2017

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 2017

17-41

4

Video Entertainment Australia: Physical Retail Market

43-56

5

Consumer Behaviour

59-73

6

Devices and Emerging Viewing Patterns

75-81

7

Creative Content

83-87

8

Theatrical Film Industry: 2017 Box Office

89-91

9

AHEDA Members Directory

93-94

Appendix:2017 DVD & Blu-ray Sales Charts

Chapterby Category and Best of all Time

97-104

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20171

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20172

Introduction

where a new site would pop up as soon as you block one
and it would have no material impact on film piracy – I am
pleased to say those people were wrong. Through court
orders, hundreds of sites and their proxies have been
shut down and so it is becoming harder and harder to findthe easy piracy sites of choice.

2017 was a year of action and tremendous success for
AHEDA and the wider industry.
Without any overstatement, it would not be wrong tosay 2017 has been one of the most successful years our
sector has had in terms of stakeholder engagement andinfluence, especially at the government level with 2018
shaping up to be just as strong.

The good news is that of the major piracy web sites
blocked in 2017, usage to those sites has dropped 54%
versus the pre-block period and by 25% overall. This is atremendous result and shows it works.

Let us start with the major successes of 2017:• Re-structuring AHEDA to an active Committee		 system aimed at growing and sustaining our		 category (see below);• Industry successfully leading site blocking cases
		 - blocking over 50 of Australia’s top piracy websites;• Reducing piracy by over 25%;
• Supporting the execution of two consumer
		 facing anti-piracy campaigns through Creative		 Content Australia; and• Successfully arguing the case to government
		 against expanding safe harbours to search
		 another online intermediaries.

However, whilst this is a fantastic result and attributabledirectly to these blocks, some sites partly managed toevade these blocks through use of proxies, redirects andmirrors. The good news is the courts allow for variationsof orders to block these new domains and this is what isbeing done right now.
There is a government review that has started this year
looking into the effectiveness of site blocking legislationand practices and how it can be improved. This presents
an opportunity for further refinement.

Site blocking works - piracy down!

One area we will make clear is the role of search and theauto-complete function that makes it easier for people
to access pirated material and get around blocks or findother piracy websites.

The data is in and it looks good. Despite naysayers sayingthat site blocking (or in legal speak injunctive relief)
wouldn’t work and it would be like playing whack-a-mole

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20173

Introduction
Copyright Reform

2018 has already seen the launch of another campaign(“say no to piracy”) based on the impact that film piracy
has on the large number of Australian’s who rely on film
and TV making for a living which is under threat.

The Federal Government has been keeping us very busy
and will continue to do so in 2018 with numerous reviews
promised.
2017 saw the following reviews:• Disability access exceptions which we supported
		 and passed through parliament. Removed safe
		 harbour expansion from this legislation;• Safe harbour expansion review;• Copyright regulations review; and• Copyright regulations TPM review.
2018 has already kicked off with the first three reviews
underway:• Safe harbour reforms (Senate Committee Review
		 into legislation);• Collecting societies review;• Online infringement review (site blocking laws);
		and• Flexible exceptions, contracting out and orphan
		 works (called the “Copyright Modernisation”
		 review). This looks yet again at issues around		 further exceptions, fair dealing and fair use.
There is also the ACCC review into online advertisingand the impact of Facebook and Google as well as therecommendations from last year’s review into Australianfilm and TV content quotas and whether they should also
apply online will be known this year.

These campaigns whilst aimed at the consumer andpublic, also serve an important dual purpose of telling ourgovernments and legislators that the film and TV sector isimportant and worth fighting for. We believe the message
is being heard in Canberra and our lobbying successagainst the big tech companies’ clout and money istestament to that.

AHEDA Committees - driving theagendaAHEDA decided to re-focus, re-energize, re-structure
and re-commit in 2017 and 2018 by creating an effective
committee system to deliver on our core association
goals and objectives.
As such we have formally constituted four core
Committees each lead by a Board member who drives
the meeting agenda and reports back at each board
meeting as to progress. The work these Committees hasdone already has been outstanding.
The Committees are:
1. CSR Committee – focused on our Starlightcommitment
2. Category Growth and Profile Committee – focusedon driving growth in physical and digital businesses
through collective campaigns and actions
3. Insights Committee – focused on access to quality
data insights and measurements of our sector
4. Operations Committee – driving cost out of the
supply chain through collective and approved
actions.

Creative Content Australia
Creative Content Australia went from strength tostrength last year with Village Roadshow’s Graham Burke
becoming its Chair. Graham’s passion for our industry iswell known and his enthusiasm and leadership through
CCA has seen the creation of two consumer campaigns
in under a year. The Brian Brown Price of Piracy campaign
was supported on free to air and subscription TV aswell as in cinema and on DVD. Its release deliberately
coincided with the first wave of site blocks.

Simon Bush
CEO, AHEDA

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20174

2017 has been one of themost successful years
our sector has had interms of stakeholder
engagement andinfluence

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017

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Managing Director’s Insight
Digital arrives: A new chapter forhome video

flatter performance). Factoring in that the NBN rollout is
yet to reach the half-way mark, the growth story for digital
looks even more promising.

Australians have long been recognised as being among
the biggest consumers of video entertainment content

This is perhaps what’s behind a growing perception

per capita than just about anyone in the world. However,across the Australian home entertainment sector that

this year their fondness for technology pushed themore could be done to drive increased revenue fromdomestic video entertainment market past a new

digital EST and VoD movie sales.

milestone.
There is no suggestion that physical video entertainment
In 2017 Australian consumers spent more on digitalchannels have vastly underperformed against

video entertainment than physical for the first time.

expectations. Overall, the Australian video entertainment

Total spending on digital video entertainment across all

market delivered a solid performance in 2017 to reachplatforms, regardless of whether it was a subscription$947 million as 78 million titles were rented or purchased

service, rented or downloaded to own reached $1.2

either physically or digitally, and packaged content stillbillion. The total market, including physical, is now on aaccounts for 71% of revenue.

trajectory to reach $3.7 billion by 2021.
There was also a broad consensus that many categories
The importance of the milestone can’t be understated;and segments had performed stronger than expected.

consumers have sent a clear signal that they’re willing to

TV series remained the largest category in 2017 but lost

move more digital content to the centre of their personal

some overall value as the number of seasons of Game ofhome entertainment experience — and that they’reThrones released during the period fell from two to one.

willing to pay for it rather than steal it.

Box office conversions remained strong and the declineof catalogue started to slow as older franchise titles start

Furthermore, Australian consumers are rising up theexperiencing the promotional benefits from the release

global ranks of those most willing to rent and buy digitalof their newer descendants.

video content. In 2017, they generated more digitalrental and retail transactions on a per-capita basis than

However, there was also an acknowledgement that theconsumers in the US and the five major European market

growing amount of original SVOD TV content becoming

territories at 2.1 per person; the next highest were UK

available was continuing to place pressure on TV in the

consumers at 1.8.

digital space and that could be more could be done togive digital a boost.

In fact, according to IHS Markit analysis of AHEDA’s

The new new hopemember data, Australia’s combined digital transactional
movie and TV market grew 6.6% to reach $281 million in

One particular area is starting to stand out for scrutiny

2017 (although some alternate analysis suggests slightly

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20177

Managing Director’s Insightand it has prompted local home entertainmentthat is prompting conjecture around whether the studios

distributors to lean into a global discussion around

could benefit from more flexible attitudes toward timing

whether another adjustment to the theatrical release

theatrical and electronic home entertainment release

could help bolster the industry’s fortunes.

windows.

Last year we mentioned that the strong pipeline ofStudios have shown a willingness to experiment withblockbuster new movie release titles poised to enter thetheatrical release windows but discussions aroundhome entertainment window in 2017 were carrying morewholesale changes to windows have long been among

than their share of the industry’s hopes for the year. As

the entertainment industry’s most sensitive. To date,industry executives commented at the time, new releasenegotiations have reduced the timing between theatricalmovie titles were expected be more resilient as the onlyand downstream release from about five months to aplace consumers could access them fresh from thecurrent average minimum of around 90 days. As a highcinema was in a physical or digital format in the homemargin category that could deliver strong returns fromentertainment window; subscription was all about older

modest improvements in conversion rates, some argue

movie catalogue content.

that movie EST is overdue for a more favourable place inthe release cycle.

Those hopes turned out not to be misplaced with
the new release category continuing a ten-year“At the moment physical is steady — the decline is slow

run of increasing value share in 2017, helping theand digital transactional is increasing. If that theatricalindustry achieve a solid result in a challenging market

window shifts — perhaps for a premium VoD price —environment.

then that business becomes a much bigger business.
There’s still no confirmation of this actually happening

As one industry executive commented: “New releases

but you’d think that, if and when that happened, that

continue to be really important in that first window after

would really start to drive digital transactional to muchtheatrical (release) for movie product and the pressure

bigger numbers — particularly if it’s in sync with ongoing

continues to be on TV. That’s because consumers tend tolegislation inhibiting piracy,” one industry executive

continue to turn to SVOD to satisfy their desire to accessexplained.

TV and catalogue content. They seem to be the trends
that are becoming more pronounced in the business thisSome media reports suggest that the release windows

year”.

could come down from months to weeks, but the pricepoints involved in the discussion fluctuate wildly. There

Notably, in 2017 the new release EST movie category

has been speculation that shorter windows would leadachieved significant volume growth as 12.3% more titles

to better use of promotion and advertising resources.

were sold through electronic digital channels than in

Ultimately, it may come down to changes of studio

2016, and its value also grew by 11.3%. Coming from aownership in the US with a successful merger of Warnerhigh margin area of the business, it’s the sort of resultand AT&T being more favourable to the proposition

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20178

Managing Director’s Insight
while players in other potential mergers might be less

In 2017 the first green shoots of interest in the newer UHD

sympathetic.

format started to appear and BDs proved to be a brightspot on the physical home entertainment landscape. BD

In the meantime, the local home entertainment industry

took its highest ever share of disc revenue at 17% of total

has started making its own efforts to increase digitalmarket value.

transactional purchases and rentals. The strategy is
still in its early stages but could involve more consumer

In 2017 consumers purchased 5 million BDs to generate

education or better cooperation between distributors

sales of $109 million. The 7% year-on-year decline inand digital platform operators.

volume was much slower than for DVD, which was almost
double at 15%.

The aim is to make transacting digitally “habitual” rather
than “occasional”, said one industry executive. And it

Demand for BDs was strongest in entertainment

appears that the time for partisanship on the issue has

categories that have traditionally suited the higher quality

passed — there has never been more cooperative activity

format. In new release BD sci-fi titles, including Disney’son the sector’s part to develop the digital business, theStar Wars Rogue One and Guardians of the Galaxy Vol 2,

executive explained.

generated the highest volumes in sale. The format also
performed well in catalogue, staying in positive growth“We want to grow the digital transactional category four-

territory with a 22% share of sales driven by interest in

fold. That’s really a category job that can be done as antitles including the Lord of the Rings movie boxset andindustry but can’t be done by one studio or business

Planet Earth II.

alone. The message is that the consumption barriers
are known but that there are a lot of positive steps

The UHD format started to show its potential taking abeing taken to address some of them,” the executive

5% share of all Blu-ray volume selling 256,000 titles. The

said.

format also accounted for 7% of revenue generated in
the Blu-ray segment, however that was primarily due

If either strategy succeeds, then it could inject a new levelto a significant price premium for the format of $30

of vibrancy into Australia’s home entertainment industry

compared to $22 for standard BDs.

and put it on a trajectory for a new level of strong growth.
With close to 2 million 4K TVs sold since the launch

UHD & Blu-rayof the technology the UHD format’s ability to develop
consumer appeal has strong potential. However, with

While physical home video disc sales remain under

UHD’s hardware install base concentrated in high endpressure there is still evidence that consumers have an

game consoles (723,000) and only 33,000 dedicatedappetite for the high-quality viewing experience that Blu-players sold, for now its appeal is likely to be limited to beray (BD) and its successor, Ultra HD 4K Blu-ray (UHD),

among early technology adopters.

offer.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 20179

Managing Director’s Insight
Piracy: Breaking from bad

effective the regime would be. However, a year on it

Of all the world’s home entertainment markets,

effective if sometimes imperfect means to curb piracy.

has become clear that the injunctions are providing an

Australia’s is one that can genuinely claim to have seensome of the fiercest fighting in the battle against internet

Recent research commissioned by the entertainment

film and television piracy.

industry has found that between December 2016 when
the first set of blocks were imposed and November 2017

It’s not just because Australia has consistently foundwhen the last of the four major groups of injunctions

itself among the global rankings for the highest

commenced, usage of pirate promotion sites byconcentration of consumers willing to engage in large-

Australians dived 53.4%.

scale illegal downloading. Australia has also been a key
theatre of operations in legal efforts to curb online

Coupled with earlier release windows and the availability

piracy, persistently stretching judicial and governmentof legitimate content on numerous digital platforms,

resources for years if not decades.

we believe that the laws are an effective and clean
mechanism to stop access to the ‘front door’ of piracy by

For now, at least, there appears to be break in the clouds;

blocking the source. Of course, we need to stay vigilant

positive signs that the high drama and savage white-and keep up the blocking orders to ensure that as new

knuckle journey that the film industry has been goingsites pop up we can respond in a fast and effective way,”

through is finally starting to deliver tangible dividends.

said AHEDA Managing Director Simon Bush.

