Communications report 2011–12 series

Report 1—Online video

content services in Australia

Latest developments in the supply and use of professionally produced online video services

Communications report series 2011–12

Supply of online video content services—context

Data downloads

since June 2010

Average volume of data

downloaded per internet

subscriber in Australia

114%

Supply chains for online video content

Revenue models for online video content

$

$

$

$

•No Charge (no advertising)

•Price-per-view (PPV)

•Subscription

•No Charge (advertising supported)

Major ISPs – Online video content offerings

Unmetered content – Number of ISPs offering unmetered online

video content by content provider

12

8 8

2

0

2

4

6

8

10

12

14

ABC iView Fetch TV TiVo (CASPA) Quickflix

Nu

mb

er

of IS

Ps

Free-to-air and subscription television – Online service offerings

Content aggregators

• Wholesale content aggregator

– delivered through ISPs

•Retail content aggregator

-Mail DVD delivery and online streaming

•Super aggregator (available from 2007)

-Available via set-top box

-Content available via iTunes Store

•Super aggregator (available from 2012)

-Available via some TVs (Sony) and set-top

boxes

-Google Play and YouTube movies content

Devices enabling online video content

Smart TVs

Gaming consoles

Set-top boxes and

digital media players

Mobile TV offerings

•Local and international TV content

•Subscription based service (weekly or monthly)

•Local and international TV content

•Subscription based service (daily or monthly)

•Local and international TV content

•Subscription or pay-per-view

Overseas comparisons

76

66

38

50

82

68

2 3 1

19

11

2

-

10

20

30

40

50

60

70

80

90

100

UK USA China France South Korea

Australia

Per

cent

% broadband penetration % IPTV subscribers (total population)

Demand for online video content services

Percentage of Australian population aged 18 years

and over aware of OVC services at June 2012

75%Awareness of

OVC services

Higher awareness of OVC

People

aged 25-34

>81%

Home internet users

79%

Homes with children

84%

Awareness of OVC services by service type

38

51

68

IPTV

Catch-up TV

Video on demand

% of internet users aged 18 years and over

Take-up of online video content services – Socio-economic characteristics

17

24

38

47

55

68

56

36

32

58

41

31

0 20 40 60 80

65+

55-64

45-54

35-44

25-34

18-24

>$90,000

$50,000-90,000

<$50,000

University Degree

TAFE/Apprenticeship

Primary School

Per cent

Percentage of Australian internet users (18 years and over) who accessed online video content in the previous six months

Ag

e

Highest level of

education

completed

Income

Take-up of online video content services by content type

10

12

13

35

61

Foreign language programs

Full-length music programs or concerts

Full-length sporting events

Full-length films or movies

Full-length TV programs

% OVC users (43 per cent of online users)

Demand for free-to-air catch-up services

•1.5 million Australians access FTA catch-up

services in June 2012

•53% increase in number of Australians

accessing FTA catch-up services on 2011

53%

Audience figures - Free-to-air catch-up sites

0

100

200

300

400

500

600

700

Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

Un

iqu

e a

ud

ien

ce

(0

00

s)

au.tv.yahoo/plus7

abc.net.au/iview

catchup.ninemsn

Network TEN catch-up

SBS on Demand

Devices used to access online video content

11

20

21

26

29

49

67

Some other device

Mobile phone or smartphone

Internet enabled Television

Tablet such as iPad or Galaxy

Standard Television

Desktop computer

Laptop computer

% of persons aged 18 years and over who accessed online video content

Use of multiple devices to access online video content

36

30

22

6

3 3

0.3

One only Two Three Four Five Six Seven

% o

f p

ers

on

s 1

8 y

ea

rs a

nd

ove

r a

cce

ssin

g

on

line

vid

eo

co

nte

nt

Number of devices used to view internet video content

Time-shift access devices – Ownership among Australians

1

2

3

9

12

27

0.2

1

2

3

3

4

4

4

9

12

32

Fetch TV

TiVo

Austar My Star HD

Austar My Star

Apple TV

T-Box

Foxtel iQ2

Foxtel iQHD

Foxtel iQ

Other digital video recorder/PVR

Have a time shifting device

% of persons aged 18 years and over with home internet access

Jun-12

Jun-11

Drivers increasing access to online video content

31

32

42

43

47

68

I missed it on broadcast/live TV

Watch shows/movies that are not available in Australia

No ads/skip the ads

Able to pause/stop and come back to it when I like

It's free

Watch at a time suitable to me

% of persons aged 16 years and over who watch internet TV

Reasons for watching online video content

49%•49% of Australian internet users who are

intending to access online video content and

would be prepared to pay for it.

•Highest amongst people aged 25-54

Barriers to accessing online video content

4

4

4

4

5

8

12

16

22

26

It takes too long\slow internet connection

Have data usage\quota\cap\limit

Prefer to buy\support artists\industry

Too expensive to stream\download

Not a big watcher of TV\movies

Enough on TV\pay TV

I can easily access my content in other ways

I don't know how to do it

I don't have enough time to watch them

No need for it\no interest

% of internet users aged 18 years and over not accessing online video content services

Reasons for not access online video content

Future of online video content in Australia

New devices

NBN rollout

Faster wireless speeds

Communications report series 2011–12