Streaming video on demand a hit in Australia: Subscribers up 30 per cent

Nearly half SVOD subscribers claim to rarely watch Free to air TV

SYDNEY, AUSTRALIA –Subscription video on demand (SVOD) services delivered over the Internet continue to feed Australians’ appetite for entertainment with subscriptions reaching 3.7 million[1] at the end of June 2017, a year-on-year increase of 30 per cent, according to a new study by emerging technology analyst firm Telsyte.

Telsyte’s Australian SVOD Market Study 2017 found almost half (49%) of Australian households currently subscribe to either Pay TV or SVOD services, an increase from 38 percent in 2015. Only 11 percent of households currently have both Pay TV and SVOD.

Telsyte predicts paid SVOD subscriptions are on track to overtake traditional Pay TV subscribers by June 2018, as consumers increasingly consume content on-demand, and across multiple devices. Popularity of exclusive and original content, as well as live streaming, is expected to continue to the drive the market to 2021 when subscriptions are expected to exceed 6 million[1].  Telsyte believes consumers will consider multiple providers, leaving room for services from Stan, Amazon, YouTube Red, Foxtel, Optus Sport, and a long list of others to encroach on Netflix’s market leadership.

Telsyte estimates that Netflix exceeded 2 million subscriptions at the end of June 2017, with Stan in second with 867 thousand, and others making up 769 thousand.

Telsyte research shows that SVOD services are putting pressure on Free to Air TV rivals and traditional Pay TV, with around a third of Pay TV subscribers also having at least one SVOD subscription, and 46 per cent of SVOD subscribers claiming to “rarely” watch FTA TV. Telsyte research shows that the average SVOD subscriber watches nearly 26 hours of video content a week across FTA TV, Pay TV, SVOD, Online TV on demand (Catch up TV & live streaming TV), and other video content sources (incl. non-streaming videos), compared to around 21 hours for the average Australian.

 “SVOD adoption in Australia has started to reach a scale which has strategic significance to media and telecoms companies alike” Telsyte managing director Foad Fadaghi says.

Bundling SVOD important for carriers under nbn

The popularity of unlimited data services on the nbn™ and increases in mobile data caps is fuelling greater SVOD adoption according to Telsyte. On average, Telsyte results show SVOD subscribers typically use 61 per cent more mobile data (3G/4G) than those who do not stream SVOD on smartphones. At the end of 2016, the rate of uptake of SVOD by nbn™ users was 25 per cent higher than non-nbn™ users.

“SVOD bundling is an important loyalty driver when mobile and broadband prices are under pressure” Telsyte Senior analyst Alvin Lee says.

For further information on the report or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Telsyte’s Australian SVOD Market Study 2017 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian SVOD services market.
  • Uptake of SVOD services, pay TV and AVOD TV services, including hours spent and demographic analysis
  • Analysis of market participants and strategies
  • Services consumption preference including devices, fixed and mobile service.
  • Insights into the future of subscription video services in Australia.

In preparing this study, Telsyte used:

  • Interviews conducted with executives from service providers, mobile operators, content providers and channel partners.
  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,060 respondents in November 2016.
  • Financial reports released by service providers.
  • On-going monitoring of local and global market and vendor trends.

About Telsyte
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of DXC.technology. www.telsyte.com.au.

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

[1] Paid and non-paid subscriptions

Australian businesses embracing emerging technologies amid accelerating pace of change

IoT adoption reaching mainstream with cognitive computing intentions high

SYDNEY, AUSTRALIA – Australian enterprises are in the midst of a wave of technology adoption driven by the desire to stay relevant through creating new products and services, according to a new study from emerging technology analyst firm Telsyte.

The Telsyte Australian Emerging Enterprise Technology Study 2017 reveals that more half of organisations[1] are currently undergoing large scale IT transformation leading to widespread investigation, planning and roll out of emerging technologies.

Telsyte undertook a detailed analysis of nine emerging technology areas to better understand the rapid growth in adoption of transformative technologies by Australian organisations.

The Telsyte Australian Emerging Enterprise Technology Study 2017 includes coverage of:

  • Internet of things (IoT)
  • Artificial intelligence and automation
  • Voice commands
  • Advanced networks: From fibre to 5G
  • Personal computing and collaboration
  • High performance computing
  • Virtual, augmented and mixed reality
  • Blockchain and cryptocurrencies
  • Mobile payments and NFC

Enterprise IoT has quickly become mainstream

Most IT leaders predict five to ten times as many connected devices in their organisation within five years. This boom in both end-user devices and industrial machines such as sensors and cameras is creating massive volumes of data which can be used to enhance productivity, modernise processes and help leaders make better strategic decisions.

