Despite significant pressures from housing and the rising cost of living, Australia’s subscription entertainment market has experienced a robust growth of 5% over the past year, reaching nearly 54.6 million services by June 2025. This data, released by the Australian emerging technology analyst firm Telsyte, highlights the resilience of the sector in challenging economic times.
The Telsyte Australian Subscription Entertainment Study 2025 reveals that Australians are increasingly prioritizing on-demand entertainment. Notably, 47% of SVOD (Subscription Video on Demand) users describe their service as “non-negotiable,” while 44% of music streamers consider it essential. Additionally, 63% of dedicated gamers, who play more than three hours daily, regard gaming services as “must-have.”
Subscription Market Dynamics
The study indicates continued growth across the three primary categories: SVOD, streaming music, and games-related subscriptions, with increases of 5%, 6%, and 7% respectively. Telsyte’s report excludes Optus Sport due to its impending closure and the transition of subscribers to Stan Sport.
SVOD Market Expansion
Several factors have contributed to the 5% increase in SVOD services, now totaling 26.6 million. These include more affordable ad-supported plans, paid sharing programs, and strategic deals and bundles. The introduction of HBO Max has also played a significant role in this growth.
Market leaders such as Netflix, Amazon Prime Video, and Disney+ continue to dominate, with Netflix holding 6.4 million subscriptions. Paramount+ emerged as the fastest-growing major service in FY2025, while new entrants like HBO Max quickly reached the top 10 within three months of launch.
Managing Subscriptions Amid Economic Strain
As households face financial pressures, active subscription management has become essential. Australians are spending more to maintain multiple subscriptions, with the average monthly budget for streaming video jumping 18% to nearly $42. Despite a 13% rise in average plan prices, many subscribers are finding ways to stretch their budgets.
Foad Fadaghi, Telsyte MD, stated, “Households aren’t walking away from streaming; they are reprioritizing and keeping their multi-service setups affordable.”
One in four SVOD subscribers reported encountering competitive deals, often securing three months of benefits at a 36% discount on average. However, cost-of-living pressures are evident, with nearly two-thirds of Australians reporting expenses rising faster than income.
Changing Consumer Preferences
Amid these challenges, consumer behaviors are shifting. Nearly half of SVOD users rotate services more frequently to manage costs, often hunting for discounts or subscribing for specific titles and canceling afterward. Exclusive content and seamless sign-ups are now more critical than sheer catalog size when choosing a service.
Ad-supported SVOD subscriptions have more than doubled, led by Amazon Prime Video’s shift to ads in July 2024. The popularity of sports content is also rising, with one in five subscribers citing it as a key reason for signing up.
Local Content and Broader Entertainment Trends
Local content remains highly valued, with more than half of subscribers emphasizing the importance of Australian stories and culture on SVOD services. Meanwhile, 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%, now reaching 2.3 million Australians, with Samsung TV Plus leading the way. The enduring preference for live viewing is evident, as nearly half of video viewing time remains live rather than on-demand.
Growth in Music and Gaming Subscriptions
Streaming music subscriptions reached 19 million by June 2025, a 6% increase supported by population growth and bundled access. Spotify, Google, and Apple Music remain the top providers, with Amazon Music gaining traction through its Prime bundle.
Games-related subscriptions also saw a 7% increase, reaching 9.7 million. The launch of the Nintendo Switch 2 and the popularity of handheld consoles have fueled this growth. Microsoft’s Xbox Game Pass continues to lead, with significant interest in cloud gaming services like Xbox Cloud Gaming and GeForce Now.
Alvin Lee, Telsyte senior analyst, noted, “There is a shift from platform to affinity discovery, with fans now following creators across formats.”
As the market evolves, Telsyte anticipates further integration of SVOD and other services into the social media creator world, aiming to reach new audiences and capitalize on the growing creator economy.
