2016
Yearbook

Use of AHEDA Yearbook
This publication is provided by AHEDA for general guidance only anddoes not constitute the provision of tax, legal, investment or productadvice.
The information is provided “as is” with no assurance or guarantee ofcompleteness, accuracy or timeliness of the information, and, to theextent permitted by law, without warranty of any kind, express or
implied.
No part of this publication may be quoted, cited, excerpted,
reproduced, stored in a retrieval system or database, distributed ortransmitted in any form or by any means without the prior written
permission of AHEDA.
Requests should be submitted in writing to Simon Bush atsimon.bush@aheda.com.au outlining which excerpts you wish to use
and the context in which you wish to use it.

Contents
Introduction

3-4

1State of the Industry: Managing Director’s Insight

7-11

2

Market Overview

13-15

3

Australian Digital Video Market in 2016

17-42

4

Video Entertainment Australia: Physical Retail Market

44-56

5

Consumer Behaviour

58-68

6

Devices and Emerging Viewing Patterns

71-77

7

Creative Content

80-85

8

Theatrical Film Industry: 2016 Box Office

88-91

9

AHEDA Members Directory

93-94

Appendix:

2016 DVD & Blu-ray Sales Charts

Chapterby Category and Best of all Time

96-103

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
1

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20162

Introduction2016 proved to be another strong year for the home

One of the most exciting developments from an AHEDA

entertainment film industry, with more than AUD$1

perspective and of the industry more broadly is thebillion in sales.

significant inroads we have made in combating film

The Yearbook data reveals that Australians remain

piracy with 2017 being the year of action!

some of the largest purchasers of DVDs and Blu-ray
Discs in the world, with over $800 million in sales

Last year we had the site blocking legislation throughthroughout 2016.

the Parliament and the test cases introduced and“won”. Now we have asked the court to order ISPs to

While the physical disc DVD market did decline byblock 42 piracy websites which should happen around

11% in 2016 - led by decreases in catalogue films –the middle of this year. This will allow us to test against

pleasingly, new release disc sales increased in 2016 bya large sample the effectiveness of these blocks on

4%, with Blu-ray disc new release films up by 14% andboth traffic to these websites from Australia as well as a

Blu-ray disc TV series sales up by 17%.

positive effect on legitimate consumption.

The physical disc market is incredibly resilient in

Early data from the first blocks on Piratebay.org show

Australia, and with the amazing theatrical slate in 2016very promising results with the vast majority notcontinuing into 2017, I expect new release DVD andbothering with technological solutions to get around the

Blu-ray disc sales to grow again in 2017.

block. The naysayers suggested it would not work andwe look forward to proving them wrong.

Reaching another milestone in 2016, Australians
digitally purchased or rented over $200 million in films or

The Association goes from strength to strength and we

TV shows which is a 10 per cent increase on 2015. The

remain committed to continue to work with others incombined home entertainment film and TV industry inthe creative sector to ensure the government doesn’tAustralia therefore remains a $1 billion sector coexistingerode laws that are vital for our sector. We have beenalongside new technology and services like Netflix andfighting hard against proposed legislation to expand

Stan.

safe harbour laws to include search and social media

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20163

Introduction
1)

sites as well as continued attempts to weaken copyrightthat you can only watch latest releaseand introduce fair use laws (for example the Productivity

films in the home on disc or by electronic

Commission report into IP). It is never dull!

transaction, andThrough the Creative Content Australia group, we will2)that not only is new release theatricalalso be producing a major consumer facing advertising

growing so too are new release to homecampaign that will have massive audience reach andentertainment conversions also up year-on-

will coincide with the website blocks referenced earlier.

year.

The campaign will highlight the perils of accessing
pirating sites and we are confident it will get major cut-

I hope you enjoy the 2016 Yearbook and it continues

through and awareness.

to provide a valuable source of reliable and reputableindustry information and insight that has currency overthe next 12 months.

We also are looking to be more engaged in theecosystem of our sector and ensure that retailers,partners and media stakeholders understand two
inherent truths that go to the resilience and value ofSimon Bushhome entertainment, which is:CEO, AHEDA

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20164

We have another really strong
year ahead. We have a stackof blockbusters and ongoing
franchises and we see a hugediversity of genres which
provides something foreveryone, from art houseto Australian films.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
5

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AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20166

Managing Director’s Insight‘New is the new black’: Riding
the blockbuster wave into
homes

entertainment industry has remained remarkably
resilient to disruptive online forces. With physical discsales forecast to reach A$800 million in 2016 and digitaltransactional sales on track to surpass A$200 million for
the first time, it remains a billion-dollar industry.

About two years ago we remarked on the emergenceof a golden age in television. It seemed that production
values, and acting and writing talent once more

Overall, sales of physical theatrical new release titles

common in cinema was being diverted to television forgrew 4 per cent in 2016 compared to the previous

mass audiences.

year and Blu-ray sales were particularly strong in thatcategory growing 14 per over the same period. (At theThis creative mistral filled the sails of the homesame time, consumer appetite to own high quality TV

entertainment industry boosting demand for products

quality series is growing. Blu-ray grew 17 per cent inand giving emerging online platforms like Subscription

this category in 2016).

Video on Demand (SVOD) the chance to exist alongside
As one senior industry executive observed: “Whatit in new niches.

we’ve seen this year is that our new release
Of course, this has created challenges with audiences

conversions (from cinema to home entertainment)

dividing their attention across multiple platforms and thehave increased by about 6 per cent year-on-year. I

constant temptation of illegal online sources.

think that indicates that new is as relevant as ever,”one senior industry executive observed. “Subscription

However, it seems that the momentum that worked inservices are about old content, especially in film - it’sfavour of TV series a couple of years ago has swung

anywhere between 12 and 18 months old. The only

back to film giving consumer demand for newer content

place that you can consume new content out of thegreater vigour.

cinema is in the home entertainment window whether
that’s disc or electronic transactional”.

Consider, Star Wars VII: The Force Awakens, the longawaited new addition to the Star Wars franchise. It was“New release movies, obviously coming off the backeasy to foresee the interest in the film but few wouldof what has been a strong box office period over thehave been brave enough to bet on its ability to fill thelast three years has been good, and has kept ourboots of its six predecessors (in 2015, it took nearlyretailers very focused and very committed,”. Another$63 million at the box office in Australia and $US2 billion

senior executive noted:

worldwide). Similarly, who could have predicted thecreative vision and success of Marvel’s R-rated comedy

This was particularly true for 2016. The home

Deadpool?

entertainment release windows for Star Wars VII: The
Force Awakens, Deadpool, Suicide Squad, and the next
instalments of both the Jason Bourne and James Bond

These are just two examples of why Australia’s home

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20167

Managing Director’s Insightfranchises all fell within the year. There were also few(assuming you could afford it) and if you waited anothersurprises with the likes of Australian comedy drama The

two years you could watch it on free-to-air television. TV

Dressmaker coming in as the third largest selling DVD

series were typically the domain of free-to-air licensees

title in the physical retail market.

and the most popular of these shows were eventually
made available through retail or rental channels in a

Clearly, it’s not just the value that consumers continue

physical form.

to place on having a better in-home viewing experiencethat is compelling them to own films; it’s also the calibre

However, the inception of the internet switched theof titles that the industry is producing.

dynamics of the debate around once sacred releasewindows into a new gear. Online piracy and the newThis momentum has a strong chance of continuing

medium’s ability to prove a viable, low-cost alternative

into 2017. Last year the Australian cinema industry

to Pay TV for delivering entertainment forced studios

surpassed its 2015 record gross box office take ofto acknowledge that their industry was becoming

A$1.226 billion and grew 2.7 per cent to reach A$1,259

consumer-led.

billion.
Arguably, popular TV series were the most vulnerable
Many of the titles that helped push the Australian box

to piracy and their SVOD and Pay TV release windows

office to this record high including Rogue One: A Star

contracted the most rapidly to the point where they’reWars Story (which took $36.4 million in ticket sales incurrently largely synchronised globally.

the last two weeks of 2016), Captain America: Civil War,Finding Dory and Bridget Jones’s Baby have either justHowever, in recent years, the industry has started toentered the home entertainment release window or are

turn its attention to experimenting with one of its most

expected to early this year. It augurs well for the year

sacred windows; that between cinema release, andahead.

other downstream channels.

Release Windows: Playing withthe rule bookAs one senior executive explained, it one of the mostRelease windows – the time intervals between which

due to a phenomenon it creates that he described as a

TV and movies are typically made available in various“dark zone”.

contentious topics with which the industry must grapple

formats – was once a less complicated affair in theentertainment industry.

“It’s the period of time that a consumer cannot buy amovie and, therefore, that stimulates things like piracy.

It’s an oversimplification but typically a title would be

But it also stimulates consumer disenfranchisement.

released in the cinema and about five months later you

We know the benefits of reducing that window

could buy or rent it in a physical format. If you waited

are there and important but we have to straddle aa few more months you could watch it on Pay TV

delicate relationship with our exhibitors,” the executive

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20168

Managing Director’s Insight
explained

release had been rigidly kept at 120 days.

The first experiments around release windows targeted“Windows should remain flexible to consumer behaviour

early Electronic Sell Through or EST. For example,

and needs,” said one senior industry executive. “A 90-

negotiations between studios and distributors led to

day window may allow a title to release in-home in a key

experiments in which a handful of titles were madeseasonal period and that’s where we see the greatest

available for digital transactional consumption ahead

benefit”.

of physical channels to test the market’s response.
Eventually, they conducted similar experiments withThe Digital Opportunity

physical channels for a handful of cinema titles andAs we noted earlier, home entertainment digitalfound that there was no excessive impact on ticket

transactional sales passed a major milestone in 2016.

sales but marked improvements in downstream sales.

For the first time, income from the segment will exceed$200 million.

Based on those results, last year Australian distributors
were permitted to move the earliest opportunity thatThat’s creating a lot of optimism for the segment.

they could start moving inventory through physical andHowever, some in the home entertainment industry

digital channels from 120 day to 90 days after cinema

believe it’s time to capitalise on its organic growth andrelease for the first time. However, senior industry

use more aggressive market tactics to push the sector

executives say that in practice it was more about

to its full potential.

creating flexibility than a new immutable rule.
Overseas markets have been experimenting with more
As one distributor pointed out “if you look across theflexible windows around the EST value proposition

market, the studios have all got different policies on

which presents as one opportunity for the local market;

different titles but it’s never earlier than 90 days (inimportantly the overseas data shows it has no impact

Australia)”.

on cinema sales and in fact in some cases there isa cross promotion. Being forward thinking, flexible

In other words, it’s still about cherry picking titles toand working with theatrical exhibitors to ensure theymaximise income streams at each layer of distribution.

understand the motives and metrics will ensure thateveryone wins including the consumer.

Nevertheless, industry executives say, that overall, the
new the new flexibility appears to be working well forIf similar advances are possible in the Australian market,

the industry.

then evolution of the local digital transaction spacepromises to be an exciting area to watch.

For instance, Bridget Jones’s Baby wouldn’t have been
in a physical form until January and after the Christmas

Piracyseason in Australia, if the home entertainment window

When Netflix, Stan and other SVOD services began

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20169

Managing Director’s Insightlaunching locally early in 2015, it raised hopes forand watershed victory. In June 2015, the federal

millions of Australians. It appeared that, finally, thegovernment passed laws allowing copyright holders

yawning gap in availability of internet-delivered

to apply for federal court injunctions requiring ISPs toentertainment services between here and overseas

block web sites established “primarily” for promoting

markets like the US and Europe would close.

piracy.

However, they also carried the hopes of thousands of

The home entertainment industry’s response to theAustralians employed in the entertainment industry thatsite blocking laws has been positive but maintains thethe depressingly copious streams of data carrying illegal

position that the laws, while expected to be effective,

downloads of films and TV into the country might finallyneed to be part of a larger strategy to combat piracy.

abate.
For one senior industry executive, the new laws
To some extent these hopes were answered. In Octobercertainly weren’t a poorer cousin to the failed so-called

2015, Australia’s peak anti-piracy lobby, then known

three strikes regime.

as the Intellectual Property Awareness Foundation(IPAF) reported that SVOD subscriptions were growing“I do think the site-blocking law is a bigger win.

healthily and its surveys revealed that piracy rates had

Making it harder for people to access content

fallen from 29 per cent to 25 per cent overall (from aillegally is more productive than sending notices” thecombination of cheaper prices, increases legal accessexecutive said.

and the widespread media around the increased threatof getting caught). However, it also reported that 40 per

However, another observed that they weren’t enoughcent of the most stubborn pirates were downloadingon their own, saying: “It’s an important step but on its

more illegal content than ever.

own it’s definitely not enough. We think that education
is important and I think the industry is looking at a

Moreover, as recently as October 2016, Village

consumer campaign to reinforce the importance ofRoadshow co-chief executive Graham Burke warned

not taking the piracy path. We’re also focusing onthat piracy rates had doubled among 12 to 17-year-olds

getting content out in line with other territories as bestwith YouTube a prime source.

we can”.

It was a disappointing outcome for the industry (andNevertheless, last year the industry got its first chance

copyright advocates generally). It has spent years

to test the new site-blocking laws in a landmark casepatiently lobbying the federal government for support

expected to set the parameters for how the regime will

and taken the internet industry to the country’s highest

operate.

court in its plight.
In December 2016, Foxtel and Village Roadshow
These years of advocacy and fighting led to a crucial

successfully applied to the court for injunctions requiring

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201610

Managing Director’s Insight
Telstra, Optus, TPG and M2 to block five peer-to-site blocks has shown most people don’t circumvent

peer torrent file sharing sites - Pirate Bay, Torrentz,

the block as we expected and that traffic to the sites

TorrentHound, IsoHunt, and SolarMovie.ph.

out of Australia dropped by a very large number.”

Universal Music, alongside music licensing body APRA

The true effectiveness of site-blocking in Australia will

AMCOS, has also applied for injunctions against abe known later this year when carriers take steps togroup of torrent sites operating under the banner

blacklist a larger number of sites. At that point, we will

KickassTorrents. It’s widely expected to succeed in line

be able to measure the amount internet traffic runningwith the Village and Roadshow applications.

to online piracy sites and compare it that before theblocks were put in place.

And in February 2017 a further 40 piracy sites will be

Andrew Colley

put to the courts to be blocked. We know from UK
research that after this first tranche of site blocks it will

Acknowledgements

result in a measurable and significant drop in piracy

The Australian Home Entertainment Distribution

and, hopefully, an uptick in legitimate consumption.

Association gratefully acknowledges the following
executives for contributing their time, wisdom andexperience to the preparation of this report:

As one executive said: “early data from the first two

Jo Bladen - Managing Director,
The Walt Disney Company Australia
Jim Batchelor - Managing Director,
Universal Sony Pictures Home Entertainment Australia
Chris Chard - Managing Director,
Roadshow Entertainment
Flavio Paoli - Managing Director,
Twentieth Century Fox Home Entertainment Australia

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201611

Australian digital video
market forecast to pass
A$2.0billion for the firsttime in 2020

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201612

Market Overview
The AHEDA Yearbook has in-depth and specific chapters on digital and retail physical home entertainment sales. This
overview provides an easily digestible snapshot of this data and the headline figures

Digital Business
Australian consumer spending on digital video, whether via Pay TV VoD, digital retail, digital rental or digital
subscription, experienced rapid growth in 2016 driven by expansion of international and local digital video services.
Australian consumer spending on digital video increased 69% to nearly A$755 million compared with the previous year.
IHS Markit expects the strong growth to continue over the forecast period with the value of the Australian digital video
market forecast to pass A$2.0 billion for the first time in 2020.
The Australian pay TV VoD services are proving resilient and showing little effect of cord cutting after consumer-level
spending experienced solid growth of 8.4% to A$72.4 million in 2016.
Meanwhile, digital retail and rental transactional consumer spending grew 8.8% and 18.7% respectively in 2016. The
combined digital transactional movie and TV market increased 14.1% to A$263 million - across the retail and rental
business models. This reflects IHS Markit analysis of AHEDA member data, including Goods and Services Tax (GST)
and grossed up to reflect the total market.
Australia: Digital Video Spending 2010-2020
Source IHS © 2017 IHS

2,500

AUD, Millions

2,000
Digital subscription
1,500

Digital rental
Digital retail

1,000

Pay TV VoD

500
0
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

The strong growth in the Digital Transactional Video Market was particularly impressive given an increase incompetition from SVoD services such as Netflix, Stan and Foxtel Play as well as multiple free-to-view TV catch-up andTV everywhere services offered by public and pay TV operators alike – both of which occupy consumer’s time with arange of fresh and varied content. Although transactional digital offerings generally feature more recently-released

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201613

Market Overview
content than online SVoD services, the latter have been especially adept at making their content easily accessible on a
range of devices—most importantly the TV set—and also have begun to finance original and often home-grown movie
and TV content.
Digital transactional video volume also recorded solid growth increasing 3.5% to 29.9 million in 2016 compared with ayear earlier. Digital video transactions are paid-for transactional non-physical retail and rental purchases of Movie andTV content.
Australia: Consumer Transactions by digital service 2015 + 2016
Source IHS © 2017 IHS

]

21%

0%

23%

TV VoD
24%

26%
2015

0%

2016
53%

53%

TV EST
Movie VoD
Movie EST

Digital transactional spending is still very much focused on movies in Australia. The digital retail and rental of movies
generated A$155 million or 76% of total transactional online video spend in 2016. The majority of value is generated
by movie rentals: A$109 million in 2016. There is very little TV content consumed on a rental basis (TV VoD), which isprimarily a reflection of availability. TV consumed via digital retail (TV EST) generated A$48.6 million in 2016, up 2.9% toreverse the decline experienced in 2015. The smaller amount of overall transactional consumption of TV content islargely due to consumers preferring to watch TV content in subscription environments. TV content in itself is designed
for subscription or free-to-view environments, which are fundamentally non-transactional. Consumption of content on
SVoD platforms, to a certain degree, can be characterised by the same casual (passive) and repetitive viewing habits,
which are often associated with traditional TV viewing.
In terms of volume, Movies also dominate Digital Transactions in Australia. In particular, Movie VoD transactions,which increased its share by one percentage point to account for 70% of digital transactions in 2016 compared withthe previous year. Movie EST saw its importance increase by the same, up to an 11% share. The increase in Movie
transactions came at the expense of the TV EST segment, which saw its importance decline two-percentage points to
18% over the same period.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201614

Market Overview
Physical Business
The physical DVD and Blu-ray retail channel sold 44 million discs in 2016, for a total value of $806 million. Though theoverall physical disc market was in decline, it is still one of the largest individual categories in Australia, generating morevalue than categories such as tablets or wearables.
GfK Retail Tracking: Physical Retail Market size

$1.50
$1.00
$0.50
$0.00

Total Value
Total Units$0.22 $0.27

$0.50

$0.71

$0.94 $0.95

$1.06

$1.26

$1.35 $1.39$1.24 $1.29$1.15 $1.09

100
$0.98

$0.90

80
$0.81 60

Millions

Billions

Source IHS © 2017 IHS

40
20
0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Blu-ray’s 2016 share increase was buoyed by improving shares in the new release movies and TV series release types,
both of which have higher average prices than the overall market. Over a quarter of all new release movies are now
purchased on Blu-ray.
2016 saw the debut of 4K Ultra HD Blu-ray. 65,000 4K Ultra HD titles were sold in 2016 for a value of $2M, or 2%
of Blu-ray volume and 3% in value. The higher value share is due to a fairly substantial price differential between astandard Blu-ray title and a 4K title – the 4K Ultra HD average price is $31, compared to just $22 for standard Blu-ray.
4K Ultra HD is still in its infancy in the video entertainment market. There were 68 different 4K titles released in 2016,
with action movies generating twice the share of the next biggest genre; Sci-Fi.
One of the current barriers to 4K Ultra HD sales is a relative lack of compatible hardware. There are plenty of 4K
TVs available, over 600,000 have been sold in Australia, but there are relatively few 4K players that have launched inAustralia. This is partially being addressed by the latest wave of games consoles, especially the Xbox One S, which has
4K player functionality.
The highest growing area in physical discs for 2016 was New Release movies. A combination of lower priced physicaldiscs, higher shares of Blu-ray, and a growing box office have all contributed to this growth. The prices for New
Release movies have dropped at a fairly steady rate since 2012, with particularly heavy activity in the sub $15 priceband in 2015 creating an anomaly in the longer-term pricing trends. In 2016, 71% of New Release sales were for titles
priced at less than $20 (compared to 67% in 2015).