Nearly 90 per cent of Australian CIOs see IoT becoming important or critical to their organisation within five years. Nearly a quarter (23%) of organisations are in the test, development or the production phase of IoT. Early adopters are showing positive ROI with 59 per cent claiming costs saving from using IoT technologies, and 30 per cent claiming increased customer satisfaction.

The biggest barriers are the costs of rolling out IoT solutions and legacy IT infrastructure requirements. Two-thirds or more see a positive role for IoT in operations and IT, but there is also a similar level of interest for customer service and marketing applications.

“IoT gives organisations an opportunity to overhaul their systems and modernise processes, the challenge is doing this while maintaining legacy systems,” Telsyte Managing Director, Foad Fadaghi, says.

“A complete overhaul is often required with IoT creating barriers for organisations which are not yet at the right phase to make large scale investments.”

 IoT maturity within Australian organisations

Source: Telsyte Australian Emerging Enterprise Technology Study 2017

Growing interest in using artificial intelligence, machine learning and automation

The use of artificial intelligence and automation technology in the enterprise is increasing steadily as options continue to grow for everything from physical robots to digital assistants and chatbots. Nearly two-thirds of businesses are already dabbling with machine learning or deep learning to improve operations or influence business decision making.

Finance is considered an important beachhead with 65 per cent of CIOs seeing use cases for machine learning in financial modelling and fraud detection. However, many organisations are also seeing the customer as an important front for AI. Nearly two-thirds of organisations intend to use cognitive computing in some form, including customer-facing apps such as chatbots.

“AI intentions are running at two speeds in the Australian market, with businesses much more bullish about using automation technology than consumers,” Fadaghi says.

“There is an undercurrent of fear in the average consumer about the impact of AI on jobs and future prospects for later generations in a highly automated world.”

Other findings in the study include:

  • 1 in 4 IT leaders see a place for industry application of drones (or autonomous flying vehicles).
  • More than half are exploring or already developing augmented reality applications.
  • 74 per cent indicated they had use cases for voice recognition technology in their organisation.
  • Over 60 per cent see value in smart wearable devices such as smart watches and smart glasses in their organisation for internal operations, access control and customer facing applications.
  • 59 per cent are investigating the potential uses or disruption from blockchain technology in their industry.

 For further information on licensing the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

Telsyte’s emerging enterprise technology research program provides leading insights into the technologies and services that are re-defining how Australian organisations, including the public sector, manage operations and innovate with new products and services. The comprehensive 118 page study provides deep local insights into the issues that are impacting emerging technology uptake.

In preparing this study, Telsyte used:

  • An online survey of a representative sample of Australians CIOs and IT decision makers with 302 respondents completed in September 2016.
  • The research was conducted among businesses with more than 20 employees.
  • Interviews conducted with executives from software vendors, carriers, system integrators, hardware and big data software providers, as well as their channel partners.
  • On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of DXC.technology. www.telsyte.com.au

[1] With greater than 20 employees

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

Australian and New Zealand Robotic Process Automation market set to reach $870 million by 2020

Traditional people-centric processes increasingly being automated

SYDNEY, AUSTRALIA – Australian and New Zealand organisations are ramping up investment in robotic process automation (RPA) according to a new study from emerging technology analyst firm Telsyte.

The Telsyte ANZ Robotic Process Automation Study 2017 found the ANZ RPA market will grow strongly with a CAGR of 45 per cent from 2016 to 2020.  The market is set to grow from $216 million in 2017 to $870 million by 2020.

RPA has many uses across industries with large customer support and request processing requirements, including insurance, banking, telecommunications and government. Finance and insurance operations are expected to be the fastest adopters of RPA in the short term.

Telsyte’s RPA maturity model classifies the organisation’s stage of RPA adoption – from not using RPA, to a mature, established use of RPA in the organisation. It shows most organisations are still at the basic stages of adoption.

RPA is now being used or investigated by 6 out of 10 ANZ organisations surveyed by Telsyte (businesses greater than 20 employees). Already 12 per cent are in production with a RPA strategy in place.

However, 38 per cent of organisations with more than 500 employees have active RPA programs already, showing automation is becoming a cornerstone of many business transformation strategies.

