Gen Y pushes IPTV growth in Australia

Gen Y is driving streaming services with consistent bursts of growth according to the least snapshot report from the Communications and Media Authority (ACMA).

The new report reveals that 3.2 million Australians, or 17 percent of the population, consumed streaming services in the six months to June 2015, with 2.2 million streaming in the last seven days prior to June.

The classic profile of an IPTV or streaming user is an affluent Gen Y (18-34), working full time with a degree and a $100,000+ salary. They are also most likely to have children and own an Apple TV.

Significantly only 11% of the respondents aged over 35 use streaming services with over half of all streaming users, 58 percent, aged between 18 and 34.

Netflix is clearly driving IPTV or streaming video-on-demand (SVOD) growth with ACMA estimating that 2.5 million Australians are using the local service, as at June reporting.

Of those Australians using (SVOD) services, 78 percent used Netflix in the six-month period, and 88 percent in the seven-day period.

Television is still the primary screen to stream content with 59 percent using the TV over the seven-day period, followed by 41 percent on a desktop or laptop, 21 percent on a tablet, and 12 percent on a mobile phone.

The ability to consume content in a time conscious way was noted by 49 percent of respondents as the main benefit of using streaming services, while greater choice was the second-highest reason, listed by 44 percent, and lower cost coming in third, at 21 percent.

Most users are happy with streaming quality with 78 percent stating they were satisfied, 40 percent were very satisfied, and 38 percent somewhat satisfied. Although, 55 percent reported experiencing technical difficulties in streaming content during the seven-day period.

The rapid changes to the streaming and content consumption landscape has prompted the government to release a draft exposure legislation that will see GST added to all digital products and services purchased online by Australians from mid-2017.

This will result in supplies of digital products, such as streaming or downloading of movies, music, apps, games, ebooks, as well as other services such as consultancy and professional services, receiving similar GST treatment whether they are supplied by a local or foreign supplier.

"The growing importance of these types of transactions has highlighted the fact that the GST system was designed with a focus on Australian-based, rather than cross-border supplies ... This harms the integrity of the GST tax base and can disadvantage local suppliers," the draft legislation states.