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Amazon targets Australian market
Amazon increased content hours in Australia by 84% between June 2018-June 2019
London(02 Oct 2019)
Australia has the sixth highest household Subscription Video-on-Demand (SVoD) household penetration globally. In recent research, Ampere Analysis predicts that SVoD household penetration in Australia will reach 65% by the end of 2019, making it an extremely attractive market to streamers. Amazon, in particular, has been aggressively targeting the market here to meet growing subscriber demand. However, with Disney selecting Australia as one of the first four international markets for its direct-to-consumer streaming launches, there’s definitely going to be competition from both local and global players.
Amazon aggressively targets Australia, ramping up content hours
Although Netflix in Australia has by far the largest catalogue of the four main SVoD players, it recorded the lowest growth in content hours between June 2018 and June 2019. In contrast, Amazon is aggressively targeting the Australian market, increasing content hours by 84% in the same period – compared to Netflix’s 18%.
Netflix has far less Australian originals than in other top 10 international markets
Netflix is the largest SVoD player in the Australian market, and Australia is in Netflix’s top 10 international markets in terms of subscriber numbers. However, Ampere’s analysis shows that it is seriously under-weight for original productions compared to other large markets. 17 local original productions have been produced or are in production or development, compared to 36 in Mexico and 30 in France.
In Australia, the favourite genres of SVoD homes skew towards Indie & Arthouse, Horror, Arts & Culture, Kids, Romance and Action, and away from Documentaries. Amazon’s largest growth genres are Documentary, Action & Adventure and Crime & Thriller, with Reality emerging as a focus. Netflix on the other hand significantly increased its Romance, Crime & Thriller, Comedy and Drama content. Stan’s biggest growth by content hours was in the Children & Family category.
Guy Bisson, Director at Ampere Analysis says: “The Australian SVoD market is characterised by transition and opportunity, so it’s not surprising that Amazon has been concentrating efforts here. Viewers’ genre preferences are wide and varied, from Indie & Arthouse to Romance and Action, and there are plenty of opportunities for adding more acquired and original content. The new service from Disney will meet the demand for Children & Family and Action & Adventure content in particular, and by developing a family of streaming services, it will be a ‘super aggregator’. We believe this trend will continue, anticipating that the gap we’ve identified in the market for a premium streaming aggregator will be filled by partnerships, original productions and acquisitions. This is a great time to be a viewer in Australia.”
About Ampere Analysis
Founded in January 2015, Ampere Analysis is a new breed of media analyst firm. The company’s experienced team of sector-leading industry analysts specialises in pay and multiscreen TV and next generation content distribution. Our founders have more than 60 years’ combined experience of providing data, forecasts and consulting to the major film studios, telecoms and pay TV operators, technology companies, TV channel groups and investment banks. www.ampereanalysis.com