RPA maturity within Australian and New Zealand organisations

Source: Telsyte ANZ Robotic Process Automation Study 2017

Telsyte’s research investigated the role and impact of RPA, including:

  • Business roles most impacted
  • Existing BPO maturity and its impact on RPA adoption
  • Industry sector uptake forecast
  • Operations most expected to benefit from RPA
  • Assessment of procurement models
  • DYI and procurement preferences
  • Investment drivers and barriers

Telsyte Managing Director, Foad Fadaghi, says the business case for RPA is clear, but IT and business leaders need to look to partners that can understand their business problems and to improve efficiencies while generating a competitive advantage.

“RPA is not simply about cost cutting, it can drive innovation and change the way organisation’s conduct their business altogether” Telsyte Managing Director, Foad Fadaghi, says.

“A proof-of-concept is important for organisations to first understand the nature of processes that can be best solved through RPA, before progressing to an enterprise-wide strategy,” Fadaghi says.

“Equally important is to use of pilot programs to understand the change management requirements before a further roll out.”

Telsyte recommends organisations assess the processes to be automated by their level of complexity. Complexity has a positive correlation with automation costs and targeting lower-complexity processes initially can result in better initial returns.

Telsyte research shows 57 per cent of enterprises prefer to engage with an IT service provider for RPA solutions.

For further information on licensing the study or media enquiries contact:

Rodney Gedda
Senior Analyst
+61 2 9235 5891
Twitter: @rodneygedda
Email: rgedda@telsyte.com.au

Telsyte’s emerging enterprise technology research program provides leading insights into the technologies and services that are re-defining how Australian organisations, including the public sector, manage operations and innovate with new products and services.

In preparing this study, Telsyte used:

  • An online survey of a representative sample of CIOs and IT decision makers in Australia and New Zealand with 302 respondents completed in September 2016.
  • The research was conducted among businesses with more than 20 employees.
  • Interviews conducted with executives from software vendors, system integrators, hardware and big data software providers, as well as their channel partners.
  • On-going monitoring of local and global market and vendor trends.

About Telsyte
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of DXC.technology. www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

IoT@Home market set to soar with more than 300 million devices in Australian homes by 2021

Market set to near $5Bn by 2021 as the smart home devices go mainstream

SYDNEY, AUSTRALIA – Tuesday May 9, 2017 Australian households are in the middle of an Internet of Things (IoT) at home revolution with more than 40 per cent of Australian households now having at least one IoT@Home device, up from 29 per cent in the previous year, according to emerging technology research firm Telsyte.

IoT devices are smart Internet connected devices and appliances that allow consumers to control, monitor and enhance their lifestyles, typically via mobile apps.

Telsyte estimates that the average Australian household in 2017 has 13.7 Internet connected devices with this number set to balloon to 30.7 by 2021, with 14.0 of these being IoT@Home device.

By 2021, in total, Australian households are expected to have 311 million connected devices, of which nearly half of these are expected to be new IoT@Home devices.

Telsyte’s extensive IoT@Home taxonomy includes detailed analysis of smart energy, smart security and smart lifestyle products, and the installation and services that underpin them.

Telsyte estimates that the collective value of the IoT@Home market in Australia will be $4.7bn by 2021, a sharp rise from the $377M in 2016

Telsyte believes intelligent features that use cloud-based machine learning to provide lifestyle benefits which go beyond self-monitoring and user initiated outcomes will be the key to attracting and maintaining customers. For example this might be a voice activated hub that understands a regular behavior and automatically prompts the user without being pre-programmed to give an alert.

According to Telsyte research, despite the expected rapid adoption, barriers such as concerns around cyber security and privacy will still need to be overcome. Half of Australians indicate they are concerned about security when “everything will be connected to the Internet in the future”, according to Telsyte’s survey.

IoT@Home is also expected to be a new battleground for telecommunications companies, retailers, energy suppliers, insurance companies and category specialists all seeking to differentiate themselves in price competitive industries, against the backdrop of widespread rollout of nbn services, fierce online retail competition and rapid digitisation of consumer lifestyles.

“The Internet of things at home will touch many industries as businesses use smart automation to create new products and services for their customers” Telsyte managing director Foad Fadaghi says.

"The challenge will be to take households on the automation journey while handling privacy, security and upfront costs concerns" Fadaghi says.