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201615

The strong growth in the
DigitalTransactional Video
Market was particularly
impressive

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201616

Australian Digital Video
Market in 2016
This chapter on the Australian digital video market was written for AHEDA by IHS by using AHEDA data and IHS’s own
research. Australian consumer spending on digital video, whether via Pay TV VoD, digital retail, digital rental or digital
subscription, experienced rapid growth in 2016 driven by expansion of international and local digital video services.
Australian consumer spending on digital video increased 69% to nearly A$755 million compared with the previous year.
IHS Markit expects the strong growth to continue over the forecast period with the value of the Australian digital video
market forecast to pass A$2.0 billion for the first time in 2020.
Digital subscription commonly referred to as Subscription Video-on-Demand (SVoD) saw the greatest expansion in
2016. IHS Markit research indicates, the SVoD market grew from A$149 million in 2015 to A$419 million in 2016 –up 180% after Netflix and the home grown Stan SVoD services gained traction over the period. Digital subscription
accounted for more than half of total online and TV-based VoD spending in Australia for the first time in 2016. SVoD
represented nearly 55% of total spending on digital video in 2016 followed by digital rental (19%), digital retail (16%),and Pay TV VoD (10%).
The Australian pay TV VoD services are proving resilient and showing little effect of cord cutting after consumer-level
spending experienced solid growth of 8.4% to A$72.4 million in 2016.
Meanwhile, digital retail and rental transactional consumer spending grew 8.8% and 18.7% respectively in 2016. The
combined digital transactional movie and TV market increased 14.1% to A$263 million - across the retail and rental
business models. This reflects IHS Markit analysis of AHEDA member data, including Goods and Services Tax (GST)
and grossed up to reflect the total market.
Australia: Digital Video Spending 2010-2020
Source IHS © 2017 IHS

2,500

AUD, Millions

2,000
Digital subscription
1,500

Digital rental
Digital retail

1,000

Pay TV VoD

500
0
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201617

Australian Digital Video
Market in 2016
Macroeconomic and Infrastructure Trends
Macroeconomic factors
The Australian economy grew in real terms by 2.4% to nearly US$1.3 trillion in 2016. Australia’s growth outlook isfavourable compared with other advanced economies such as Japan (1.0%), Italy (1.0%), France (1.1%), the US(1.6%), Germany (1.8%), and the UK (2.0%), owing to proximity and trade ties with emerging Asian economies.
Australia’s real GDP growth in 2016 trailed only Spain, which grew 3.2% after strong employment growth stoked up a
firmer recovery in household incomes.
Australia continues to encourage foreign investment, although foreign ownership of domestic assets was politicallysensitive in 2016. Unions and environmental groups staged occasional strikes and protests, affecting public services,mining, and construction but caused limited disruption to business districts because of effective policing. Annual
average retail sales grew 2.3% in 2016 with consumer demand supported by low oil prices, low inflation, low interest
rates, and an active housing market.
The Liberal-National coalition returned to government following the July 2016 election, but the government’s slim
majority raises policy instability risks over the next three years. Short-term growth remains constrained by weakbusiness investment, but real GDP growth of 2.5% is expected for Australia in 2017, with growth receiving support
from a levelling off of the slowdown in mining sector investment and improving non-mining business investment.
Household consumption will remain under pressure from weak employment and wage growth in 2016, driving
continued consumer frugality in 2017. Consumption spending will likely focus on interest rate–sensitive purchases,
especially as commercial lenders have been raising rates on fixed-rate products, and there will be some signalling by
the Reserve Bank of Australia (RBA) on monetary policy tightening from the third quarter of 2017 onward.
Real GDP growth across countries (%)

GDP growth %Source IHS © 2017 IHS

3.5

Australia

3.0

France2.5

Germany

2.0

Italy

1.5

Japan

1.0

Spain

0.5

United Kingdom

0.0
-0.5

2015

2016

United States

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201618

Australian Digital Video
Market in 2016
The government’s spending initiatives in the pre-election budget were mostly built upon previously outlined plans, withaims to reprioritise and rationalise spending to finance the modest planned increases in expenditures. The Government
threw its weight behind a 10-year enterprise tax plan, which promises progressive reductions in the corporate tax rateduring the next several years. IHS Markit expects the government to stay on a course of spending reprioritisation/
rationalisation to allow for much-desired corporate tax cuts. However, with the risks to growth from the global politicalenvironment, it may need to start contemplating more significant fiscal consolidation measures, and that is a downsiderisk to the growth outlook.
While exports account for only 20% of Australian GDP, they have been one of the more dynamic segments of theeconomy following the heavy mining investment of the past decade; therefore, risks to global trade and export demand
must be monitored closely. Household and business confidence and spending plans could similarly be underminedby global risks, with rising interest rates and inflation to make matters worse. Having said this, Australia’s trend growthis among the strongest in the Organisation for Economic Co-operation and Development (OECD). Supporting the
growth outlook are Australia’s active pursuit of bilateral trade agreements and involvement in global and regional trade
agreements, which will continue to serve to reduce tariff barriers and boost integration into global supply chains.
Australia is a dynamic, well-diversified, and open economy. Real GDP per capita is one of the highest in the world
at US$60,200 in 2016 and continues to be a healthy sign for take up of digital video services in the country. By
comparison, the average income per person and subsequent ability to spend on content reached US$52,000 in the
US, US$48,000 in Japan, US$41,500 in the UK and US$31,800 in Spain.
Australia’s population grew 1.4% to 24.3 million people in 2016, who live in just under 9.3 million households.
Real GDP per capita across countries USD

GDP Per Capita USD

Source IHS © 2017 IHS

70,000Australia

60,000France50,000Germany

40,000Italy

30,000Japan

20,000Spain

10,000

United Kingdom

0

2015

2016

United States

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201619

Australian Digital Video
Market in 2016
Broadband Infrastructure
Broadband household penetration continues to increase in Australia reaching 67% by the end of 2016, up from 65%
in 2015 according to IHS Markit. Improvements in infrastructure will facilitate further growth in broadband penetration,
particularly the ongoing rollout of the Australian Government-owned National Broadband Network (nbn). The AustralianGovernment took the plunge in November 2016 and pitched in to provide an A$19.5 billion loan that will allow the nbn
company to meet the projected peak final funding cost of A$49 billion. The final tranche of funding had been expected
to come from private sources but the Government quickly moved to quash speculation that this indicated reticencefrom private finance, but rather that the Government’s analysis based on rating agency appraisals, indicated this to be
the most cost effective approach.
The nbn will be the nation’s first national wholesale-only, open-access broadband network with a commitment todeliver access to at least 25 megabits per second (Mbps) downstream to all premises and at least 50 Mbps
downstream to 90% of fixed line premises. The nbn had passed 4.2 million premises and connected nearly 1.9 million
homes by the end of February 2017. nbn aims to connect eight million homes and businesses by 2020 via a mixtureof technologies: fibre-to-the-premises (FTTP), fibre-to-the-node (FTTN), fibre-to-the-distribution-point (FTTDP), fibre-tothe-building (FTTB), HFC (hybrid fibre coaxial), satellite and fixed wireless.
The dominant provider of fixed-line services in Australia is Telstra. Telstra also has the majority of mobile phone
subscribers, where it primarily faces competition from Optus Mobile (a subsidiary of SingTel) and Vodafone. Traditional
telecommunication services including land-based and mobile telephones are mature. Smartphone penetration inAustralia is high in the context of regional standards for the Asia Pacific, at 86% by the end of 2016, according to IHS
Markit.
The number of connected devices available in Australia continues to expand rapidly increasing from almost 58 million
in 2016 to just over 63 million in 2016 – up 9.4%. Personal computers (PCs) still comprise a large share of the device
landscape but now have less influence on the landscape’s growth and future composition. The number of connected
PCs in Australia declined by 1.6% in 2016 compared with the previous year. There is really only one device that bothcommands tremendous volume in the market and singlehandedly drives the device landscape’s yearly growth – theSmartphone. The Smartphone is the single-largest device type installed, accounting for 33% of total connected
devices in Australia by the end of 2016. By comparison, PCs accounted for a 31% share followed by Tablets (16%),
Smart TVs (6.7%) and Game Consoles (4.8%). Australia’s installed base of connected smartphones increased 13% tonearly 21 million in 2016 compared with just over 19 million connected PCs. The rapid rise of smartphone ownership is
forecast to continue rising to almost 28 million by the end of 2020.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201620

Australian Digital Video
Market in 2016
Although fixed devices have ceded considerable ground to portable hardware - in terms of raw market scale - it isshort sighted and erroneous to discount the continued relevance of fixed devices. In particular, be it a console, digital
media adapter (DMA), connected set-top box, or directly-connected Smart TV, fixed devices continue to serve as thegateway to the primary, high-value media consumption device in the home: the large TV screen. While the connectedconsole base has largely stabilised (+1.7% in 2016), growth among Smart TVs (+24%) and pay TV set-top boxes(+69%) is strong.
Australia : Connected Device Install Base

Units (Millions)

Source IHS © 2017 IHS

90

Smartphones

80

Tablets

70

Game consoles

60
50

PCs

40

Smart TVs

30

BD players

20

Pay-TV
set-top boxes

10
0
2013

2014

2015

2016

2017

2018

2019

2020

DMAs

Australian Digital Services
Digital Services: Transactional movies and TV		
BUSINESSRENTALRETAIL
COMPANYSERVICEMODEL
LAUNCHDATELAUNCH DATE_____________________________________________________________________________________________________
Telstra
BigPond Movies
Rental
Q1 06
Apple
iTunes Store (iTS)
Rental, retail
Q3 08
Q4 10
KanopyKanopyRentalQ4 08
FoxtelFoxtel Store (formerly Foxtel
Rental
Q4 09
Download)		
Microsoft

Microsoft Movies & TV
(formerly Xbox Video)

Rental, retail

Q4 09

Sony Interactive
Entertainment
FetchTV
iiNet
Beamafilm
Optus

PlayStation Store

Rental, retail

Q2 10

FetchTV
iiNet TV with Fetch
Beamafilm
Optus TV with Fetch

RentalRentalRentalRental

Q2 10
Q2 10
Q1 11
Q4 11

Q2 10

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201621

Australian Digital Video
Market in 2016
BUSINESSRENTALRETAIL
COMPANYSERVICEMODEL
LAUNCH DATE LAUNCH DATE_____________________________________________________________________________________________________
Quickflix

Quickflix

RentalQ1 12

GoogleVimeo

Google Play Movies
Vimeo On Demand

Rental, retail
Rental, retail

Q2 12
Q2 13

Q4 12
Q2 13

Dendy Cinemas

Dendy Direct

Rental, retail

Q3 14

Q3 14

_____________________________________________________________________________________________________
Digital Services: Subscription Video Services

COMPANYSERVICE
BUSINESSLAUNCH 		
		
MODEL
DATE
_____________________________________________________________________________________________________
TelstraMobile Foxtel
Bundled telco product
Q4 06
Vivendi, Orange
Dailymotion
Standalone
Q4 08
MUBI
MUBI
Standalone
Q1 09
Bigstar TV
Big Star Movies
Standalone
Q4 09
Indieflix
Indieflix
Standalone
Q4 09
FetchTV
FetchTV
Standalone/PayTV
Q2 10
iiNet
iiNet TV with Fetch
Bundled telco product
Q2 10
Beamafilm
Beamafilm
Standalone
Q1 11
Quickflix
Quickflix
Standalone/Bundled with
DVD rentals
Q4 11/Q2 13
Optus
Optus TV with Fetch
Bundled telco product
Q4 11
FoxtelFoxtel Go
Device based
Q4 12
FoxtelFoxtel Play
Standalone/PayTV
Q3 13
StreamCo (NineEntertainment andFairfax Media)
StanStandalone
Q1 15
Netflix
Netflix
Standalone
Q1 15_____________________________________________________________________________________________________
Pay TV Services: Transactional movies and TV

COMPANYPLATFORMTECHNOLOGY
BUSINESSLAUNCH			MODEL
DATES		_____________________________________________________________________________________________________
FoxtelCable
nVoD
Rental
1999
Optus TV
Cable
nVoD
Rental1999
FoxtelSatellite
nVoD
Rental
1999
Optus TV with Foxtel
Cable
nVoD
Rental2002
Foxtel On Demand
Satellite
Push-VoD
Rental2007
Foxtel Anytime
Satellite
IP-VoD
Rental2008
FetchTV
IPTV/OTT
IP-VoD/OTT
Rental2010_____________________________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201622

Australian Digital Video
Market in 2016
Definitions and examples_____________________________________________________________________________________________________
Digital Video
Refers to retail and rental transactional and subscription movies and TV content purchases
via both the open internet (online) and closed pay TV networks (Pay-TV on-demand).
_____________________________________________________________________________________________________
Digital Retail
A method of selling digital content that gives the customer ownership over the files they havedownloaded, allowing the customer to use the content as many times as they like - thedigitally distributed equivalent of conventional retail channels. Digital retail is also known as‘download-to-own’ (DTO), ‘electronic sell-thru’ (EST) and ‘digital sell through’. Excludes
free, subscription, and adult content.
_____________________________________________________________________________________________________
Digital Rental
A method of renting digital content whereby customers commonly choose content on an a lacarte basis and pay to watch it for a limited period. Digital rental is also known as Video-onDemand (VoD) and Pay Per View (PPV). PPV content can be downloaded or streamed.
Excludes free, subscription, events and adult content. For example, a movie rental through
iTunes.
_____________________________________________________________________________________________________
Pay TV On-Demand(Pay TV VoD)

The practice of paying for a rental on an a la carte basis over a closed pay TV network.
Formally speaking it applies to a temporary right of use that is purchased by a one off
payment. It can be either movies or TV shows. For example, a movie rental through Foxtel’ssatellite TV platform.

_____________________________________________________________________________________________________
Digital Subscription
Digital subscription commonly referred to as Subscription Video-on-Demand (SVoD). This
metric refers to standalone digital subscribers. For example, Netflix, Presto, Quickflix andStan. Does not include users of bundled packages (e.g. Foxtel Go access available
free to Foxtel pay TV subscribers in Australia).
_____________________________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201623

Australian Digital Video
Market in 2016
Methodology
Data•
The data is an aggregate of participating AHEDA members, and not a market total unless placed in aninternational context for comparative purposes.
•

The data reported to IHS is units and either consumer or trade (distributor) revenue. This data is analysed to
produce totals for both consumer and trade revenues; which is to say we do not simply sum the provided
consumer data to produce the consumer total and provided trade data to provide the trade total. Instead, wemark up and mark down the provided data as appropriate to provide a fuller assessment of the market.  Forexample, TV EST revenue provided by Studio A at a consumer level is marked down to estimate Studio A’s
trade revenue; while Studio B, providing trade revenue, is marked up to reach the consumer total.

•

To estimate these mark-up factors we use a mixture of i.) Participant feedback, ii.) Our knowledge ofinternational digital home entertainment practices, iii.) The data provided by the participants as a benchmark foraverage per-transaction price.

•

TV series sales are reported as one transaction and not by the volume of episodes sold; e.g., a purchase of
Season 1 of a TV series is reported as one transactions and not 22 episodes.

•

Zero price transactions are excluded from reporting. Only items where a standard wholesale price is paid to thestudio are included. Bundled promotions where there is a flat up-front fee paid to the studio are excluded.

Revenue & GST•
Revenue is reported at consumer level and is reported exclusive of Goods & Services Tax (GST).
Spending & GST•
Spending is reported inclusive of Goods & Services Tax (GST).
Average Selling Price (ASP)•
Consumer average selling price (ASP) is inclusive of GST as this allows participants to calculate the total 		consumer spend by multiplying the consumer ASP against the number of units.   

Exchange Rates: US Dollar
Australia
FranceGermany
Italy
Spain
UK
US

AUD
EUR
EUR
EUR
EUR
GBP
USD

2012
$1=
0.97
0.78
0.78
0.78
0.78
0.63
1.00

2013
$1=
1.04
0.75
0.75
0.75
0.75
0.64
1.00

2014
$1=
1.11
0.75
0.75
0.75
0.75
0.61
1.00

2015
$1=
1.33
0.90
0.90
0.90
0.90
0.65
1.00

2016
$1=
1.35
0.90
0.90
0.90
0.90
0.74
1.00

2017
$1=
1.35
0.90
0.90
0.90
0.90
0.74
1.00

2018
$1=
1.35
0.90
0.90
0.90
0.90
0.74
1.00

2019
$1=
1.35
0.90
0.90
0.90
0.90
0.74
1.00

2020
$1=
1.35
0.90
0.90
0.90
0.90
0.74
1.00

2021
$1=
1.35
0.90
0.90
0.90
0.90
0.74
1.00

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201624

Australian Digital Video
Market in 2016
Australian Digital Video Market
Australian Digital Transactional Video Market
Australia consumers spent a combined A$204 million (consumer spending minus Goods and Services Tax) on digitaltransactional video in 2016, up a healthy 11.2% compared with the previous year according to IHS Markit analysisof member data from the Australian Home Entertainment Distributors Association (AHEDA). IHS Markit defines digitaltransactional video as digital retail and digital rental movie and TV content that is delivered over-the-top (OTT) or via theopen internet and on a strictly transactional basis. Content is accessed on connected devices, such as PCs, tablets,
game consoles, and smart TVs. The data includes transactional OTT content accessed through apps on TV set-top
boxes, but completely excludes TV-based video-on-demand (VoD) offerings. Digital retail, also known as ‘electronic
sell-thru’ (EST), ‘download-to-own’ (DTO), and ‘digital sell through’, increased 10.6% to A$95.2 million in 2016
compared with the previous year. Digital rental, also known as ‘Video-on-Demand (VoD) and ‘Pay-Per-View (PPV)’,rose 11.6% to A$109 million over the same period.
The strong growth in the Digital Transactional Video Market was particularly impressive given an increase incompetition from SVoD services such as Netflix, Stan and Foxtel Play as well as multiple free-to-view TV catch-up andTV everywhere services offered by public and pay TV operators alike – both of which occupy consumer’s time witha range of fresh and varied content. Although transactional digital offerings generally feature more recently-released
content than online SVoD services, the latter have been especially adept at making their content easily accessible on a
range of devices—most importantly the TV set—and also have begun to finance original and often home-grown movie
and TV content.
Digital transactional video volume also recorded solid growth increasing 3.5% to 29.9 million in 2016 compared with ayear earlier. Digital video transactions are paid-for transactional non-physical retail and rental purchases of Movie andTV content.
Australia: Consumer Transactions 2011-2016
Source IHS © 2017 IHS

Transactions (Millions)

35
30
25

Movie EST20

Movie VoD

15TV EST

10

TV VoD

5
0

2011

2012

2013

2014

2015

2016

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201625

Australian Digital Video
Market in 2016
Australia: Consumer Revenue, 2011 - 2016
Source IHS © 2017 IHS

Consumer Revenue (Millions)

250
200
Movie EST150

Movie VoD
100

TV ESTTV VoD

50
0

2011

2012

2013

2014

2015

2016

Digital transactional spending is still very much focused on movies in Australia. The digital retail and rental of movies
generated A$155 million or 76% of total transactional online video spend in 2016. The majority of value is generated
by movie rentals: A$109 million in 2016. There is very little TV content consumed on a rental basis (TV VoD), which isprimarily a reflection of availability. TV consumed via digital retail (TV EST) generated A$48.6 million in 2016, up 2.9%
to reverse the decline experienced in 2015. The smaller amount of overall transactional consumption of TV content islargely due to consumers preferring to watch TV content in subscription environments. TV content in itself is designed
for subscription or free-to-view environments, which are fundamentally non-transactional. Consumption of content on
SVoD platforms, to a certain degree, can be characterised by the same casual (passive) and repetitive viewing habits,
which are often associated with traditional TV viewing.
In terms of volume, Movies also dominate Digital Transactions in Australia. In particular, Movie VoD transactions,which increased its share by one percentage point to account for 70% of digital transactions in 2016 compared withthe previous year. Movie EST saw its importance increase by the same, up to an 11% share. The increase in Movie
transactions came at the expense of the TV EST segment, which saw its importance decline two-percentage points to
18% over the same period.
Australia: Consumer Transactions by digital service 2015 + 2016
Source IHS © 2017 IHS

21%

0%

23%

TV VoD
24%

26%
2015

0%

2016
53%

53%

TV EST
Movie VoD
Movie EST

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201626

Australian Digital Video
Market in 2016
Australia: Consumer Revenue by digital service 2015 + 2016
Source IHS © 2017 IHS

10%

1%

11%

1%

TV VoD

18%

20%
2015

TV EST2016

Movie VoD

70%

69%

Movie EST

Australia continues to exhibit a seasonal trend in monthly digital sales. December and January have been peaktransactional periods of each year since 2012 accounting for just under 20% of annual revenue in 2016. Driving
these standout returns are consumers gifting hardware and vouchers for Christmas. Consumers receive their gift in
December and subsequently test out their new hardware by purchasing digital content shortly thereafter. This trend
continues in January when consumers also buy new hardware and titles with their gift vouchers. Despite this trend,
an individual month is highly susceptible to the movie and TV release slate for the period, which results in fluctuations
month-to-month.  

Australia: Monthly Consumer Transactions 2012-2016

3.5
3.0
2.5
2.0
1.5
1.0

TV VoDTV EST

Movie ESTDec 16

Oct 16

Aug 16

Jun 16

Apr 16

Feb 16

Dec 15

Oct 15

Aug 15

Jun 15

Apr 15

Feb 15

Dec 14

Oct 14

Aug 14

Jun 14

Apr 14

Feb 14

Dec 13

Oct 13

Aug 13

Jun 13

Apr 130.0

Feb 130.5
Dec 12

Transactions (Millions)

Source IHS © 2017 IHS

Movie VoDAUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201627

Australian Digital Video
Market in 2016
Australia: Monthly Consumer Revenue 2012-2016
25
20
15
10

TV VoDTV EST

Movie ESTDec 16

Oct 16

Aug 16

Jun 16

Apr 16

Feb 16

Dec 15

Oct 15

Aug 15

Jun 15

Apr 15

Feb 15

Dec 14

Oct 14

Aug 14

Jun 14

Apr 14

Feb 14

Dec 13

Oct 13

Aug 13

Jun 13

Apr 130

Feb 135
Dec 12

Consumer Revenue (Millions)

Source IHS © 2017 IHS

Movie VoD

Average monthly pricing for a digital title also fluctuates during the year due to price promotions. The average price inDecember tends to decline, largely due to seasonal promotional activity as well as from consumers trying out lower
priced catalogue titles after being gifted with new devices during the Holiday season.
Australian consumers paid an average of A$14.26 including a 10% Goods and Services Tax (GST) to buy a digitalmovie title in December 2016. This was a 13% discount to the A$16.39 paid by consumers one month earlier in
November 2016. The average opening price for a TV EST title in 2016 was A$9.36 which closed the year at a 20%
premium or A$11.68.
The average price to rent a digital movie title increased 4.7% over the course of 2016, when consumers paid an
opening price of A$5.49 in January 2016, compared with A$5.75 in December 2016. There was a spike in the
consumer price to rent out a TV title in December 2016 but it should be noted TV VoD prices are highly volatile due tothe small number of transactions which may fluctuate significantly each month.
A price check at the time of publication shows J.K. Rowling’s new release action and adventure title Fantastic Bests
and Where to Find Them, available on the Apple iTunes store to buy for A$24.99 in high-definition (HD) format
and A$19.99 in standard-definition (SD). The sequel Jack Reacher: Never Go Back retails for the same price but
consumers may also rent the title for A$6.99 in HD or A$5.99 in SD format. Meanwhile, the true story drama Queenof Katwe retails for a lower priced A$19.99 in HD and A$16.99 in SD but is equally priced to rent at A$6.99 in HD or
A$5.99 in SD format. The HD version of the catalogue movie Jack Reacher costs A$13.99 to buy and A$4.99 to rent
whilst the SD version to buy and rent is priced at A$10.99 and A$3.99 respectively. To own an Season 6 episode of
the TV hit show Homeland consumers will pay A$3.49 (HD) or A$2.99 (SD).

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201628

Australian Digital Video
Market in 2016
Australia: Monthly Consumer average selling price AUD

TV VoDTV EST

Movie VoD

Dec 16

Oct 16

Aug 16

Jun 16

Apr 16

Feb 16

Dec 15

Oct 15

Aug 15

Jun 15

Apr 15

Feb 15

Dec 14

Oct 14

Aug 14

Jun 14

Apr 14

Feb 14

Dec 13

Oct 13

Aug 13

Jun 13

Apr 13

Feb 13

18
16
14
12
10
8
6
4
2
0

Dec 12

Consumer Average Selling Price, AUD

Source IHS © 2017 IHS

Movie EST

Notes: Consumer average selling price includes 10% Goods and Services Tax (GST).

Australian Digital Subscription Market
Digital subscription commonly referred to as Subscription Video-on-Demand (SVoD), subscribers outnumbered pay
TV subscriptions in Australia by the end of 2016. The Australian SVoD subscriber base grew 60 percent to just under
4.0 million in 2016 compared with the previous year according to IHS Markit. By comparison, pay TV subscriptions
increased 13 per cent to nearly 3.7 million over the same period.
The first company to offer subscription-based streaming in Australia was local rent-by-mail operator Quickflix thatlaunched its service in 2011 followed by EzyFlix in August 2013 and Presto, a Foxtel-Seven West Media joint venture in
March 2014. By end 2014, SVoD services had signed up just 100,000 of Australia’s 5.8 million broadband households.
Within three months, however, two more services had launched (Netflix and Stan) while Presto TV had relaunched at amuch lower price.
Increased mainstream advertising, promotional free subscription trials, and heightened media interest around the newservices helped boost consumer awareness and demand for SVoD services in Australia in 2015.
A key driver in SVoD gaining traction across the country is the Netflix service. Netflix grew its Australian subscriber base86 percent in 2016 to 1.86 million. By 2020, Netflix will edge the 5.0 million-subscriber mark or just over half of thecountry’s SVoD subscribers. The online video giant’s strong financial position and high-quality original foreign content
ensures Netflix will remain a major player in the Australian SVoD market. Australian consumer spending on digital
subscription services soared up from A$149 million in 2015 to A$419 million in 2016. IHS Markit forecast Australianconsumer spending on digital subscription to reach A$1.5 billion in 2020.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201629

Australian Digital Video
Market in 2016
Australia: Digital Subscription Consumer spending, AUD Millions
Source IHS © 2017 IHS

1,800
1,600

AUD, Millions

1,400
1,200
1,000
800
600
400
200
0

2014

2015

2016

2017

2018

2019

2020

The Australian Digital subscription market has already seen some local players fall prey to Netflix. EzyFlix closed its
business in August 2015 and the publicly listed Quickflix went into voluntary administration in April 2016. US-based
Karma Media Holdings announced in October 2016 that it would pay A$1.3 million to take over Quickflix. Quickflix
emerged from administration in November 2016 and the company will now focus on delivering Hollywood blockbuster
movies to consumers rather than television series. Quickflix Access is a pay-as-you-go service while Quickflix Red
Carpet gives users four movies in a month plus bonus content.
Whatever form the inevitable market consolidation takes, Netflix will continue to face formidable competition from
homegrown OTT players in Australia, including Stan and a new look Foxtel Play service. Players in the traditional TV
space back both VoD services. Stan by Nine Entertainment/Fairfax Media and Foxtel Play by Foxtel, Australia’s pay TV
leader.
Stan, despite strong competition from Netflix, grew its subscriber base 66 percent to 620,000 paying subscribers by
the end of 2016, increasing to just over 1.5 million by 2020. Stan has launched a platform upon which it can build anddifferentiate the service to fit the specifics of the Australian market.
Despite its smaller budget, Stan is already investing in exclusive, original local content including comedy televisionseries No Activity and the TV adaptation of Australian film production Wolf Creek. In addition, Stan is signing up
content to effectively block Netflix from showing several movies and TV series that it shows in the US. For example,
Stan signed a long-term, exclusive licensing agreement with Showtime in January 2016 for Australian rights to Billions,
Californication, Dexter, House of Lies, Penny Dreadful, Ray Donovan, The Affair, and Weeds.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201630

Australian Digital Video
Market in 2016
Stan also gains access to content from Showtime’s parent company CBS as part of the deal, including Madam
Secretary, Scorpion, Beauty and the Beast and every episode of the Star Trek TV series. This will drive new
subscriber numbers.
The rapid rise of SVoD has prompted pay TV leader Foxtel to flex its offering. Foxtel revealed in September 2016, a
new pay TV lite OTT offering for its Foxtel Play service. Lower prices and more flexible packages provide consumers
greater choice and ease of access to Foxtel’s content in a similar offering to that of HBO Now in the US and Now TV
by Sky in the UK. Foxtel Play combined with the company’s value-add bundled proposition Foxtel Go served just under
1.1 million subscribers by the end of 2016.
Foxtel confirmed in October 2016 that the new look Foxtel Play service would roll out from December 2016. Thisannouncement came the same day as Foxtel revealed it would acquire Seven West Media’s shares in their Presto TV
joint venture. Presto had struggled for subscribers against Netflix and Stan. Foxtel invited Presto’s 290,000 customers
to transfer to the new Foxtel Play product from 1 December 2016 prior to the closure of Presto on 31 January 2017.
SVoD is fast becoming a popular way for Australians to watch video content. However, the scale of its success will
hinge on how providers promote and program their service locally. It will also be important for SVoD providers to
beef-up their local content library, to create original programming for its Australian audience and find the right content
proposition and competitive pricing to stand out in Australia’s crowded SVoD landscape.
Australia: SVod Landscape 2016 + 2020
Source IHS © 2017 IHS

Share of Subscribers

100%
90%

Amazon80%

Others70%

Quickflix

60%

Foxtel Play50%

Presto

40%

Stan

30%

Foxtel Go

20%

Netflix

10%
0%
2016

2020

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201631

Australian Digital Video
Market in 2016
Australian Pay TV VoD Market
Pay TV landscapeConsumers have embraced the availability of internet-connected devices to consume more programming online andon demand. Nevertheless, linear TV companies are also ramping up their investments in content to stand out in a
multi-platform world. Australia’s leading pay TV operator Foxtel and commercial free-to-air broadcaster Network Tenannounced in November 2016 to jointly commission a new Australian production for 2017. The topical news show
Common Sense will air first on Foxtel’s Lifestyle channel and then broadcast free-to-air on Network Ten. Common
Sense has also been commissioned by BBC Two in the UK and by NBC in the US.
Foxtel, available via cable and satellite, grew its subscriber base by 2.5% to nearly 2.9 million in 2016 compared with ayear earlier. A focus on promoting extensive sports content and an expanded local production slate throughout 2016
drove take-up over the period. Sport is Foxtel’s key differentiator in the market offering exclusive, live, and ad-freehigh-definition content to attract Australian viewers across major sports including basketball, cricket, cycling, football,
netball, racing, surfing, and tennis. In 2016, Foxtel added six new sports channels. Foxtel and beIN Media Groupannounced a new partnership in March 2016 to launch three beIN sports channels on the Foxtel platform. Foxtel also
added three dedicated 24/7 English Football Club channels from Chelsea FC (Chelsea TV), Liverpool FC (LFCTV) andManchester United (MUTV).
In 2017, Foxtel will continue to add a new selection of programming for residential customers as well as its pay TV lite
OTT offering Foxtel Play. In addition, Foxtel residential and Foxtel Play customers will continue to have access to Foxtel
Go, Foxtel’s mobile streaming application, at no extra charge. Foxtel Go enables subscribers to stream TV, live and On
Demand, to selected smartphones and tablets.
Australia’s incumbent telco Telstra and News Corporation jointly own Foxtel, and will need to finance new investmentin programming and subscriber retention in 2017 in response to an increase in competition from free-to-air (FTA) digitalterrestrial television (DTT) broadcasters, OTT TV providers, and rival pay TV operators. Pay IPTV provider Fetch TV,
backed by Malaysian operator Astro All Asia Networks, offers linear IPTV channels, and rental movies on demand.
Fetch continues to record strong subscriber growth. In 2016, IHS research estimates subscribers to the Fetch TV
service grew 46% to 553,000 compared with the previous year. Driving growth was an improvement in its hardware
offering, the Fetch Mighty, and a new lite-version of its Mighty set-top box called the Fetch Mini. Furthermore, Fetch
provides immediate access to free-to-air TV catch up applications and local streaming services Netflix and Stan. Fetch
will also continue to improve its content offering in 2017 including a complete revamp of its content packages into newand more affordable ‘skinny’ packs, which cost A$6 a month.  

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201632

Australian Digital Video
Market in 2016
The majority of pay TV homes in Australia use a satellite connection to receive their signal. Satellite homes represent
56% of total pay TV homes in the country. The platform remains dominant but in recent years has lost share to IPTV.
IPTV’s share of total Australian Pay TV homes increased from 11% in 2015 to 17% in 2016. IPTV take up is also having
an impact on cable’s share of the market, which fell from 29% to 27% over the same period.  
Australia: Pay-TV subscibers by operator 2012-2016
Source IHS © 2017 IHS

Subscribers (Millions)

4.0
3.5

Foxtel (Cable)

3.0

Foxtel (Satellite)

2.5

Optus TV (Cable)

2.0

TransACT TV (IPTV)

1.5

Fetch TV (IPTV)

1.0
0.5
0.0

YE 2012 H1 2013 YE 2013 H1 2014 YE 2014 H1 2015 YE 2015 H1 2016 YE 2016

Australian Pay TV VoD Market
Australian pay TV leader Foxtel continues to dominate the Pay TV VoD market in Australia. Foxtel accounted for 89%
of Movie and TV transactions by Pay TV operators in 2016; slightly less than a year earlier after rival IPTV operator
Fetch TV improved its share of total transactions from 7% to 9% over the period. Optus TV also saw a decline in its
share of total movie and TV transactions by pay TV operators from 3% to 2% over the same period.
Australia: Movie and TV transactions by Pay TV operator 2015 + 2016
Source IHS © 2017 IHS

3%

7%

2%

9%
26%

26%
2015

Foxtel Cable

2016
64%

63%

Foxtel Satellite
Optus TV
Fetch TV

Australian pay TV subscribers spent an average of A$3.80 each to stream a movie in December 2016, up from
A$3.70 a year earlier. The average spend has increased slightly each of the past five consecutive years from A$3.35 in
December 2012.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201633

Australian Digital Video
Market in 2016
Australia: New release movie VOD spending per Pay-TV subscriber
Source IHS © 2017 IHS

Pay TV subscriber (AUD)

Average VoD spending per

4.0

3.0

2.0

1.0

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Q1 20120.0

New Release Movies continue to drive the Pay TV VoD business in Australia accounting for 90% and 93% of consumertransactions and revenue in 2015 respectively. Catalogue Movies saw its importance increase slightly after its share oftransactions rose from 6.1% in 2014 to 7.1% in 2015 whilst revenues climbed from 4.6% to 5.3%. TV shows remain asmall part of the total Pay TV VoD business accounting for just 1.4% of revenue and 3.3% of transactions in 2015.   
Australia: Pay-TV VOD consumer transactions and revenue by genre
Source IHS © 2017 IHS

100%

Percentage (%)

80%
New Release Movies

60%

Catalogue Movies

40%

TV

20%
0%

2015

2016
Transactions

2015

Revenues

2016

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201634

Australian Digital Video
Market in 2016
The Australian Digital Market in context
The Australian digital video market grew 12.3% to 45.5 million in combined digital retail, digital rental, and Pay TV
VoD transactions in 2016 compared with the previous year. On the world stage, this was a strong result among othermajor territories. Germany recorded the highest rate of growth in combined EST and VoD transactions over the same
period, up 15.1% to 74.1 million followed by France (13.8%) and Italy (9.0%). The overall result in the US was flat after
a 6% rise in VoD transactions offset a 7.2% in EST transactions. The number of EST and VoD transactions in the US is
almost equal, unlike Australia and the Big 5 European territories where VoD takes a more dominant position. Just overthree-quarters of Australian digital video transactions in 2016 were VoD transactions. This proportion is similar to thesplit in the UK but below the 85-90% splits recorded in France, Germany, Italy and Spain.
US digital transactions dwarf those recorded in the rest of the world. US consumers made just over 384 million digitaltransactions in 2016, more than three-times the number made in the UK and over eight-times the number in Australia
over the same period. The UK witnessed nearly three times as many EST/VoD transactions in 2016 than Australia,
driven by the UK’s larger population, and higher broadband penetration. The number of transactions by Australianconsumers in 2016 (45.5 million) ranks the country between Italy (20.0 million) and France (65.6 million). Piracy
continues to affect the size of the Italian and Spanish digital markets.   
VoD and EST Transactions (Millions)
Source IHS © 2017 IHS

450
Transactions (Millions)

400
350

VoD

300
250

EST

200
150
100
50
0

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
France Germany
Italy
Spain
UK
Australia
US

In per capita terms, Australian digital transactions are on par with the UK and above those in the US and other major
European territories. Australians each made an average of 1.9 digital transactions in 2016, up from 1.7 a year earlier.
US digital transactions average nearly 1.2 transactions per person in 2016, which was slightly down on the average
recorded in 2015.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201635

Australian Digital Video
Market in 2016
Australia: VoD and EST Transactions per capita
Source IHS © 2017 IHS

2.0

Transactions per capita

1.8
1.6
VoD

1.4
1.2

EST

1.0
0.8
0.6
0.4
0.2
0.0

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
FranceGermany
Italy
Spain
UK
Australia
US

Australian consumer spending on the combined digital and rental transactional sectors increased 4.3% in local
currency terms to A$263 million in 2016. By comparison, the increase in US dollar terms was 3.1% to US$196 million.
Similar declines or reduced rates of growth also occurred in all other non-US markets in 2016 due to fluctuations inlocal to US dollar exchange rates. Therefore, while this analysis remains an accurate picture of the actual value ofthe markets in USD within the wider economic environment, it is less indicative of the trend experienced in the nonUS markets. Notably, combined VoD and EST consumer revenue in the UK grew 8.5% in local currency terms but
recorded a 4.2% decline in US dollar terms due to the significant weakening of the British Pound against the US dollar
following the Brexit vote in 2016.
Australia: VoD and EST Consumer Revenue (USD, Millions)

Consumer Revenue (USD, Millions)

Source IHS © 2017 IHS

3,500
3,000
2,500

VoD

2,000

EST

1,500
1,000
500
0

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
FranceGermany
Italy
Spain
UK
Australia
US

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201636

Australian Digital Video
Market in 2016
VoD and EST Consumer Revenue per capita, USD
Source IHS © 2017 IHS

Consumer Revenue per capita, USD

12
10
8
VoD

6

EST

4
2
0

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
FranceGermany
Italy
Spain
UK
Australia
US

Australian digital video service pricing remained on par with average prices in the big five European markets in 2016.
Digital movies cost an average of US$11.37 to purchase in Australia compared to a US$10.60 average across the big
five in Europe. US digital pricing to buy or rent a movie is more expensive than in Australia. US Pay TV VoD services
were charging an average of US$5.36 to rent a movie in 2016. By comparison, digital movies cost an average of
US$14.58 to buy and US$4.62 to rent over the same period.
2016: Average Transactional Movie Price, USD
Source IHS © 2017 IHS

