Local subscription OTT players in Australia are continuing to see strong growth amid increasing competition from global players, driven by attractive licensing deals, key sports rights and competitive pricing. Stan, Binge, Kayo Sports and Optus Sports surpassed a combined 5m subscriptions in Q3 2021 and Ampere forecasts that between them they are on track to hit almost 10m subscriptions by the end of 2026.

With prices for Binge and Stan starting at just AUD10 ($7.41) per month, the services, owned by Foxtel and Nine Entertainment respectively, offer a very low entry point, below the AUD10.99 ($8.14) price for a basic Netflix subscription. Binge also has exclusive streaming rights to HBO content in the nation, as well as access to Foxtel original content such as The Great Australian Bake Off, otherwise only accessible via Foxtel’s more-expensive pay TV subscriptions, which start at AUD49 ($36.30) per month.

Sports rights also serve as a key differentiator for local services. Kayo Sports, priced at AUD25 ($18.52) per month, has the Australian Football League (AFL), which according to the latest Ampere Consumer survey is the most enjoyed sports league in the country, and also the one consumers are most willing to pay for. While Paramount+ offers the Australian Premier League, fewer than 2% show a willingness to pay for this league according to Ampere’s Consumer survey, so it may not offer sufficient pull for more sports-orientated customers. Optus Sport, priced at AUD14.99 ($11.11) per month, offers the English Premier League, and Stan Sport, which costs an additional AUD10 ($7.41) per month on top of a basic Stan plan, offers Rugby Union and the UEFA Champions League. 

However, while local OTT players are currently well placed, they are more reliant on licensed content than the global players, which have been increasingly investing in original content. In order to stay competitive, local streaming services must ensure they remain attractive to consumers by creating additional valuable partnerships and investing further in original content.