More than 300,000 Australian households now accessing IPTV

Australian consumers warm to subscription TV over broadband – more than 300,000 households now accessing IPTV

SYDNEY, AUSTRALIA – A new study released today by Telsyte confirms the rise of subscription TV over broadband with more than 300,000 Australian homes now accessing an IPTV service. This equates to around one in ten subscription TV services currently delivered over broadband.

Telsyte forecasts that by 2015, over one third of all subscription TV services will be provided over broadband.

Telsyte has determined the total subscription TV industry in Australia generates around $2.7 billion for service providers. While most of this revenue goes to the two largest operators Foxtel and Austar, there are emerging credible services over broadband such as Telstra’s Tbox and FetchTV that are supplementing the mature satellite and cable markets.

The study authored by Telsyte’s director of research consulting, Chris Coughlan, found that newer offerings such as FetchTV were aligning better to the future needs of consumers.

These services combined flexible viewing options for FTA along with the ability to stream a selection of channels and access to large libraries of pay-per-view content, including new release movies.

Based on both on interviews with industry executive and a comprehensive survey of Australian consumers, Telsyte’s research found that IPTV offers are well places to meet the main objections people have with subscription TV, that is ‘too expensive’ and that ‘free to air is good enough’.

Telsyte expects FetchTV will increase its subscriber volumes through its ISP partners, especially with the addition of Optus as a reseller.

The study provides insights into the consumer and industry trends that are shaping the market including the impact of the National Broadband Network (NBN).

“Foxtel faces a dilemma as distribution over the NBN requires it to become a retail service provider supplying broadband access, something that its majority shareholder, Telstra, might be reticent to allow,” Coughlan says.

“It also faces challenges with regard to margin erosion if it follows suit with cut-down offerings” he says.

The report provides a forecast of subscription TV and IPTV connections for the major providers through to 2015, current market shares, commentary on major participants and insights on future developments.

For further information on the report or media inquiries contact:

Chris Coughlan
Email: ccoughlan@telsyte.com.au
Phone: (02) 8297 4628 or 0401 988 322

For sales and consulting enquiries please contact Foad Fadaghi on (02) 8297 4651