As we went to press last year, we noted that the federal

In February, the government commenced a review of thegovernment’s piracy web site blocking laws (passed inregime for its first 18 months of operation and, at the time

June 2015) were just starting to wind into action.

of writing, the home entertainment industry intended toreport that the scheme — while perhaps in need of a few
tweaks — is largely working as intended.

The laws allowing copyright holders to apply for court
injunctions directing ISPs to block web sites that
promoting piracy, either directly offering access to illegal“Areas for improvement include the time it takes forcontent or promote the peer-to-peer file sharing and theira decision to be handed down by the court (currently

mirrors and proxies.

many months) and the scope of the orders — we haveto go back to the court each time a mirror or proxy to

The judge’s ink had barely dried on the set of injunctions

the blocked sites pop up to ask for further orders foragainst 59 sites as 2017 was getting underway andthe ISP to block access. We believe we can achievethroughout the year secured further injunctions against

improvements to an already effective tool and continue

hundreds more sites.

to push down piracy levels in this country,” Mr Bush said.

As we commented at the time, it wasn’t clear how

In the meantime, take up of legitimate sources of digital

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201710

Managing Director’s Insightentertainment continues to grow rapidly and consumers

Acknowledgements

are finally starting to come around to the idea paying it for

The Australian Home Entertainment Distributors

is easier and better than pirating it. At the very least, theAssociation gratefully acknowledges the following

amount legal content that they’re consuming suggests

executives for contributing their time, wisdom andthat more of their screen time is being devoted to aexperience to the preparation of this report:socially constructive entertainment experience.

Jo Bladen - Managing Director,
The Walt Disney Company Australia

Of course, no sober commentary could claim that a war
on anything like piracy could have a beginning and an

Jim Batchelor - Managing Director,

end. However, the industry might finally be in a place to

Universal Sony Pictures Home Entertainment Australia

declare that a beginning to the end is in sight.
Chris Chard - Managing Director,
Roadshow Entertainment
Andrew Colley
Flavio Paoli - Managing Director,
Twentieth Century Fox Home Entertainment Australia
Paul Weigard - Founder and Managing Director,
Madman Entertainment

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201711

In 2017 Australianconsumers spent
more on digital video
entertainment thanphysical for the firsttime. Total spending
on digital video
entertainment
across all Platforms
reached $1.2 billion.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201712Market Overview
The AHEDA Yearbook has in-depth and specific chapters on the digital and physical home entertainment business. This
overview provides a snapshot and summary of the markets.

Digital Business
The Australian video market reached a significant milestone in 2017 as consumer spending on digital video overtook
spending on physical video for the first time. Australian consumer spending on digital video, whether via Pay TV Videoon-Demand (VoD), digital retail, digital rental or digital subscription, surged 55% to A$1.2 billion in 2017 compared with theprevious year. The combined digital transactional movie and TV market increased 6.6% to A$281 million - across the retailand 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 2011-2021
Source IHS © 2018 IHS

AUD Millions

3,500
3,000
2,500

Digital subscription

2,000

Digital rental

1,500

Digital retail

1,000

Pay TV VoD

500
0
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Australian consumer revenue from digital transactional video plateaued in 2017, up just 1.0% to A$205 million (consumer
spending minus Goods and Services Tax) compared with a year earlier according to IHS Markit analysis of member datafrom the Australian Home Entertainment Distributors Association (AHEDA). A decline in TV transactions and a switchfrom Movie rental to Movie retail underlies the result.
Digital retail, also known as ‘electronic sell-thru’ (EST), ‘download-to-own’ (DTO), and ‘digital sell through’, increased 2.6%
to A$94.9 million in 2017 compared with the previous year. Digital rental, also known as ‘Video-on-Demand (VoD) and‘Pay-Per-View (PPV)’, declined 0.3% to A$109.8 million over the same period.
Following steep growth in 2012-2016, the Australian combined digital transactional video market is expected to plateau ascompetition from digital subscription services, free-to-view TV and TV everywhere services offer viewers unprecedented
access to new and original content. The competitive advantage of featuring new release content that transactional digital
services used to enjoy is diminishing. OTT subscription services are increasingly producing original movie and TV content
to attract and retain subscribers.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201713

Market Overview
Australia: Consumer Revenue, 2011 - 2017
Source IHS © 2018 IHS

Consumer Revenue(AUD Millions)

250

200

Movie EST150

Movie VoD

100

TV ESTTV VoD

50
0

2011

2012

2013

2014

2015

2016

2017

Digital transactional video volume (VoD and EST) data from AHEDA members indicates that the number of movie and TV
transactions declined 2.2% to 29.4 million in 2017 compared with the previous year. Digital video transactions are paidfor non-physical retail and rental transactions of Movie and TV content. In terms of volume, Movies also dominate Digital
Transactions in Australia. In particular, Movie VoD transactions, which increased its share by one percentage point toaccount for 70% of digital transactions in 2016 compared with the previous year. Movie EST saw its importance increaseby 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.

Physical vs. DigitalVideo Entertainment continues to be a dominant market in Australia, with a rise in digital revenue and a resilient physicalmarket. In 2017, the Video Entertainment market generated $947 million, as 78 million units were rented or purchased
either physically or digitally. This marks Video Entertainment as the fifth largest category that GfK measures, across over
100 categories here in Australia.
This is not taking into account the growing revenue from streaming services such as Netflix or Stan. Through the GfKConsumerScope service, we have seen an uptick in consumption of these streaming services, with 39% of the Australian
population accessing these services in 2017 (up from 29% in 2016). Excluding the digital streaming services, physicalrental and purchase still generate the highest levels of volume and value, accounting for 54% of volume and 71% of value.
Digital is on the rise, however, and accounts for 46% of the total volume (excluding piracy) and over a quarter of all value in 2017.
Piracy levels have also dropped in 2017, helped by government initiatives and the rising availability of content through legalmeans. For more information on piracy and the growth of the digital streaming services please read the GfK chapter on
consumer digital trends. The physical disc retail market accounted for nearly half the volume of Video Entertainment andis still the largest value sector. The market has declined since its peak in 2009 as consumers have diversified the way they
watch their Video Entertainment content.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201714

Market Overview
GfK Retail Tracking: Physical Retail Market size

Total Value$1.50

Total Units

$1.00

$1.26
$0.94 $0.95$1.35 $1.39$1.06$1.24 $1.29$1.15 $1.09

$0.98

100
$0.90
$0.74

$0.71
$0.50

$0.50
$0.00

80
$0.63

60

Millions

Billions

Source IHS © 2018 IHS

40$0.22 $0.27

20
02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Blu-ray

Blu-ray continued to be a relative bright spot in the physical disc market, selling nearly 5 million discs for a value of $109
million. The 7% decline in Blu-ray volume was much lighter than DVD, which declined by 15%. Blu-ray also registered its
highest ever share in the market, with 17% of total market value now going through the Blu-ray format. The highest Blu-ray
value share was recorded in New Release movies, where Blu-ray contributes 28% of value. This was driven by titles suchas Disney’s Star Wars Rogue One and Guardians of the Galaxy Vol 2. From the GfK ConsumerScope service, one of the key
selling points for the Blu-ray format is bonus content. 24% of consumers with Blu-ray capable hardware say that bonus
features or special editions factored into their thinking when buying a discUltra HD 4K Blu-ray
265,000 Ultra HD 4K titles were sold in 2017 for a value of $7.8 million. This equates to 5% of Blu-ray volume and 7% ofvalue. The higher value share is due to a substantial price differential between a 4K title and a standard Blu-ray title, $30
and $22 respectively. Action movies generated twice the value share of the second biggest genre; Adventure. Althoughmore Theatrical Catalogue titles were released, 64% of value came from Theatrical New Release titles released in 2017.
Interestingly, the top selling 4K title was not a theatrical title, but TV Documentary Planet Earth II. Only one other televisionseries, Westworld Season 1, was released in 4K. 4K titles generated more value than 3D titles overall, $7.8 million compared
to $6.0 million for 3D. This is being impacted by a relatively low release rate of 3D titles in 2017. Only 32 new 3D titles werereleased in 2017, compared to 116 for 4K. By title, the average value generated for a 3D title released in 2017 was 2.5 times
that of 4K, $125,000 compared to just $51,000. The average price for 3D titles is 17% lower than 4K, at $25.
Sales for 4K discs are impacted by the availability of compatible hardware. Nearly 2 million 4K TVs have sold since thelaunch of 4K technology in Australia, meaning there is no lack of 4K capable screens. A potential barrier could be 4K
players, with only 33,000 dedicated 4K disc players sold so far. Adding in 4K gaming consoles, as well as dedicated playersthat can stream 4K content, the number of 4K capable players rises to 723,000. This equates to nearly ten 4K discs
purchased for every dedicated 4K player, or just under one and a half 4K discs if you include the gaming consoles capableof playing 4K discs.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201715

Video Entertainment
continues to be a dominantmarket in Australia, with arise in digital revenue
and a resilient physicalmarket show combined
valued at $947 million,
as 78 million units wererented or purchased either
physically or digitally.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201716

Australian Digital Video
Market in 2017
The Australian video market reached a significant milestone in 2017 as consumer spending on digital video overtook
spending on physical video for the first time. Australian consumer spending on digital video, whether via Pay TV Videoon-Demand (VoD), digital retail, digital rental or digital subscription, surged 55% to A$1.2 billion in 2017 compared with theprevious year.
Pay TV providers continue to show resilience but growth has plateaued as more people find their way to alternate formsof content consumption such as over-the-top (OTT) subscription services. The total number of Australian pay TV
subscribers remained at just under 3.6 million in 2017 compared with a year earlier as consumers continue to embrace theavailability of internet-connected devices to consume more programming online and on demand. OTT subscribers grew
53% to just under 6.7 million in 2017, generating a return of A$850 million according to IHS Markit.
The combined digital transactional movie and TV market increased 6.6% to A$281 million - across the retail and rental
business models. This reflects IHS Markit analysis of AHEDA member data, including Goods and Services Tax (GST) andgrossed up to reflect the total market.
Australia: Digital Video Spending 2011-2021
Source IHS © 2018 IHS Markit

AUD Millions

3,500
3,000
2,500

Digital subscription

2,000

Digital rental

1,500

Digital retail

1,000

Pay TV VoD

500
0
2011

2012

2013

2014

2015

2016

2017

Macroeconomic and Infrastructure Trends

2018

2019

2020

2021

Macroeconomic factors
Australia’s economic trend growth is among the strongest in the Organisation for Economic Co-operation andDevelopment (OECD) countries, underpinned by the country’s dynamic, well-diversified, and open economy. The
Australian economy grew in real terms by 2.3% to nearly US$1.4 trillion in 2017. Among other advanced economics,
Australia’s growth in 2017 was above Italy (1.5%), Japan (1.8%), UK (1.8%), France (1.9%) and the US (2.2%) and only trailed
Germany (2.5%) and Spain (3.1%). IHS Markit expects Australian GDP growth to increase 2.6% to almost US$1.5 trillion
in 2018 as the country actively pursues involvement in global and regional trade agreements. These agreements willcontinue to serve to reduce tariff barriers and boost integration into global supply chains.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201717

Australian Digital Video
Market in 2017
Australia’s growth trajectory will however depend on the stabilisation of emerging Asian economies and broader reform
efforts. Domestic reforms will need to focus on innovation and productivity whilst if emerging market reforms are
successfully implemented, it should ensure stronger demand for Australian commodity and potentially services exports.
Strong commodity prices in the early weeks of 2018 have strengthened the Australian dollar, but we expect a correction
in commodity prices and weaker inflation to unwind the appreciation. Annual average retail sales grew 2.2% in 2017, downfrom 2.6% in 2016 whilst continued weakness in wage growth and easing apartment/housing rental prices from newly
constructed stock coming online are expected to contain inflation.
The labour market continues to strengthen, but sluggish wage growth, alongside high household debt levels, will likely
continue to weigh on household consumption. Consumer spending will be focused on interest rate-sensitive purchases
ahead of potential rate hikes by the Reserve Bank of Australia (RBA) and commercial lenders in late 2018. The RBA’s
leading interest rate has been on hold at 1.5% since its August 2016 meeting, and IHS Markit expects the RBA to leave
interest rates on hold until a 25-basis-point rate hike in the fourth quarter of 2018 in response to consumer price inflation
edging toward the top of the bank’s 2-3% inflation target in the second half of 2018. Steadying the RBA’s hand could beout-of-cycle or larger rate hikes by the commercial lenders who are reigning in investor activity in the housing market in
response to rising risks and new rules from regulators.
Real GDP growth across countries (%)

