Global growth consultancy Simon-Kucher has unveiled its 2024 Global Streaming Study, revealing that the Australian streaming market is faring well despite slowing growth compared to last year's study.

The study reveals that paid subscriptions now account for 62 per cent of streaming time - up by 13 percentage points from last year -, while the use of free online services has decreased by seven percentage points. 39 per cent of Australian subscribers plan to cancel at least one subscription in the next 12 months, with more than half citing a content-related reason.

“Streaming is at a fascinating crossroads,” said Managing Director Simon-Kucher Oceania, Chris Petzoldt. “[The] number of subscriptions per person increased by 22 percent in Australia but budgets declined. While there’s still an appetite for streaming services, a significant share of subscribers feel that they spend too much on streaming and that they have too many streaming subscriptions. Despite slower growth, the increase in paid subscriptions and demand for unique content creates a real opportunity for providers to innovate and differentiate themselves.”

Social media is increasingly replacing potential streaming time, with 31 percent of Australian respondents replacing streaming time with social media. This figure rises to 44 percent among 18-39-year-olds. Short-form content on social media is perceived as entertaining as streaming series or movies by 38 percent of respondents.

The average number of streaming subscriptions per person in Australia has risen from 2.5 to 3.1, likely due to password-sharing restrictions implemented by major players like Netflix. However, 39 percent of Australian subscribers feel they have too many subscriptions.

Broad content selection remains the most important value driver for streaming services. Most Australian streaming providers are perceived similarly in value and price, with only Foxtel Now being perceived as overpriced. There has been significant growth in the number of subscribers on ad-supported packages, and there is scope to optimise how advertising is served to subscribers on these packages.

Adding gaming to streaming packages would be attractive to certain streamer segments, with 23 percent of subscribers stating they would be more inclined to sign up for a streaming service subscription if games were included.

“The streaming landscape is continuously evolving, and content remains the primary differentiator,” said Petzoldt. “Providers must strategically adapt to these trends. They need robust content offerings capitalising on new commercial levers to stay competitive and cater to shifting consumer preferences.”

The Global Streaming Study 2024 was conducted by Simon-Kucher from April to May 2024, surveying more than 12,000 consumers across 12 countries on their streaming behaviours and preferences.