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Netflix surges into 8% of Australian homes

Netflix surges into 8% of Australian homes

Netflix surges into 8% of Australian homes

Netflix has hit 8% of Australian homes, reaching 1.89 million people, the latest monthly data from Roy Morgan Research shows.

Meanwhile, over 1 in 3 Australian households now have some form of pay or subscription TV, up almost 30% since the start of 2015.

At the start of 2015, the very idea of paying for TV content in Australia was practically synonymous with Foxtel. In January, 95% of the 2.4 million homes with Pay/Subscription TV market had Foxtel, and just 5% used only another service such as Fetch or Presto.

Enter Netflix, which has grown to 737,000 household subscribers in July, some 1.89 million people. This is a stellar increase from 748,000 people in April to 1.16 million in May to 1.53 million in June. Netflix is expanding the category by luring new customers to paid/subscription TV—now in almost 3.1 million homes. Stan and Presto have also made gains in the number of households subscribing. So while Foxtel’s sharehas fallen dramatically to 76%, the size of its customer base is almost unchanged (2,346,000).

In July, 7.3% of Foxtel’s homes (171,000) were also subscribing to Netflix—a rate not much below the national Netflix take-up of 8.0% of households. The consistent number of Foxtel homes suggests that many of its customers are, for now at least, trialling Netflix as an add-on to their main Pay TV provider.

Jon Watts (MTM), Simon Brown (UKTV),  Scott Murrow (AMC Networks), Hendrik McDermott (NBCUniversal International Television) and Simon Homent (Wuaki.tv) will be discussing ‘content as a primary differentiator’ at this year’s OTTtv World Summit (9th – 12th November 2015 Millennium Gloucester Hotel, London).

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