Summary

Australia's OTT market is mature, with a large and growing user base. The market is dominated by a few large international companies, including Netflix, Amazon Prime Video, and Disney+ Hotstar, which offer a wide range of content to Australian users. Local players, such as Stan and Foxtel, also have a significant market share. The platforms offer a mix of licensed content, original productions, and user-generated content. There is a strong demand for local content in Australia, and the platforms are investing in producing and licensing high-quality Australian content. The primary revenue sources for OTT platforms in Australia include subscription fees, advertising, and e-commerce. The Australia OTT market is highly competitive, with each platform striving to offer the best user experience and exclusive content to attract and retain users. The Australian government regulates the OTT market, but the regulations are generally favorable to the industry's growth. The Australia OTT market is expected to continue growing in the future, driven by increasing internet penetration and a growing middle class with high disposable income. The demand for high-quality, locally produced content is also expected to increase, providing new opportunities for OTT platforms.

According to the research report, "Australia over the Top (OTT) Market Overview, 2028," published by Bonafide Research, the market is anticipated to add USD 6.93 Billion by the end of 2028. Due to the increase in the number of digital video consumers, media and entertainment dominated the over-the-top market share and is expected to remain dominant during the forecast period. This will increase demand for OTT services in the media and entertainment industry. However, the communication industry is expected to grow at the fastest rate during the forecast period due to an increase in demand for over-the-top services in the telecommunications industry for video calling, voice, and messaging services. During the forecast period, SmartTVs and set-top boxes dominated the market share. Because of the larger screen and easy switching options between cable and OTT platforms. Furthermore, as smartphone penetration increased, smartphones became the second most popular device for streaming OTT platforms. They are also inexpensive, allowing people of all income levels to use smartphones and streaming platforms. During the forecasted period, subscription VOD is expected to manage the market. This is primarily due to an increase in the number of subscribers using over-the-top (OTT) platforms. Furthermore, due to the high demand for advertising videos for product and service promotion, advertisement-based VOD is steadily increasing. The market is divided into personal and commercial user types. The market is expected to be driven by the personal user segment. The growing use of smartphones and tablets, as well as easily accessible internet, raises the market's perception of OTT services for personal entertainment and knowledge.

Australia’s total population was 25.93 million in January 2022. In Australia, more than 25 million people use the internet. In Australia, approximately 2.33 million people did not use the internet at the start of 2022, implying that approximately 9% of the population was offline at the start of the year. In January 2022, there were approximately 21.45 million social media users in Australia. According to Meta's advertising resources, Facebook had 15.00 million users in Australia. According to Google's advertising resources, YouTube had 21.30 million users in Australia. According to Meta's advertising tools, Instagram had 12.75 million users in Australia. According to ByteDance's advertising resources, TikTok had 7.38 million users aged 18 and up in Australia. According to Meta's advertising resources, ads on Facebook Messenger reached 489.1 thousand users in Australia.According to LinkedIn's advertising resources, LinkedIn had 13.00 million "members" in Australia. According to Snap's advertising resources, Snapchat had 7.25 million users in Australia. According to Twitter's advertising resources, Twitter had 3.70 million users in Australia.

Viewership dynamics have changed the way consumers watch videos and consume television content. There is a drift from traditional TV viewership to online content consumption, which acts as a major driver in the growth of Over the top players. Home entertainment has made its way wia streaming services, enabling customers to consume the offered content depending on their preferred choice of genre, comfort, freedom, and flexibility. Viewers are further provided with a plethora of choices, with titles from diverse genres within the vast library to choose from at any given time. Owing to this ease of use and flexibility, viewers can have a seamless experience. Some of the major factors determining the industry's growth are the significant growth of the media and entertainment industry and the growing demand for high-quality content streaming over smart devices. Compared to conventional cable and satellite services, OTT media services offer greater ease of access, interoperability, comfort, and functionality. Furthermore, the use of advanced services technology and the delivery of custom content have created a huge appeal for the industry, and profits are expected to accelerate over the next few years.

Consumers use the Internet to access OTT content for several purposes. The service providers gather personal data by tracking cookies to customize advertisements and reach the target audience. Such data includes customer behavior patterns, and it is used for customer profiling as well as data mining. Vendors are highly dependent on computer-based networks and the Internet, making the market prone to security-related issues. Any security breach caused by a human error, malicious intent, or a natural disaster may lead to the misappropriation of information. As this data gathered by service providers is highly sensitive, its indiscriminate use can infringe on customer privacy, thereby hampering the consumer's confidence in a brand. Apart from consumer behavior and profiling, service providers also collect geo-based information related to consumers to facilitate location-based services. This further intensifies the challenge regarding data security and cyberattacks, as the data collected, processed, and stored by the vendors can be misused. This growing threat of data security and cyberattacks will hamper the growth of the market during the forecast period.

Considered in this report
• Geography: Australia
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Australia Over The Top (OTT) market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:
• AVOD (Advertising-based Video On Demand)
• SVOD (Subscription Video on Demand)
• TVOD (Transactional Video on Demand)
• Others

By Device Type:
• Smartphones and Tablets
• Desktops and Laptops
• Smart TVs & Set-Top Box
• Gaming Consoles & Streaming Devices

By Content Type:
• Video Streaming
• Game Streaming
• Audio Streaming
• Communication

By Service Verticals:
• Media and Entertainment
• Education and Learning
• Gaming
• Service Utilities

By User Type:
• Personal
• Commercial

By Component Type:
• Solution
• Services

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Over The Top (OTT) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.