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STREAMING WARS: How many services are you willing to sign up for? TICKER VIEWS
How many times have we heard “it’s just a small monthly fee of” and signed up to another streaming service to add to the TV home screen (and the direct debit list).
Well, there is a new kid on the block.
Paramount+ is here to shake the market up. Television-focused businesses are turning their attention to streaming services instead, as cable TV’s importance slowly fades away.
Is there a limit to how many services people are willing to fork their money out for? or is the market expansion of streaming subscription services a win for all?
Gone are the days of Netflix dominating as the streaming powerhouse. Major networks are continuing to turn their attention to the way their audience consumes their content and Netflix competitors have sprung to life, all wanting a slice of the streaming pie.
Latest streaming service to go down under
The latest major network to take on Netflix will soon expand to Australasia.
ViacomCBS Australia and New Zealand announced its digital streaming network Paramount+ will launch in Australia this year.
Its global video subscription service will feature locally produced content as well as major shows and movies from Paramount pictures.
Two years ago the ViacomCBS merger joined the power of Paramount Pictures and the TV talents of CBS, creating a single media powerhouse.
Paramount Plus is already available in the US, Canada, Latin America and Nordic countries.
Beverley McGarvey, Chief Content Officer & Executive Vice President, ViacomCBS Australia & New Zealand, said the company is “poised to become as powerful a player in streaming as we are in television.”
“By leveraging the iconic Paramount brand, leading edge infrastructure, along with an incredible super-sized pipeline of must-see content, Paramount+ will deliver an exceptional consumer entertainment experience,” she said.
When Paramount+ comes to Australia in august this year, it will be replacing Network 10’s existing subscription offering with ViacomCBS confirming that 10 All Access will rebrand in August upon Paramount+ launch.
It’s a bid to take on global giants Netflix and Stan, that dominate the Australian market.
It will transform to bring high-profile films and television shows from channels Showtime and Nickelodeon and studio Paramount Pictures. Showtime, Nickelodeon and Paramount are all divisions of ViacomCBS, which bought Ten in 2017.
10 All Access currently screens CBS shows such as NCIS and The Good Fight, alongside programs locally produced by Network Ten in Australia.
The service will be priced at $8.99 per month and subscribers will have access to more than 20,000 episodes and blockbuster movies throughout the year. This is cheaper than basic subscriptions in Australia for Netflix ($10.99), Stan ($10), Disney+ ($11.99) and Foxtel Now ($25).
Paramount+ expects to debut new original film every week starting in 2022
ViacomCBS is following the suit of other major studios that are trying to promote their streaming services by sending new movies straight to streaming,
ViacomCBS is ramping up its streaming activity, CEO Bob Bakish said during its first quarter earnings call on Thursday (May 6).
“Turning to movies where we are poised to dramatically enhance the scale of our offering,” Bakish said
He added that Paramount+ expects to debut a new original film every week starting in 2022.
ViacomCBS global streaming revenue increased 65 per cent year-on-year to $816m, driven by a demand in streaming advertising revenue. This is led primarily by free service Pluto TV, and a 69 per cent rise in streaming subscription revenue, led by Paramount+.
Subscription TV viewers soared to 17.3 million Australians
Australians consumed subscription TV services at an astonishing rate during 2020 as Australians endured a nation-wide lockdown from late March last year, according to data from Roy Morgan.
Netflix is by far Australia’s most watched subscription television service, with 14,168,000 viewers in an average four weeks, an increase of 2,265,000 viewers from a year ago.
Over 80 per cent of Australians watch a subscription TV service
roy morgan data
“The strong growth for the leading services in the market shows Australians are increasingly viewing multiple services to find new and interesting content. For example over 5.6 million Australians watch both Netflix and Foxtel services in an average four weeks and nearly 4.7 million watch both Netflix and Stan,” Roy Morgan CEO Michele Levine says.
Will Paramount+ be chasing Stan Sport?
In the U.S, Paramount+ subscribers have access to sports as well as all entertainment offerings.
Will it compete with Stan, who according to Nine CEO Mike Sneesby, is Australia’s largest sports streaming platform.
Speaking at the recent Macquarie Australia conference, Sneesby said Stan’s sport streaming platform has grown to almost 150,000 subscribers.
“This is a powerful proposition for Australian audiences,” Sneesby said.
He says the service is providing sporting codes who partner with Nine and Stan the opportunity to reach mass free-to-air audiences and high yields subscription audiences in a model that maximises revenue opportunity.
According to The Sydney Morning Herald and The Age, shares rose on the Australian Stock Exchange following Sneesby’s comments.
Stan announced its intention to start live streaming sports events after securing a three-year deal with Rugby Australia worth AUS$100 million (US$77.2 million) in November 2020.
So, do consumers want more than Netflix?
Some say the market is saturated, some say the market is just beginning.
Although, it’s clear in the numbers – both revenue and subscribers – that consumers are choosing streaming platforms as their dominant form of entertainment consumption.
Netflix still outperforms all the others, with more than 208 million subscribers around the globe. That is a massive reach… and selling point.
“Our strategy is simple: if we can continue to improve Netflix every day to better delight our members, we can be their first choice for streaming entertainment,” Netflix wrote in its January shareholder letter.
“This past year is a testament to this approach. Disney+ had a massive first year (87 million paid subscribers!) and we recorded the biggest year of paid membership growth in our history.”
But with more players entering the so called ‘streaming wars’, Netflix’s astronomical growth appears to be slowing too.
“The production delays from covid-19 in 2020 will lead to a 2021 slate that is more heavily second half weighted with a large number of returning franchises,” it said in an investor letter recently.
Netflix may always be a part of a typical household’s content diet… but the streaming selection plate is certainly getting a lot more full.