Bullish outlook for Oz streamers

Australia’s three major subscription VoD platforms will have 1.5 million subscribers by the end of this year, according to a media analyst.

Credit Suisse’s Fraser McLeish has predicted Netflix, which launched in the country on March 24, will account for 40% of the market over the longer term due to its global reach and track record.

He expects Stan, the Nine Entertainment/Fairfax Media co-venture that started on January 26, to have a 33% share.

Foxtel’s Presto Movies and Presto TV, a partnership with Seven West Media, is projected to have 27% due to its higher cost of A$14.99 (US$11.61) per month for both services.

“We anticipate strong demand for SVoD in Australia, driven by low price points, quality content, adoption of connected devices such as Apple TV and Google Chromecast, and distribution deals with telcos,” he said.

He expects Stan to have 500,000 subscribers by year-end and two million by 2023.

Overall, he believes the market will expand to 3.2 million subs by 2017 and 6.2 million by 2023, with a 60% penetration of broadband households.

McLeish believes there is room for three profitable players, predicting annual revenues will climb to A$700m by 2023.