GDP growth %Source: IHS Markit © 2018 IHS Markit

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

2016

2017

United States

The Governments financial year 2017/18 budget contained an unfavourable surprise for the country’s largest banks – a
6-basis-point levy on non-deposit liabilities. The move allows the Government to continue to throw its weight behind a 10year enterprise tax plan, which promises progressive reductions in the corporate tax rate during the next several years anda return to budget surplus without significant spending cuts.
The recent geopolitical uncertainty surrounding the United States and North Korea as well as continued political issues
within Australia could undermine spending plans and dampen business confidence, with rising interest rates and weak
wage inflation to make matters worse until conditions stabilise. As a result, investment activity is likely to remain subdued
in the short term.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201718

Australian Digital Video
Market in 2017
Australian real GDP per capita remains one of the highest in the world at US$61,400 in 2017, up from US$60,800 a year
earlier. This makes Australia a lucrative market for the consumption of digital video services compared with many othercountries. The average income per person, even in many other advanced economies, is significantly less at US$53,000 in
the US, US$48,300 in Japan, US$42,400 in the UK and US$32,600 in Spain.
Over the last 15 years, the population in Australia has increased by 1.49% on average per year (up 4.7 million people).
Australia’s population grew 1.3% to 24.5 million people in 2017. Australia’s population is significantly more urbanised than
the rest of the world. In 2017, the urbanisation rate stood at 90% in Australia while it reached 55% for the whole world. The
number of households in Australia reached 9.4 million over the same period.
Real GDP per capita across countries USD

GDP Per Capita USD

Source: IHS Markit © 2018 IHS Markit

70,000Australia

60,000France50,000Germany

40,000Italy

30,000Japan

20,000Spain

10,000

United Kingdom

0

2016

2017

United States

Broadband Infrastructure
The ongoing roll-out of the Australian Government-owned National Broadband Network (nbn) continues to push up
broadband household penetration in Australia. Just over 70% of Australian homes had a broadband connection by
the end of 2017, up from 67% a year earlier. Driving growth is an increase in activations across the nbn, which will be thenation’s first national wholesale-only, open-access broadband network with a commitment to deliver 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.
NBN Co indicates more than 940,000 new premises signed up to services over the nbn in the six months ended
31 December 2017 as the company places a greater focus on customer experience which includes a revamp of its
wholesale pricing model to help improve broadband speeds and service during peak hours. By the end of 2017, 3.4
million premises were already activated whilst 6.1 million premises are ready to connect via a mixture of technologies:
fibre-to-the-premises (FTTP), fibre-to-the-node (FTTN), fibre-to-the-distribution-point (FTTDP), fibre-to-the-building(FTTB), HFC (hybrid fibre coaxial), satellite and fixed wireless. NBN Co targets 8 million premises to be connected whenits build completes in 2020.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201719

Australian Digital Video
Market in 2017
The number of connected devices available in Australia increased across all device types in 2017, except for the PC. Total
number of connected devices in Australia increased 7% to 68 million in 2017 compared with 2016. Pay TV set-top boxes
were the fastest growing device type with its install base growing 57% to 3 million over the same period. Despite the rise of
portable devices, living room devices’ growth remains strong. Take up of connected smart TVs and digital media adapters(DMAs), such as Chromecast or Apple TV, continues at pace increasing 21% and 30% respectively. Smartphones, BD
players and game consoles growth rates all dipped below double-digits in 2017 whilst the growth in tablets was flat at just
0.4% to 9.7 million. The number of connected PCs in Australia declined by 2.2% in 2017 compared to the previous year.
Despite its decline the PC still accounts for a major share of connected devices in Australia, accounting for 28% of
total connected devices in Australia in 2017. The lion’s share is held by the smartphone which accounts for 34% of total
connected devices or more than 23 million smartphones. IHS Markit forecast the number of smartphones will continue toincrease over the forecast period rising to 28 million smartphones by the end of 2021 or a 36% share of total connected
devices.
Australia : Connected Device Install Base
Source: IHS Markit © 2018 IHS Markit

90

Smartphones

80

Tablets

Units (Millions)

70
60

Game consoles

50

PCs

40

Smart TVs

30

BD players

20

Pay-TV
set-top boxes

10
0
2013

2014

2015

2016

2017

2018

2019

2020

2021

DMAs

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201720

Australian Digital Video
Market in 2017
Australian Digital Services
Digital Services: Transactional movies and TV		
BUSINESSRENTALRETAIL
COMPANYSERVICEMODEL
LAUNCHDATELAUNCH DATE__________________________________________________________________________________________________
Telstra
BigPond Movies
Rental, retail
Q1 06
Q2 16
Apple
iTunes Store
Rental, retail
Q3 08
Q4 10
Foxtel Store (formerly
FoxtelFoxtel Download)RentalQ4 09
Microsoft
Microsoft Movies & TV
(formerly Xbox Video)
Rental, retail
Q4 09
Sony Interactive
Entertainment
PlayStation Store
Rental, retail
Q2 10
Q2 10
FetchTV
Rental, retail
Q2 10
Q2 15
FetchTV
iiNet
iiNet TV with Fetch
Rental, retail
Q2 10
Q2 15
Optus TV with Fetch
Rental, retail
Q4 11
Q2 15
Optus
Quickflix
Quickflix
RentalQ1 12
GoogleGoogle Play Movies
Rental, retail
Q2 12
Q4 12
Vimeo
Vimeo On Demand
Rental, retail
Q2 13
Q2 13
Dendy Cinemas
Dendy Direct
Rental, retail
Q3 14
Q3 14
__________________________________________________________________________________________________
Digital Services: Subscription Video Services
COMPANYSERVICE
BUSINESS MODELLAUNCH DATE		__________________________________________________________________________________________________
TelstraMobile Foxtel
Bundled telco product
Q4 06
MUBI
MUBI
Standalone
Q1 09
Bigstar TV
Big Star Movies
Standalone
Q4 09
Indieflix
Indieflix
Standalone
Q4 09
FetchTV
FetchTV
Standalone/Pay TV
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 App (formerly Foxtel Go)
Bundled/Pay TV
Q4 12
Foxtel Now (formerly Foxtel Play)
Standalone/Pay TV
Q3 13
FoxtelMadmanAnimeLab
Standalone
Q2 14
WWE
WWE Network
Device based
Q3 14
StreamCo (Nine Entertainment
StanStandalone
Q1 15
and Fairfax Media)
Netflix
Netflix
Standalone
Q1 15
Eros International
Eros Now
Device based
Q1 16
Ellation
Crunchyroll
Device based
Q1 16
YouTubeYouTube Red
Device basedQ2 16
AmazonAmazon Prime Video
Standalone
Q4 16
MadmanDocPlayStandalone
Q4 16
MadmanGarageStandalone
Q1 18__________________________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201721

Australian Digital Video
Market in 2017
Pay TV Services: Transactional movies and TV
COMPANYPLATFORMTECHNOLOGY
BUSINESSLAUNCH			MODEL
DATES		__________________________________________________________________________________________________
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 201722

Australian Digital Video
Market in 2017
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 have 		
downloaded, allowing the customer to use the content as many times as they like - the digitally
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 la 		carte basis and pay to watch it for a limited period. Digital rental is also known as Video-on-		
Demand (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’s satellite TV 		
platform or Fetch TV’s IP-VoD/OTT service.

__________________________________________________________________________________________________
Subscription services provide access to content in return for a recurring fee. Fees may be paid 		
Digital Subscription
annually, monthly or weekly. For example, Netflix, Stan, and Foxtel Now.
__________________________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201723

Australian Digital Video
Market in 2017
Methodology
Data•
The data is an aggregate of participating AHEDA members, and not a market total unless placed in an international
context for comparative purposes.
•

The data reported to IHS Markit 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 we markup and mark down the provided data as appropriate to provide a fuller assessment of the market. For example, 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 of international 		
digital home entertainment practices, iii.) the data provided by the participants as a benchmark for average 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 the 		studio 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

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

2022
$1=
1.30
0.90
0.90
0.90
0.90
0.78
1.00

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201724

Australian Digital Video
Market in 2017
Australian Digital Video Market
Australian Digital Transactional Video Market
Australian consumer revenue from digital transactional video plateaued in 2017, up just 1.0% to A$205 million (consumer
spending minus Goods and Services Tax) compared with a year earlier according to IHS Markit analysis of member datafrom the Australian Home Entertainment Distributors Association (AHEDA). A decline in TV transactions and a switchfrom Movie rental to Movie retail underlies the result.
IHS Markit defines digital transactional video as digital retail and digital rental movie and TV content that is delivered
over-the-top (OTT) on a strictly transactional basis. Content is accessed on connected and mobile devices, such as PCs,
tablets, game consoles, smart TVs and smartphones. The data includes transactional OTT content accessed throughapps 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 2.6% to A$94.9 million in2017 compared with the previous year. Digital rental, also known as ‘Video-on-Demand (VoD) and ‘Pay-Per-View (PPV)’,declined 0.3% to A$109.8 million over the same period.
Following steep growth in 2012-2016, the Australian combined digital transactional video market is expected to plateau ascompetition from digital subscription services, free-to-view TV and TV everywhere services offer viewers unprecedented
access to new and original content. The competitive advantage of featuring new release content that transactional digital
services used to enjoy is diminishing. OTT subscription services are increasingly producing original movie and TV content
to attract and retain subscribers.
Australia: Consumer Revenue 2011-2017

Consumer Revenue (AUD Millions)

Source: IHS Markit © 2018 IHS Markit

250
200

Movie EST150

Movie VoD

100

TV EST

50
0

TV VoD
2011

2012

2013

2014

2015

2016

2017

Digital transactional video volume (VoD and EST) data from AHEDA members indicates that the number of movie and TV
transactions declined 2.2% to 29.4 million in 2017 compared with the previous year. Digital video transactions are paid-for
non-physical retail and rental transactions of Movie and TV content.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201725

Australian Digital Video
Market in 2017
Australia: Consumer Transactions 2011-2017

Transactions (Millions)

Source: IHS Markit © 2018 IHS Markit

35
30
25

Movie EST20

Movie VoD

15TV EST

10

TV VoD

5
0

2011

2012

2013

2014

2015

2016

2017

A 17.9% decline in TV transactions saw its share of digital transactions decline three percentage points to 15% in 2017
compared with the previous year. The fall in TV transactions saw Movies increase its importance to a combined share(Movie VoD + EST transactions) of 85% over the same period. TV content consumed on a rental basis (TV VoD) remains
niche accounting for less than 1% of total transactions in 2017 as consumers prefer to watch TV content in subscription
environments where casual and repetitive viewing better associates with traditional TV viewing.
Australia: Consumer Transactions by digital service 2016 + 2017
Source: IHS Markit © 2018 IHS Markit

0%

1%

11%

13%

17%

15%

TV VoDTV EST
Movie VoD

71%

72%

Movie EST

Australia: Consumer Revenue by digital service 2016 + 2017
Source: IHS Markit © 2018 IHS Markit

0%

0%

23%

23%

26%

21%

TV VoDTV EST
Movie VoD

54%

53%

Movie EST

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201726

Australian Digital Video
Market in 2017
The gifting of hardware and vouchers for Christmas is a key driver in a seasonal trend exhibited in Australia’s monthly
digital sales over the past four years. December and January are proven peak transactional periods for digital content as
consumers’ cash in their vouchers to purchase digital content for their existing and new hardware. However, fluctuations
from month-to-month are common given an individual month is highly susceptible to the movie and TV release slate forthe period.
Australia: Monthly Consumer Transactions 2013-2017

TV VoDTV EST

Movie ESTDec 17

Oct 17

Aug 17

Jun 17

Apr 17

Feb 17

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

3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

Dec 13

Transactions (Millions)

Source: IHS Markit © 2018 IHS Markit

Movie VoD

Australia: Monthly Consumer Revenue 2013-2017

25
20
15
10

TV VoDTV EST

Movie ESTDec 17

Oct 17

Aug 17

Jun 17

Apr 17

Feb 17

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 140

Feb 145
Dec 13

Consumer Revenue (Millions)