16
14

Pay TV Rental (Movies)

USD

12

Digital Retail (Movies)

10

Digital Rental (Movies)

8
6
4
2
0

FranceGermany

Italy

Spain

UK

Australia

US

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201637

Australian Digital Video
Market in 2016
Digital in the wider video sector
Physical video spend (Blu-ray Discs, DVD, retail and rental) continues to contract in Australia but still accounted for thelion’s share of total consumer spending on video in 2016, accounting for 52% of total consumer spend on packaged
and digital video. Consumer spending on physical video declined 17% to A$820 million as alternate video platforms
increasingly offer consumers the ability to watch what they want, when they want for a lower cost per view for content.
Spending on DVD purchasing fell by 15% to A$657 million, while BD purchases declined to A$118 million, down
11%. Spending on BD now accounts for 15% of combined DVD and BD purchases in Australia. IHS forecast physicaldisc purchases will continue to decline to A$480 million in 2020. Disc rental slumped 49% to A$40.4 million in 2016
compared with a year earlier and is forecast to total just A$1.2 million in 2020.
However, the rapid rise of digital video in the Australian market grew enough to offset the decline in physical video in
2016. IHS Markit indicates total video market (digital and physical) consumer spending in Australia increased 9.9%
to A$1.6 billion in 2016 compared with a year earlier. Digital video (retail and rental) accounted for 48% of Australianspending on video in 2016, up from a 31% share in 2015.
Australia: Total Video Spending, AUD Billion (Fixed exchange rate)
Source IHS © 2017 IHS

AUD billion (Fixed exchange rate)

3.0
2.5

Digital subscription

2.0

Digital rental
Digital retail

1.5

Pay TV VoD

1.0

Physical rental

0.5
0.0
2015

Physical retail
2016

2017

2018

2019

2020

Digital video (whether via pay TV VoD services or delivery over the open internet) grew as a whole by 69% to total
nearly A$756 million in 2016. The largest generator of digital video spending is SVoD, worth A$419 million, up 180%
compared to the previous year). In 2016, SVoD accounted for 56% of total consumer spending on digital video inAustralia. The main component of growth for SVoD has been Netflix, which launched in Australia on 24 March 2015.
Digital rental is the second largest generator at A$146 million, up 19% in 2016, followed by digital retail, up 8.8% to
A$117 million and pay TV VoD, which increased 8.4% to A$72.4 million over the same period.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201638

Australian Digital Video
Market in 2016
The USA continues to be the world’s largest digital video market. US consumer spending on digital video grew 21%
to US$14.7 billion in 2016; driven by a 34% rise in spending on SVoD services. Digital video again improved its
importance in the US total video market, generating a significantly greater proportion of total video spending in 2016(63% share) than in 2015 (56%).
As in Australia, consumers in the US spent less money buying and renting physical video discs in 2016 than in theprevious year. Streaming video services have undeniably hurt the physical video business in the US over the last 7
years with a large volume of web literate homes transitioning to these services. US domestic DVD and BD combined
spending fell 10.4% to US$8.7 billion in 2016. This reflects declines in both retail (down 7.1% to US$5.8 billion) andrental (down 16.4% to US$2.9 billion). Driving declines in the US physical video market are two key factors: the slow
but inevitable change in US consumer video consumption habits and in terms of rental, the removal of video rental
kiosks. However, the market niche for physical video rental is still active in the US, and will continue to be over theforecast period as streaming content is not yet a viable option for many in rural zones where internet provision isfrequently lacklustre.
Altogether, growth in digital video and Pay TV VoD spending compensates for the decline in physical video
consumption. Total video spending in the US grew 7.0% to US$23.4 billion in 2016.
USA: Total Video Spending, AUD Billion (Fixed exchange rate)
Source IHS © 2017 IHS

USD billion (Fixed exchange rate)

30.0

Digital subscription

25.0

Digital rental

20.0

Digital retail

15.0

Pay TV VoD
Pay TV TVoD

10.0

Physical rental

5.0
0.0
2015

Physical retail
2016

2017

2018

2019

2020

Australian Filmed Entertainment Industry Trends
Consumer spending on filmed entertainment in Australia - physical, digital, Pay TV and theatrical – grew 2.9% to
A$5.5 billion in 2016 compared with a year earlier. Nearly half of total consumer spending on filmed entertainment orA$2.7 billion was accounted for by Cable and Satellite subscriptions. IHS Markit forecast the proportion of total filmed
entertainment accounted for by Cable and Satellite subscriptions to remain stable over the forecast period.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201639

Australian Digital Video
Market in 2016
Nearly A$3.7 billion will be spent on Cable and Satellite subscriptions in Australia in 2020 as consumers appetite
for predominantly sports content continues. Cinema visits in Australia alone accounted for a 22% share of the total
consumer spending on filmed entertainment in 2016. Growth in box office or consumer spending on theatrical isdriven by the consistent increase in the average price of a cinema ticket. In addition, the development of new digitised
modern cinema screens is also driving the availability of more content and an enhanced cinema experience—as is
the case with 3D. Both then affect positively on average price, which lifts box office while simultaneously driving new
consumption. IHS Markit forecast box office spend to increase from A$1.2 billion in 2016 to A$1.4 billion in 2020. As
a result, theatrical’s share of total spend on filmed entertainment will decline slightly to 19% over the forecast period
largely due to the rise in importance of digital subscription services.
The combined spending on Pay TV VoD (delivered via ‘walled garden’ services) and digital video (retail, rental andsubscription) represented nearly 14% of total spending on filmed entertainment in 2016. IHS Markit forecast this sharewill double to just under 27% by 2020. Driving this increase will be digital subscription or SVoD services, which will see
its importance increase from an 8% share to 20% in 2020 as Australian consumers continue to adopt these ‘pay TV
lite’ services from the likes of Netflix, Stan and Foxtel Play. The shares of digital retail, digital rental, and Pay TV VoD willremain broadly level over the forecast period.  
Meanwhile, Physical video will see its importance decrease from a 15% share in 2016 to 6% in 2020. The downturnin physical is a result of the combined declines in spending on disc rentals (-49%) to A$40 million and disc purchases(-14.2%) to A$776 million.
Despite the overall growth in consumer spending on filmed entertainment in Australia, the industry is not without its
challenges. Piracy continues to present problems for Australia’s content creating industries. Illegal streaming and filesharing impacts the viability of the entire content industry as the undermining of revenue opportunities threatens theaffordability of content production. However, an effort to reduce online piracy in the form of site blocking is happening
in Australia. The country’s Federal Court ruled to block five of the largest online piracy sites in December 2016 using
legislation passed by the Government in 2015.
The country’s Copyright Act now gives copyright owners and exclusive licensees the ability to seek injunctions
against ISPs ordering them to block access to overseas-based sites that infringe or facilitate copyright infringement.
In addition, an industry shift to make content available in a timely manner, at different price points and on multiple
devices, now provides Australian consumers with an easier and more cost-effective means to access content in alegitimate manner. Nevertheless, the battle to curb piracy is far from won.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201640

Australian Digital Video
Market in 2016
Major US TV series are often freely available online within one hour of premiere broadcast whilst an illegal Facebook
stream of a highly anticipated boxing match via Foxtel’s Main Event channel occurred at the time of publication.
Australia: Total filmed entertainment industry consumer spending split by segments, 2016 + 2020 (Fixed exchange rate)
Source IHS © 2017 IHS

Physical retail
3%
2%
1%

Physical retail
8%

14%
22%

49%

2016

1%

6%
3%

20%

0%
19%

2%

Theatrical
Cable and sat subs
Pay TV TVoD

1%
49%

2020

Digital retail
Digital rental
Digital subscription

Australian pay TV penetration increased from 35% to 38% in the year to end December 2016, according to IHS
Markit. Despite the growth, Australia’s pay TV penetration remains well below the global average of 58% in 2016. As
such, there is a high prospect for growth if Australian pay TV operators can entice new subscribers with the right mixof price, programming and promotion. The Netherlands Primary Pay TV penetration rate of 98.5% topped the worldby the end of 2016, closely followed by South Korea (98.4%) and Belgium (96.8%). IHS Markit measure Primary
Pay TV penetration rates to remove the double counting of homes with more than one service or platform so that
relevant totals never exceed 100% of TV households. Where Primary homes are equal to Total homes, it indicates anassumption of 100 per cent primary set usage for that platform.
Australia: Total filmed entertainment industry consumer spending split by segments, 2015 + 2019 (Fixed exchange rate)
100
90
80
70
60
50
40
30
20
10
0

Netherlands
South Korea
Belgium
Romania
India
Portugal
Denmark
Switzerland
LatviaFinland
Estonia
NorwayBelarus
PolandHungary
USA
Hong Kong
CanadaSlovakia
SwedenArgentina
Malta
Venezuela
Japan
China
UAE
FranceArmenia
Lithuania
RussiaSerbiaMexicoSlovenia
Ireland
Bulgaria
IsraelMacedonia
CyprusTaiwanUK
Luxembourg
Malaysia
Singapore
Germany
Chile
GeorgiaSouth Africa
New Zealand
Croatia
Austria
Peru
Colombia
Australia
Czech Republic
Italy
Saudi Arabia
Spain
BrazilTurkeyGreeceUkraineThailand
Moldova
Lebanon
Libya
Indonesia
Syria

Primary Pay TV Penetration (%)

Source IHS © 2017 IHS

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201641

Australian Digital Video
Market in 2016
Conclusion
Australians appetite for digital video, whether via Pay TV VoD, digital retail, digital rental or digital subscription, wasstrong in 2016, up 69% to nearly A$755 million compared with a year earlier. Driving growth was the expansion ofinternational and local digital video services offering increased availability of affordable services with adequately sizedcontent libraries and regular exclusive and new release content. IHS Markit expects this strong growth to continue
over the forecast period with the value of the Australian digital video market forecast to reach A$2.0 billion in 2020.
Australian’s high disposable income, favourable economic growth outlook, strong consumer willingness to pay
for video content, an increasing number of different connected devices as well as an improvement in broadband
infrastructure will stimulate the market to further growth.
Digital subscription has been the main growth driver of the Australian digital video market in 2016, accounting for
more than half of total consumer spending on digital video. The importance of this segment is expected to grow evengreater reaching a 75% share of total digital video spend in 2020. IHS Markit anticipate leading SVoD service providers
Netflix, Foxtel Play and Stan will increase local production and deals with local suppliers to better localise their services.
Amazon Prime Video’s entry into the Australian digital video market is also likely to adopt such a strategy to drive
uptake, whereby their service proposition includes a significant number of local and localised titles.  
The outlook for the digital video segment in Australia is positive and IHS Markit expect this growth to offset theinevitable decline in buying and renting DVDs and Blu-ray Discs over the forecast period. Physical video spend (Blu-ray
Discs, DVD, retail and rental) continues to contract in Australia. IHS forecast physical disc purchases will decline from
A$776 million in 2016 to A$480 million in 2020. Disc rental slumped 49% to A$40.4 million in 2016 compared with ayear earlier and is forecast to total just A$1.2 million in 2020.
IHS Markit forecast total video market (digital and physical) consumer spending in Australia will increase almost 60%
from nearly A$1.6 billion in 2016 to A$2.5 billion in 2020. Digital video (retail, rental and subscription) will drive growthand in doing so increase its share of total consumer spending on video from nearly 46% in 2016 to 80% in 2020.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201642

Consumer spending on video inAustralia will increase almost
60% from A$1.6 billion in 2016
to A$2.5 billion in 2020

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201643

Video Entertainment Australia:
Physical Retail Market
Physical vs. Digital
Data and analysis in this chapter comes from GfK retail tracking and ConsumerScope research provided by GfK to
AHEDA. The video entertainment market remained as popular as ever, with rising value at the box office, expanding
digital services and a bullish physical market.
In 2016, 83 million units were rented or purchased either physically or digitally, for a total value of $1.1 billion. This
excludes the extra value added into the market from streaming services such as Stan and Netflix. The digital channel
now accounts for 36% of all volume (excluding piracy), though physical purchases still generated ¾ of the value in2016.
GfK Retail Tracking: Video Entertainment Market by Type
Units Share %

100%
90%
80%
70%
60%

27%

31%

16%

13%

50%

Value Share %
15%

17%

6%

20%

5%

5%

36%
11%

Digital (EST+VOD)

40%
30%

Rental (physical)
53%

79%

2014
2015
2016
Note: Data factored to 100%, Digital sales MAT Oct-16

2014

20%

57%

56%

78%

75%

Retail (physical)

10%
0%

2015

2016

For more information on piracy and the growth of the digital streaming services please read the GfK chapter on
consumer digital trends.

Historical Trends
The physical disc retail market remains the largest sector within home video entertainment, generating $806 million in
2016. The market has declined since its peak in 2009 as consumers have diversified the way they watch their video
entertainment content.

$1.50
$1.00
$0.50
$0.00

Total Value
Total Units$0.22 $0.27

$0.50

$0.71

$0.94 $0.95

$1.06

$1.26

$1.35 $1.39$1.24 $1.29$1.15 $1.09

100
$0.98

$0.90

80
$0.81 60

Millions

Billions

GfK Retail Tracking: Physical Retail Market size

40
20
0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201644

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Physical Retail Market Value by Format

Billions$1.5

Blue Ray$1.0$0.1 $0.2

VHS$0.2 $0.2

$0.1

$0.1
$0.1
$1.3 $1.3 $1.3 $1.1
$1.1
$0.9 $0.9 $1.1
$1.0 $0.9$0.9 $0.8 $0.8
$0.6
$0.4

$0.5

$0.0

$0.1

DVD

$0.1
$0.2 $0.2 $0.2 $0.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Current Trends
The physical DVD and Blu-ray retail channel sold 44 million discs in 2016, for a total value of $806 million. Though theoverall physical disc market was in decline, it is still one of the largest individual categories in Australia, generating morevalue than categories such as tablets or wearables.
2016 marked the release of Star Wars Episode VII: The Force Awakens, the first Star Wars movie released in 11 years.
Other big movie releases in 2016 included the box office hit Deadpool and local Australian drama, The Dressmaker.
GfK Retail Tracking: Top selling titles, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1

Star Wars Episode VII Force Awakens

Walt Disney Studios

Sci-Fi2

Deadpool20th Century Fox

Action3

The Dressmaker

Universal

Drama

4

Game of Thrones Season 5

Roadshow

TV Drama

5

Zootopia

Walt Disney Studios

Animated

6

James Bond Spectre

20th Century Fox

Action7

Batman V Superman Dawn of JusticeRoadshow

Action8

The Martian

20th Century Fox

Sci-Fi

9

Hunger Games Mockingjay Part 2

Roadshow

A ction10
The Secret Life of Pets
Universal
Animated____________________________________________________________________________________		
It wasn’t just big movies that sold. 2016 was the first time 2 new Game of Thrones series were released in the same
year. Both Game of Thrones Seasons 5 and 6 were among the top 10 selling titles in the market when ranked byvalue.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201645

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Top selling titles, Full Year 2016, ranked by value

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1

Star Wars Episode VII Force Awakens

Walt Disney Studios

Sci-Fi2

Game of Thrones Season 5

Roadshow

TV Drama

3

Deadpool20th Century Fox

Action4Game Of Thrones Season 6

Roadshow

TV Drama

5

Captain America Civil War

Walt Disney Studios

Adventure

6

Zootopia

Walt Disney Studios

Animated

7

The Dressmaker

Universal

Drama

8

Batman V Superman Dawn of JusticeRoadshow

Action9James Bond Spectre

20th Century Fox

Action10
The Martian
20th Century Fox
Sci-Fi____________________________________________________________________________________

Seasonality
There was a year-on-year decline of 13% in volume in 2016, with quarter 3, 2016 registering the largest rate of decline
at 23%. The equivalent quarter in 2015 had two of the biggest releases of the year in Avengers: Age of Ultron and Fast
& Furious 7.
Quarter 4 saw the rate of decline slow to just 7% compared to 2015, and accounted for nearly a third of the market
volume and value for the year.

Millions

GfK Retail Tracking: Market Volume by Quarter

20
15
2014
10

2015

5

2016

0
Q1 (-13%)

Q2 (-10%)

Q3 (-23%)

Q4 (-7%)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201646

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Market Seasonality by Quarter - Volume Shares

2015

24%

22%

24%

32%

2014

22%

24%

22%

32%

2013

22%

23%

24%

30%

2012

23%

22%

25%

29%

2011

23%

23%

23%

31%

0%

10%

20%

30%

Quarter 1

40%

50%

Quarter 2

60%

70%

Quarter 3

80%

90%

100%

90%

100%

Quarter 4

GfK Retail Tracking: Market Seasonality by Quarter - Value Shares

2015

23%

21%

22%

34%

2014

23%

23%

23%

34%

2013

25%

22%

22%

31%

2012

23%

22%

24%

31%

2011

23%

23%

22%

32%

0%

10%

20%

30%

Quarter 1

40%

50%

Quarter 2

60%

70%

Quarter 3

80%

Quarter 4

Looking at monthly trends, November and December continued to dominate share of sales in 2016, fuelled by thelaunch of Game of Thrones Season 6. In combination, the final two months of the year accounted for 25% of total
market volume.The aforementioned decline in quarter 3 was particularly marked in July and September. Those 2months declined by 28% and 23% respectively.
GfK Retail Tracking: Market Seasonality by Month - Volume Shares
2012

8%

6%

9%

6%

7%

9%

8%

7%

9%

7%

7%

17%

2013

7%

5%

8%

8%

7%

9%

8%

6%

8%

7%

9%

16%

2014

8%

6%

9%

7%

8%

2015

8%

6%

8%

7%

7%

9%

9%

2016

7%

6%

9%

8%

7%

8%

7%

Jan

Feb

Mar

Apr

8%

May

9%

Jun

8%

6%

7%

16%

7%

10%

7%

7%

15%

7%

9%

7%

8%

17%

Aug

Sep

Oct

7%

Jul

Nov

Dec

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201647

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Market Seasonality by Month - Value Shares
2012

8%

6%

8%

6%

7%

8%

7%

7%

9%

7%

8%

19%

2013

8%

5%

9%

7%

7%

8%

7%

6%

9%

7%

9%

18%

2014

9%

6%

9%

7%

8%

8%

8%

7%

9%

7%

7%

17%

2015

9%

6%

8%

7%

7%

8%

8%

7%

10%

7%

8%

17%

2016

8%

6%

9%

8%

7%

8%

7%

6%

9%

7%

8%

17%

Aug

Sep

Oct

Jan

Feb

Mar

Apr

May

Jun

Jul

Nov

Dec

Format Trends
The Blu-ray market was a comparative bright spot in 2016, taking its largest ever share of the market, and dropping by
just 4% in value on the prior year.
In 2016, Blu-ray generated $128M in value, with just under 6 million discs sold, accounting for 16% of the total market
value and 13% of market volume.
GfK Retail Tracking: Blu-ray Volume Sales (Millions)

6.82

7.82

7.85

6.98

6.17

5.71

3.74
0.16
2007

0.71
2008

1.79

2009

2010

2011

2012

2013

$164

$168

$162

2014

2015

2016

$133

$128

2015

2016

GfK Retail Tracking: Blu-ray Value Sales (Millions)

$63
$6
2007

$146

$95

$27
2008

2009

2010

2011

2012

2013

2014

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201648

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Blu-ray percentage of market

20%
15%
10%
5%

13%
8%

15%

15%

12%

13%

15%

15%

16%
13%

13%

12%

10%

Volume
Value

6%

0%

2010

2011

2012

2013

2014

2015

2016

Blu-ray’s 2016 share increase was buoyed by improving shares in the new release movies and TV series release types,
both of which have higher average prices than the overall market. Over a quarter of all new release movies are now
purchased on Blu-ray.
GfK Retail Tracking: Blu-ray Value Share % of each Release Type

28% 27%27%26%

24% 23%

2013

22% 21%

2014
7%
5% 6%
New Release Movies

Catalogue Movies

9%

TV Series

7% 8% 8% 8%

2015
2015

Other Direct to VideoGfK Retail Tracking: Top selling DVD titles, Full Year 2016, ranked by volume
RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1

