Australians increase spending as entertainment subscriptions surge

Australia's subscription entertainment market grew by 5 per cent to nearly 54.6 million services in the year to June 2025, despite ongoing housing and cost of living pressures.

Data from the Telsyte Australian Subscription Entertainment Study 2025 indicates that Australians are maintaining loyalty to on-demand entertainment. The survey found that 47 per cent of SVOD users described their service as "non-negotiable", 44 per cent of music streamers considered their streaming subscriptions essential, and 63 per cent of gamers playing over three hours daily termed games "must-have".

The market saw continued growth across the three main sectors: Subscription Video on Demand (SVOD) rose 5 per cent, streaming music 6 per cent, and games-related subscriptions 7 per cent over the period. Telsyte excluded subscribers to Optus Sport in its June 2025 analysis, given the service's imminent closure and ongoing migration to Stan Sport.

SVOD market dynamics

The number of SVOD services reached 26.6 million by June 2025, marking a 5 per cent year-on-year increase. Growth was attributed to factors such as the availability of more affordable ad-supported plans, paid sharing initiatives, cross-industry bundles, new deals, and the arrival of HBO Max.

Netflix maintained its leading position with 6.4 million subscriptions, followed by Amazon Prime Video with 5.1 million, Disney+ (3.3 million), Stan (2.6 million), Paramount+ (2.1 million), Kayo Sports (1.7 million), and Binge (1.6 million). Paramount+ was identified as the fastest growing major service in FY2025.

HBO Max entered the top 10 within three months of launch. Additional momentum came from smaller services, including beIN Sports and Crunchyroll, which both posted notable growth. The popularity of anime and the impact of bundling activities contributed to these gains. Apple TV+ and BritBox also featured in the top 10 SVOD services.

Managing subscription budgets

Australians are increasing their budgets to accommodate multiple entertainment subscriptions. For users willing to pay for SVOD, the average monthly spend increased by 18 per cent (equivalent to AUD $6.30), to nearly AUD $42, outpacing the 13 per cent average rise in plan prices across the top 10 providers as of September 2025.

On average, subscribing households now have 3.3 SVOD services. A quarter of subscribers reported frequently exceeding their entertainment budgets.

"Households aren't walking away from streaming, they are reprioritising and keeping their multi-service setups affordable," Foad Fadaghi, Telsyte Managing Director, said.

One in four SVOD subscribers encountered discount offers or cross-sector promotions in the past year, with most recipients securing benefits lasting around three months at an average 36 per cent discount.

Cost-of-living pressures remained clear, with nearly two-thirds-63 per cent-of Australians reporting expenses rising faster than income. Service rotation was common, with 46 per cent of SVOD users switching services more often than the previous year to manage costs. Many users reported actively seeking discounts or subscribing to services for specific titles and then cancelling. Exclusive content and easy sign-up processes have become increasingly prominent factors in choosing an SVOD provider.

Shift to ad-supported and sports content

Ad-supported SVOD subscriptions more than doubled from 2.5 million to 6.4 million, a trend led by Amazon Prime Video's introduction of ad-supported streaming in July 2024. Netflix, Binge, HBO, and Paramount+ also grew their ad-supported bases as consumers increasingly sought lower-cost alternatives.

Sport has become an important differentiator for SVOD services. Among the top SVOD offerings (excluding dedicated sports platforms), around 20 per cent of subscribers cited sport as a key reason for joining. Accessibility remains a priority: two-thirds of consumers believed that free sports via streaming services like BVOD should be guaranteed for Australians, in line with protections for free-to-air TV.

Local content also remains a significant focus, with more than half (58 per cent) of SVOD subscribers considering it important to have Australian stories, culture, and values reflected in programming.

Creator economy and FAST channels

Telsyte's research found average weekly video consumption increased by four hours to over 51 hours, driven largely by social media, YouTube, and free, ad-supported streaming TV (FAST) services.

FAST services reached 2.3 million Australians, a growth of over 40 per cent from a year earlier, led by Samsung TV Plus and LG Channels. These linear-style channels appealed to Australians' preference for live viewing, with about half of video viewing time still spent on live content.

Broadcasting Video On Demand (BVOD) remained popular, with more than 12 million viewers across platforms such as 7Plus, 9Now, 10Play, ABC iView, and SBS On Demand during the financial year.

Video platforms such as YouTube and TikTok continued to serve large audiences, with 17 million watching YouTube and 52 per cent doing so daily. Growth in casual and creator-led videos continued to drive engagement and resulted in a fast expanding creator economy.

Telsyte estimates the direct-to-creator subscription market is worth approximately AUD $500 million annually, excluding adult content and advertising/revenue sharing, through mediums like YouTube, Twitch, Patreon, and Substack.

Three in five direct-to-creator subscribers said creators deliver insider knowledge and expert insights not available from mainstream sources. Podcasts are a well-established part of Australian digital habits, with nine million people listening or watching, and video podcasts now viewed by 6.6 million Australians. YouTube and Spotify were reported as leading podcast platforms.

"There is a shift from platform to affinity discovery, fans now follow creators across formats ," said Telsyte Senior Analyst Alvin Lee.

Music streaming and gaming

The streaming music segment reached 19 million subscriptions by the end of June 2025-a 6 per cent increase year-on-year-supported by population growth and bundled offerings. The main services were Spotify, Google's platforms (including YouTube Music and Premium), and Apple Music, with rising Amazon Music listenership among Amazon Prime subscribers.

Games-related subscriptions totalled 9.7 million at the end of June 2025, up 7 per cent from the previous year. Most services expanded alongside a renewed console cycle, notably following the launch of Nintendo Switch 2 and increased interest in handheld gaming systems. Microsoft's Xbox Game Pass continued as the market leader for games-related subscriptions.

Cloud gaming maintained high interest, with over one million Australians using platforms like Xbox Cloud Gaming and GeForce Now. Telsyte anticipates further growth as Xbox Cloud Gaming exits beta and expands its coverage, with a potential local debut for Amazon Luna-available with Amazon Prime in other markets-also expected to drive future adoption.