Growth, innovation and change are themes that are used regularly in talking about the subscription TV (STV) industry. This is reinforced through new product or service announcements and reported industry growth in terms of advertising revenue, subscribers and content across multiple platforms.
While technology is placing pressure on some traditional forms of media advertising the continued growth of STV advertising revenue is testament to the ongoing development of the industry. This week ASTRA announced that STV advertising revenue grew by 10.08% from financial year 2011 to 2012. An Ernst & Young report compiled for ASTRA noted net advertising revenues of $211,245,167 from 1 January 2012 to 30 June 2012, which is an increase of 17.31% from the previous corresponding period, and comprises a total of $424,807,125 in advertising revenue for STV in financial year 2012.
The latest PwC Entertainment and Media Outlook 2012-16 report has found that entertainment and media is expected to see its revenue grow to $38.3 billion by 2016, with a compounded annual growth rate of 4.1% over the next five years. Consumer demand is being driven in two other sectors – interactive games and STV. PwC is forecasting a compound annual growth rate for STV of 6.9%, with an increase of 4.7% in 2013, 5.5% in 2014 and 4.4% in 2015 to $4.7bn.
In addition, PwC predicts that by 2016, 27% of Australians will have signed up to an internet protocol television subscription service (IPTV). Recent research from within the company itself has already found that 52% of Australian homes contain a device that could enable IPTV (read article).
The continued growth of the industry is also being supported by the development of ground-breaking products and services that are giving consumers access to content and up to the minute information across multiple channels and multiple devices. Foxtel is leading the way with eight dedicated HD Olympic channels as well as the Foxtel London 2012 App, Foxtel 2012 Olympics Facebook and Twitter feeds. Dubbed by some as the ‘social games’ the London Olympics are the first to be played out through an array of social media which are expanding viewer engagement in a way that was not available just four years ago during the Beijing games.
STV channels continue to change and adapt to remain competitive and dynamic. Two channels have undergone brand refreshes recently: LifeStyle FOOD and Sci Fi, which is now SF. In the ASTRA Conversation this week, Peter Hudson discusses the rebrand for SF, the research behind it and viewer response. Over the coming weeks we have the launch of new premium drama channel SoHo to look forward to and continued coverage of the London 2012 Olympic Games which was opened by UK Prime Minister David Cameron as the “Greatest show on Earth.”