Star Wars Episode VII Force Awakens

Walt Disney Studios

Sci-Fi

2

The Dressmaker

Universal

Drama

3

Zootopia

Walt Disney Studios

Animated

4

Game of Thrones Season 5

Roadshow

TV Drama

5

Deadpool20th Century Fox

Action6

The Secret Life of Pets

Universal

Animated

7

Finding Dory

Walt Disney Studios

Animated

8

James Bond Spectre

20th Century Fox

Action9

Hunger Games Mockingjay Part 2

Roadshow

Action10
The Martian
20th Century Fox
Sci-Fi____________________________________________________________________________________		

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201649

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Top selling Blu-ray titles, Full Year 2016, ranked by volume
RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Star Wars Episode VII Force Awakens
Walt Disney Studios
Sci-Fi2
Deadpool20th Century Fox
Action3
Batman V Superman Dawn of JusticeRoadshow
Action4
Captain America Civil War
Walt Disney Studios A dventure
5James Bond Spectre
20th Century Fox
Action6
Suicide Squad
Roadshow
Action7Game Of Thrones Season 5
Roadshow
TV Drama
8
The Martian
20th Century Fox
Sci-Fi
9
Hunger Games Mockingjay Part 2
Roadshow
Action10
The Hateful EightRoadshowThriller____________________________________________________________________________________

4K Ultra UHD Blu-ray launches in Australia
2016 saw the debut of 4K Ultra HD Blu-ray. 65,000 4K Ultra HD titles were sold in 2016 for a value of $2M, or 2%
of Blu-ray volume and 3% in value . The higher value share is due to a fairly substantial price differential between astandard Blu-ray title and a 4K title – the 4K Ultra HD average price is $31, compared to just $22 for standard Blu-ray.
4K Ultra HD is still in its infancy in the video entertainment market. There were 68 different 4K titles released in 2016,
with action movies generating twice the share of the next biggest genre; Sci-Fi.
One of the current barriers to 4K Ultra HD sales is a relative lack of compatible hardware. There are plenty of 4K
TVs available, over 600,000 have been sold in Australia, but there are relatively few 4K players that have launched inAustralia. This is partially being addressed by the latest wave of games consoles, especially the Xbox One S, which has
4K player functionality. For more information on 4K hardware, please refer to the GfK chapter on devices.
Retail Tracking: Top selling 4K Blu-ray titles, Full Year 2016, ranked by volume

RANK
TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Batman V Superman Dawn of JusticeRoadshow
Action2
Deadpool20th Century Fox
Action3
Mad Max Fury Road
Roadshow
Action4
Suicide Squad
Roadshow
Action5
The Revenant (2015)
20th Century Fox
Drama
6
Star Trek Beyond
Paramount
Sci-Fi7
Man of SteelRoadshow
Action8
The Martian
20th Century Fox
Sci-Fi9
Jason Bourne
Universal
Action10
Warcraft the Beginning
Universal
Sci-Fi____________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201650

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Top selling 3D Blu-ray titles, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1

Mad Max Fury Road

Roadshow

Action2

The Martian

20th Century Fox

Sci-Fi3

Captain America Civil War

Walt Disney Studios

Adventure

4

Batman V Superman Dawn of JusticeRoadshow

Action5

San Andreas

Roadshow

Action6

Star Wars Episode VII Force Awakens

Walt Disney Studios

Sci-Fi

7

Hunger Games Mockingjay Part 2

Roadshow

Action8

Jupiter Ascending

Roadshow

Action9Star Trek Beyond

Paramount

Sci-Fi

10
Suicide Squad
Roadshow
Action____________________________________________________________________________________

Release Types
The physical video entertainment market is commonly segmented by ‘release types’. The New Release segment,
which refers to theatrical movies in their first 3 months of sales, has seen solid value growth on 2015. 22% of themarket value in 2016 was derived from New Release movies.
The TV Series segment also increased its share of market in 2016, sitting at 37% of all value. The share increase for TV
Series is a trend we have seen over the last 10 years, with TV Series now being the largest of all the release types.
Conversely, Catalogue movies have declined in share and overall value. This release type includes sales for older
theatrical movies and re-releases. While there are some bright spots within the Catalogue segment, it is thought that
overall sales may be impacted by aging titles and the growing share of digital services, such as Netflix, which offer alarge array of Catalogue movies.
GfK Retail Tracking: Release Type Value % by Year

16%
5%

15%
5%

15%
5%

14%
5%

14%
5%

14%
5%

13%
6%

12%
5%

11%
5%

10%
5%

Other DTV

27%

29%

30%

31%

30%

32%

33%

36%

36%

37%

Children

43%

40%

37%

33%

32%

30%

30%

28%

29%

26%

TV Series
Catalogue Movies

9%

11%

13%

17%

19%

19%

18%

19%

19%

22%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

New Release Movies

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201651

Video Entertainment Australia:
Physical Retail Market
Millions

GfK Retail Tracking: Release Type Value by Year
$400

-19%

$350

$326

$300

-17%

-20%

$299

2015

$260

$250
$200

-8%

2016

$209

$171 $178

$150
$103

$100
$45

$50
$0

Theatrical
New Release

Theatrical
Catalogue

TV Series

$82

$37

Children

Other Direct
To Video

New Release Movies
The highest growing area in physical discs for 2016 was New Release movies. A combination of lower priced physicaldiscs, higher shares of Blu-ray, and a growing box office have all contributed to this growth.
The prices for New Release movies have dropped at a fairly steady rate since 2012, with particularly heavy activity inthe sub $15 price band in 2015 creating an anomaly in the longer-term pricing trends. In 2016, 71% of New Releasesales were for titles priced at less than $20 (compared to 67% in 2015).
GfK Retail Tracking: New Release Avg Format Price by Year
$35

$30.6

$29.6

$30
$25

$28.9

$27.6

$22.7

$21.8

$20.8

$19.9

$20.0

2012

2013

2014

2015

2016

14%
20%

11%
18%

28%

43%

$20
$15

$27.6

Blu-rayDVD

GfK Retail Tracking: New Release DVD Priceband Unit % by Year
25%

19%

33%

33%

29%

32%

10%

11%

2012

2013

16%
26%
28%

20%

24%
2014

2015

19%
2016

>$25
$20 <$25$18 <$20$15 <$18<$15

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201652

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Box Office by Release Year (Billions)$1,264$1,143$1,0852012$1,061$1,070

2013

2014

2015

2016

Catalogue Movies
After a stellar 2015 performance, Catalogue movies was one of the areas showing the greatest decline in 2016,
dropping by 19% on 2015.
To further analyse the Catalogue segment, we can further split the sales into titles that were released within a yearof their theatrical release (new theatrical) and titles that were released after that one-year window (cinema release).
Cinema Release titles are often re-releases, or titles with new packaging.
Millions

GfK Retail Tracking: Theatrical Catalogue Value by Type
$250
$200
$150

New Theatrical (-12%)$100

Cinema Release (-29%)

$50
$0
2011

2012

2013

2014

2015

2016

In 2016, it was the performance of Cinema Release titles that suffered the most. One reason for this was the drafting of
big theatrical franchises such as Star Wars and Jurassic Park in 2015.
Drafting is the uplift in disc sales for older franchise movies when a new movie in that franchise is released at thecinema. An example of this was in 2015 when Star Wars Episode VII: The Force Awakens was released at the cinema.
During that time, we saw a big lift in disc sales for the older Star Wars movies.
In 2015, 9% of all Catalogue movie sales were for titles experiencing that drafting lift. That percentage dropped tojust 6% in 2016. With a raft of big studio sequels to be released in 2017, it is likely that we will again see a rise in theimpact of drafting.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201653

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Draiing % of Catalogue Movies

10%

9%

8%
6%
4%

3%

4%

4%

5%

6%

6%
4%

Units %
Value %

2%
0%
2013

2014

2015

2016

During 2016, the top drafting licenses included the Star Wars series, Bourne and Ghostbusters, all of which saw a big
lift in sales during their drafting period.
GfK Retail Tracking: Top 5 selling Drafting licenses, 2016, ranked by volume

RRANK
TITLE
DISTRIBUTOR____________________________________________________________________________________________		
1STAR WARS

20th Century Fox

2

BOURNE

UNIVERSAL

3GHOSTBUSTERSSONY PICTURES

4

X-MEN

20th Century Fox

5
ICE AGE
20th Century Fox____________________________________________________________________________________________		
Another factor in the performance of Catalogue movies is the rising share of digital streaming services. With anabundance of Catalogue movie titles available on services such as Netflix, this is thought to negatively impact on sales.

TV Series
TV Series was the largest individual release type in 2016, accounting for 37% of total market value. This area hascontinually grown in share over the last 10 years and is comfortably the largest value segment within the video
entertainment market.
On average, TV Series titles cost more than other release types, contributing to their high share in value. Though theprice has dropped for TV Series in 2016, it is still $5 more expensive than the next highest priced release type (New
Release). This is a reflection of the greater number of boxset sales within TV Series.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201654

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Average Price by Release Type
$30
$25
$20
$15
$10
$5
$0

$28.2

$27.1

$27.6

$27.3

$26.8
New Release Movies

$24.4

$23.7

$13.6

$13.5

$22.6
$13.9

$12.9

$12.1

2012

2013

$21.6
$13.4

$21.7
$13.7

$12.1

$12.2

$12.2

2014

2015

2016

Catalogue Movies
TV Series
Childrens

One reason for the continuing strength of TV Series is Roadshow’s HBO license, Game of Thrones, which was again
the biggest license in 2016, selling 5 times more than the next biggest license. 2016 was the first year that two new
Game of Thrones seasons were released on disc in the same year. This led to overall growth for the license through
New Release sales and created greater drafting opportunities throughout the year.
GfK Retail Tracking: Top 10 selling licenses, TV Series, 2016, ranked by volume

LICENSE
DISTRIBUTOR_________________________________________________________________________
Game of Thrones
Roadshow
Downton Abbey
Universal
Vikings TV Series
20th Century Fox
Outlander TV SeriesSony Pictures
Walking Dead
20th Century Fox
Dr WhoRoadshowSupernatural
Roadshow
Big Bang Theory Roadshow Suits
Universal
A Place To Call Home
Universal_________________________________________________________________________
GfK Retail Tracking: Top 10 selling titles, TV Series, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Game of Thrones Season 5
RoadshowDrama
2
Game of Thrones Season 6
RoadshowDrama
3
Game of Thrones Season 4
RoadshowDrama
4
Downton Abbey Season 6
Universal
Drama
5
A Place to Call Home Season 3
Universal
Drama
6
Game of Thrones Season 3
RoadshowDrama
7
Game of Thrones Season 1
RoadshowDrama
8
Game of Thrones Season 2
RoadshowDrama
9
Big Bang Theory Season 9
RoadshowComedy10
Vikings Season 3
20th Century Fox
Drama____________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201655

Video Entertainment Australia:
Physical Retail Market

About GfK
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter
decisions. More than 13,000 market research experts combine their passion with GfK’s 80 years of data science
experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100
countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its
clients to improve their competitive edge and enrich consumers’ experiences and choices.
To find out more, visit www.gfk.com or follow GfK on Twitter: https://twitter.com/GfK_en

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
56

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AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201657

Consumer Behaviour
The data for this chapter is taken primarily from the GfK ConsumerScope survey, an online syndicated survey into
video entertainment. The survey is conducted continuously throughout the year amongst approximately 3,000
Australians aged 14 to 65 years per quarter.

Home entertainment consumption trends
In 2016 we saw continuation of some trends reported in 2015. Most notably, the continued rise of SVOD (Subscription
Video on Demand) and the increased use of connected devices, in particular connected TVs (e.g. Chromecast, AppleTV and Smart TVs). Engagement with (hours watched) SVOD and YouTube videos is increasing while F2A, Pay TV andphysical discs show declines.  
Despite sales declines, physical discs remain a very important format in the home entertainment market. Physical discs
still have a high penetration in the Australian population, with just under half (47%) of the population aged 14-65 years
having watched a DVD or Blu-ray disc in the past month.
Digital content (EST1, VOD2, SVOD, piracy, catch-up TV) is gaining traction in the home entertainment market. Over half(59%) of Australians have consumed digital home entertainment in the past month and 36% have watched paid digital(EST, VOD or SVOD) in the past month.
Consumers now have more choice than ever before, in regards to: what to watch, where to watch it, when to watch it,
where to obtain it and what device to use to watch it.
GfK ConsumerScope: Last month consumption incidence in YEQ4 2016 (%)

F2A TV

78

YouTube videos

54

DVD disc

41

CUTV

33

Pay TV

32

SVOD

29

Total piracy

20

Blu-ray disc

19

VOD

47% Total disc
59% Total digital
36% Total paid digital

10

Source: GfK ConsumerScope (YEQ4’2016) Which of the following have you watched in the last month?
Base: Total sample aged 14-65 years (n=12,702)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201658

Consumer Behaviour
The viewing of paid digital content has increased significantly during 2016 (up from 30% in Q4 2015 to 37% in Q42016). Much of this rise is due to the growth of SVOD in Australia: last month consumption of SVOD increased from
23% at the end of 2015 to 30% at the end of 2016. In two years, SVOD has significantly increased the paid digital
category, introducing an additional 18% of the population to the category.
With the rise of SVOD there has been an accompanying decline in other formats: a drop in last month consumptionof DVDs (from 45% to 38% in the past year) and F2A TV (from 81% to 77%). The decline seen in piracy in 2015 hasstabilised in 2016. Last month consumption of Blu-ray, EST and VOD were stable across the year.

% Viewership in the past month

GfK ConsumerScope: Last month consumption over time (%) - Non-Digital
100
90
80

86

81

F2A TV

77

70
60

DVD

50

52

40

36

35

30

30

32

20

22

20

45

38
30

Pay TV20

10
0

Cinema35

Blu-ray
Q4 ’14 Q1 ’15

Q2 ’15 Q3 ’15

Q4 ’15 Q1 ’16

Q2 ’16

Q3 ’16

Q4 ’16

GfK ConsumerScope: Last month consumption over time (%) - Digital% Viewership in the past month

45

CUTV

40

37

35

34

30

31

25
20
15
10
5
0

32

30

30

30

Total paid digital(EST/VOD/SVOD)

23
19
10
10
8

Total Pirates

20

19

10

10
9

9

EST
VoD
SVOD

Q4 ’14 Q1 ’15 Q2 ’15 Q3 ’15 Q4 ’15 Q1 ’16 Q2 ’16 Q3 ’16 Q4 ’16
n=6289 n=3433 n=3456 n=2872 n=3231 n=3169 n=3535 n=3147 n=2851

Source: GfK ConsumerScope Which of the following have you watched in the last month?
Base: Total sample aged 14-65 years  (n= 3,000 – 6,000 per quarter)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201659

Consumer Behaviour
Despite an overall decline, discs continue to be the home entertainment format with the highest penetration in every
age group. Australians aged 14-24 years of age are the greatest fans of home entertainment, they are the most likely
to watch every format (except catch-up TV). The likelihood of watching digital formats drops off quite steeply from 35
years of age.  
GfK ConsumerScope: Last month use of format by age (%)
60

CUTV

49
30

DVD disc

51

50

33
33 33

20
10
0

35

Blu-ray disc

29

SVOD

23
17

14
12
7
3 2

15

14-17

18-24

25-34

35-44

45-54

VOD
EST
Total piracy

55-65

Source: GfK ConsumerScope Which of the following have you watched in the last month?
Base: Total sample aged 14-65 years YE Q4 2016  (n= 12,70

Overall, the number of home entertainment titles viewed has increased in the past year (from 7.0 to 8.4 titles permonth), with the increase driven by the significant increase in SVOD (from 1.8 to 3.0 titles per month), the number of
titles being pirated has stabilised after the decline seen in 2015.   

TV Series
Despite a decline in the physical disc market, TV series are declining at a much slower rate, and TV series are
performing well within SVOD and EST.
Furthermore, in 2016 half (49%) of respondents said they are watching more TV Series than they used to. Perceptionsof TV series are extremely positive; in particular that the series have increased in quality, and there is greater content
and availability.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201660

Consumer Behaviour
GfK ConsumerScope: Perceptions of TV Series

Improved quality 59%(TV Series have significantly improvedin quality)

More content 59%(There are more TV Series available thanI’m interested in)

FOMO 55%(I’ve frequently talked with my friends andfamily about TV series I’ve been watching)More connected 47%

49% agree(I feel more connected to my favourite
TV seriescharacters than movie
characters)that they watch
more TV series thanthey used to(I get more excited about watching a
TV series than a movie)

14%

Strongly agree

35%

Agree

30%

Neither agree/disagree

16%
5%

Exciting 42%

Less commitment 33%(TV series are shorter)

DisagreeStrongly disagree

Source: GfK ConsumerScope To what extent do you agree with the following statements?
Base: Total sample involved in HE aged 14-65 years Q1 2016 n=2,042

Disc purchaseIn 2016, 47% of Australians aged 14-65 year olds watched a disc in the past month, indicating it is a still highly
relevant home entertainment platform, particularly for the older age groups. Among those who purchase discs forthemselves, collectability of tangible discs remains the main motivator for buying discs as opposed to digital.
GfK ConsumerScope: Motivations for purchasing a disc rather than digital (%)
I like to own a collection of discs

43

I have no interest in digital downloads

26

Discs have better sound/picture quality

23

Better value for money

20

Spontaneous/ impulse purchase

14

I don’t how to download a digital copy

12

Special features content

12

Download/upload limit

10

It wasn’t available as a digital download to keep

8Slow internet connection/No Internet at home

8

Limited storage for digital files

7

Other

1

Source: GfK ConsumerScope To what extent do you agree with the following statements?
Base: Total sample involved in HE aged 14-65 years Q1 2016 n=2,042

The majority of discs are still bought instore (71% in Q4 2016), and JB Hi-Fi continues to be the strongest player,
selling 40% of most recent purchases in Q4 2016 (up from 28% in Q4 2012).

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201661

Consumer Behaviour
Disc rental
Across all formats, disc rental has shown the greatest decline. In the last five years, the proportion of the population
who has rented a disc in the past month has more than halved (from 34% in Q4 2011 to 15% in Q4 2016). The decline
in rental has been driven by DVD rental, while Blu-ray disc rental is holding steady.   
GfK ConsumerScope: Incidence of past month disc rental

NETT disc rental

40%
35%
30%

34
34

25%

DVD disc rental
27
25

20%
15%
10%

9

5%
0%

9

Blu-ray disc rental
21

20

20

19

9

11

18
17
9

15
14
10

Q4 Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4 Q1 Q2
Q3 Q4
Q1 Q2 Q3
Q4 Q1 Q2 Q3 Q42011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

Source: GfK ConsumerScope (Q4’2015)
Base: Total sample aged 14-65 years (n=3,231)

VOD and EST
Two thirds (69%) of home entertainment consumers believe that digital is the way of the future (Q2 2016). However,penetration of paid VOD and EST remains steady. In Q4 2016 9% of the population watched EST in the past monthand 10% watched VOD. GfK ConsumerScope has found that the key barriers to using transactional digital (VOD and
EST) include:1.

The desire for a physical collection

2.

The price of VOD and EST – the perception that digital should be cheaper than physical discs

3.

Difficulty accessing digital on TV – although this barrier is diminishing with the increasing penetration of SmartTVs and media players, recently driven by the desire to watch SVOD on TV

4.

Slow internet and data caps

5.

Low awareness that a title is often released to buy digitally earlier than the physical disc release

6.

Other digital competition – SVOD (increasing), catch-up TV (increasing) and piracy (reducing)

Catch-up TV
Free-to-air catch-up TV services are being accessed at least monthly by one third of the population. Monthly
consumption of catch-up TV has grown significantly from 18% of the population in Q2 2011, to a peak of 35% of
the population in Q2 2014. Despite some upgrades to platforms and new digital channels on catch-up TV, since thelaunch of Netflix in Australia the catch-up TV monthly incidence has dropped off (to 30% in Q4 2015).

