Disney’s streaming service will launch in Australia later this year, entering a booming subscription video on demand (SVOD) market.

The entertainment giant announced today that Disney+ will be available locally for $8.99 per month from November, one week after launching in North America. The service will include content from Disney, Pixar, Marvel, Star Wars and National Geographic.

According to Telsyte, one in four Australians and 37 per cent of existing SVOD users are interested in subscribing to Disney+ when it launches locally.

But that doesn’t necessarily mean they will be rushing to cancel their Netflix or Stan accounts — 43 per cent of households have more than one SVOD service, up from 30 per cent in 2018.

According to Telsyte’s consumer research, the average budget for subscription entertainment services is $30 a month and the market is proving resilient to customer churn. Nearly half of existing SVOD users believe there will always be enough new content to keep them interested and will not cancel their service, regardless of how many hit TV shows the service has to offer.

“Subscriptions will be a critical way entertainment and technology brands connect with and monetise their customers,” says Foad Fadaghi, Telsyte Managing Director.

At the end of June there were 12.3 million total SVOD subscriptions in Australia, up 29 per cent year-on-year from 9.5 million in June 2018. Today more than half (55 per cent) of Australian households subscribe to SVOD services, according to the Telsyte Australian Entertainment Subscription Study 2019 released this week.

Total SVOD subscriptions could reach more than 21 million by the end of June 2023.

Netflix is the current market leader, with around 4.9 million subscriptions, and Stan passed the 1.7 million mark at the end of June 2019, remaining the second-largest single service provider.

Telsyte Australian Entertainment Subscription Study 2019

The report found the total Pay TV market maintained just over 3 million subscriptions at the end of June 2019, including cable, satellite and IPTV Fetch TV.

Foxtel’s Pay TV segment has been under continued pressure due to increasing adoption of SVOD, including its own base shifting to Foxtel Now and Kayo Sport, the report notes. Fetch TV remained the growth engine for the Pay TV market.

The sports SVOD category saw continued strong demand, driven by adoption of Kayo Sport, Optus Sport and AFL, FFA, Netball and NRL Live passes via Telstra.

Telsyte estimates the total “sports” SVOD category (excluding Foxtel Now as it provides a mix of sports and other entertainment content) had around 4.4 million subscriptions at the end of June 2019, up from 3.6 million in June 18, driven by new services and telecom services bundles.

Music

Usage of streaming music has just taken over radio time, with the average subscriber listening 7.5 hours a week compared to 7.3 hours for radio. Telsyte forecasts there will be 16.2 million streaming music subscriptions by the end of June 2023.

Telsyte research shows there is an opportunity to cross-bundle different type of subscription services such as SVOD and streaming music services. Only one in three Australians subscribe to both SVOD and music streaming services.

Among those who do not subscribe to both services, around one in six would be interested in subscribing to bundled services if it would cost them less than subscribing to the services separately, the research found.

Telsyte estimates Australians have taken up more than 12 million streaming music subscriptions by the end of June 2019, with 42 per cent being paid subscriptions. The top three streaming music service providers in Australia remained Spotify, Google (including Google Play Music, YouTube Music and YouTube Premium) and Apple.

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