Tuesday, August 11th, 2015 - Roy Morgan Research

Netflix has hit 8% of Australian homes reaching 1.89 million people 14+ in July, the latest monthly data from Roy Morgan Research shows. Over 1 in 3 households now have some form of pay or subscription TV, up almost 30% since the start of 2015.

At the start of 2015, the very idea of paying for TV content was practically synonymous with Foxtel. In January, 95% of the 2.4 million homes with Pay/Subscription TV market had Foxtel, and just 5% used only another service such as Fetch or Presto.

Enter Netflix, which has grown to 737,000 household subscribers in July. Netflix is expanding the category by luring new customers to paid/subscription TV—now in almost 3.1 million homes. So while Foxtel’s share has fallen dramatically to 76%, the size of its customer base is almost unchanged (2,346,000).

In July, 7.3% of Foxtel’s homes (171,000) were also subscribing to Netflix—a rate not much below the national Netflix take-up of 8.0% of households. The consistent number of Foxtel homes suggests that many of its customers are, for now at least, trialling Netflix as an add-on to their main Pay TV provider. 

Estimated number of households with Pay/Subscription TV service:

Source: Roy Morgan Single Source, January 2015 n = 4,031 and July 2015 n = 5,056 Australians 14+.

Tim Martin, General Manager – Media, Roy Morgan Research, says:

“Our ongoing month-by-month research is already giving some early indications of the newly competitive pay TV marketplace.

“For many years prior to the arrival of Netflix, total uptake of pay or subscription television had remained steadily in the region of 25-30% of households, unable to break through to a wider audience. Clearly, there was plenty of space for the market to grow.

“In just four months, Netflix has expanded the total market up to over a third of all homes. So far, it appears Foxtel hasn’t been damaged by the arrival of Netflix. It may turn out to be that the two are not direct competitors after all: Foxtel subscribers will view Netflix as an add-on provider, and non-subscribers were never going to get Foxtel anyway.

“As our sample of subscribers grows, we will be able to dig deeper and deeper into the underlying differences between the target audiences and uptake of Foxtel, Netflix and other providers.”  

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Roy Morgan Research


Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332
W: www.roymorgan.com

Keywords

netflix foxtel svod pay tv television

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