Source: IHS Markit © 2018 IHS Markit

Movie VoDAUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201727

Australian Digital Video
Market in 2017
In December 2017, Australian consumers paid an average of A$13.60 including a 10% Goods and Services Tax (GST) to
purchase a digital movie title, down slightly from the average opening price for a Movie EST title of A$13.85 in January 2017.
Similarly, the average price of a single EST TV title opened the year at A$10.54 only to close slightly down at A$10.40 in the
final month of 2017. Seasonsal promotional activity tends to drive prices down in December 2017 which in turns makes
purchasing a better value propostition as ownership allows for repeat viewing compared with renting.
On average, renting a digital movie cost A$5.81 in January 2017 compared with consumers paying A$5.66 in December
2017. The average price to rent a digital TV title was A$3.13 in December 2017 but it should be noted TV VoD prices arehighly volatile due to the small number of transactions which may fluctuate significantly each month.
In early 2018, Marvel’s third installment of its Thor movies Thor: Ragnarok was available on the Apple iTunes store to buy
for A$19.99 in standard definition (SD) format and A$24.99 in high-definition (HD). The sequel to family comedy title
Daddy’s Home 2 retailed for the same price but consumers could also rent the title for A$6.99. The original Daddy’s Home
title is available to buy for A$7.99 and rent for A$2.99. The price is the same for this catalogue movie in either the SD or HD
format. Season One of hit TV show Big Little Lies is available to own in HD quality for A$22.99 or consumers may purchasea single episode for A$3.49. The price drops to A$19.99 and A$2.99 respectively for SD quality.
Australia: Monthly Consumer average selling price AUD
20
18
16
14
12
10
8
6
4

TV VoDTV EST

Movie VoD

Dec 17

Oct 17

Aug 17

Jun 17

Apr 17

Feb 17

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 140

Feb 142
Dec 13

Consumer Average Selling Price, AUD

Source: IHS Markit © 2018 IHS Markit

Movie EST

Australian Digital Subscription Market
Australian online subscription services are ramping up local content production as they strive to attract more subscribers.
OTT subscribers grew 53% to just under 6.7 million in 2017 compared with a year earlier according to IHS Markit. The
rapid growth of digital subscribers is forecast to continue, reaching 16.7 million by the end of 2021. This translates to asignificant rise in spending on OTT subscription services over the forecast period. Australian consumer spending on OTT
subscription nearly doubled in 2017, soaring up 93% to almost A$850 million. IHS Markit forecast consumer spending on
OTT subscription will rise to A$2.7 billion in 2021.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201728

Australian Digital Video
Market in 2017
Australia: Digital Subscription Consumer spending, AUD Millions
Source: IHS Markit © 2018 IHS Markit

AUD, Millions

3,000
2,500
2,000
1,500
1,000
500
0

2015

2016

2017

2018

2019

2020

2021

Global TV and movie streaming leader Netflix launched in Australia in March 2015. It continues to strengthen its leadership
position in Australia following a sharp rise in subscribers in the first half of 2017. Netflix is looking to deliver on originalcontent having commissioned its first Australian original series Tidelands in 2017 which is expected to be released in thesecond half of 2018. Netflix’s subscriber base reached nearly 3.6 million by the end of 2017 and is forecast to top 10 million
by 2021.
Home-grown OTT subscription service Stan by Nine Entertainment/Fairfax Media, has found favour with local audienceson the back of its original content. Stan has produced and premiered Australian original TV series Wolf Creek, two seasonsof No Activity and Plonk, stand-up comedy series One Night Stan and has a feature film The Second in the works which
will first debut in cinemas prior to exclusive distribution on its streaming service. Stan also has four new original series
in development, namely The Other Guy, Merchants of Misery, All Thumbs and Chaperones. Stan grew its subscriberbase 48% to 920,000 paying subscribers by the end of 2017, and is expected to double to over 1.8 million by 2021 as thecompany continues to flex the service to fit the specifics of the Australian market.
Netflix and Stan have recently been joined by Amazon Prime Video and the newly relaunched Foxtel Now, formerly Foxtel
Play, whilst Eros International’s on-demand Bollywood and regional language content including Indian films, music andoriginal shows continues to carve out a niche audience.
The new look Foxtel Now provides consumers with greater choice of content and ease of access to it via a range of more
flexible packages. This helped the service increase its subscriber base to 920,000 subscribers by the end of 2017, which
combined with the company’s value-add pay TV bundled proposition Foxtel App (formerly Foxtel Go) reached just under
1.8 million over the same period.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201729

Australian Digital Video
Market in 2017
However, the sleeping giant is Amazon Prime Video which is in a crucial research stage as it determines consumer interest
and establishes its brand in a variety of markets within Australia. In select markets around the world, Prime Video exists aspart of a larger, bundled Amazon Prime offering that includes a variety of services such as priority shipping, music libraries
and cloud storage as well as exclusive discounts and a la carte subscriptions. IHS Markit believes Amazon’s offerings
will remain differentiated in Australia initially as it gauges interest which will ultimately determine the future of its Prime
strategy. Although unable to triumph over the king of subscription video globally, Amazon Prime Video does now surpass
Netflix by subscriber count in a few select markets owing to the perceived value of the bundled Prime ecosystem. While
companies such as Netflix and Stan have rejected content outside of the typical TV and Movie libraries, Prime Video’s
online video presence extends to live sports in select markets, a la carte subscription through Amazon Channels andeven user-generated-content. As such, Amazon’s bundled offering, and its Prime Video service within the bundle, has thepotential to be overwhelmingly popular in Australia and the potential to significantly change the face of the Australian OTT
subscription landscape in coming years.
Competition in the Australian OTT space is also intensifying from commercial free-to-air TV broadcasters. Seven Network
launched 7plus, its new advertising funded OTT digital video streaming service in November 2017. 7plus features exclusive
original commissions in addition to live and on demand content. 7plus follows the PLUS7 catch up TV and video-ondemand (VoD) service operating since January 2010. The PLUS7 service was run by Seven through its Yahoo7 joint
venture. The emergence of 7plus comes after Verizon Communications acquired Yahoo! in June 2017. As a result, the new
7plus service is a wholly-owned and operated standalone service by Seven which replaces PLUS7.
7Plus will benefit from Seven’s vast library of content including popular local programmes such as Home and Away, My
Kitchen Rules and House Rules. In addition, Australians love of sport will drive viewers to the service given Seven holds
broadcast rights to major events including Australian Football League (AFL) matches, the Melbourne Cup, the Rugby
League World Cup, the Australian Open, the Olympic Winter Games and the Commonwealth Games. Seven’s content
amassed 1.8 billion streaming minutes in fiscal 2017 bolstered by the Olympic Summer Games and Australian Open tennis.
7plus will take Seven’s content beyond broadcast TV and help the company capture more consumers and advertiserswhich will ultimately strengthen revenue for parent company Seven West Media (SWM). Consolidated revenues for SWM
declined 2.8% to almost A$1.7 billion in the financial year ending 30 June 2017. SWM will hope 7plus drives further growth in
the divisional performance of its television business in 2018, following its 1.0% increase in revenue to A$1.2 billion over thesame period. Seven competes for ad revenues against two other private commercial TV groups, Nine and Ten, as well as
global media giants such as Facebook and Google.
The increasingly crowded Australian OTT space will require providers to deliver on content, innovation and engagement
to succeed. A strong local proposition is required to capture its Australian audience which demands quality content,
convenience at a competitive price.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201730

Australian Digital Video
Market in 2017
Australia: OTT Subscription Landscape 2017 + 2021
Source: IHS Markit © 2018 IHS Markit

100%
90%
OthersShare of Subscribers

80%

Amazon70%

Quickflix

60%

Eros Now

50%

YouTube Red

40%

Foxtel App
Stan

30%

Foxtel Now

20%

Netflix

10%
0%
2017

2021

Australian Pay TV VoD Market
Pay TV landscapeStreaming and new services are changing the dynamics of the pay TV industry in Australia. Pay TV providers continue toshow resilience but growth has plateaued. The total number of Australian pay TV subscribers remained at just under 3.6
million in 2017 compared with a year earlier as consumers continue to embrace the availability of internet-connected
devices to consume more programming online and on demand. In addition, free-to-air (FTA) digital terrestrial television(DTT) broadcasters continue to enhance their offerings with new services and original programming.
Australia’s vast geography, and the relatively undeveloped cable and IPTV infrastructure, has given satellite a distinct
advantage in Australia over the past two decades. As such, the majority of pay TV homes in Australia use a satellite
connection to receive their signal. Satellite homes represent 55% of total pay TV homes in the country followed by cable
homes which account for a 26% share. Cable and satellite homes still dominant but have lost share to IPTV in recent years.
IPTV’s share of total Australian Pay TV homes increased from 17% in 2016 to 19% in 2017.
Driving up IPTV’s importance in the Australia pay TV market is Fetch TV, backed by Malaysian operator Astro All Asia
Networks. In 2017, IHS Markit research estimates Fetch TV’s subscriber base increased 13% to 637,000 by the end of 2017.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201731

Australian Digital Video
Market in 2017
Fetch TV offers 49 linear IPTV channels as well as 7,000 movies and 200 TV shows (episodes or seasons) to rent or buy.
The company partners with Internet service providers Optus, the iiNet Group (owner of the iiNet, Internode and Westnet
services) and Vocus (owner of Dodo and iPrimus services) as well as several of the country’s major retailers to deliver
programming over a broadband connection to a set-top box.
Fetch TV packages its content into four ‘skinny’ packs namely Kids Pack, Knowledge Pack, Vibe Pack and Variety Pack,
which cost A$6 per month per pack as well as offers all four packs as part of its Ultimate Pack package for A$20 per month.
The company continues to build its service on the back of affordability, content and convenience. By comparison, rival
Foxtel prices range from A$26 per month for its base entertainment pack to A$111 per month for its all channel Platinum
HD pack. Furthermore, Fetch announced a partnership with Discovery Networks in January 2018 to further expand its
content offering. Under the deal, Fetch TV will add Discovery Channel and TCL to its channel line-up from 1 March 2018.
Fetch also conveniently provides immediate access to free-to-air TV catch up applications, local streaming services
Netflix and Stan, pay-per-view access to UFC as well as access to popular apps such as YouTube.
Australian pay TV leader Foxtel, available via cable and satellite, saw its combined subscriber base decline just under 3%
to nearly 2.8 million by the end of 2017 compared with the previous year. Sport is Foxtel’s key pillar for the business anddifferentiator in the market offering exclusive, live, and ad-free high-definition content to attract Australian viewers acrossmajor sports including basketball, cricket, cycling, football, netball, racing, surfing, and tennis.
In addition, Foxtel residential and Foxtel Now customers will continue to have access to Foxtel App (formerly FoxtelGo), Foxtel’s mobile streaming application, at no extra charge. Foxtel App enables subscribers to stream TV, live and On
Demand, to selected smartphones and tablets.
Meanwhile, Foxtel is close to finalising a merger with News Corporation’s sports broadcaster Fox Sports Australia. News
Corporation currently owns half of Foxtel with Australian incumbent telco Telstra. Once complete, News Corporation’sshare will increase to a controlling 65% whilst Telstra will hold the remaining 35% stake. The merger received regulatory
approval from the Australian Competition and Consumer Commission (ACCC) in December 2017 and is expected to be
finalised in the first half of 2018. IHS Markit believes the merger will ensure Foxtel does not overpay for the rights to Fox
Sports programming as well as better position Foxtel for a future listing on the Australian Share Market.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201732

Australian Digital Video
Market in 2017
Australia: Pay TV subscribers by operator, 2013 - 2017
Source: IHS Markit © 2018 IHS Markit

Subscribers (Millions)

4.0
3.5

Foxtel (Cable)

3.0

Foxtel (Satellite)

2.5
2.0

Optus TV (Cable)

1.5

TransACT TV (IPTV)

1.0
0.5
0.0

Fetch TV (IPTV)YE 2013 H1 2014 YE 2014 H1 2015 YE 2015 H1 2016 YE 2016 H1 2017 YE 2017

Australian Pay TV VoD Market
The story of 2017 for the Australian Pay TV VoD market is one of winners and losers. Figures for Foxtel, the leading cableand satellite operator recorded a decline in its share of total transactions as competition intensifies from IPTV operator
Fetch TV, which improved its share of the market on the back of its more affordable ‘skinny’ pay TV packages. Fetch TV
increased its share of total transactions from 11% to 13% in 2017 compared with the previous year. The gain was at theexpense of Australian pay TV leader Foxtel which saw its share of movie and TV transactions over its satellite platform
decline from 61% to 59% over the same period. Despite the loss, Foxtel still dominates the number of pay TV VoD
transactions in Australia, accounting for a combined 85% share of movie and TV transactions in 2017.
Australia: Movie and TV Transactions by Pay TV Operator, 2016 + 2017
Source: IHS Markit © 2018 IHS Markit

2%

2%

11%

13%

Foxtel Cable
26%

26%

Foxtel Satellite
Optus TV

61%

59%

2016

2017

Fetch TV

New-release movie VoD spending per Pay TV subscriber continues to rise in Australia. Pay TV subscribers each spent an
average of A$4.58 to stream a movie in December 2017, up from A$4.33 in December 2016 and A$3.40 back in December
2013.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201733

Australian Digital Video
Market in 2017
Australia: New release movie VOD spending per Pay-TV subscriber
Source: IHS Markit © 2018 IHS Markit

4.0

Pay TV subscriber (AUD)

3.0
2.0

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 20140.0

Q1 2014

1.0

Q4 2013

Average VoD spending per

5.0

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 a smallpart 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 Markit © 2018 IHS Markit

Percentage (%)

100%
80%

New Release Movies

60%

Catalogue Movies

40%

TV

20%
0%

2016

2017
Transactions

2016

2017
Revenues

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201734

Australian Digital Video
Market in 2017
The Australian Digital Market in context
The Australian digital video landscape grew 7.5% to 51.4 million in combined digital retail, digital rental, and pay TV VoD
transactions in 2017 compared with the previous year. High disposable income, strong consumer willingness to pay forvideo content and improving broadband infrastructure are the key drivers underlying the growth which was a strong result
among other major territories. In 2017, Australia recorded a higher rate of year-on-year growth in digital video transactions
than the UK (5.5%), France (6.2%) and Spain (7.0%) but was outperformed by Germany (11.9%) and Italy (14.2%). US digital
video transactions dwarf those recorded in the rest of the world but it experienced a 9.7% decline in combined EST and
VoD transactions over the same period. US consumers made almost 473 million digital transactions in 2017, of which twothirds were rental. By comparison, Australian consumers made nine times fewer transactions than in the US at 51.4 million
which ranks Australia between Italy (23 million) and France (65 million). The UK recorded the second largest number ofdigital transactions in 2017 with 121 million, up from 115 million in 2016.
VoD and EST Transactions (Millions)

Transactions (Millions)

Source: IHS Markit © 2018 IHS Markit

140

600

120

500

100

400

80
60

EST

200

40

100

20
0

VoD

300

2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
FranceGermany

Italy

Spain

UK

2017

Australia

0

2016

2017

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 in2015.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201735

Australian Digital Video
Market in 2017
Australia: VoD and EST Transactions per capita
Source: IHS Markit © 2018 IHS Markit

Transactions per capita

2.5
2.0
1.5
VoD

1.0

EST

0.5
0.0

2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
FranceGermany

Italy

Spain

UK

Australia

US

The Australian digital video transactional market grew 7.9% in local currency terms to nearly A$344 million in 2017. BothEST and VoD generated solid gains in consumer revenue increasing 6.6% and 8.6% to A$123 million and A$221 million
respectively. It should be noted the impact of exchange rates on reported consumer revenue figures for non-US markets
has had a disproportionate impact on the trend in major markets. For example, Australian consumer revenue from the
combined digital retail and rental transactional sectors increased 11.2% in US dollar terms to US$263 million compared to
7.9% growth when viewed in local currency.
Australia: VoD and EST Consumer Revenue (USD, Millions)

Consumer Revenue (USD, Millions)

Source: IHS Markit © 2018 IHS Markit

900
800
700
600
500
400
300
200
100
0

7,000
6,000
5,000
4,000

VoD

3,000
2,000

EST

1,000
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
FranceGermany

Italy

Spain

UK

Australia

02016 2017
US

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201736

Australian Digital Video
Market in 2017
VoD and EST Consumer Revenue per capita, USD

Consumer Revenue per capita, USD

Source: IHS Markit © 2018 IHS Markit

14
12
10
8

VoD

6

EST

4
2
0

2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
FranceGermany

Italy

Spain

UK

Australia

US

Online pricing in Australia is in line with the rest of the world with EST prices significantly higher than pay TV VoD and online
rentals. Digital movies cost an average of US$12.95 to purchase and US$4.41 to rent in Australia compared to US$13.08 and
US$4.77 respective averages across the big five in Europe. Online movies cost an average of US$14.62 on a retail basis and
US$4.71 on rental in the US. Pay TV rental services were charging an average of US$3.96 in Australia and US$5.36 in the US.
2017: Average Transactional Movie Price, USD
Source: IHS Markit © 2018 IHS Markit
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

Digital in the wider video sector
Australian consumers spent more on digital video than physical video for the first time in 2017. Consumers spent A$1.2
billion on digital video (whether via the open internet or pay TV VoD services) in 2017, up 55% compared with a year
earlier. Driving growth is spending on OTT subscriptions which soared up 93% to $850 million to account for 73% of total
consumer spending on digital video in Australia. Pay TV VoD generated A$9.6 million over the same period, an increase of

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201737

Australian Digital Video
Market in 201711.1%. Spending on digital rental and retail services experienced more modest growth, increasing 7.3% and 6.6% to A$158
million and A$123 million respectively
Key developments which continue to drive forward digital consumption include:
1.

Better internet connectivity with higher average connection speeds, which is opening doors to a larger audience foronline video content.

2. Connected devices, used to watch online video, continue to improve and innovate. Tablets and mobile phones are
becoming more prevalent and user friendly.
3. Online video services are more flexible in terms of access and usage, with improvements such as offline viewing or
better integration with devices.
4. Growth in the size of the digital sector is increasing business confidence which is driving better quality content for 		
on-demand consumption (e.g. Netflix and Stan originals), which in turn pushes viewer appeal for content services.
5. Consumers have now become educated in the value of online video propositions, and are progressively more 		
willing to pay a premium for a better video experience.
Consumer spending on physical video declined 13% to A$748 million in 2017 compared with the previous. Physical video
spend (Blu-ray Discs, DVD, retail and rental) continues to contract in Australia seeing its share of total video spending
decline from a commanding 93% share in 2011 to a 38% share in 2017.
With the rapid rise of digital video, total consumer spending on home video in Australia has demonstrated a strong
recovery since experiencing a decline in 2014, and is forecast to continue growing well into the future. Altogether, total
consumer spending on packaged and digital video grew 19.9% to A$1.97 billion in 2017, marking a third year of consecutive
growth. Total spending on video is forecasted to reach A$3.7 billion in 2021.
Australia: Total Video Spending, AUD Billion (Fixed exchange rate)

AUD billion (Fixed exchange rate)

Source: IHS Markit © 2018 IHS Markit

4.0
3.5

Digital subscription

3.0

Digital rental

2.5
2.0

Digital retail

1.5

Pay TV VoD

1.0

Physical rental

0.5
0.0
2016

2017

2018

2019

2020

2021

Physical retail

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201738

Australian Digital Video
Market in 2017
Unlike Australia, digital video spending in the US surpassed that of physical video spending in 2015. Consumer spending
on digital video in the world’s largest digital video market grew 40% to US$23 billion in 2017 compared with the previous
year on the back of solid gains in spending on OTT subscription services (+59% year-on-year). Digital video services now
account for just over three-quarters of total spending on video in the US.
Meanwhile, the contraction in spending on physical video discs continues at pace in the US, down 15% to US$7.4 billion in2017. However, the decline in the combined spending on DVD and BD is not enough to drag down total spending on video.
2017 marked the second consecutive year of double-digit year-on-year growth in consumer spending on video in the US.
Total video spending grew just under 21% to US$30.4 billion in 2017.
USA: Total Video Spending, AUD Billion (Fixed exchange rate)

USD billion (Fixed exchange rate)

Source: IHS Markit © 2018 IHS Markit

50.0
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
2016

Digital subscription
Digital rental
Digital retail
Pay TV SVoD
Pay TV TVoD
Physical rental
2017

2018

2019

2020

2021

Physical retail

Australian Filmed Entertainment Industry Trends
Australian filmed entertainment in Australia – physical, digital, Pay TV and theatrical – experienced solid growth of 8.5% to
A$6.1 billion in 2017 on the back of strong gains in consumer spending on digital and Pay TV services. Cable and satellite
subscriptions remain the main contributor to the filmed entertainment industry expansion in Australia, accounting for
48% of total filmed entertainment spending in 2017. However, a shift is underway as digital subscription services surge
in Australia, up 93% to A$850 million to account for a respectable 14% share of total spending. IHS Markit forecast the
proportion of total filmed entertainment accounted for by digital subscription services will increase rapidly to accountfor a 34% share by 2021. The combined spending on Pay TV VoD (delivered via ‘walled garden’ services) and digital video(retail, rental and subscription) represented 20% of total filmed entertainment consumer spending in 2017. This rise will
largely come at the expense of cable and satellite subscriptions which will see their importance decline to a 34% shareby 2021. Consumer spending on physical video and theatrical will also experience a decline in their share of total spend
on filmed entertainment by 2021. The physical retail and rental segments continued to contract in 2017 as consumer
spending on packaged media declined 10.5% and 51% respectively compared with the previous year. Box office orconsumer spending on theatrical also declined over the same period, down 4.6% to nearly A$1.3 billion.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201739

Australian Digital Video
Market in 2017
Australia: Total filmed entertainment industry consumer spending split by segments, 2017 + 2021 (Fixed exchange rate)
Source: IHS Markit © 2018 IHS Markit
Physical retail
3%
2%

14%

1%

17%

34%

20%
48%

Physical rental

6%

12%

Theatrical
Cable and sat subs

2%

38%

2%

Digital retail

1%
2017

Pay TV TVoD

2021

Digital rental
Digital subscription

Pay TV penetration in Australia reached 38% by the end of 2017, meaning there is still plenty of room for growth for pay
TV, if the providers are able to persuade consumers to take their services rather than one of the growing number of OTT
options available in the country. By comparison, the Netherlands primary pay TV penetration is the highest in the world
at 98% in 2017, followed by South Korea (97%) and Belgium (96%). 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 an assumption of 100 per centprimary set usage for that platform. However, pay TV penetration is softening in Australia as rival entertainment platforms
predominantly free-to-air (FTA) digital terrestrial television (DTT) and OTT TV services gain traction. As such, pay TV
providers will need to acquire the most sought-after premium content and offer it as an affordable price point to return to
growth.
Australia: Primary Pay TV Penetration by country, 2017
Source: IHS Markit © 2018 IHS Markit

90
80
70
60
50
40
30
20
10
0

Netherlands
South Korea
Belgium
Estonia
Romania
India
Belarus
Switzerland
Finland
LatviaPolandSwedenDenmark
Portugal
Hungary
NorwaySlovakia
Malta
UAE
Argentina
CanadaUSA
Japan
Slovenia
China
Hong Kong
SerbiaRussiaMexicoVenezuela
FranceCyprusBulgaria
Macedonia
TaiwanIsraelGeorgia
Ireland
Luxembourg
Chile
Armenia
Lithuania
Malaysia
UK
GermanySouth Africa
Singapore
Croatia
Austria
New Zealand
Peru
Australia
Colombia
Czech Republic
Italy
Spain
Saudi Arabia
TurkeyBrazilGreeceUkraineThailand
Moldova
Lebanon
Libya
Indonesia
Syria
Algeria
MoroccoTunisia
Egypt
Iran

Primary Pay TV Penetration (%)

100

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201740

Australian Digital Video
Market in 2017Conclusion
The Australian video market is highly developed with high average prices and sophisticated retail and logisticalinfrastructure compared to many of its Asian neighbours with vast populations, where average incomes are substantiallylower and infrastructure is still developing. Not surprisingly, the outlook for the Australian filmed entertainment industry
remains positive after rising 8.5% to A$6.1 billion in 2017. IHS Markit expects consumer spending on filmed entertainment
to reach just under A$8.2 billion by 2021.
Underlying the growth is the rise of digital video, whether via Pay TV VoD, digital retail, digital rental or digital subscription.
Australia has been experiencing continual development of its broadband infrastructure; the total installed base ofconnected devices that can be used for video consumption is on the rise; online video services are more flexible in termsof access and usage; localised and original content is in production; and competition continues to drive a range of newoffers and services from existing players. Altogether, this is driving the rise of digital video services in Australia.
Digital subscription has been the main growth driver of the Australian digital video market in 2017, as online services
increasingly localise content in an attempt to attract more subscribers. Online subscribers grew 53% to just under 6.7
million in 2017 compared with a year earlier, generating a return of A$850 million according to IHS Markit. Netflix continues
to strengthen its leadership position in Australia with its subscriber base reaching nearly 3.6 million by the end of 2017.
Home-grown OTT service Stan and the newly relaunched Foxtel Now also continue to build their subscribers whilst thesleeping giant is Amazon Prime Video which is in a crucial research stage but has the potential to significantly change
the face of the Australia OTT subscription landscape over the forecast period. IHS Markit forecast the rapid rise ofdigital subscribers to continue, reaching 16.7 million subscribers by the end of 2021 whilst consumer spending on OTT
subscription will increase to A$2.7 billion in 2021.
Pay TV providers continue to show resilience but growth has plateaued. Digital video services may render traditional
pay TV video subscriptions less appealing as more people find their way to alternate forms of content consumption.
However, IHS Markit believes pay TV providers are well positioned to compete and will do so as long as they continue tooffer appealing content such as Foxtel’s live and exclusive rights to major sports. The total number of Australian pay TV
subscribers remained at just under 3.6 million in 2017 compared with a year earlier.
2017 marked a significant milestone in the history of Australia’s filmed entertainment industry. Australian consumers
spent more on digital video than physical video for the first time in 2017. Consumers spent A$1.2 billion on digital video(whether via the open internet or pay TV VoD services) in 2017, up 55% compared with a year earlier. By comparison,consumer spending on physical video declined 13% to A$748 million over the same period. IHS Markit forecast total video
market (digital and physical) consumer spending in Australia will increase from nearly A$2.0 billion in 2017 to A$3.7 billion
in 2021.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201741

