More than a quarter of Australians will have signed up to an online television subscription service within the next 4 years, a report forecasts.
And 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, it says.
The annual PwC media 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 bea mistake to look for instant or short-term success when experimentation is crucial at times of change.’’
The report forecasts circulation declines for printed newspapers of 7.6 per centa year over the next four years, and an annual fall in advertising revenues of 5.1 per cent.
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 raisesa 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 satellitedelivered 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,’’ Mr Wiadrowski said.
Media organisations are following a range of structural and regulatory challenges, with the government considering its position on a number of industry reviews, including one from the convergence review proposing to extend content quotas to a broader group of industry players and lifting the amount of some local content to be produced. PwC pointed to the convergence review’s research showing ‘‘ that some types of Australian content — drama, documentary and children’s programming— would all but disappear if it were not regulated, due to high costs of production’’ .
‘‘ As the bedrock of advertising and consumer revenues, content cannot be taken for granted. Popular professional content that crosses platforms, aggregates viewers, prompts recommendation and lights up social media, becomes increasingly valuable,’’ Mr Wiadrowski said.