27% of Aussies subscribed to IPTV by 2017

IPTV, apps to ‘drive’ viewing growth

By 2017, more than a quarter of Australians will have signed up to an online television subscription service, according to a PwC media report.

IPTV, other subscription entertainment services and new mobile media apps will drive growth in Australia’s media and entertainment industry of 18 per cent over the next five years.

The annual report forecasts a compound annual growth rate for the industry of 4.1 per cent, but warns that revenues will continue to decline in newspapers and magazines, despite the partial offset of new digital subscriptions. ”However, these new business models require time and patience to be bedded down properly,” PwC media analyst David Wiadrowski said. ‘It would be a mistake to look for instant or short-term success when experimentation is crucial at times of change.”

By 2017, 27 per cent of Australians will have switched to an IPTV subscription service, close to the current 30 per cent penetration rates of pay TV, the report says. ”This makes IPTV a strong market contender among the boxes vying to control content shown in Australian living rooms. It also raises a key question: will IPTV grow the market or replace existing content services,” it says.

”While we expect IPTV to provide an attractive alternative to the more expensive cable or satellite-delivered subscription TV service, its success will depend on what content IPTV offers. Niche content such as foreign language channels should work well in the IPTV environment,” Wiadrowski said.

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