Despite mounting pressures from housing and living costs, Australia’s subscription entertainment market has seen a robust growth of 5% over the past year, reaching nearly 54.6 million services by 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. A significant 47% of SVOD (Subscription Video on Demand) users deem their service “non-negotiable,” while 44% of music streamers consider it essential. Moreover, 63% of dedicated gamers, who engage for more than three hours daily, describe gaming as “must-have.”
Subscription Growth Across Entertainment Sectors
Even as the market matures, growth persists across the main categories: SVOD (5%), streaming music (6%), and games-related subscriptions (7%). Notably, Optus Sport was excluded from Telsyte’s June 2025 report due to its impending closure and subscriber transition to Stan Sport.
Boost in SVOD Market Through Strategic Offers
The SVOD market has expanded to 26.6 million services by June 2025, a 5% increase year-on-year, driven by more affordable ad-supported plans, paid sharing programs, and strategic deals. The introduction of HBO Max has also contributed to this growth.
Market leaders remain consistent with Netflix at the forefront with 6.4 million subscriptions, followed by Amazon Prime Video, Disney+, Stan, and others. Paramount+ has emerged as the fastest-growing major service in FY2025.
The entry of HBO Max into the top 10 within just three months underscores the consumer’s appetite for diversified content and sports. Other services like beIN Sports and Crunchyroll have seen rapid growth due to bundling and the rising popularity of anime.
Managing Subscriptions Amid Economic Pressures
Amid economic challenges, Australians are spending more to support multiple subscriptions. The average monthly budget for streaming video has surged by 18% to nearly $42, outpacing the average 13% rise in plan prices from top services as of September 2025.
According to Telsyte MD Foad Fadaghi, “Households aren’t walking away from streaming; they are reprioritising and keeping their multi-service setups affordable.” Approximately one in four SVOD subscribers have encountered competitive deals, securing significant discounts.
63% of Australians report expenses rising faster than income, and 46% of SVOD users rotate services more often than last year to manage costs.
Subscribers are increasingly hunting for discounts or subscribing for specific titles before cancelling, making exclusive content and seamless sign-ups more crucial than ever.
Ad-Supported Models and Local Content Demand
Ad-supported SVOD subscriptions have more than doubled, driven by Amazon Prime Video’s shift to ads in July 2024, alongside gains by Netflix, Binge, HBO, and Paramount+. Sports content remains a significant differentiator, with one in five subscribers citing it as a key reason for signing up.
There is a strong demand for local content, with 58% of subscribers valuing Australian stories, voices, culture, and values on SVOD services.
The Rise of Free and Ad-Supported Streaming
Average weekly video consumption has increased by four hours to over 51 hours, propelled by social media, YouTube, and free ad-supported streaming TV (FAST) services. FAST services, led by Samsung TV Plus, are growing rapidly, appealing to Australians’ preference for live viewing.
BVOD services remain popular, with over 12 million viewers across platforms like 7Plus, 9Now, and ABC iView. Social media platforms like YouTube and TikTok continue to attract large audiences, feeding into the fast-growing creator economy.
The direct-to-creator subscription market is now valued at around $500 million annually, as Australians support individual creators on platforms like YouTube, Twitch, and Patreon.
Podcasts, particularly video podcasts, are also gaining traction, with 6.6 million Australians now watching vodcasts. This reflects a shift towards more engaging formats and the influence of creator content.
Steady Growth in Music and Gaming Subscriptions
Streaming music subscriptions have reached 19 million by June 2025, a 6% increase, supported by population growth and bundled access. Spotify, Google, and Apple Music lead the market, with Amazon Music also gaining popularity.
Games-related subscriptions have grown to 9.7 million, a 7% year-on-year increase, bolstered by a revitalized console cycle and the launch of Nintendo Switch 2. Microsoft’s Xbox Game Pass remains a leader, with cloud gaming services like Xbox Cloud Gaming and GeForce Now attracting over a million users.
Telsyte anticipates further growth as Xbox Cloud Gaming expands and Amazon Luna potentially enters the Australian market.
As Australia’s subscription entertainment market continues to thrive, the focus remains on affordability, diverse content offerings, and the evolving landscape of ad-supported and creator-driven media.