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201662

Consumer Behaviour
Catch-up TV has been a very good way of introducing digital home entertainment to the population. In the past, catchup TV was primarily watched on a computer.  However, since the launch of Netflix (and the accompanying rise in TV
connectivity) consumers are increasingly viewing catch-up TV on a television (from 34% viewing on TV in Q1 2015, to
43% viewing on TV in Q3 2015).     PiracyPiracy is a common source of home entertainment acquisition in Australia. Piracy of video entertainment
takes two forms: direct piracy where pirates download/stream content directly from the internet; andindirect piracy where consumers obtain copied pirated content from others (e.g. via USB, or hard drive).
GfK ConsumerScope data showed that in 2015 there was a very steep decline in piracy levels, and in 2016 thisdecline plateaued. In Q4 2014, one in three (31%) Australians aged 14-65 years had pirated video content (directly or
indirectly) in the past month. A year later (in Q4 2015), piracy had declined to only one in five (20%) Australians piratingin the past month, and in Q4 2016 it was on par with the previous year at 19%.
There is a similar pattern in the number of titles that have been pirated each month: a steep decline between Q4 2014
and Q4 2015 (from 4.0 titles to 2.4 titles per person), and it was relatively stable in Q4 2016 with 2.6 titles per personcompared to the previous year.
GfK ConsumerScope: Last month piracy3 consumption incidence and number of pirated titlesacquired% Viewership in the past month

40
35

34

34

30

31

30

25
21

20

19

20

21

20

21

19

15
10
5
0

3.7

3.7

4.0

3.4

2.4

2.1

2.4

2.4

2.6

2.4

2.6

% consumed
piratedcontent
No. ofpirated titles
last monthQ2 ‘14 Q3 ‘14 Q4 ‘14 Q1 ‘15 Q2 ‘15 Q3 ‘14 Q4 ‘14 Q1 ‘16 Q2 ‘16 Q3 ‘16 Q4 ‘16

Source: GfK ConsumerScope Which of the following have you watched in the last month?…pirated from the internet / copied titles from someone
else (e.g. via USB, hard drive) (shared pirated content)?  Thinking about the last month, how many titles have you personally…pirated from theinternet / copied titles from someone else (e.g. via USB, hard drive) (shared pirated content)?
Base: Total sample (n= 3,000 to 6,000 per quarter)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201663

Consumer Behaviour
In the past three years, piracy has shifted from comprising almost half (46%) of home entertainment (excluding free-toair and pay TV) acquisition volume in 2014, to less than one third (28%) in 2016.
GfK ConsumerScope: Piracy volume share
100%
80%

41%

32%

35%

+ Non-digital volume* Paid digital volume
60%
13%
40%

32%

40%

46%
33%

20%

28%

# Pirated digital volume+ Disc purchase and rental* SVOD, VOD, EST

0%

2014

2015

2016

# Direct and Indirect piracy

Source: GfK ConsumerScope Thinking about the last month How many titles have you personally…pirated from the internet / copied titles
from someone else (e.g. via USB, hard drive) (shared pirated content)?
Base: Total sample (n=approx. 13,000 per year)

These declines in piracy are likely to have been influenced by three key factors:
1.

The entry of Netflix into Australia in March 2015

2.

Better access to digital content
•

			
3.

Earlier availability of legitimate content (TV series being fast-tracked and studios
experimenting with windowing) and more connected TVs

Legal deterrents and publicity•

For example, the Dallas Buyers Club ruling, discussion around Australia’s voluntary ISP threestrikes industry agreement (Copyright Notice Scheme Code 2015), and the site blocking bill
(Copyright Amendment (Online Infringement) Bill 2015).

•

In December 2016, the Australian Federal Court ordered internet companies to block
five copyright-infringing websites: torrenting sites The Pirate Bay, Torrentz, TorrentHoundand IsoHunt, and streaming service SolarMovie.4

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201664

Consumer Behaviour
SVOD
The growth of SVOD has been the most significant change to the home entertainment market over the past two years.
Monthly consumption of SVOD has increased from 8% in Q4 2014 to 23% in Q4 2015 and now 30% in Q4 2016. It
also has significant volume with 3.1 titles being watched in the past month.
The majority of the SVOD category growth was driven by the launch of Netflix in March 2015; 29% of the population
say they have a subscription to Netflix, and it has a share of 71% of most recent SVOD title watched in Q4 2016. Not
only does subscription to Netflix have the highest penetration, but it is also watched the most frequently, with 86% of
subscribers watching at least several times a week.
GfK ConsumerScope: Last month SVOD service consumption incidence (%)

35
30

29

25

24

20

20

15

23

25

19

15

10

8

5

4

0

3
2

4
2
5
2

3
2
5

4
5
2

33
2

5
5
2

Q4 ’14

Q1 ’15

Q2 ’15

Q3 ’15

Q4 ’15

Q1 ’16

5

6
5

2

2

Q2 ’16

Q3 ’167
5
2
Q4 ’16

Source: GfK ConsumerScope Do you have, a subscription to any of the following services?
Base: Total sample aged 14-65 years (n=2,000 to 6,000 per quarter)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201665

Consumer Behaviour
GfK ConsumerScope: Reasons to sign up to Netflix service YE Q4 2016 (%)
2016

2015
Affordable
To watch at a time that suits

36

Free trial
To watch multiple episodes in a row
To access a catalogue of new TV programs

22

To access back catalogue of TV programs
To access back catalogue of movies
To watch on multiple devices (TV, smartphone, tablet)
To watch original services produced by provider House of Cards by Netflix)
Excellent picture quality
To access a catalogue of new movie releases
Easy search functionality

14
13

To watch a specific program
Recommends titles for me to watch
To replace discs

32i
30
29#
25
24
24#
23
21
18
17#
16#
11#
11

40

27
24
20
21
21
18

9
11
8

To replace Pay TV

7

4i
2
5i

1617

2463

Bundled with another plan (Phone, internet, news)

1

Don’t know
Other

n=

28

40

49
37

44#

51

Source: GfK ConsumerScope Why did you sign up to Netflix?
Base: SVOD subscribers (YE Q4 2016)

The reasons for signing up to Netflix have changed a little over the past year. While affordability remains the number
one reason, there have been increases for the flexibility to watch at a time that suits, original series produced byprovider, to watch a specific program, and to access a back catalogue of TV series.
Frustrations vary for the different SVOD providers. For Netflix the frustrations are associated with wanting more
content: running out of new shows and old movies (likewise for Stan, but to a lesser extent). The frustrations for Foxtel
Play are centered around technology: long load time/buffering, logging out and losing track of where they are up
to. Presto has similar frustrations to Foxtel Play but in addition: poor content and not automatically playing the next
episode.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201666

Consumer Behaviour
GfK ConsumerScope: Frustrations with SVOD service YE Q4 2015 (%)

23#

19

16

Old movies

20

22

16

Long load time/buffering

18i

17

Poor content

13

15

Difficult to fast-forward, pause or rewind11

13

I have run out of new shows to watch

19
25
27

27#

21#

9
13

17

Keeps logging me out

5i

7

15#

19#

Loses track of where I am up to

4i

5

12#

17#

Doesn’t automatically play the next TV episode

4i

5

8

13#

Difficult to watch on my TV screen

2i

4

9#

9#

Other

8#

4

None, I don’t have any frustrations

n=

34#
1862

8

2i
31

288

28
241

17i
167

Source: GfK ConsumerScope SVOD2cd What, if any, frustrations do you have with using SVOD provider?
Base: SVOD subscribers (YE Q4 2016)

StreamCo’s Stan launched on 26 January 2015, a joint venture between Fairfax Media and Channel 9. Stan has shown
some good growth from 3% penetration in Q4 2016, to 7% in Q4 2016. It is second in the market but still significantly
behind Netflix. After a slow start for Presto, and poor customer satisfaction, in late 2016 Foxtel announced that Presto
was withdrawing its services, current customers would be transitioned over to Foxtel Play. Foxtel Play changed its
pricing structure towards the end of 2016 from $25 to $10-15 for a basic pack. Quickflix penetration remains low ataround 2%.
Netflix has continued to see great success in Australia in 2016 and has recently introduced the capability to download
some titles. However, its strong presence has not deterred additional providers from launching in Australia:•

HayU launched in Australia in March 2016. HayU a reality TV service from Universal costing $5.99 per month. It
has had a slow start and has only achieved a 1% share of most recent viewing occasion (Q4 2016).

•

Curiosity Stream launched in late 2015 and is a provider of over 1,500 original and exclusive documentaries
from around the world, costing $2.99 a month for standard definition.

•

In late 2016 Amazon Prime allowed Australians to subscribe to the US or UK version, however, there are
significant content restrictions still in place. When it fully launches in Australia, Amazon Prime could shake up
the SVOD market significantly, based on its performance in other countries.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201667

Consumer Behaviour

About GfK
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter
decisions. More than 13,000 market research experts combine their passion with GfK’s 80 years of data science
experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100
countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its
clients to improve their competitive edge and enrich consumers’ experiences and choices.
To find out more, visit www.gfk.com or follow GfK on Twitter: https://twitter.com/GfK_en

1 EST= electronic sell through (a digital purchase to keep).
2 VOD = paid video on demand/digital rental.
3 “Piracy” includes both “Direct piracy” where pirates download/stream content directly from the internet and “Indirect piracy” where consumers
obtain copied pirated content from others (e.g. via USB, or hard drive).
4 http://www.abc.net.au/news/2016-12-15/federal-court-orders-pirate-bay-blocked-in-australia/8116912

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
68

2016
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69

The TV remains the mostpopular device for watching
video entertainment content
in the home

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201670

Devices and Emerging
Viewing Patterns
Devices, and Emerging Viewing Patterns
Data and analysis in this chapter comes from GfK retail tracking and ConsumerScope research provided by GfK
to AHEDA. The way we watch our favourite video entertainment content has changed over the years. With the
emergence of portable media players, smartphones and smart TV’s, we now have a wide range of ways to watch thecontent we love.
The TV is the most popular device for watching video entertainment content, with 61% of all content being watched on
the TV. Computers come in second, with 23% of viewing and then mobile devices (smartphones and tablets) combine
to make up the remaining 17%1.
Smartphone viewing has increased in share in 2016, supported by a move to larger screen phones.
GfK ConsumerScope: Content Viewing Device, Q4 2016

60%
50%
40%
30%

61%

20%

23%

10%

7%

0%

10%

The device a consumer uses depends on the type of content being consumed. While TVs are the main device used towatch all formats, mobile devices are increasingly being used to watch digital content and PCs are often used to watch
pirated titles.
GfK ConsumerScope: Display used by Type (Q1 2016)
100%
90%

15%

15%

80%

8%
4%
11%

7%
6%
29%

70%
60%
50%
40%

83%

10%
8%

6%
2%

Other

28%

42%

TabletMobile phone

82%

30%

76%

20%

57%

53%

49%

10%
0%

PC/laptop screen
TV

Purchased
DVD/BD
n=268

RentedDVD/BD
n=484

VoD
n=198

SVOD
n=786

EST
n=251

Piracyn=440

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201671

Devices and Emerging
Viewing Patterns
TVs – the most important device
The TV is the single most important piece of hardware for video entertainment. Consumers want to enjoy their content
on the big screen.
2016 was a big year for the TV market. 1.7M TVs were sold and an extra $120M was generated, making TVs thesecond largest value growth category behind smartphones. The growth in value was due to the rising share ofpremium features such as Ultra HD, smart TV and bigger screens.
GfK Retail Tracking: Key Features Unit Share of TV Market

70%
61

60%
50

50%
40%

36

30%

28

20%

20

47

39

36

>50”

36

Smart TV

29

UHD

18

10%
0%

41

4
2012

2013

2014

2016

2015

The TVs we own are getting larger. Nearly half the TVs sold in 2016 had a screen size of 50” or more. The share oflarge screen TVs has been rising each year, indicating our desire to view our favourite movies or shows on a bigger
screen.
Smart functionality is also an important factor when purchasing a TV. 61% of the TVs purchased in 2016 had smart
functionality, a sharp increase on previous years. Though default acquisition of smart functionality remains quite high,research from the GfK ConsumerScope study has shown more and more TVs are being connected to the internet andare used to watch streaming or VOD services.
GfK Retail Tracking: Do you access the internet via your TV?
70%
60%
50%

62

58

66

49

40%
30%

Q1 2015

Q4 2015

Q1 2016

Q4 2016

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201672

Devices and Emerging
Viewing Patterns
Within smart TVs, one of the major changes in the last few years is the move from closed proprietary systems tobranded operating systems such as Android or Samsung’s Tizen OS. With Android becoming more prevalent on TVs,
there may be a future opportunity to increase software sales through the Android platform.
GfK Retail Tracking: Smart TV OS Unit Share

100%
90%

Others
5%

15%

80%
70%
60%
50%
40%

48%
94%

30%

14%

Linux

24%

Firefox OS
Web OS

26%

Closed Propriet

14%

20%
10%

27%

19%

0%
2014

2015

Android
Tizen

2016

As well as bigger screens and smarter TVs, picture quality is also improving. The share of 4K Ultra HD TVs doubled
in 2016 and accounted for 36% of all sales. The price of a big screen 4K Ultra HD TV was over $2000 in 2016, nearly
double that of a standard big screen TV. The increasing share of 4K Ultra HD TVs was a major contributor to the value
growth of the TV market in 2016.
When speaking to video entertainment consumers, the awareness of Ultra HD as a feature is actually quite low. As
awareness increases, it is likely that we will see this feature grow in share in both hardware and software.
Awareness and understanding of 4K Ultra HD - Q4 2016

Yes, with good understanding(could explain it to others)

11%

23%

Yes, some understanding

53%
Aware

19%

Yes, little/no understanding47%

Never heard of it

For more information on 4K Ultra HD discs, please read the GfK chapter on the video entertainment software market.

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Devices and Emerging
Viewing Patterns
Mobile Devices
Mobile devices are increasingly being used to watch video entertainment content. 17% of the video content consumed
in Q4 2016 was watched on a mobile device, up from 14% in the corresponding quarter in 2015. The increased usage
is mainly through smartphones, helped along by the growing share of large screen phones.
The smartphone market is the biggest individual category that GfK measures, generating over $4 billion in value in2016. Smartphone penetration in Australia sits at 82%, a figure that has been fairly stable over the last few years as
most smartphone buyers are upgrading from an existing smartphone.
Big screen phones are becoming more prevalent. 22% of all smartphones purchased in 2016 had a screen size thatwas 5.5” or larger. GfK consumer research from 2015 showed that consumers with big screen phones tend to usethem more than those with smaller screens.
GfK Retail Tracking: 5.5”+ Screen Size Unit Share of Smartphones Market
25%

22

20%
15%

15

10%

7

5%

4

0

0%

2012

2013

2014

2015

2016

Tablets also saw a move to larger screens. Though it is a small section of the tablet market, 3% of sales are now fortablets with a screen that is 11” or larger.

Mobile Viewing remains a challenge
Whilst mobile devices are increasingly being used to watch video entertainment content, that usage is still primarily inthe home. The share of out-of-home viewing has remained quite low in 2016, with the existing concerns around data
usage yet to be fully addressed.
GfK ConsumerScope: Out of Home Viewing % by Type
10%
8%
6%

8
5

4%

8

8

9
8
6

5

4

5

5
2

2%
0%

8

Q4-13

Q1-14

Q2-14

Q3-14

Q4-14

6
6

4

8

EST

6

VOD

4

SVOD

4

Q1-15

Q3-15

Q1-16

4%
AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION
Yearbook 201674

Devices and Emerging
Viewing Patterns
Recent developments to services such as Netflix and YouTube to allow a file or program to be downloaded, rather thanstreamed, may help alleviate some of the concerns around data usage and help increase mobile viewing.
2016 also saw a rise in sales for connected 3G/4G tablets. Just over 360,000 connected tablets were sold in 2016,a growth of 3% on the prior year. With the ability to connect and stream content outside the home, the rising sales ofconnected tablets may be yet another spur to help drive out-of-home viewing.

Players – DVD, Blu-ray and Consoles
The appetite for physical discs is still very strong. 45% of all Australians have watched a physical disc in the last month,indicating a need for hardware capable of disc playback.
The most common players in Australia are standalone DVD players, followed by Blu-ray and then the gaming consoles.
Of course, there is a lot of crossover between the different devices.
GfK ConsumerScope: Household Penetration Q4 2016

Total DVD Player (incl. Blu-ray, consoles)

71%

Total Blu-ray Players (incl. consoles)

46%

Standalone DVD Player

45%Standalone Blu-ray Player

21%

PS4

14%

3D Blu-ray Player

10%Xbox One

10%

0%

10%

20%

30%

40%

50% 60%70%

80%

In 2016, 730,000 DVD and Blu-ray players were sold, with the split being roughly even between DVD and Blu-ray.
Though sales were down for players overall, one area that did show an increase was Blu-ray recorders, which was up
22% on 2015 and accounted for 8% of all Blu-ray players sold.
Freeview Plus is a feature that is available on some DVD and Blu-ray players. Sales for Freeview models are limited atjust 3% of total sales, but it is another way for consumers to get access to Freeview content.
4K Ultra HD is a feature that crosses both software and hardware. In the GfK chapter on video entertainment software,
we saw an increase in sales in for 4K Ultra HD discs and earlier in this chapter we highlighted the increasing share of
4K Ultra HD in TVs. The current limitation for this feature is within players, where just 2% of Blu-ray players sold having
the capability to play 4K Ultra HD titles. There are a further 10% of Blu-ray players that are capable of streaming 4K
content, but they are not able to play 4K discs.

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Devices and Emerging
Viewing Patterns
Of course, standalone players are not the only devices capable of playing Blu-ray or 4K discs. Gaming consoles,
such as the PS4 and Xbox One, are both Blu-ray compatible and offer consumers another way of watching their
Blu-ray discs. The Xbox One S is also capable of playing 4K Ultra HD discs and is currently the only console with thatcapability. The Xbox One S is present in 2% of all households.

Digital Media Players – Apple TV and Chromecast
Media players, such as Apple TV and Chromecast, are one of the main types of devices consumers connect to the TV
to watch their video entertainment content.
Media players are now present in 22% of Australian households, up from 17% in 2015. Combined, these devices havesold over 1.2 million units since launch2. The Apple TV is the leading media player, present in 11% of households,
though sales for Chromecast increased steadily in 2016 and actually outpaced Apple TV, closing the gap between thetwo players.
GfK ConsumerScope: Media Player Household Penetration, Q4 2016
22%

11%

10%

2%
Total Media Player

Apple TV

Chromecast

Other Media Player

2016 and beyond
2016 was another big year for video entertainment hardware. The TV solidified its place as the hub of video
entertainment, while more content was watched on mobile devices than ever before.
The move to bigger screens continued across all video entertainment devices and the use of smart functionality
increased. Picture quality is also on the rise, as 4K Ultra HD devices take a greater share in the market.
In 2017, it is expected that those premium features will continue to evolve and take greater shares within theirrespective markets. Digital viewing is still expanding and will continue to influence device choice in the future, while therollout of easily available downloaded content may help spur growth in out-of-home viewing, increasing the potential
reach for video entertainment content.
With other new devices like virtual reality or wafer thin TVs continuing to push the boundaries back, consumers arelikely to enjoy an even greater entertainment experience than ever before.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201676

Devices and Emerging
Viewing Patterns

About GfK
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter
decisions. More than 13,000 market research experts combine their passion with GfK’s 80 years of data science
experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100
countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clientsto improve their competitive edge and enrich consumers’ experiences and choices.
To find out more, visit www.gfk.com or follow GfK on Twitter: https://twitter.com/GfK_en

1
2

GfK Retail Tracking. TV Value % change, 2015 vs. 2014 (excludes commercial, direct, grocery channels)
GfK Retail Tracking. LTD volume for Media Players (excludes commercial, direct, grocery channels). Penetration – GfK ConsumerScope, Q4
2016.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
77

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78

Availability and affordability
do not materially reduce
film and TV piracy

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201679

Creative Content Australia
Availability & price are excuses for “FREE”
Lori Flekser, Executive Director, Creative Content Australia
2016 was another big year for the copyright sector with government reviews, legal cases and new content platforms
providing further in home consumption options.  
There was no escaping a volatile market and environment. Research studies showed wildly different data for the rate ofonline content theft in Australia, with the reasons for it disputed by an assortment of “interested parties” - Government,
media, rightsholders and so-called consumer groups. Every blogger and bystander had an opinion.
Into this complex cauldron, the Productivity Commission – the Australian Government’s independent research andadvisory body – released its report into Intellectual Property. Underpinning its recommendations was the assertion that“timely and competitively priced access to copyright-protected works is the most efficient and effective way to reduce
online copyright infringement” (Finding 19.1).
At the heart of this claim lies the vexed question of availability. Government, media and many consumers claim thatthey are ‘forced’ into illegal downloading and streaming by the lack of legal alternatives.
•“The problem is not the pirates fault, it’s the content owners fault for being two decades behind technology.”•“People pirate because (1) International content is really slow to come to Australia and (2) Online streaming 		

		
•
		

services are simply not available outside the US or UK.”
“The only reason i am a pirate is because the content industry has not delivered a platform that allows me to 		watch the content i want in the way that i want.”

To test the validity of these claims, one need only look at the music industry.
Despite music companies licensing hundreds of digital music services to release music simultaneously, around theworld, including several free streaming services, there is still an unacceptably high level of unlawful downloading ofmusic.  
Torrent sites remain in the top 10 services for consuming and sharing music, showing little change from 2015 to 2016.   
Thirty-two percent of all Australians consuming content obtained some unlawful music in 2016.1 and 15% obtained alltheir music unlawfully.
Given the music industry appears to have solved the issue of access, availability and price, if we subscribe to theargument advanced by ‘consumer groups’, there should therefore be little to no music piracy in Australia. Sadly, that is
not the situation.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201680

Creative Content Australia
Annual research has been conducted by Creative Content Australia (CCA) since 2008 to understand the changing
attitudes and behaviours of Australians in relation to movie and TV piracy.  Comprising qualitative and quantitative
components and using a consistent method of data collection, the research provides an unparalleled insight into thefrequency and incidence of piracy and the rationale behind it.
So what do we know? Availability and affordability do not materially reduce film and TV piracy. Shouldn’t thesignificant increase in content services and the drop in prices over the past five years have dramatically decreased
film piracy in Australia? CCA research indicates that the reduction in adults has been slight while there is no recent
discernible change in the behaviour of younger Australians.
Active pirates2

Active teen pirates (aged 12-17)

Active adult pirates (aged 18-64)
30%

27%

25%

29%

25%

26%

26%

2014

2016

21%
24%

2011

2012

2013

2014

2015

2016

2013

In fact, the 2016 CCA study shows 12-13 year old Australians have almost doubled their piracy activity, from 14%
active in 2014 to 23% in 2016.
The perception that movies are slow to come to Australia persists, even though the gap between cinema releases in
the US and Australia has reduced significantly; from films being released 47 days earlier in the US than Australia in
2002, to just over one week in 2016. Over 50% of films in 2016 were released in Australia before the US.
Generally, with release windows lining up, content is available online or on DVD/Blu-ray® at the same time globally.
This explains why 33% of all internet users aged 12+ disagree with the statement “I find it difficult to find lawful content
online” – while only 26% agree.3
But one of the most compelling statistics about the availability myth comes from research that shows that piracy spikes– sometimes by up to 300% - as soon as the legal digital copy is made available online.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201681

Creative Content Australia
2015 Piracy Activity
140,000
Piracy spikes thefirst day the legal
digital copy isavailable online...

Number of downloads

120,000
100,000

Increaseof 300%80,00060,00040,00020,000
0

0

30

60

90
120
150
Days after theatrical release

180

210
Source: MarkMonitor

In 2015, the producers of Australian comedy The Little Death discovered that Josh Lawson’s directorial debut had
become the third most pirated title in Australia, after it was released on DVD. In just two days, the film had been
downloaded more than 160,000 times.
Producer Jamie Hilton said: “Widespread illegal downloading of our film started as soon as it hit Blu-ray. Making films
and television is not only creative, it’s also a business. Like any business, when hundreds of thousands of people‘demand’ our film, we should be rewarded financially. Films cost millions of dollars to make and employ hundreds ofpeople and these costs are repaid by selling tickets and managing our online rights. ‘Free’ is not a viable businessmodel”.
Price/affordability is another stick with which the Productivity Commission has chosen to bludgeon the creative
industries, accepting poorly supported arguments that consumers are willing to access legal content “where it isavailable at a fair price”.
What is a “fair price”?
Right now, in late January 2017, I can buy a ticket to a movie for $10 (Reading Auburn NSW), $20.50 (Palace,Fremantle WA), $11 (Village, Geelong VIC), $13 (United, Eldorado QLD), $21 (Event Bondi Junction, NSW) or $10(Event Drive in, Blacktown NSW), or less in most venues for students or concession holders.
I can also buy a ticket for La Boheme at the Sydney Opera House for $260 (or $23.50 if I want to hear but not see theopera), see singer/songwriter Passenger in Brisbane for $88.15, catch a comedy show at the Adelaide Fringe for $23
or watch Melbourne FC play at Etihad Stadium in Victoria for $34.73.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201682

Creative Content Australia
Australia is also well-served with world-class Subscription Video on Demand services offering unlimited viewing for asmall monthly fee. Contrary to the Productivity Commission’s conclusions, these services are not more expensive thanthose overseas. Australian pricing is virtually on par with UK pricing and below US pricing.
Australia
USA
FX RateUSA (in AU$)____________________________________________________________________________________
Netflix

8.99

7.99

0.76

10.51

Amazon Prime

4.00

5.99

0.76

7.88

Foxtel Play

10.00

n/a

n/a

Stan
10.00
n/a
n/a
				
____________________________________________________________________________________
		(*) Amazon Prime is US$2.99 (or AU$4) for the first 6 months only, after that it increases to AU$8

With around 83 million visits to cinemas in Australia in 2016, the market clearly offers a range of prices that suit avariety of consumers. So, are those accessing unlawful online content simply unable to pay?
CCA research has consistently indicated that persistent pirates are more likely to have a tertiary education and a
fulltime job than non-pirates. This is reinforced by a UMR4 study showing piracy increases with income and education.

14%

18%

27%

30%
17%

21%

25%
Illegal downloaders

Under
$40k

$40k
- $60k$60k- $100k

Annual household income

Over
$100k

Primary/
TAFE/
secondary Trade

University

Highest educational qualification

What do people want to pay to see a movie? For online viewing, the answer appears to be ’nothing’. As a 17yo CCA
research respondent said: “Even at 99c each, I download and stream too many shows for it to be a reasonable price”.
In direct contrast to the PC Report conclusions, the TNS research confirmed an increase in the proportion of allinternet users who agree that ‘The price that you pay to download or access content online is generally about right’ up from 28% in 2015 to 35% in 2016. CCA has examined the motivation for online content piracy over eight waves ofresearch since 2008. Year after year, the primary reason is because it’s free.5“Even if I had infinite cash it’d still be easier to pirate films”, said a research respondent.
“I am a big pirate, and have been since before I was a teenager. Anything put in place to monitor or restrict our usage
will be circumvented by our generation instantly”, said another.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201683

Creative Content Australia
Reasons for Downloading or Streaming Pirated Content Online6
100%
80%
60%
40%
20%
0

81%

68%

45% 50%

44%

32%

30%

12-17 year olds
25%
18-64 year olds

It's free

The content I want towatch is not legallyavailable in Australia

It's what
everyoneelse does

Nobody isstopping me

The TNS research confirmed the top motivator for unlawful consumption of content online is because ‘it’s free’ (52%) with little difference between ‘100% unlawful’ users and ‘mixed’ users.
Motivations for unlawful consump]on of content online7
60%
50%

54%
52%
48%

40%

46%
44%
38%

41% 42%
37%

30%

28%
26%
19%

20%

24%

11%

10%
0%

28%

It’s freeIt’s easy/
convenient

Any unlawful 2016

It’s quick

I think lawfulcontent
is tooexpensive

It means
I can trysomething
before I
buy it

100%

23%

25%

15%

22% 24%
18%

19%

23%

18%

6%

I can’taffordto payBecause
I can

21%

10%

It’s what my
The files I
want are not friends orfamily doavailableon lawful
services#

Mix of lawful and unlawful 2016

Yet, the PC report chooses to accept the CHOICE survey where “38 per cent of respondents cited expense of legitimate
content as the reason they infringed copyright; 32 per cent cited the time taken to release new content and 23 per centthe ongoing availability of material (CHOICE 2015). TNS Social Research (2015) found similar results in its study.”
In the TNS research, “I think lawful content is too expensive” was only the fourth most cited reason. One in five
Australians (and 2/3rds of persistent pirates) say they would pirate even if a movie was legally available, at the sametime, for $5.99 or a TV episode for $2.99 – less than the cost of a cup of coffee.8’Too expensive’ proves to be a quite different rationale for content theft to “it’s free”. Which one of us would not opt forlower prices for ANY of the goods or services we use?
But few services face the insurmountable challenge of being unlawfully available, globally, to billions of consumers withan internet connection. The numbers for online content theft dwarf those for other industries facing counterfeit andcopyright concerns. Some recent (2016) statistics include:•

Five years ago Google received ‘only’ ten million takedown notices during the entire year, but

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201684

Creative Content Australia		today it processes the same number in less than three days.

•

1.4 million Australians access Pirate Bay monthly•

Academy-Award® winning Australian film Mad Max Fury Road was downloaded 3.5 million times in 			Australia alone. By comparison the total unit sales of the Australian DVD, pay-per-view and legal streaming		came in at 516,396.

This is not simply an issue for international producers or Hollywood studios. This is a global concern that
directly impacts many Australian creators.
The creative team behind the successful Australian film The Dressmaker know this from bitter experience. Fifteen
months after its cinema release, and 12 months after its DVD/Blu-ray® and online release, the film is still illegallyavailable and downloaded/streamed by thousands of people weekly. “Creating great content requires a healthybusiness model that not only benefits the consumer but doesn’t lose sight of the interests of the artists” says Producer
Sue Maslin.
Nelson Woss, Producer of Red Dog and Red Dog: True Blue, says: “If we get to the pointy end where we as
filmmakers get everything right, produce something entertaining, which people love, but the film cannot expect a
decent return because pirates steal it – then it’s over. It’s not a viable business and ultimately quality Australian films
won’t get made.”
The creative industries need consumers, Government and media to recognise that a strong copyright system isessential to the health and vibrancy of the creative economy. A report that relies on questionable research and clear
bias, and is a threat to the hundreds of thousands of jobs, and thousands of businesses that depend on Intellectual
Property, is not helpful.
The film and television industries’ peak body for the promotion of copyright, creative rights, piracy
research and education resources, Creative Content Australia is committed to raising awareness about thevalue of screen content, role of copyright and impact of piracy.
http://www.creativecontentaustralia.org.au
1 Consumer Survey on Online Copyright Infringement June 2016 – A marketing research report Prepared for the Departmentof Communications and the Arts by TNS
2 Creative Content Australia Research studies 2011-2016. Note: 2011 included physical (DVD) piracy.

   This measure was excluded from 2012 onwards.
3 Consumer Survey on Online Copyright Infringement June 2016 – A marketing research report Prepared for the Department of Communications
and the Arts by TNS
4 UMR Piracy Study 2012; 1000 interviews aged 18+, data weighted to ABS census data for national representation.
5 Creative Content Australia Research 2016
6 Creative Content Australia Research 2016

7 Consumer Survey on Online Copyright Infringement June 2016 – A marketing research report Prepared for the Dept. of Communications and theArts by TNS
8 Creative Content Australia 2013 research

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
85

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AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201686

With exciting content,
cutting-edge technologies
and an on-going focus &commitment to enhancing thetheatrical experience, it’s still
the best type of entertainment
out there, and we see proof ofthat time and time again in our
box office results.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201687

Theatrical Film Industry:
2016 Box Office
A snapshot of the Film Industry
2016 – “It’s a great time for cinema and going to the movies”
Despite all the competition we face for people’s attention in a 24/7 connected world... it’s a great time for cinema andgoing to the movies.
With exciting content, cutting-edge technologies and an on-going focus & commitment to enhancing the theatricalexperience, it’s still the best type of entertainment out there, and we see proof of that time and time again in our box
office results. The 2017 MPDAA box office surpassed the record set in 2015. The A$1,259,337,000 box office CUME
was an increase of 2.69% on the previous year.
Finding Dory took line honours, closing 2016 at $48.56m, followed by Deadpool at $43.27m
TOP 10 FILMS OF 2016 (as at 31 December 2016)

RANK TITLE
DISTRIBUTOR
BOX OFFICE IN 2016__________________________________________________________________________________________________
1
Finding Dory
Walt Disney
48,558,6122
DeadpoolFox
43,266,237
3
Rogue One: A Star Wars Story
Walt Disney
36,389,015
4
Suicide Squad
Warner Bros
34,274,186
5
Captain America: Civil War
Walt Disney
33,733,539
6
Fantastic Beasts and Where to Find Them
Warner Bros
31,203,292
7
Star Wars: The Force Awakens
Walt Disney
31,147,948
8The Jungle Book
Walt Disney
29,784,425
9Batman V Superman: Dawn of JusticeWarner Bros
29,678,247
10
The Secret Life of Pets
Universal
29,557,247__________________________________________________________________________________________________		
TOTAL$347,592,748__________________________________________________________________________________________________

Australian films

Australian films took $24m at the box office in 2016 with Mel Gibson’s Hacksaw Ridge booking $8.60m in Australia,
over $200m globally, dominating the AFI/AACTA awards and gathering momentum for international awards in 2017.
Red Dog: True Blue accrued $1.59m from Boxing Day to NY’s eve and has now reached over $6.7m.
The Dressmaker continued its 2015 success, making $1.72m in 2016 for a CUME of $20.28m. 2017 promises aneventful year for local films, kicking off with Lion taking over $5m - the 5th biggest opening weekend for an Australianfilm. 609 films were released in 2016 on the 2,121 screens around Australia – compared to 542 films released in 2015.
The films originated in 43 countries – again an increase from the 38 countries in 2015 – with Indian films making up
122 of the releases.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201688

Theatrical Film Industry:
2016 Box Office
Drama dominates the list of the most released genre, followed by comedy and then action films. And M-rated films
make up the largest percentage of the 609 released films (42%), followed by MA (18%), PG (17%), with R and G films
being 2% of all releases each.
In mid-2016, the MPDAA members commissioned some consumer research through SARA (Screen Audience
Research Australia) to help develop our insight and create new opportunities. 1This ground breaking cinema study
showed that 84% of Australians go to the cinema – many of them at least once a week. 60% are more likely to watch
a movie at the cinema than in any other way aside from free to air television.
Understanding Usage, Behaviours, Triggers and Barriers1
15%

40%

7%

Cinema Rejectors - Claim to never go to the cinema
14%

Frequent Cinema goers - Go to the cinema fortnightly or more
One a month attenders - Go to the cnema monthly

24%

Frequent Viewers - Go to the cinema roughly a few times to multiple times a year
Sporadic Attendees - Go to the cinema once a year or less1

  Cinema Market Landscape U&A – Understanding Usage, Behaviours, Triggers and Barriers to help boost cinema attendance in Australia – Screen
Audience Research Australia (May 2016)

The research will promote a better understanding of why audiences may not be coming to cinemas and what they likeor don’t like about the cinema experience.  In response to the findings, exhibition & distribution can partner to create
campaigns, promotions & communication that drive increased visitation. The aim is to update the research each year
to understand trends & changes in the cinema business.
Converting audiences up the frequency scale
Penetration is already near saturation point.
All entertainment gains from driving up thefrequency scale of infrequent attendees
Once a monthattendees
Infrequentviewers

Sporadic
attendees
Cinemarejectors• Range• Convenience• Value for money

Frequent Cinema
Goers• Value for money• Comfort• Access new classes• Watch with friends• Quality of content• Immersive experience• Picture quality
24%• Escape into another world

Cinema less likely to bea feasible option - i.e.
doesn’t fit with budget/
isn’t close by

40%

15%

14%
Frequent

7%
Monthly InfrequentSporadic

Never

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201689

Theatrical Film Industry:
2016 Box Office
Although confirming what we know already, this chart clearly shows us where our audience efforts should be focused.
Penetration is already near saturation point in Australia – we really do love the movies.
We want the “infrequents” to go more often. The key to this is that now we have a lot of data about these groups ofpeople so we understand who they are, what they watch, where they go for a night out, what they watch at home. It’s
great stuff and can better sculpt our thoughts on our competitive set, how & where we reach them.
The research also told us that consumers want more comfortable cinemas and are willing to pay for that. There is alsoa perceived lack of choice in cinemas with respondents saying they can’t always find movies that are “for them”.
Audiences see cinema as a night out or a special occasion, but are willing to go more often for the right movie andpromotional offer. It often comes down to the perceived value of the experience.
While Home Entertainment products are perceived as a “comfortable way to watch”, the cinema is uniquely positioned
around special occasion, immersion and escape. Piracy has stolen some positioning in terms of access to newreleases and is now considered to be “a great way to get access to brand new releases”.
The picture quality is excellent

Pay TVGreat to watch with familyDVD’s/ Blu-Rays

Comfortable
Has high quality
Allows me to escapewaytoprograms
or movies
I’m in control of mySVOD
into another world
watch
surroundings
Catch up TV
Great to watch with friends
Very convenient way
Great range
to watch somethingof things to watch
Buying or renting movies
Good value
or TV shows online
for money

NOTE: The cross (origin) is the
key point. The further out
from the cross a channel sits,
the more differentiated its
positioning from competitors

Unauthorised
downloads/pirated
copiesGreat for a special
Cinema occassion
A totally immersive
experience

A great way to get
access to brand new releases

Marketing has been a key factor in driving cinema attendance.  Distributors have managed to attract incredible talent
to Australia, providing films with a great profile. The MPDAA members alone spend over $120m above the line, which
creates a lot of noise and excitement for our films.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201690

Theatrical Film Industry:
2016 Box OfficeBeautiful & diverse locations and excellent facilities make Australia a globally popular production location. From
home grown shows to China and Hollywood, production in Australia creates local jobs, attracts local talent and gives
Australia a global voice & profile as talent and film makers share information through their social communities.
The year’s diverse line up has proven to be much stronger than any previous year and demonstrates that cinema
continues to provide a great value out of home experience for a broad audience, even in the face of ever-increasing
choices of leisure options.
However, there are still a number of challenges to be faced, including the continuing battle with copyright theft whicheats at the heart of the creative community. We will continue to work with Government, other industry sectors andlegislative authorities in 2017 and beyond, to ensure the future of the cinema experience.
Australian audiences confirmed their love of cinema in 2016 and the first week of January 2017 recorded the highest
ever weekly box office. As cinemas improve technology, seating and booking options and distributors signal an
extraordinary range of great films, 2017 promises to be another great year at the movies!

