VOD, EST markets up 22% in Australia, with faster growth expected

Australia’s digital film and TV sales grew more than 22% in 2013, with film and TV sales topping AUD 143 million (USD 129 million), said the Australian Home Entertainment Distributors Assoc.

Movie electronic sell through and video on demand streaming outpaced television EST and VOD, growing 26%, twice the growth of TV EST.

“The 2013 digital movie and TV sales data show the tremendous growth and consumer interest Australians have in consuming filmed content digitally,” AHEDA CEO Simon Bush said. “It really has only taken off in the last few years in terms of a new platform of consumption.”

On a per capita basis, Australia is second only to the United States in digital consumer revenues. With more VOD services scheduled to deploy in coming months, the market is likely to see even more growth.

Foxtel’s Presto launches this week, and more services are on the horizon, including a potential market entry by Netflix, as services look to take advantage of a market smitten with the ability to access premium content on multiple devices on demand.

VOD and EST currently are sharing the market almost equally; EST accounted for AUD 71.2 million in revenue, compared to AUD 72.5 million for VOD, suggesting a unique opportunity for EST vendors like Apple’s iTunes.

“With 50% of all sales coming from electronic sell through films, this makes Australia a stand out in the global market place where VOD tends to dominate,” said Bush.

Bush said VOD services have been hamstrung “because our broadband hasn’t been as strong as in other markets,” something that is beginning to change, especially as Australians eagerly adopt wireless broadband options.

Physical media sales, meanwhile, continued to slide, AHEDA said, mirroring the global market as digital delivery becomes ubiquitous.

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn