Television was introduced in Australia over fifty years ago, with the first television broadcast aired in Melbourne and Sydney, in 1956. Since then television has taken off and been a massive hit with consumers. In Australia there is a mixed public and private system, with two government-funded channels ABC and SBS and three commercial stations, channels 7, 10 and 9. The consumption trends of television have changed dramatically over the last few years, with the introduction of online subscription TV, such as Netflix. This has created lots of opportunities and threats for free to air television and pay TV, which organisations have reacted differently to. Television stations have used various techniques to deal with the advantages
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Binge watching content through online streaming devices has recently taken off. These organisations, including Netflix, Stan and Presto, were introduced in Australia in early 2015 and already have millions of subscribers. Netflix is the dominant online streaming organisation, with approximately 1.03 million Australian subscribers (Roy Morgan research 2016). Television stations have an opportunity to use this new trend to their advantage and develop better quality television and advertisements encouraging consumers to binge watch on their channels and not through online streamers. Online streaming organisations have also given television channels the opportunity to create a digital platform through their major media organisation, which has already been established and thus is likely to be popular with consumers (Harrington 2014). Organisations such as channel 10 now have their own website which can be accessed online, enabling audiences to watch television shows online and keep up to date with their favourite shows at convenient times. This helps to maintain the total audience numbers, giving consumers greater access options. A further opportunity for commercial television would be tailoring their advertisements. Television advertising stills remains the most influential way of gaining consumers attention (Deloitte …show more content…
Pay TV companies, such as Foxtel, are now struggling to compete with online streaming organisations and have recently cut their prices. Online streaming organisations have very low subscription prices, ranging from $10-15 per month (Netflix, Stan 2016). Foxtel has had to match these prices to compete with the online streamers. Reducing prices has had negligible impact on Foxtel subscribers. While online streaming members increase, Foxtel subscriber numbers continue to remain constant (Deloitte 2015). Free to air television organisations have created new television stations such as 7mate and Go. These channels offer catch up TV, showing replays of classic television programs, which have always been popular with consumers such as Family Guy and Friends. This is a cheaper option for commercial stations and give consumers greater program options. The future is likely to see continued development of new free to air channels and a multi channel environment. The public government funded TV organisations do not have as many options to deal with the current challenges. These channels are already commercial free giving them an edge over commercial based organisations. However these organisations have strict content laws, such as the minimum local content that must be broadcast.
Binge watching content through online streaming devices has recently taken off. These organisations, including Netflix, Stan and Presto, were introduced in Australia in early 2015 and already have millions of subscribers. Netflix is the dominant online streaming organisation, with approximately 1.03 million Australian subscribers (Roy Morgan research 2016). Television stations have an opportunity to use this new trend to their advantage and develop better quality television and advertisements encouraging consumers to binge watch on their channels and not through online streamers. Online streaming organisations have also given television channels the opportunity to create a digital platform through their major media organisation, which has already been established and thus is likely to be popular with consumers (Harrington 2014). Organisations such as channel 10 now have their own website which can be accessed online, enabling audiences to watch television shows online and keep up to date with their favourite shows at convenient times. This helps to maintain the total audience numbers, giving consumers greater access options. A further opportunity for commercial television would be tailoring their advertisements. Television advertising stills remains the most influential way of gaining consumers attention (Deloitte …show more content…
Pay TV companies, such as Foxtel, are now struggling to compete with online streaming organisations and have recently cut their prices. Online streaming organisations have very low subscription prices, ranging from $10-15 per month (Netflix, Stan 2016). Foxtel has had to match these prices to compete with the online streamers. Reducing prices has had negligible impact on Foxtel subscribers. While online streaming members increase, Foxtel subscriber numbers continue to remain constant (Deloitte 2015). Free to air television organisations have created new television stations such as 7mate and Go. These channels offer catch up TV, showing replays of classic television programs, which have always been popular with consumers such as Family Guy and Friends. This is a cheaper option for commercial stations and give consumers greater program options. The future is likely to see continued development of new free to air channels and a multi channel environment. The public government funded TV organisations do not have as many options to deal with the current challenges. These channels are already commercial free giving them an edge over commercial based organisations. However these organisations have strict content laws, such as the minimum local content that must be broadcast.