Report: Netflix is no longer Australia’s fastest growing streaming service

Stan, Presto and Netflix are the most popular streaming services in Australia.
Image: stan

In news surprising no one, Australians are really, really into streaming.

By the end of June,Australia is expected to have 2.7 million active subscriptions to streaming services such as Netflix, Stan and Presto. That’s an increase of 46 percent from June 2015, according to a report from technology analyst firm, Telsyte.

International streaming giant Netflix leads the pack, with1,878,000 subscriptions in Australia as of May, followed by Stan with 332,000 subscriptions and Presto with 142,000 subscriptions,according to research from Roy Morgan. The three services account for85 percent of all streaming subscriptions.

Interestingly, Telsyte’s research showed Stan and Presto are now growing faster than Netflix.Netflix subscriber growth has slowed in the last 12 months,Foad Fadaghi, managing director at Telsyte, told Mashable Australia.

While there was a great deal of pent up demand for Netflix before it launched in Australia in March 2015, Stan and Presto have had more room for growth in 2016 and have been aggressive in increasing awareness of their product, Fadaghi suggested.

Plateauing subscription growth has been a concern for Netflix this year. In its quarterly letter to investors in April,Netflix suggested it couldn’t match the explosive growth it experienced in 2015 when launching Down Under.“Our international forecast for fewer net adds than prior year is due to a tough comparison against the Australia/New Zealand launch,” the company wrote.While ANZ is growingsteadily this Q2, it is less than the launch spike last year.”

Luckily for Netflix, one streaming platform is not enough for many Australians, with one in five Netflix customers signing up to more than one service.In June 2015, the average number ofsubscriptionswas 1.5, growing to 1.7 over the past 12 months.

“It’s not a winner takes all marketplace,” Fadaghi said.

“It comes down to the fact competition between the players is really for content rights rather than retail competition,” he added. “When you don’t have the same programming, it makes sense for consumers to subscribe to two or three.”

Even with multiple streaming subscriptions, Stan, Presto and Netflix represent a good deal for Australians who are used to paying through the nose for pay TV. “You’re looking at A$30 to A$40 for Netflix, Stan and Presto [combined], and it’s still less than a decent entertainment package from Foxtel,”Fadaghiadded.

In more bad news for Foxtel, it looks streaming subscription numbers will double by 2019. Telsyte expects there to be 4.1 million streaming subscriptions by June 2019, while Australian pay TV subscribers numbers currently sit around 3.3 million.

Subscriptions to sports coverage such as the NBA and AFL also contributed to streaming growth.

According to Fadaghi, we may start to see more sporting codes selling content directly to consumers. “Itstillmakes sense for manysportingcodes to sell their rights, but for some that aremoreniche, direct to consumer is a good opportunity,” he said.

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Read more: http://mashable.com/2016/06/26/netflix-growth-australia/