The staggering growth of online streaming giant Netflix continues in Australia, but is starting to slow, according to the latest figures from Roy Morgan Research.
An additional 118,000 homes signed up in August, dropping from July’s peak of 166,000, which is the lowest net gain since the business launched in April. However, the number means 9.3% of homes and around 2.2 million Australians aged 14+ now have access to the video on-demand service.
Roy Morgan Research general manager of media Tim Martin said that based on its current growth Netflix will be in one in every 10 Australian homes this month and pass the one-million-home mark in October.
Competitors Stan and Presto are each in less than 1% of homes.
Martin said it was inevitable that the initial flurry of subscriptions there would be a “settling down” period.
“Some of this lower net monthly growth would also be due to homes discontinuing after the trial offers expire, or when they’ve watched about as much of the available content as interests them. The ‘no contract’ model means Netflix and other SVOD players including Stan and Presto need not only to attract but retain subscribers, who can effectively come in and out depending on when new shows or movies are loaded,” he said.
“The main opportunity for SVOD providers is now to reach beyond the ‘low-hanging fruit’ of early adopting younger households that have driven initial growth.”
With Telstra TV set to hit the market in October, the fight for subscribers is set to be even more intense.
“This enormous pool of potential customers is uncertain about SVOD now, but they’ll soon see in their own homes how easy it is to access just by plugging in a Roku. Once subscribed, these customers will also be less likely to switch or discontinue whenever a shiny new service comes along. The rewards for staking a claim in this area are clear,” Martin said.