Piracy levels havealso dropped in 2017,
helped by government
initiatives and the risingavailability of content
through legal means.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201742

Video Entertainment Australia:
Physical Retail Market
Physical vs. DigitalVideo Entertainment continues to be a dominant market in Australia, with a rise in digital revenue and a resilient physicalmarket.
In 2017, the Video Entertainment market generated $947 million, as 78 million units were rented or purchased either
physically or digitally. This marks Video Entertainment as the fifth largest category that GfK measures, across over 100
categories here in Australia.
This is not taking into account the growing revenue from streaming services such as Netflix or Stan. Through the GfKConsumerScope service, we have seen an uptick in consumption of these streaming services, with 39% of the Australian
population accessing these services in 2017 (up from 29% in 2016).
Excluding the digital streaming services, physical rental and purchase still generate the highest levels of volume and value,
accounting for 54% of volume and 71% of value. Digital is on the rise, however, and accounts for 46% of the total volume(excluding piracy) and over a quarter of all value in 2017.
Piracy levels have also dropped in 2017, helped by government initiatives and the rising availability of content through legalmeans. For more information on piracy and the growth of the digital streaming services please read the GfK chapter on
consumer digital trends..
GfK Retail Tracking: Video Entertainment Market by Type
Units Share %

36%

13%

Value Share %
20%

42%

11%

46%

10%

51%

47%

44%

2015

2016

2017

5%

75%

26%
5%

69%

29%
4%

67%

Digital (EST+VOD)*
Rental (physical)
Retail (physical)

2015

2016

2017

Data factored to 100% © March 8, 2018 | Home Entertainment ConsumerScope & Retail Tracking Q1 2017

Historical Trends
The physical disc retail market accounted for nearly half the volume of Video Entertainment and is still the largest value
sector. The market has declined since its peak in 2009 as consumers have diversified the way they watch their VideoEntertainment content.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201743

Video Entertainment Australia:
Physical Retail Market
Total Value

$1.50

$1.26

Total Units$1.00$0.94 $0.95$1.35 $1.39$1.06$1.24 $1.29$1.15 $1.09

$0.98

100
$0.90
$0.74

$0.71
$0.50

$0.50

80
$0.63

60

Millions

Billions

GfK Retail Tracking: Physical Retail Market Size

40

$0.22 $0.27

20
0

$0.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GfK Retail Tracking: Physical Retail Market Value by Format

Blue Ray

$1.5

$0.1
$0.1

Billions

DVD
$1.0

$0.2
$0.2

$0.2

VHS

$0.5
$0.1

$0.4

$0.6

$0.9

$1.1

$0.9

$1.3

$1.3

$1.3

$0.1

$0.1
$0.1

$1.1

$1.1

$1.0

$0.9

$0.8

$0.8

$0.6

$0.1
$0.5

$0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Current Trends

The physical disc market sold 35 million discs in 2017, for a value of just over $630 million. Compared to other countries,
the Australian disc market is particularly resilient. The per capita purchase rate of 1.25 in Australia ranks as the highest for
countries with GfK physical disc measurements, meaning that Australians purchase more discs per person (1.25) than in
any of the countries listed. Our Trans-Tasman neighbours, New Zealand, also have a relatively high per capita purchaserate at 0.76.
GfK Retail Tracking: Physical Discs Per Capita Purchase
Australia
Germany
Austria
New ZealandSwedenFinland
NorwayFranceBelgium
Switzerland
Italy
Japan
Netherlands
Spain
Portugal
Brazil

$1.25
$0.89
$0.86
$0.76
$0.65
$0.58
$0.56
$0.40

$0.51

$0.35
$0.28
$0.28
$0.25
$0.13
$0.10
$0.03

0
0.2
0.4
Note: Population figures sourced from WorldOMeters.info

0.6

0.8

1.0

1.2

1.4

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201744

Video Entertainment Australia:
Physical Retail Market
Animated titles were particularly popular in 2017. Three of the top four selling titles were animated, with Disney’s Moana
being the highest selling disc for the year. Disney’s Star Wars spin-off, Rogue One, was the second top selling title. This
follows on from the strong performance of the Star Wars license in 2016, where Force Awakens nabbed the top spot.
GfK Retail Tracking: Top selling titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________
1
Moana
Walt Disney Studios
Animated
2
Rogue One A Star Wars Story
Walt Disney Studios
Sci-Fi3
Trolls (2016)
20Th Century Fox
Animated
4
Sing (2016)
Universal
Animated
5
Beauty And The Beast (2017)
Walt Disney Studios
Musical6
Fantastic Beasts
Roadshow
Adventure
7
Fast And The Furious 8
Universal
Action8
Guardians Of The Galaxy Vol 2
Walt Disney Studios
Adventure
9
Wonder Woman (2016)
Roadshow
Action10
Hacksaw Ridge
Icon
War_________________________________________________________________________________ 			
Blockbuster movies weren’t the only titles to sell well. Though there was only one Game of Thrones release in 2017, Series
7 proved to be the most popular so far, selling more than all the previous seasons at launch and generating the third
highest value for any title in 2017.
GfK Retail Tracking: Top selling titles, Full Year 2017, ranked by value

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________
1
Moana
Walt Disney Studios
Animated
2
Rogue One A Star Wars Story
Walt Disney Studios
Sci-Fi3
Game Of Thrones Season 7
Roadshow
Tv Drama
4
Guardians Of The Galaxy Vol 2
Walt Disney Studios
Adventure
5
Beauty And The Beast (2017)
Walt Disney Studios
Musical6Sing (2016)
Universal
Animated
7
Fantastic Beasts
Roadshow
Adventure
8
Trolls (2016)
20Th Century Fox
Animated
9
Fast And The Furious 8
Universal
Action10Game Of Thrones Season 6
Roadshow
Tv Drama_________________________________________________________________________________ 			Seasonality
The disc market recorded a year-on-year decline of 14% in volume in 2017, with the largest decline coming throughquarter 4. This is, in part, due to the strong release slate during quarter 4 2016, including Roadshow’s Game of Thrones S6,
Universal’s Secret Life of Pets and Disney’s Finding Dory.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201745

Video Entertainment Australia:
Physical Retail Market
Millions

GfK Retail Tracking: Market Volume by Quarter

20
15

2014

10

2015
2016

5

2017

0
Q1 (-16%)

Q2 (-8%)Q3 (-8%)Q4 (-20%)

Though 2017 was down in volume, the rate of decline slowed versus 2016, dropping by just 8% in quarters 2 and 3.
Combined, these quarters made up their highest share of yearly volume in over 5 years.
GfK Retail Tracking: Market Seasonality by Quarter - Volume Shares

2012

22%

22%

24%

32%

2013

22%

24%

22%

32%

2014

24%

23%

24%

30%

2015

23%

22%

25%

29%

2016

23%

23%

23%

31%

2017

22%

25%

24%

29%

0%

10%

20%

30%

Quarter 1

40%

50%

Quarter 2

60%

Quarter 3

70%

80%

90%

100%

90%

100%

Quarter 4

GfK Retail Tracking: Market Seasonality by Quarter - Value Shares

2012

22%

21%

23%

34%

2013

22%

23%

22%

34%

2014

23%

22%

23%

31%

2015

23%

22%

24%

31%

2016

23%

23%

22%

32%

2017

22%

24%

24%

30%

0%

10%

20%
Quarter 1

30%

40%

50%

Quarter 2

60%

Quarter 3

70%

80%

Quarter 4June registered the biggest change, accounting for 10% of the market volume in 2017 (up from 8% in 2016). Box office hits
Beauty and the Beast and Logan were both released on disc in June and were the top selling titles. Conversely, December
dropped in share compared to prior years, accounting for just 15% of volume sales and 16% of yearly value, the lowest
December share in the last 6 years.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201746

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

8%

6%

9%

6%

7%

9%

8%

7%

9%

7%

7%

17%

2013

8%

5%

8%

8%

7%

9%

8%

6%

8%

7%

9%

16%

2014

9%

6%

9%

7%

8%

2015

8%

6%

8%

7%

7%

9%

9%

2016

8%

6%

9%

8%

7%

8%

2017

8%

6%

9%

7%

7%

Jan

Feb

Mar

Apr

8%

6%

7%

16%

7%

10%

7%

7%

15%

7%

7%

9%

7%

8%

17%

10%

8%

7%

9%

7%

15%

May

Jun

Sep

Oct

7%

9%

8%

Jul

7%
Aug

Nov

Dec

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

8%

6%

9%

7%

8%

8%

8%

7%

9%

7%

7%

17%

2015

8%

6%

8%

7%

7%

8%

8%

7%

10%

7%

8%

17%

2016

7%

6%

9%

8%

7%

8%

7%

6%

9%

7%

8%

17%

2017

8%

6%

9%

8%

7%

9%

7%

7%

9%

6%

7%

16%

Sep

Oct

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Nov

Dec

Format Trends
Blu-ray continued to be a relative bright spot in the physical disc market, selling nearly 5 million discs for a value of $109
million. The 7% decline in Blu-ray volume was much lighter than DVD, which declined by 15%.
GfK Retail Tracking: Blu-ray Volume Sales (Millions)
6.82

7.82

7.85

6.98

6.18

5.31

4.93

2015

2016

2017

$133

$119

2015

2016

3.74
0.16
2007

0.71
2008

1.79

2009

2010

2011

2012

2013

$164

$168

$162

2014

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

$63
$6
2007

$146

$95

$109

$27
2008

2009

2010

2011

2012

2013

2014

2017

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201747

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Top selling DVD titles, Full Year 2017, ranked by volume
RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________
1
Moana
Walt Disney Studios
Animated2
Trolls (2016)
20Th Century Fox
Animated
3
Sing (2016)
Universal
Animated
4
Beauty And The Beast (2017)
Walt Disney Studios
Musical5
Fast And The Furious 8
Universal
Action6
Fantastic Beasts
Roadshow
Adventure
7
Rogue One A Star Wars Story
Walt Disney Studios
Sci-Fi8
LionSony Pictures
Drama
9
The Boss Baby
20Th Century Fox
Animated
10
Fifty Shades Darker
Universal
Drama_________________________________________________________________________________
GfK Retail Tracking: Top selling Blu-ray titles, Full Year 2017, ranked by volume
DISTRIBUTORGENRE
RANK TITLE_________________________________________________________________________________
1
Rogue One A Star Wars Story
Walt Disney Studios
Sci-Fi
Guardians Of The Galaxy Vol 2
Walt Disney Studios
Adventure2
Fantstic Beasts
Roadshow
Adventure3
Wonder Woman (2017)
Roadshow
Action4Doctor Strange (2016)
Walt Disney Studios
Adventure
5
Logan
20Th Century Fox
Action6
Beauty And The Beast (2017)
Walt Disney Studios
Musical7
8
Hacksaw Ridge
Icon
War
Fast And The Furious 8
Universal
Action9
Moana
Walt Disney Studios
Animated10_________________________________________________________________________________
Blu-ray also registered its highest ever share in the market, with 17% of total market value now going through the Blu-ray
format.
GfK Retail Tracking: Blu-ray percentage of market
20%
15%
10%
5%
0%

12.7%
7.7%

14.6%

14.9%

12.5%

12.7%

14.9%
12.9%

9.7%

14.7%

12.2%

16%

16%

13.1%

14.1%

Value
Volume

5.5%
2010

2011

2012

2013

2014

2015

2016

2017

The highest Blu-ray value share was recorded in New Release movies, where Blu-ray contributes 28% of value. This was
driven by titles such as Disney’s Star Wars Rogue One and Guardians of the Galaxy Vol 2.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201748

Video Entertainment Australia:
Physical Retail Market.
GfK Retail Tracking: Blu-ray Value Share % of each Release Type27% 28%
27%
25%

23%

2014

22%21% 22%

2015
6% 7%

New Release Movies

Catalogue Movies

9% 8%

TV Series

8% 8% 8%

10%

2016
2017

Other Direct to Video

Blu-ray also registered a value share increase in Catalogue Movies, accounting for 22% of value (up from 21% in 2016). This
was led by Roadshow’s Lord of the Rings boxset, with Blu-ray generating 75% of the title’s value.
GfK Retail Tracking: Blu-ray Value Share % of Title

Lord of the Rings Boxset

75.0%
64.2%

Planet Earth ii
Rogue One A Star Wars Story

54.8%

Game Of Thrones Season 1-6

52.7%

Batman V Superman Dawn Of Justice50.6%

Doctor Strange (2016)

48.9%

Star Trek Beyond

48.9%

Guardians Of The Galaxy Vol 2

48.2%
48.2%

Westworld S1

48.1%

John Wick

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Note: Filtered to top 200 sellers in 2017 (ranked by value). Excludes titles only released on Blu-ray.

