Despite mounting pressures from housing and the cost of living, Australia’s subscription entertainment market has demonstrated remarkable resilience, growing by 5% to nearly 54.6 million services in the 12 months leading up to June 2025. This growth is highlighted in a recent study by Telsyte, an Australian emerging technology analyst firm.
The Telsyte Australian Subscription Entertainment Study 2025 reveals that Australians are steadfast in their commitment to on-demand entertainment. Notably, 47% of SVOD (Subscription Video on Demand) users consider their service “non-negotiable,” 44% of music streamers deem it essential, and 63% of avid gamers, who play more than three hours daily, label games as “must-have.”
Subscription Video on Demand: A Growing Market
Even as the market matures, growth persists across the three main categories: SVOD (5%), streaming music (6%), and games-related subscriptions (7%). Telsyte’s report excluded Optus Sport from its June 2025 data due to its imminent closure and ongoing subscriber transition to Stan Sport.
Increasing Access and Options
The SVOD market has expanded to 26.6 million services by June 2025, driven by more affordable ad-supported plans, paid sharing programs, and cross-sector bundles. The launch of HBO Max has also contributed to this growth, marking a 5% increase year-on-year.
Netflix continues to lead with 6.4 million subscriptions, followed by Amazon Prime Video, Disney+, Stan, and others. Paramount+ emerged as the fastest-growing major service in FY2025. New entrants like HBO Max and the rising popularity of sports and anime content have further fueled this momentum.
Adapting to Economic Pressures
As economic pressures intensify, Australians are spending more to maintain multiple subscriptions. The average monthly budget for streaming video has surged by 18% to nearly $42, outpacing a 13% rise in plan prices from the top 10 services as of September 2025.
According to Telsyte MD Foad Fadaghi, “Households aren’t walking away from streaming; they are reprioritizing and keeping their multi-service setups affordable.”
About a quarter of subscribers frequently exceed their budget, with households now carrying an average of 3.3 services.
Value-Seeking Behaviors
Cost-of-living pressures have intensified value-seeking behaviors, with 46% of SVOD users rotating services more often to manage costs. Nearly half of subscribers actively hunt for discounts or subscribe for specific titles before canceling.
Ad-supported SVOD subscriptions have more than doubled, led by Amazon Prime Video’s shift to ads in July 2024. The demand for sports content remains strong, with one in five subscribers citing it as a key sign-up reason.
Broader Entertainment Landscape
The average weekly video consumption has increased by four hours to over 51 hours, driven by social media, YouTube, and free ad-supported streaming TV (FAST) services. FAST services have grown by over 40%, reaching 2.3 million Australians.
Social media platforms like YouTube and TikTok continue to attract mass audiences, with 17 million Australians watching YouTube, 52% of whom do so daily. The direct-to-creator subscription market is now valued at around $500 million annually.
Streaming Music and Gaming Trends
Streaming music subscriptions have reached 19 million, supported by population growth and bundled access. Meanwhile, games-related subscriptions have grown to 9.7 million, buoyed by a revitalized console cycle and the launch of the Nintendo Switch 2.
Interest in cloud gaming is high, with over one million Australians using services like Microsoft’s Xbox Cloud Gaming and GeForce Now. Telsyte anticipates further growth as these services expand and new platforms like Amazon Luna potentially enter the market.
As the subscription entertainment market evolves, Australians continue to adapt, balancing economic challenges with their desire for diverse and engaging content. The coming years will likely see further innovation and competition as providers strive to meet the changing needs of consumers.
