The recent feedback from Australians is painting a challenging picture for Netflix. According to a new study, customers are expressing dissatisfaction with password-sharing limitations. As a result, they are actively exploring alternative options for streaming video-on-demand entertainment.
Netflix has been a central part of our content consumption for over eight years. It’s been the go-to streaming platform in Australia, but its impressive growth journey might be reaching a plateau. Recent data from Telsyte reveals a drop in Netflix’s subscriber count in June, with nearly 200,000 Australian users abandoning the service in the past year. This marks the first instance of a decline in Australian subscribers for the streaming giant.
In May, the US-based company stopped password sharing by enforcing a monthly subscription fee for each user. This move initially led to a surge in new sign-ups, evident from a record-breaking spike in subscriptions during a four-day period in June. However, this surge seems to have tapered off now, at least in Australia, as many users choose to discontinue their Netflix subscriptions.
The findings from Telsyte’s study revealed that approximately 33% of Australian SVOD (Subscription Video On Demand) subscribers share their service with friends and family. Among the users who joined within the last year, around 7% expressed their disagreement with the new regulations and opted to cancel their Netflix subscriptions.
Shift in Consumer Sentiment and Streaming Trends in Australia
Telsyte also pointed out that there exists resistance towards Netflix’s new ad-supported model, primarily due to concerns about the rising cost of living. As daily expenses continue to increase, most video-on-demand users have come to terms with the likelihood of streaming fees also going up, as noted by Telsyte.
This might indicate a certain level of acceptance towards a price hike. About 50% of the respondents in the survey labelled subscription services as ‘essential’ to fulfilling their entertainment requirements. Consequently, they are adjusting their budgets accordingly. Telsyte mentioned that, on average, Australians are ready to set aside $36 per month for streaming services.
Data regarding the entire SVOD (Subscription Video on Demand) category indicates robust demand, despite Netflix experiencing a decline in its growth rate. Registrations for other video subscription services saw an increase in June.
The figures for the SVOD sector exhibited a 5% year-on-year growth, reaching a total of 24.6 million subscribers. On average, this translates to approximately one streaming subscription for every individual in Australia. However, it’s important not to underestimate Netflix entirely, as the platform maintains its position as the leading SVOD service chosen by Australians.
Streaming Services in Australia: Netflix Dominates While Others See Varied Growth
Securing the second spot is Amazon Prime, which observed a 9% growth compared to the previous year. Disney+ experienced a modest increase of just 1%. Among the top five are Australia’s own Stan and Binge, with the latter achieving an impressive growth of 22% compared to the numbers in 2022. The Paramount+ application, offering US content and locally produced shows from Channel 10, displayed the most significant growth percentage at 41%.
Other sectors, such as music, gaming, and pay TV, also increased subscriptions. Australia’s total number of entertainment services subscribers has almost reached 50 million. While new registrations rose by 3% compared to figures from 2022, the pace of growth has decelerated compared to the double-digit expansion observed in the previous year.
In other updates from the recent Telsyte research, it has been found that 60 per cent of the participants in the survey expressed a desire to have a greater amount of locally produced content available on streaming platforms. Interestingly, there seems to be a growing resistance to the widespread surge of generative AI technology.
Generative AI’s Impact on Content Creation and Industry Dynamics in Australia
Telsyte’s report indicates that half of the Australian population remains unconvinced about the ability of generative AI to craft engaging and enthralling content. These findings coincide with ongoing developments, notably the negotiations between the U.S. Screen Actors Guild (SAG), and the Producers Guild of America (PGA), both of which are actively advocating for improved terms with distribution channels. One of the primary concerns SAG and PGA raise is the financial aspects and potential job displacement due to the rise of generative AI.
The survey also revealed that over half of Australia’s respondents believe that AI-generated content should be subject to regulation. Furthermore, 62% of those surveyed expressed the opinion that production companies should take responsibility for compensating actors and obtaining consent before digitally replicating their likeness.
These insights highlight the ongoing dialogue surrounding the impact of generative AI on the entertainment industry and the broader considerations it raises regarding creativity, ethics, and labour dynamics.