From the GfK ConsumerScope service, one of the key selling points for the Blu-ray format is bonus content. 24% ofconsumers with Blu-ray capable hardware say that bonus features or special editions factored into their thinking whenbuying a disc.

Ultra HD 4K Blu-ray
265,000 Ultra HD 4K titles were sold in 2017 for a value of $7.8 million. This equates to 5% of Blu-ray volume and 7% ofvalue. The higher value share is due to a substantial price differential between a 4K title and a standard Blu-ray title, $30
and $22 respectively.
Action movies generated twice the value share of the second biggest genre; Adventure. Although more Theatrical
Catalogue titles were released, 64% of value came from Theatrical New Release titles released in 2017. Interestingly,

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201749

Video Entertainment Australia:
Physical Retail Market
the top selling 4K title was not a theatrical title, but TV Documentary Planet Earth II. Only one other television series,
Westworld Season 1, was released in 4K.
4K titles generated more value than 3D titles overall, $7.8 million compared to $6.0 million for 3D. This is being impacted bya relatively low release rate of 3D titles in 2017. Only 32 new 3D titles were released in 2017, compared to 116 for 4K.
By title, the average value generated for a 3D title released in 2017 was 2.5 times that of 4K, $125,000 compared to just
$51,000. The average price for 3D titles is 17% lower than 4K, at $25.
Sales for 4K discs are impacted by the availability of compatible hardware. Nearly 2 million 4K TVs have sold since thelaunch of 4K technology in Australia, meaning there is no lack of 4K capable screens. A potential barrier could be 4K
players, with only 33,000 dedicated 4K disc players sold so far. Adding in 4K gaming consoles, as well as dedicated playersthat can stream 4K content, the number of 4K capable players rises to 723,000. This equates to nearly ten 4K discs
purchased for every dedicated 4K player, or just under one and a half 4K discs if you include the gaming consoles capableof playing 4K discs.
Retail Tracking: Top selling 4K Blu-ray titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________
1
Planet Earth Ii
RoadshowDocumentary2
Wonder Woman (2017)
Roadshow
Action3
Guardians Of The Galaxy Vol 2
Walt Disney Studios
Adventure
4
Fantastic Beasts
Roadshow
Adventure
5
Spiderman Homecoming
Sony Pictures
Adventure
6
Logan
20Th Century Fox
Action7
Blade Runner
Roadshow
Sci-Fi8
Fast And The Furious 8
Universal
Action9
Deadpool
20Th Century Fox
Action10
Passengers (2016)
RoadshowDrama_________________________________________________________________________________
GfK Retail Tracking: Top selling 3D Blu-ray titles, Full Year 2017, ranked by volume

RANK
TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________
1
Rogue One A Star Wars Story
Walt Disney Studios
Sci-Fi2
Doctor Strange (2016)
Walt Disney Studios
Adventure3
Guardians Of The Galaxy Vol 2
Walt Disney Studios
Adventure
4
Fantastic Beasts
Roadshow
Adventure5
Wonder Woman (2017)
Roadshow
Action6
Beauty And The Beast (2017)
Walt Disney Studios
Musical7
Passengers (2016)
RoadshowDrama
8Kong Skull Island
Roadshow
Adventure
9
Spiderman Homecoming
Sony Pictures
Adventure10
Moana
Walt Disney Studios
Animated_________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201750

Video Entertainment Australia:
Physical Retail Market
Release Types
The physical Video Entertainment market is commonly segmented by ‘release types’. The New Release Movies segment,
which refers to theatrical movies in their first 3 months of sales, has continued a 10 year trend of increasing value share in
the market. This was the best performing segment in the market, declining by just 7% in value in 2017.
The largest segment in the market is TV Series, accounting for 35% of market value. TV Series dipped in value share in 2017,
impacted by the leading TV license, Game of Thrones, which released just one series in 2017, compared to two in 2016.
Catalogue Movies bucked a long term trend of share decline, jumping up to 28% of total value. The decline in older rerelease movies slowed, whilst the drafting from new movies licenses had a greater impact in 2017.
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%

9%
4%

27%

29%

30%

31%

30%

32%

33%

36%

36%

37%

35%

43%

40%

37%

33%

32%

30%

30%

28%

29%

26%

28%

Other DTVChildren
TV Series
Catalogue Movies

9%

11%

13%

17%

19%

19%

18%

19%

19%

22%

24%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

New Release Movies

Millions

GfK Retail Tracking: Release Type Value by Year

$400
$350

-7%

-8%

$300

$150

-26%

$164

$193
$152

2016

$221
$178

2017

$100

$76
$34

$50
$0

-25%

$275

$250
$200

-20%

New Release
MoviesCatalogue
Movies

TV Series

$57

$25

Children

Other Direct
To Video

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201751

Video Entertainment Australia:
Physical Retail Market
New Release Movies
New Release movies, which are new theatrical movies within their first 13 weeks of sales, was the best performing release
type in 2017, declining by 7% in value and taking a larger share of overall market sales.
One of the key indicators for the value size of a New Release movie is its box office performance. Box office takings fordiscs released in 2017 dropped by 9%, a slightly higher rate than the 7% decline recorded for disc sales.
Consumer research via the GfK ConsumerScope study shows that having seen a movie previously is the leading purchasedriver for DVD and Blu-rays, and is particularly important as a driver for New Release movie sales.
$1,264

GfK Retail Tracking: Box Office by Release Year (Billions)$1,149$1,143$1,0852012$1,061$1,070

2013

2014

2015

2016

2017

New Release pricing has stabilised in recent years and increased in 2017. The price premium for Blu-ray compared to DVD
is $8.20 for New Release movies. In cases where the gap between DVD and Blu-ray pricing narrowed, the share of Blu-ray
almost always increased. Examples of this include Disney’s Star Wars Rogue One and Moana, titles aimed at different
demographics recording similar results. This highlights consumer’s sensitivity to the price differential between DVD and
Blu-ray.
GfK Retail Tracking: New Release Avg Format Price by Year
$35

$30.6

$30
$25

$29.6

$28.9

$27.6

Blu-ray

$22.7

$21.8

$20.8

$19.9

$20.0

$20.30

2012

2013

2014

2015

2016

2017

$20
$15

$28.5

$27.6

GfK Retail Tracking: Star Wars Rogue One - DVD vs. Blu-ray Unit Share %

DVD

100%
80%

$12
50%

60%

57%

59%

61%

52%

40%
20%
0%

$10

30%
58%

58%

65%

62%

64%

60%

61%

$6
$4

70%

50%

42%

43%

41%

39%

Wk1

Wk2

Wk3

Wk4

Wk5

48%
Wk6

Wk7

Blu-ray

$8

42%

35%

38%

Wk8

Wk9

Wk10 Wk11 Wk12 Wk13

DVD

36%

40%

39%

$2
$0
-$2

Blu-ray Price Premium

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201752

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Moana - DVD vs. Blu-ray Unit Share %
100%

$12
$10

80%
60%

84%

86%

84%

84%

85%

86%

77%

70%

$8
89%

85%

87%

88%

91%

40%

$4
$2

20%
0%

$6

16%

14%

16%

16%

15%

14%

Wk1

Wk2

Wk3

Wk4

Wk5

Wk6

23%

30%

Wk7

Wk8

Blu-ray

11%
Wk9

15%

13%

12%

9%
Wk10 Wk11 Wk12 Wk13

$0Blu-ray Price PremiumDVD

DVD prices for New Release movies were also less varied than previous years. Over 60% of New Release DVD movies soldwere priced between $18-20. Sub $15 pricing has largely disappeared from the market, as has the above $25 priceband.
Combined, those two pricebands have halved in share in 2017.
GfK Retail Tracking: New Release DVD Priceband Unit % by Year

25%

19%

33%

33%

29%

32%

10%
3%
2012

11%
5%
2013

16%
26%
28%
24%
6%
2014

14%
20%

11%
18%

28%

43%

20%

6%
21%

2015

$20 <$25$18 <$20

61%

19%
9%
2016

19%

>$25

10%
3%
2017

$15 <$18<$15

Catalogue Movies
As noted previously, Catalogue movies increased in value share in 2017 and was the second best performing release type.
To further analyse the Catalogue segment, sales can be split into titles that were released within a year of their theatricalrelease (release (New Theatrical, excluding first 13 weeks of sales) 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 (-3%)$100

Cinema Release (-15%)

$50
$0
2011

2012

2013

2014

2015

2016

2017

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201753

Video Entertainment Australia:
Physical Retail Market
The value generated from New Theatrical titles fell just 3% in 2017, compared to a 15% decline for Cinema Release titles.
Cinema Release now accounts for only 35% of total Catalogue value, a share that has decreased steadily over the last
4 years. It is expected that we will see further drops in this segment, though as it accounts for less overall share, thedecrease in value will have less of an impact on the total Catalogue Movies release type.
A driver of Catalogue movie sales is drafting. Drafting refers to the uplift in disc sales for older franchise movies when a
new movie in that franchise is released at the cinema. An example of this in 2017 was Guardians of the Galaxy, which saw alift in disc sales when Vol 2 was released at the cinema.
GfK Retail Tracking: Guardians of the Galaxy Weekly Volume
4,500
4,000
3,500
3,000

Guardians of

2,500

the Galaxy Vol 2

2,000

cinema launch

1,500
1,000
500
0

Wk12

Wk13

Wk14

Wk15

Wk16

Wk17

Wk18

Wk19

Wk20

Wk21

Wk22

Wk23

In 2017, 6% of all Catalogue movie sales were for titles experiencing that drafting lift, up from 4% in 2016. Value is alsoslightly higher for drafting as there are often full license boxsets that sell during the drafting period.
GfK Retail Tracking: Draiing % of Catalogue Movies

10%

9%

8%
6%

6%

6%
4%

4%

5%

7%
Units %
Value %

2%
0%
2015

2016

2017

During 2017, Disney’s Star Wars was the top drafting license, averaging nearly 4,000 additional units per week when titles
were going through the drafting period. Other big drafting licenses include Fast and the Furious and Despicable Me. It
is worth noting that solitary titles like Blade Runner and Guardians of the Galaxy recorded the biggest individual title liftcompared to larger licenses with multiple titles.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201754

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Top 5 selling Drafting licenses, 2017, ranked by volume

RRANK
TITLE
AVG. WEEKLY LIFT IN UNITTS____________________________________________________________________________________________
1

Star Wars

3,802

2

Fast & Furious

2,369

3

Despicable Me

1,889

4

Transformers

1,744

5
The Mummy
1,561____________________________________________________________________________________________TV Series
TV Series is the top selling release type in the Video Entertainment market, generating 35% of the overall value in themarket. 2017 did see the first drop in value share for TV Series in the last 6 years, as the value for the category fell following
some changes to the biggest licenses.
As highlighted earlier, the leading TV license, Roadshow’s Game of Thrones, had two series released in 2016, compared tojust the one in 2017. Despite that change, Game of Thrones remained the largest TV license, with the latest series, Season
7, selling more volume at launch than any of the previous series.
Led by that change, new release TV (TV series within their first 13 weeks of sales) recorded a decline of 28% in value in2017, compared to 15% for the rest of the TV market.
Many TV licenses experienced growth in 2017, including Fox’s Vikings and Universal’s A Place to Call Home, both of whichwere within the top 5 selling TV licenses for the year.
GfK Retail Tracking: Top 10 selling licenses, TV Series, 2017, ranked by volume

LICENSE
DISTRIBUTOR_________________________________________________________________________
Game Of Thrones

Roadshow

Vikings Tv Series

20Th Century Fox

A Place To Call Home

Universal

Walking Dead

20Th Century Fox

Big Bang Theory

Roadshow

Suits

Universal

Bones

20Th Century Fox

Supernatural

Roadshow

Dr WhoRoadshow

Law & Order
Shock/Universal_________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201755

