Streaming services in Australia: Are we overwhelmed for choice?
The smartphone friendly streaming service Quibi has launched in Australia.
Wait, another one?
Yes.
https://youtu.be/kqkX-7EOY2k
Quibi is the brainchild of Jeffrey Katzenberg, the former chairman of Disney and co-founder of Dreamworks Animation.
Quibi’s promise: Quick Bites. Big Stories.
Each series — and there are more than 20 at launch — has episodes that run between five and 10 minutes, nothing longer, and they’re all designed for smartphones only. You can’t cast the app to your television. It doesn’t matter whether you like to hold your phone upright or sideways because this is fun-size television on steroids where all the action sits at the centre of your screen.
The launch budget is estimated at $1.1 billion with plans to make 7000 pieces of “content” in the first year.
There are slick dramas, reality shows, cooking competitions, news, game shows and doco series.
Streaming services have shaken the traditional film and television landscape and Quibi is here to disrupt the disrupters.
But Quibi desperately needs its smartphone-only approach to stand out in a crowded marketplace because it flops onto a big pile of streaming services in Australia.
The grand total of paid streaming services in Australia now sits at a whopping 16. More may have launched while this article was being written. Throw in free platforms like ABC iView and SBS On Demand and the figure jumps to 20.
Anyone who can’t find something to watch is a liar.
Coronavirus streaming saviour
Home entertainment is playing a major role in keeping us occupied due to the public restrictions caused by COVID-19 pandemic. The timing of the arrival of Quibi is impeccable for social isolation but it’s another subscription to add to your budget, which are currently under more pressure than ever.
Many streaming services have steadily upped their annual fee each year so it’s always worth thinking about how much you use each service.
Another factor: which streaming services do you cut loose to make way for new ones, or do you ditch them entirely?
You don’t have to subscribe to any streaming services. Resist your fear of missing out because Australia is lucky to have robust free-to-air options. But eventually a few may pull you in different directions due to creatives you like, films you’ve been desperate to see or the revival of a favourite show.
When that time comes you are no longer spoilt for choice but overwhelmed by it, too.
How many SVOD platforms in your house?
According to research by Roy Morgan, last year, 14.5 million Australians paid for a TV subscription service.
AMPD Research found that the average Australian household pays $35 a month for streaming video on demand (SVOD).
People stream a lot, too, with the ACCC releasing data showing that fixed broadband accounted for 88 per cent of the data downloaded across 2018-19. Over half of those plans were for unlimited data. To compare, when Netflix and Stan launched the number of people on unlimited data plans was below 10 per cent.
Prices between each service vary but the average is two SVOD platforms per household. Also, add in video on demand (VOD) costs, one-off purchases to rent or buy films or TV series digitally, and the cost goes up.
Due to the closure of cinemas across Australia, local distributors are offering fast-tracked films released to VOD with a price tag of $25 to $30 to buy or rent; the standard VOD rental fee for a new release film is $7. If you’re buying more VOD at the moment, you may want to reconsider the value of dormant SVOD subscriptions.
Netflix has the most subscribers in Australia (11.9 million) followed by Foxtel (5.2 million) and Stan (3.3 million).
Notably, Netflix dominates the Australian market with a 57 per cent share of the population — that’s why you can’t escape conversations about Tiger King right now.
At the end of 2019, Disney and Apple entered the streaming service arms race, but it’s not known yet if they’ve changed the rankings.
To get an indication of the impact of Disney, the mouse house says its streaming service has 50 million paid subscribers worldwide. It’s estimated that Apple may have upwards of 30 million subscribers worldwide, but you have to remember that most users are using a one year free offer tied to the launch of their new products late last year.
SVOD services not sitting on the podium include Amazon Prime Video, YouTube Premium and 10 All Access (owned by US media giant CBS). Even further below are niche streaming services like Mubi, DocPlay and OzFlix. What about Floof, ever heard of it? Probably not because I made it up.
Will the streaming bubble burst?
So, which streaming service will fold first? Looking around at all the options it feels like this is the next step.
In the 1990s, the dot-com bubble grew rapidly due to the uptake of the internet and businesses that rode the wave. Then on the cusp of a new millennium — throw in a little Y2K panic — there was a huge crash in the market and the bubble burst. A lot of internet-based companies went bankrupt as a result.
SVOD services are nearing the end of a rapid growth period.
Netflix is now technically a legacy company and major media organisations want to replicate their success. Disney decided that rather than sharing their films with Netflix, they’d start a streaming service of their own.
The impact of COVID-19 is showing the value of having a platform where you can take something directly to an audience but it’s a historical event nobody anticipates; just plain old luck but no company wants to brag about how good they have it right now.
With so many subscribers it’s no longer a question of growth, but rather, can subscribers be retained?
You can now swap between streaming services, like flicking switches on and off, but the existence of more options is overwhelming.
Remember when each steaming service was just a TV channel? Plus, streaming services are increasingly relying on building libraries of their own content rather than investing in bolstering their library of films and TV shows made before 1980.
You can binge new series or enjoy the latest from Martin Scorsese (The Irishman) but when it’s over you must look around and consider whether there’s life beyond the show everyone is obsessed with at any one time.
Eventually, Netflix will be nothing but Netflix originals but that’s their plan.
Quibi is seeking its own niche
Services like Quibi are an example of streaming services splintering further into niche territory to attract subscribers. Unless you are a monolith company like Disney, new streaming services must offer a point of difference that’s more than just a library of film and TV options but now you’re in gimmick territory.
Hello: Quibi.
It’s too early to call whether Quibi is a fad or not; it could even be the Betamax of the streaming age.
Based on the time I spent with Quibi it didn’t feel like a legitimate rival to any of the major streaming services. The service has got enough production value and talent to be taken seriously, but it’s chipping away more at the YouTube and Instagram/Facebook audience.
Quibi is designed to eat into the time you waste between train stops on a commute or while you wait for a friend. If you’re not satisfied by your current time wasters, it’s a viable option if you can swing a subscription.
It’s also a sign of where streaming services are heading, and with the number of options now available in Australia, not all of them are going to last.
This article was first published here.