Stan and Presto are building new subscribers faster than Netflix as Australians sign on for second and third services to feed their hunger for streaming media content.
According to research by emerging technology analyst firm Telsyte, video on demand (SVOD) services over the internet are running hot with 2.7 million active subscriptions expected by the close of this month.
This represents a growth rate of 46% over the same period in 2015.
“Despite Netflix exploding onto the scene, local players Stan and Presto have been growing faster than Netflix in the past 12 months as appetite for more content drives people to adopt a second or third provider,” says Telsyte.
One in five Netflix customers have more than one service, according to Telsyte research.
Telsyte says the local SVOD market has entered a new phase whereby the top three competitors are much more aggressively seeking exclusive content rights deals.
Netflix is still the leader, followed by Stan and then Foxtel’s Presto.
Telsyte isn’t releasing numbers of subscribers for each service and Netflix keeps its own figures confidential.
However, the latest data from Roy Morgan Research shows Netflix with 1.878 million subscribing homes including paid, free trials and special offers.
The Roy Morgan numbers show Stan, a joint venture between Nine and Fairfax Media, with 332,000 subscriptions reaching 891,000 Australians. Presto reaches 353,000 people in 142,000 homes.
Telsyte’s Australian Video Market Study 2016 found 43% of households now subscribe to either pay TV or SVOD services. The average number of SVOD subscriptions per subscribing household has increased to 1.7 from 1.5.
The total number of paid (excluding trial users) SVOD subscriptions is on track to more than double to 4.1 million in June 2019 from 1.9 million in June.
At that time, SVOD will exceed the total number of pay TV subscriptions in Australia.
Pay TV currently has a total of 3.3 million subscribers and will continue to enjoy a healthy revenue lead over SVOD.
“Australians insatiable appetite for streaming content opens the door for third party players like Google, Apple, Telstra, Sony, Samsung and others to consider their content service strategies,” says Telsyte.
Telsyte believes the ability to universally search across multiple service providers, including on smartphones and smart TVs, will be a compelling way for people to access SVOD content in the future.
(Disclosure: Allure Media, the publisher of Business Insider, is 100% owned by Fairfax Media.)
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