For further information on the report or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Telsyte’s Australian Internet of Things @ Home Market Study 2017 is a comprehensive 98 page study which provides subscribers with:

  • Market sizing and forecasts of the Australian IoT@Home market by detailed segments including services and installation revenues
  • Insights into consumer attitudes and technology adoption trends
  • Analysis of vendor strategies and key growth segments
  • IoT@Home user profiles, including early adopters, those on the verge of adopting and those not yet to be interested.
  • Analysis of the IoT@Home ecosystem competitors including SWOT analysis
  • Analysis of retail and online channels and their importance to IoT@Home products
  • Insights into where consumers begin with IoT@Home journey and key market drivers expected to drive rapid adoption in different segments.

In preparing this study, Telsyte used:

  • Interviews conducted with executives from service providers, network operators, manufacturers and channel partners of IoT@Home products and services.
  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,060 respondents in November 2016.
  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,032 respondents in April 2017.
  • Financial reports released by service providers and manufacturers.
  • On-going monitoring of local and global market and vendor trends.

About Telsyte
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of DXC.Technology. www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

 

 

 

 

 

 

nbn becoming more important in competitive mobile services market

1 in 4 considering nbn services from their primary mobile service provider

SYDNEY, AUSTRALIA – Australia’s telecommunications market is getting substantially more competitive leading up to a once in a generation churn opportunity with the arrival of nbn into metropolitan areas, according to a new study by emerging technology analyst firm Telsyte.

The Telsyte Australian Mobile Services Market Study 2017 found the mobile services market is heating up with 15 per cent of subscribers switching providers in 2016, up from 11 per cent in 2015.

Mobile is becoming a critical competitive factor for the fixed line market. A quarter of Australians are willing to consider getting nbn broadband from their primary mobile service provider even if they are not providing non-nbn fixed services today (providers like Vodafone, Amaysim, Kogan Mobile, ALDIMobile, etc.).

According to Telsyte’s survey of consumers, mobile carriers collectively rate higher than brands such as Google, Facebook or Apple in terms of potential to become nbn service providers. The nbn is a huge opportunity for mobile only carriers to expand their services in the coming years. More than 10 per cent of mobile and fixed broadband subscribers bundle their services already, and Telsyte believes this trend to continue to grow.

The Australian mobile services market continues to favour month-to-month plans, reaching 53 per cent at the end of December 2016 despite higher smartphone prices and more competitive contract plans. This lack of commitment to long term contracts is paving the way for more flexible fixed line broadband packages which could include pay by the month and pre-paid offerings.

MVNO growth accelerating as consumer hunt for better deals

MVNOs (Mobile Virtual network Operators) which currently have around 10 per cent share of subscriptions were responsible for a quarter of the net additional subscribers during H2, driven by competitive pricing and flexible non-contract plans. Telsyte found the market added more than 600,000 SIOs (Services in operation) in the six months to the end of December 2016, with 33.2 million SIOs in total.

“Carrier plans to use second SIMs to improve the bottom line has yet to really taken off,” Telsyte Senior Analyst, Alvin Lee says.

Less than 10 per cent of mobile phone users purchased second SIMs in 2016, as more Australians become comfortable tethering their devices to their smartphone with a larger data plan.

According to Telsyte’s research, the average smartphone data allowance increased by more than 40 per cent in 2016 while data usage grew by more than 60 per cent over the same period.

“More than 75 per cent of Australian smartphone users streamed music, video or both to their smartphones during 2016 and average data utilisation rate increased to around two thirds of the plan’s allowance,” Lee says.

Telsyte’s study found mobile international roaming is still not economical for all Australians, with only around one quarter of travellers activating roaming on their existing mobile services when abroad.

With many Australians travelling during the winter months, 1 in 3 will still choose to purchase a SIM on arrival, despite the lower prices and changes to roaming policies from Australian carriers.

Additionally, 18 per cent purchase a prepaid travel SIM, and the rest rely on public WIFI or go off grid (see below chart).

For further information on the report or media enquiries contact:

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Telsyte’s Australian Mobile Services Market Study 2017 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian mobile services market
  • Analysis of current offerings in the market
  • Carrier performance and review
  • End-user trends and strategic discussions
  • Mobile services market KPI

In preparing this study, Telsyte used:

  • Interviews conducted with executives from service providers, mobile operators, content providers and channel partners.
  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,060 respondents in November 2016.
  • Financial reports released by service providers.
  • On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of DXC.technology. www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.