The arrival of streaming giant Netflix and other services has forced the pay TV industry to invest in local content to remain appealing to viewers.
Figures from the Australian Subscription Television and Radio Association (ASTRA) show that investment in local media production rose to a record high of $795 million in 2014/15, up nearly $100 million from the previous year.
“It would be true to say that the entry of those services is partly responsible for the increase in our investment,” said ASTRA chief executive Andrew Maiden.
“One of the things that sets us apart from the streaming services is the local stories we tell. Australians are always going to like our own stories so the networks who invest in local stories are going to be ones who win,” he told AAP.
Currently, local news and sport offerings have kept cable TV companies like Foxtel afloat, with about 40 per cent of content hours dedicated to sports coverage.
The numbers also show that investment more than doubled for documentaries and factual programs to $25 million, partly due to programs commemorating the Anzac centenary, while funding for lifestyle and entertainment programs increased by 50 per cent.
Hit domestic lifestyle shows like Coast Australia, Abalone Wars and The Real Housewives of Melbourne were crucial to retain and grow the appeal of cable for viewers both at home and overseas, ASTRA chairman Tony Shepherd said.
He said focusing on locally-made shows would be key to the industry’s future growth.
However, pay TV stalwarts like Foxtel aren’t the only ones banking on a ramp-up in local content to win over eyeballs.
Both Stan and Netflix have ambitions to offer more Australian content, with the Fairfax and Nine-backed Stan to debut its first locally-made show in November. More are scheduled for 2016.
While the Foxtel and Seven West Media joint venture Presto is a member of the subscription media industry group ASTRA, both Netflix and Stan are not.
According to ASTRA, pay TV currently reaches nine million Australians, triple that of the US-based Netflix’s stated long-term audience goal.
It’s estimated that the online streaming services currently have about a million local subscribers, the lion’s share of them being Netflix users.
THE STATE OF THE PAY TV INDUSTRY
– Employs 8370 full-time workers
– Adds $2 billion to the national economy
– 57,716 hours of local pay TV content broadcast in 2014/15
– 13,119 hours of local programming exported overseas
– AAP
