget Fair, chief executive of Free TV, the peak industry body representing commercial TV broadcasters, said while the findings of the survey weren’t surprising, they also highlighted a critical issue facing media regulators.
“Connected devices are an integral and growing way for Australians to access content so it is no surprise that these results show that our free-to-air consumption habits are continuing to evolve,” Ms Fair said.
“Terrestrial viewing remains a critical part of the mix, but we are also seeing increased online viewing of our BVOD (catch-up TV) services.
“A strong local media sector is central to our ability to maintain a shared sense of national identity which is why ensuring that Free TV services can be easily found on connected devices is the single most critical regulatory issue in media policy right now.
“Free TV has been calling for the (federal) government to introduce a prominence framework to ensure free, easy and universal access to Free TV services and these survey results highlight that this is something we need to act on now.”
The survey, which garnered responses from 4135 people, also found that viewers of online subscription services were largely drawn to the platforms because of the flexibility of being able “to watch what they want when they want” (89 per cent), and the absence of advertisements (76 per cent).
Most of the respondents who watched linear commercial free-to-air television did so for news and live sport, the survey found.