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The Australian



Streaming content providers like Netflix and Stan look destined to entrench their positions as the primary mediums through which consumers get their entertainment fix, according to research from analyst firm Ovum.

According to Ovum, almost seven million Australian will be subscribing to an Over-the-Top video service like Netflix by 2020 — a 170 per cent increase compared to the number of end users last year.

The flood of users also translates into a torrent of dollars. The Australian OTT market is expected to generate annual revenues of $1 billion by 2022, more than doubling the 2016 revenues of $460 million.

At a global level, the market for OTT video subscriptions will generate $78bn per year by 2022, when more than 800 million subscribers will buy OTT video.

The opportunity will put demands on telecom operators, established media giants and wholesale broadband networks like the National Broadband Network, in what Ovum analyst Ed Barton said was the best time to “be a viewer”.

“It’s not just the raw subscriber growth that’s impressive. It’s also incredible to see how accessible these services have become,” he told The Australian.

“The involvement of network operators is likely to become a growing trend because they see all this video data and most of it’s coming from someone else and they just get the revenue to transport it.”


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