Jo Bladen
Chair, MPDAA
And
General Manager – Studios,
Australia & New Zealand,
The Walt Disney Company (Australia)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201691

Market overview

2016
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AHEDA members directory
AHEDA

MADMAN ENTERTAINMENT PTY LTD

Level 33, Australia Square,

Building 1, Level 1,

264 George Street,

21-31 Goodwood Street

Sydney NSW 2000

Richmond VIC 3121

Tel:

Tel:

(02) 9258 1971(03) 9261 9200

Fax: (02) 9258 1111

Fax: (03) 9261 9211

Chief Executive:  .  .  .  .  .  .  .  .  .  .  .  . Simon Bushwww.madman.com.au
Joint Managing Director Australia

DEFIANT SCREEN ENTERTAINMENTNew Zealand:  .  .  .  .  .  .  .  .  .  .  .  .  .  Paul Wiegard

Suite 1001,

Director of Sales:  .  .  .  .  .  .  .  .  .  .  Elizabeth Allen

4 Daydream Street

Director of PR & Marketing:  .  .  .  .  Lee-Ann Woon

Warriewood NSW 2102

Director of Operations:  .  .  .  .  .  .  .  Andrew Spittle

Tel:(02) 9997 3936

PARAMOUNT HOME MEDIA
INTERNATIONAL; APAC

Fax: (02) 9997 3938
http://www.defiant-ent.com/
Managing Director:  .  .  .  .  .  .  .  .  .  .  Marilyn Greig

Level 1, 65 Pirrama Road

Marketing Director:  .  .  .  .  .  .  .  .  .  . Justine Butler

PYRMONT NSW 2009

Sales Director:  .  .  .  .  .  .  .  .  .  Michelle GodmaireTel:(02) 9265 0200

Executive Director Digital, Marketing,Operations Director:  .  .  .  .  .  .  .  .  .  . Geoff Doyle
Finance Director:  .  .  .  .  .  .  .  .  .  .  .  Glenn Casey

APAC  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Richard Clarkson

ENTERTAINMENT ONE FILMS
AUSTRALIA PTY LTD

Australia & New Zealand .  .  .  .  .Carolyn Johnston

Director, Regional Television Sales,
Manager Digital, Marketing, APAC .  .  .  .  Sue Kang

28-30 Queen Street,
Chippendale NSW 2008

ROADSHOW ENTERTAINMENT

Tel:

Level 4 235 Pyrmont Street,(02) 8303 3800

Fax: (02) 9690 1433

Pyrmont NSW 2009http://au.eonefilms.com/home

Tel:Managing Director:  .  .  .  .  .  .  .  .  .  .  .  .  Troy Lum

Fax: (02) 9552 2510

SVP Home Entertainment:  .  .  .  .  .  .  .Jo Mandatis

www.roadshow.com.au

SVP Digital:  .  .  .  .  .  .  .  .  .  .  .  .  .  .Louise Balletti

CEO:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Chris Chard

Head of Marketing –Group Sales Director:  .  .  .  .  .  .  .  .  . Brandon Hill

Home Entertainment:  .  .  .  .  .  .  .  .  .  .  .  . Liz HallGroup Marketing Director:  .  .  .  .  Nicola Craddock(02) 95528600

General Manager Reel Dist:  .  .  .  .  .  . Karl Wissler

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
93

AHEDA members directory
STUDIOCANAL AUSTRALIA
Level 50, 680 George St

WALT DISNEY COMPANY(AUSTRALIA) PTY LTDSYDNEY NSW 2000

Melbourne Office:Tel: (02) 8353 2100

Level 5, The Como Centre,

studiocanal.com.au/

650 Chapel Street

CEO Australia & New Zealand:  . Elizabeth Trotman

South Yarra VIC 3141

Head of Home Entertainment ANZ .  Graeme Rogan

Tel:

Fax: (03) 9826 0824

TWENTIETH CENTURY FOX
HOME ENTERTAINMENT

Sydney Office:Level 3, Frank Hurley Grandstand,

Level 3, 68 York Street

Fox Studios Australia,

SYDNEY NSW 2000

38 Driver Ave,

Tel:

Moore Park NSW 2021

(02) 8622 8444

www.disney.com.au

Tel: (02) 8353 2100

Senior Vice President andwww.foxmovies.com.au

Managing Director

Senior Vice President,

Australia & New Zealand:  . Kylie Watson-Wheeler

Australia & Japan:  .  .  .  .  .  .  .  .  .  .  . Flavio Paoli

GM of Consumer Sales

Director of Operationsand Licensing:  .  .  .  .  .  .  .  .  .  . Meagan Sanders

Australia:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  Peter McKeon

GM of Studios:  .  .  .  .  .  .  .  .  .  .  .  .  .  . Jo Bladen

Director of Sales Australia: .  .  .  .  .  .  Kerry Morelli
Director of Marketing
Australia:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

(03) 9832 6000

Associate members
FOXTEL

Claire Bryant

Vice President, Finance,

Angus Pitt

Asia Pacific: .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Mats Weisswww.foxtel.com.au

SONY DADCUNIVERSAL SONY PICTURES HOME
ENTERTAINMENT (AUSTRALIA) PTY LTD

Steve Voorma

Level 30, 1 Market Street,

TECHNICOLOR

www.sonydadc.com

Sydney NSW 2000
Tel:

Iain Fynes-Clinton(02) 9266 2800

www.technicolor.com.au

www.facebook.com/TheViewingLounge

TELSTRAManaging Director:  .  .  .  .  .  .  .  .  .  .Jim Batchelor

Moira Hogan

Operations Director:  .  .  .  .  .  .  .  .  Kate Bradbury

www.telstra.com.au

Sales Director:  .  .  .  .  .  .  .  .  .  .  .  Paul Courtney
Marketing Director:  .  .  .  .  .  .  .  . Cindy McCulloch

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201694

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201695

Appendix
Children’s
Sales of Children’s titles (titles aimed at children, with a running time under 60 minutes and not released theatrically)
experienced a year-on-year decline of 17% on 2015.
Paramount’s ‘Paw Patrol’ licence was the top selling Children’s license of the year. Paw Patrol is a relatively new
license, with its first release in 2015. The top 7 Children’s titles sold in 2016 were from the Paw Patrol license.
It is likely that the rising availability of this content in the digital arena is having an impact on the Children’s category.
New streaming services have children’s content included in their libraries, as does the popular video sharing service,
YouTube.
GfK Retail Tracking: Top 10 selling licenses, Children’s, 2016, ranked by volume

LICENSE
DISTRIBUTOR_________________________________________________________________________
Paw Patrol

Paramount

Lego

Universal

Wiggles

Roadshow

Peppa Pig

20th Century Fox

Disney Mickey Mouse

Walt Disney Studios

Teenage Mutant Ninja Turtles

Paramount

Scooby Doo

Roadshow

PokemonBeyond Home Entertainment

Thomas & Friends

Roadshow

Dora The Explorer
Paramount_________________________________________________________________________

Categories: Other Direct to Video‘Other’ titles in the disc market include genres such as documentaries, music, anime and sport titles.
Combined, these genres accounted for 10% of the market value in 2016, a slight dip on previous years. Direct to Video
movies is one area that has contributed to the drop in share in 2016. Like Catalogue movies, DTV movies are impacted
by a lower drafting rate, as well as greater availability of these titles on digital services.
Sales for documentary titles contributed nearly $16M in value in 2016. Although that was a decline on 2016, the top
selling documentary title, Sony Pictures’ ‘Beatles: 8 Days a Week the Touring Years’ sold nearly twice as much as thelargest title of 2015; Madman’s ‘That Sugar Film’.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201696

Appendix
GfK Retail Tracking: Top selling Documentaries, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR____________________________________________________________________
1

The Beatles 8 Days A Week Touring Years

Sony Pictures

2

I Am Bolt

Universal

3

That Sugar Film

Madman Ent.

4

All the Kings Horses Bart Cummings Story

Universal

5Life Story

Roadshow

6

Great Barrier Reef David AttenboroughRoadshow7

The Hunt (2015)

Roadshow8

Cosmos a Spacetime Odyssey Season 1

20th Century Fox

9Ronaldo (2015)

Universal

10
Richie McCaw Chasing Great
Sony Pictures____________________________________________________________________
Within Music titles, which consist of actual music performances, rather than music documentaries, Katy Perry’s
Prismatic world tour was the top seller:
GfK Retail Tracking: Top selling Music titles, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1

Katy Perry The Prismatic World Tour Live

Universal Music

Dance

2

Roger Waters The Wall

Universal

Rock & Metal

3

Celtic Thunder Legacy Vol 2

SBME

Classical

4

Daft Punk Unchained

Universal

Rock & Metal

5

Miss Saigon

Universal

Classical

6

Australian Made Various Artists

Aztec

Rock & Metal

7

Andrew Lloyd Webber Live Collection

Universal

Classical

8

Cliff Richard 75th Bday Royal Albert Hall

Madman Ent.

Country9

Two Strong Hearts Live in Concert

SBME

Rock & Metal

10
Mirusia This Time Tomorrow
Universal MusicClassical____________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201697

Appendix
For Anime, Madman Entertainment titles dominate and accounted for all of the top 10 sellers.
GfK Retail Tracking: Top selling Anime titles, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR____________________________________________________________________
1

Evangelion 3.33 You Can (Not) Redo

Madman Ent.

2

My Neighbor Totoro

Madman Ent.

3

The Boy And The Beast

Madman Ent.

4

Howls Moving Castle

Madman Ent.

5

Sword Art Online 2 Part 3

Madman Ent.

6

Sword Art Online 2 Part 4

Madman Ent.

7

When Marnie Was There

Madman Ent.

8

Tokyo Ghoul Season 1

Madman Ent.

9

Tokyo Ghoul Va Season 2

Madman Ent.

10
Princess Mononoke
Madman Ent.
____________________________________________________________________
And finally, within the Sport, Health and Fitness genres, Universal’s ‘Zumba Fitness’ danced its way to the top:
GfK Retail Tracking: Top selling Sport and Health and Fitness titles, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1

Zumba Fitness

Universal

Health & Fit

2Charlotte Crosbys 3 Minute Belly Blitz

Universal

Health & Fit

3

Afl Premiers 2016 Western Bulldogs

BeyondSport

4

Wwe Wrestlemania 32

Madman Ent.

Sport

5

Charlottes 3 Minute Bum Blitz

Universal

Health & Fit

6

NBA Ultimate Jordan

BeyondSport

7

WWE Royal Rumble 2016

Madman Ent.

Sport

8

Ford in Racing Glory Years

BeyondSport

9

NRL Premiers 2016 Cronulla Sharks

BeyondSport

10
Legends of Bathurst
BeyondSport____________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201698

Appendix
Top Seller Charts by Film GenreGfK Retail Tracking: Top selling Action titles, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Deadpool20th Century Fox
Action2James Bond Spectre
20th Century Fox
Action3
Batman V Superman Dawn of JusticeRoadshow
Action4
Hunger Games Mockingjay Part 2
Roadshow
Action5
Suicide Squad
Roadshow
Action6
Jason Bourne
Universal
Action7
X-Men Apocalypse
20th Century Fox
Action8
Mad Max Fury Road
Roadshow
Action9
Creed (2015)
Roadshow
Action10
The Last Witch Hunter
20th Century Fox
Action____________________________________________________________________________________
GfK Retail Tracking: Top selling Adventure titles, Full Year 2016, ranked by volume

RANK
TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Captain America Civil War
Walt Disney Studios
Adventure
2
The Jungle Book (2016)
Walt Disney Studios
Adventure3
Goosebumps (2015)
Roadshow
Adventure
4
The Huntsman Winters War
Universal
Adventure
5
The BFG (2016)
Walt Disney Studios
Adventure
6
Jurassic World
Universal
Adventure
7
Legend of Tarzan
Roadshow
Adventure8
Pan (2015)
Roadshow
Adventure
9
Maze Runner The Scorch Trials
20th Century Fox
Adventure
10
Gods
of
Egypt
20th
CenturyFox
Adventure____________________________________________________________________________________
GfK Retail Tracking: Top Selling Animated titles, Full Year 2016, ranked by volume

RANK
TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Zootopia
Walt Disney Studios
Animated
2
The Secret Life of Pets
Universal
Animated3
Finding Dory
Walt Disney Studios
Animated
4
The Good Dinosaur
Walt Disney Studios
Animated
5
Hotel Transylvania 2Sony Pictures
Animated
6
Inside Out (2015)
Walt Disney Studios
Animated
7
Kung Fu Panda 3
20th Century Fox
Animated
8
Ice Age 5 Collision Course
20th Century Fox
Animated
9
Frozen (2013)
Walt Disney Studios
Animated
10
Snoopy Charlie Brown Peanuts Movie
20th Century Fox
Animated____________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201699

Appendix
GfK Retail Tracking: Top Selling Comedy titles, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Bridget Jones Baby
Universal
Comedy2
Daddys Home (2015)
Paramount
Comedy3
My Big Fat Greek Wedding 2
Universal
Comedy4Ghostbusters (2016)
Sony Pictures
Comedy5Central Intelligence
Universal
Comedy6
Sisters (2015)
Universal
Comedy7
The Intern (2015)
RoadshowComedy8
How to be Single
RoadshowComedy9
Bad Moms
RoadshowComedy10
SausageParty
Sony
Pictures
Comedy____________________________________________________________________________________
GfK Retail Tracking: Top Selling Drama titles, Full Year 2016, ranked by volume

RANK
TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
The Dressmaker
Universal
Drama
2
The Revenant (2015)
20th Century Fox
Drama
3
Straight Outta Compton
Universal
Drama
4
The Lady in the Van
Sony Pictures
Drama
5
Last Cab to Darwin
Icon Film Distribution Drama
6
Bridge of Spies
20th Century Fox
Drama
7
Me Before You
RoadshowDrama
8
Everest (2015)
Universal
Drama
9
The Longest Ride
20th Century Fox
Drama
10
Sully (2016)
RoadshowDrama____________________________________________________________________________________
GfK Retail Tracking: Top Selling Sci-Fi titles, Full Year 2016, ranked by volume

RANK
TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Star Wars Episode VII Force Awakens
Walt Disney Studios
Sci-Fi
2
The Martian
20th Century Fox
Sci-Fi3
Independence Day Resurgence
20th Century Fox
Sci-Fi4Star Trek Beyond
Paramount
Sci-Fi5
Warcraft the Beginning
Universal
Sci-Fi6
Star Wars Episodes IV/ V/ VI
20th Century Fox
Sci-Fi7
Independence Day
20th Century Fox
Sci-Fi
8
Star Wars Prequel Episodes I/II/III
20th Century Fox
Sci-Fi9Interstellar
Roadshow
Sci-Fi10
Ex Machina
Universal
Sci-Fi____________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016100

Appendix
GfK Retail Tracking: Top Selling titles – All other genres combined, Full Year 2016, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE____________________________________________________________________________________
1
Oddball (2015)
Roadshow
Family2
The Hateful EightRoadshowThriller
3
London has Fallen
RoadshowThriller
4
Alvin and the Chipmunks 4 Road Chip
20th Century Fox
Family5
Now You See Me 2
20th Century Fox
Thriller
6
Alice Through the Looking Glass (2016)
Walt Disney Studios
Family7
Paddington Movie
Sony Pictures
Family8
The Conjuring 2
Roadshow
Horror
9
Money Monster
Sony Pictures
Thriller
10
Taken
3
20th
Century
Fox
Thriller____________________________________________________________________________________The best of all time: Life-to-Date Sales
Since the launch of GfK reporting in August 1997, Fox’s ‘Avatar’ continues to top the charts as the top selling physicaldisc of all time.
The big New Release title in 2016 was Disney’s ‘Star Wars VII: Force Awakens’. This was the 14th highest selling New
Release title of all time, despite the overall decline in the physical market and the growing share of digital. This is thefirst release since Disney’s ‘Frozen’ to crack the top 15.
GfK Retail Tracking: Top selling titles Theatrical New Release (0-13 Weeks), Life to Date, ranked by volume

RANK MODEL
DISTRIBUTORRELEASE DATE____________________________________________________________________________________
1
Avatar (2009)
20th Century Fox
29/04/2010
2
Finding Nemo
Walt Disney Studios
13/01/2004
3
Red Dog
Roadshow
1/12/20114
Lotr Fellowship of the Ring
Roadshow
6/08/2002
5
Harry Potter & Philosophers Stone
Warner Bros
28/05/2002
6
Shrek
Universal
7/11/2001
7
Frozen (2013)
Walt Disney Studios
30/04/2014
8
Shrek 2
Universal
3/11/2004
9
Harry Potter & Chamber of Secrets
Warner Bros
11/04/2003
10
Toy Story 3
Walt Disney Studios
17/11/201011
Lord Of The Rings Two Towers
Roadshow
23/08/2003
12
Mamma Mia
Universal
6/11/200813
Batman The Dark Knight
Warner Bros
10/12/2008
14
Star Wars Episode VII Force Awakens
Walt Disney Studios
13/04/2016
15
Twilight
Saga
New
Moon
Sony
Pictures14/04/2010____________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016101

Appendix
GfK Retail Tracking: Top selling titles, Life to Date, ranked by volume

RANK MODEL
DISTRIBUTORRELEASE DATE____________________________________________________________________________________
1
Finding Nemo
Walt Disney Studios
13/01/2004
2
Avatar (2009)
20th Century Fox
29/04/2010
3
Harry Potter & Philosophers Stone
Warner Bros
28/05/2002
4
Shrek
Universal
7/11/2001
5
Monsters Inc
Walt Disney Studios
30/09/2002
6
LOTR Fellowship ofthe Ring
Roadshow
6/08/2002
7
Harry Potter & Chamber of Secrets
Warner Bros
11/04/2003
8
Titanic
20th Century Fox
30/09/1998
9
Lord Of The Rings Two Towers
Roadshow
23/08/2003
10
Ice
Age
20th
CenturyFox
16/10/2002____________________________________________________________________________________
GfK Retail Tracking: Top selling DVD titles, Life to Date, ranked by volume

RANK MODEL
DISTRIBUTORRELEASE DATE____________________________________________________________________________________
1
Finding Nemo
Walt Disney Studios
13/01/2004
2
Avatar (2009)
20th Century Fox
29/04/2010
3
Harry Potter & Philosophers Stone
Warner Bros
28/05/2002
4
Shrek
Universal
7/11/2001
5
Monsters Inc
Walt Disney Studios
30/09/2002
6
LOTR Fellowship of the Ring
Roadshow
6/08/2002
7
Harry Potter & Chamber of Secrets
Warner Bros
11/04/2003
8
Titanic
20th Century Fox
30/09/1998
9
Lord Of The Rings Two Towers
Roadshow
23/08/2003
10
Ice Age`20th Century Fox
16/10/2002____________________________________________________________________________________		
GfK Retail Tracking: Top selling DVD titles, Life to Date, ranked by volume

RANK MODEL
DISTRIBUTORRELEASE DATE____________________________________________________________________________________
1
Finding Nemo
Walt Disney Studios
13/01/2004
2
Avatar (2009)
20th Century Fox
29/04/2010
3
LOTR Two Towers
Roadshow
23/08/2003
4
LOTR Return of the King
Roadshow
25/05/2004
5
Monsters Inc
Walt Disney Studios
30/09/2002
6
Cars
Walt Disney Studios
25/10/2006
7
LOTR Fellowship of the Ring
Roadshow
6/08/2002
8
Harry Potter & Chamber of Secrets
Warner Bros
11/04/2003
9
Frozen (2013)
Walt Disney Studios
30/04/2014
10
Harry Potter & Prisoner of Azkaban
Warner Bros
1/12/2004____________________________________________________________________________________		

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016102

Appendix
GfK Retail Tracking: Top selling Blu-ray titles, Life to Date, ranked by volume

RANK MODEL
DISTRIBUTORRELEASE DATE____________________________________________________________________________________
1

Avatar (2009)

20th Century Fox

29/04/2010

2

Hobbit an Unexpected Journey

Warner Bros

1/05/2013

3

Marvel The Avengers

Walt Disney Studios

29/08/2012

4

Star Wars Episode VII Force Awakens

Walt Disney Studios

13/04/2016

5

Star Wars Episode I-VI

20th Century Fox

14/09/2011

6

Inception

Warner Bros

8/12/20107

Batman The Dark Knight Rises

Warner Bros

28/11/2012

8

Hobbit The Desolation of Smaug

Warner Bros

16/04/2014

9Transformers Dark of the Moon

Paramount

10/11/201110
Batman The Dark Knight
Warner Bros
10/12/2008____________________________________________________________________________________		

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AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016103

In 2016 our new release
conversions (from cinema
to home entertainment)
have increased by 6%
year-on-year. I think thatindicates that new is as
relevant as ever

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2016
104