Foxtel is set to launch its new SVOD (Subscription Video On Demand) streaming service, NewsFlash, in Q4 2021. The app will culminate news services such as Sky News, CNN, BBC, and Fox News into one place, providing a streamlined news viewing service. The launch coincides with the recent boom of the Australian streaming service market, with Foxtel looking to tap into SVOD on yet another platform. NewsFlash will be Foxtel’s third SVOD product (in conjunction with Streamotion), after launching both Kayo and Binge in the last two years. Newsflash aims to bring live news and opinion programming to SVOD, mimicking its live sport offering Kayo.
Growth of video on demand services
Video On Demand services across the board are seeing substantial growth in Australia. Viewership and subscriptions have increased significantly over the last year and a half, with 82.1% of the Australian population having watched a subscription service in 2020. This represents a YOY growth of 16.2%, compared to the same period in 2019. Furthermore, BVOD (Broadcast Video On Demand) has seen significant growth, with 8.6 million Australians having viewed a BVOD service in 2020 at a YOY growth rate of 39%. Although SVOD services are typically ad-free, the growth in BVOD and other VOD services presents great opportunities for businesses to leverage these products and diversify their marketing efforts in 2021.
Advertising on VOD services
Video On Demand services, and particularly SVOD inventory, can be a powerful addition to the media mix of a campaign. The benefits associated with this channel includes:
- Contextual targeting
- High brand safety
- Increased ad recall
- Measurable engagement
- Varied & cross device targeting (TV, desktop, tablets & smartphones)
- Highly engaged audience reach
According to PwC’s Global Entertainment & Media Outlook 2021-2025, SVOD is projected to grow at a CAGR of 10.6%, making it an US$81.3 billion industry by 2025. With new products such as Newsflash emerging in Australian market, advertisers will increasingly be able to reach audiences across these high engagement environments. With competitors rushing to outshine the capabilities of key SVOD player Netflix, the following months have potential to shake up the inventory opportunities in this space.
As always, feel free to reach out to your ADMATICian for more information on leveraging video on demand in your next campaign.