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Over the past five years, free-to-air broadcasters have been negatively affected by the shift to digital TV transmission and the introduction of multi-channelling by the industry's largest TV networks. For these reasons, industry research firm IBISWorld has updated its report on the Free-to-Air Television Broadcasting industry in Australia.
Melbourne, Australia (PRWEB) June 25, 2014
Free-to-Air Television Broadcasting in Australia has struggled over the past five years. The global financial crisis resulted in a conservative mindset from consumers and businesses, which limited the amount of advertising revenue generated by free-to-air TV networks. Revenue was also influenced by the penetration of pay-TV services, as available audience sizes for free-to-air TV broadcasters were limited. According to IBISWorld industry analyst Spencer Little, competition from online digital media has also contributed to the industry's poor performance, as more viewers streamed TV programs online. While pay-TV penetration has stalled, the internet has become a go-to destination for alternative forms of video media, with websites such as YouTube providing legal video viewing platforms. Popular TV shows are also accessed on the internet through illegal piracy as a means of watching shows on-demand.
Industry revenue is expected to decrease at a compound annual 0.7% over the five years through 2013-14. Revenue is expected to grow by 0.1% in 2013-14, to reach $5.7 billion. Over the past five years, free-to-air broadcasters have also been affected by the shift to digital TV transmission and the introduction of multi-channelling by the industry's largest TV networks. Over the next five years, industry performance is expected to continue declining. The audience of free-to-air TV is projected to decline despite further developments in commercial and digital TV. Advertising will continue to be diverted away from costly mainstream media in favour of direct promotional activities, says Little. Although pay-TV services have reached saturation, demand for free-to-air TV programs will continue to fall due to the rapidly growing popularity of online digital media.
The major players in the Free-to-Air Television Broadcasting industry are Seven West Media, Nine Entertainment Co, ABC Corporation and Ten Network Holdings. SBS and commercial network affiliates Prime Media, WIN Corporation and Southern Cross Media are the remaining significant players in the industry. Industry market share concentration is currently in a very volatile state. The shift to digital broadcasting saw the introduction of many new stations from all major free-to-air TV networks. As a result, the commercial networks have risked devaluing advertising airtime. Internet broadcasts are proving to be the most popular way to transmit video content and this trend is expected to change the entire structure of this industry. Over the past five years, market share concentration has increased slightly due to continued government funding for the ABC and the strong performances of the Seven and Nine networks.
For more information, visit IBISWorlds Free-to-Air Television Broadcasting report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Companies in the industry primarily engage in free-to-air television broadcasting of visual content. Firms also transmit visual programming to affiliated television stations, which then broadcast programs on a pre-determined schedule. Television programs provided by industry operators are made available at no cost to consumers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
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