Subscription video on demand is growing rapidly in Australia, becoming an increasingly popular way to watch video content. From January to March 2015, Australia saw the launch of new SVoD services, including Netflix, Presto TV and Stan, and the take-up since then has been rapid. With the introduction of these services, Australians now have a greater range of video content viewing options.

An ACMA survey found that an estimated 3.2 million adult Australians (17 per cent) watched video content via SVoD in the six months to June 2015, and 2.2 million (12 per cent) in the last seven days at June 2015.

Since March 2015, Netflix accounts for the majority of SVoD services used in Australia. An estimated 2.5 million adult Australians (14 per cent) used Netflix Australia to stream TV shows or movies in the six months to June 2015.

Amongst SVoD users, 78 per cent used Netflix Australia in the six months to June 2015, and 88 per cent in the past seven days at June 2015. Streaming services allow a user to watch video content on their own terms—at any time that suits. Almost half of SVoD users (49 per cent) reported this as one of the main benefits of accessing video content online, as compared to watching content on pay TV or free-to-air television. Greater choice of content (44 per cent) and lower cost (21 per cent) were other major benefits reported by SVoD users.

SVoD users are more likely than non-users to recognise these benefits, with only 30 per cent of all adults identifying ‘watching at a time that suits’ as a main benefit of watching video online.