Video Entertainment Australia:
Physical Retail Market
GfK Retail Tracking: Top 10 selling titles, TV Series, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________
1
Game Of Thrones Season 6
RoadshowDrama
2
Game Of Thrones Season 7
RoadshowDrama
3
Game Of Thrones Season 5
RoadshowDrama
4
A Place To Call Home Season 4
Universal
Drama
5
Vikings Season 4 Part 2
20Th Century Fox
Drama
6
Game Of Thrones Season 4
Roadshow
Drama
7
Big Little Lies Season 1
RoadshowDrama
8Vikings Season 4 Part 1
20Th Century Fox
Drama
9
Game Of Thrones Season 1
RoadshowDrama
10
Sherlock Season 4
RoadshowDrama_________________________________________________________________________________TV Series cost more, on average, than the other release types; primarily due to TV series being released in larger boxsets.
Prices have remained stable in 2017, with the TV Series average price sitting at nearly $27.
GfK Retail Tracking: Average Price by Release Type

$30
$25
$20
$15
$10
$5
$0

$28.2

$27.1

$27.6

$27.3

$26.7

$26.5
New Release Movies

$24.4

$23.7

$13.6

$13.5

$22.6
$13.9

$12.9

$12.1

$12.1

2012

2013

2014

$21.6
$13.7

$22.1

$12.2

$12.2

$12.3

2015

2016

2017

$21.6
$13.4

$13.7

Catalogue Movies
TV Series
Childrens

It is likely that the digital streaming services may also be having an impact on the TV series disc market. Data from GfKConsumerScope shows that the 2017 consumption of TV content via those services has risen to the highest everrecorded levels and has surpassed movies as the most watched content for the streaming services.
According to GfK ConsumerScope, there has also been an increase in watching titles on digital streaming services whichhave not yet been released on disc. These titles accounted for 17% of total viewing on these services, up from 11% in 2016.
Some of the top titles are the original series launched by Netflix, including Stranger Things and 13 Reasons Why.
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/en-au/ or follow GfK on Twitter: twitter.com/gfk?lang=en

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017

56

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eIn 2017, 45% of theAustralian population
aged 14-65 watchedpaid digital content

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201758

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
The continuing fragmentation of the Home Entertainment market is providing consumers with more content, platforms,
and providers to choose from, which is driving a shift in consumer viewing behaviour.
Engagement with Home Entertainment is higher than ever before. The number of titles watched per month has increased
from 8.3 to 10.1 in the last year, and, on average, Australians aged 14-65 spend 19.4 hours per week watching HomeEntertainment (including free-to-air TV, Pay TV, and Catch-up TV), a 0.7 hour increase from 2016. This trend was mainly
driven by an increasing number of hours and titles watched using subscription video-on-demand.
The rise of digital consumption has continued over the past 12 months and for the first time, more Australians havewatched paid digital content (EST1, VOD2, SVOD3) than discs in 2017. Nevertheless, discs are still very popular, with 42% ofAustralians aged 14-65 having watched a DVD or Blu-ray disc in 2017.
Very positively, the downward trend of piracy has continued and has been the lowest since the GfK ConsumerScope
measurement started in 2010. In 2017, only 18% of Australians aged 14-65 have watched pirated content (direct orindirect4). More legal deterrents, the introduction of subscription video-on-demand services, and shorter releasewindows have assisted the decrease in piracy over the last 3 years.

% Viewership in the past month

GfK ConsumerScope: Last month consumption over time (%)
100
90
80
70
60
50
40
30
20
10
0

86

78

57

45

31

42

19

18

2014
n=256322015
n=13047

2016
n=127022017
n=13256

Free-to-air TV
Paid digital (VOD,
EST,SVOD)
DVD/Blu-ray disc
PiracyBase: National representative sample of Australian population (aged 14-65)
1 EST = electronic sell through/ digital purchase to keep
2 VOD = paid video-on-demand/ digital rental
3 SVOD = subscription video-on-demand
4 indirect piracy = copied from someone else (e.g. via USB, hard drive etc.)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201759

Consumer Behaviour
There has been a consistent increase in on-the-go video consumption, with 29% of Australians saying that they watch
more content on the go compared to a year ago (Q4 2017).
The increase in smart devices, rise of mobile phone data caps and increased public Wi-Fi areas, as well as the ability to
download content from subscription video-on-demand services, have all helped to drive entertainment consumption on
mobile devices.

Mobile consumption
The TV screen remains the primary device for viewing Home Entertainment, but mobile devices, particularly
smartphones, are increasing in share. The use of mobile devices to watch Home Entertainment is significantly higher for
younger age groups, while the TV screen remains the preferred device for Australians aged 35+.

% Share of total homeentertainment watched

ConsumerScope: Device share – of total hours watched (%)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

7%
8%

9%
9%

12%

24%

22%

25%

9%
TabletMobile phone
PC

61%

60%

55%

2014
n=13047

2016
n=127022017
n=13256

TV

Base: National representative sample of Australian population (aged 14-65)

ConsumerScope: Device share by age (2017)
Total
14-17
population
y.o.

TV

55%

35%

18-24
y.o.

25-34
y.o.

35-44
y.o.

45-54
y.o.

55-65
y.o.

35%

52%

61%

71%

78%

PC

25%

37%

38%

25%

19%

15%

13%

Mobile phone

12%

18%

19%

14%

10%

5%

3%

Tablet

9%

9%

8%

9%

10%

8%

6%

n=7473

n=383

n=996

n=1789n=1559n=1441n=1305

Base: National representative sample of Australian population (aged 14-65), 2017

While most of the content watched on the TV screen is still free-to-air TV, other paid content and providers are making anentry onto ‘the big screen’. In contrast, content watched on mobile devices is still predominantly free, such as Catch-up
TV or other free online videos e.g. YouTube.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201760

Consumer Behaviour
nsumerScope: Formats watched on device (2017)
TV

PC

Discs

41%

Free-to-Air TV
Catch-up TV

75%
26%

SVOD

37%

TabletMobile Phone

7%

2%

2%

0%

0%

0%

17%

10%

5%

16%

10%

8%

VOD

9%

3%

2%

2%

EST

6%

5%

3%

3%

Piracy

10%

10%

3%

2%

Free online videos(YouTube)

60%

25%

34%

53%

Base: Total involved in home entertainment in 2017 (n=8,168)

In Q4 2017, 18% of Australians aged 14-65 stated that they had downloaded titles from a subscription video-on-demand
service before. Amongst these, occasions for downloading SVOD titles include holidays at 51%, on the plane 44%, andcommuting at 42%. However, 30% are also watching downloaded SVOD titles at home.
Although data caps have been raised, they still remain a barrier when it comes to content consumption on the go, with
34% of Australians aged 14-65 stating that they would watch more content on the go if they had more data available.

Paid digital (EST, VOD, SVOD)
Paid digital consumption has seen consistent growth over the last few years, largely driven by SVOD. In 2017, 45% of theAustralian population aged 14-65 watched paid digital content. While transactional figures for EST and VOD have steadily
increased, the number of people involved in EST and VOD has remained fairly stable.

% Viewership in the past month

GfK ConsumerScope: Last month consumption over time (%)
50
45
40
35
30
25
20
15
10
5
0

45
39

Total paid digital
SVOD
EST

19
12

11
10
5
2014

VOD

10
2015

2016

2017

Base: National representative sample of Australian population (aged 14-65)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201761

Consumer Behaviour
Digital Home Entertainment viewing is being embraced more by younger age groups, with nearly 2 in 3 under 25 year olds
watching paid digital content in the past month.
GfK ConsumerScope: Paid digital consumption by age (2017)
Total
14-17
population
y.o.

18-24
y.o.

25-34
y.o.

35-44
y.o.

45-54
y.o.

55-65
y.o.

Total Paid Digital

45%

62%

65%

58%

44%

34%

21%

VOD

10%

15%

13%

14%

10%

7%

4%

EST

12%

22%

19%

17%

12%

6%

2%

SVOD

39%

54%

56%

50%

37%

29%

18%

n=7473

n=383

n=996

n=1789n=1559n=1441n=1305

Base: National representative sample of Australian population (aged 14-65), 2017

Increasing familiarity, the rise of smart devices, growing number of providers, and more content have all contributed to thegrowth in paid digital.
While paid digital is on the rise, there are still barriers to its consumption. Cheaper prices, faster
download speeds and less buffering are the top three reasons that would encourage users to more frequently viewing of
paid digital formats. Not enough recent content/earlier releases is a key barrier, particularly for subscription streaming
services.
GfK ConsumerScope: What would encourage you to watch [paid digital format] more frequently? (2H 2017)
EST

VOD

SVOD
58%

59%

61%

Cheaper prices
Faster download time

29%

26%

32%

Less buffering

28%

27%

30%

Earlier release

26%

26%

30%

Reward points/ schemes

25%

26%

22%

Easier to access in general

22%

23%

25%

Easier to access titles on TV

19%

20%

23%

Better picture/ sound quality
Ability to access/stream, purchase/rent on platform
Availability of bonus conten

19%

19%

24%

16%

16%

15%

12%

12%

13%

Base: Involved in home entertainment (n=4103), 2H 2017

Subscription video on demand (SVOD)
Of all formats, subscription video on demand has shown the greatest increase in consumption. Since Netflix launched inAustralia in March 2014, penetration of SVOD has increased from 5% in 2014 to 39% in 2017 (+643%).

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201762

Consumer Behaviour
GfK ConsumerScope: SVOD consumption by year (%)% Viewership in the past month

45
39

40
35
30

29

25
20

18

15
10
5

5
0

2014

2015

2016

2017

Base: National representative sample of Australian population (aged 14-65)

Since then, several content providers have entered the market (Stan, Foxtel Now, Amazon Prime etc.), and are competingfor audiences’ share of viewing. While Netflix still accounts for the majority of viewers, other SVOD providers have been
gaining share over the last couple of years.
The fragmentation of the on-demand landscape is likely to continue as more ‘non-traditional’ providers enter the market.
With Disney planning to launch its own direct-to-consumer on-demand platform, other studios may potentially follow.
Facebook, which launched its Facebook Watch service in 2017 in the USA, it has the potential to surpass YouTube as thebiggest video platform.
GfK ConsumerScope: SVOD service subscription (%)
45%
40%% of subscribers

35%

40
34

30%
25%
20%
15%
10%
5%
0%

12

12

9

4
0

0

4

4

2

Jan-Mar 17

Apr-Jun 17

Jul-Sep 17

Oct-Dec 17

Base: Re-based to total population aged 14-65

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201763

Consumer Behaviour
As content providers try to differentiate themselves from other providers, the importance of original content is likely togrow in the future when it comes to choosing a provider.
While consumers want choice, and the various subscription services are relatively affordable, accessing a significant
breadth of original content will require multiple subscriptions. In Q4 2017, 27% of Australian consumers were paying for
two or more pay TV and SVOD services.
GfK ConsumerScope: Top 5 reasons to sign up to SVOD service
2015

2016

2017

Affordable

12%

20%

23%

To watch at a time that suits

11%

17%

20%

To watch multiple episodes in a row

9%

15%

17%

To access a catalogue of new TV programs

7%

12%

14%

To watch original services produced by provider(e.g. House of Cards by Netflix)

5%

10%

14%

Base: Watched SVOD in the past month: 2015 (n=8224), 2016 (n=8167), 2017 (n=8168)

EST and VODOver the last few years, we have seen an increase in transactional figures of EST and VOD, while penetration of EST and
VOD has remained fairly stable.
Unlike SVOD, EST and VOD are much more likely to be used occasionally:
GfK ConsumerScope: Consumption frequency segmentation, 2017100%
% Viewing frequency

90%
80%
70%

Never

51%

66%

62%

60%
50%
40%
30%
20%

4%
4%
4%
37%

10%
0%
Base: Re-based to total population

SVOD

1-3 times a year
4-6 times a year

12%
8%
5%
13%

13%
7%
4%
10%

VOD

EST

Every month
At least fortnightly

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201764

Consumer Behaviour
Amongst past-month users, the convenience of watching anytime and immediately, as well as easy process, are key
drivers to choose EST and VOD over others.
GfK ConsumerScope: Drivers of EST & VOD, 2017
EST

VOD

Convenience of watching it
when I wanted to24%

Easy process

31%

Immediate ‘delivery’23%

Convenience of not having
to leave the house

30%

22%

Immediate delivery

28%

20%

Convenience of watching it
when I wanted to

28%

19%

Only wanted to watch it once

28%

You can watch it anywhere
and anytime
Easy process
It was cheaperl
Base: Watched EST in 2017 (n=929), VOD (n=725)

However, EST and VOD are used for different occasions to SVOD. While both may be likely to be used for nights in withfamily or friends, SVOD consumption is somewhat more solitary.
SVOD is also more likely to be used during the week as a mid-week filler, while EST and VOD is more for weekend
consumption.
GfK ConsumerScope: Viewing occasion
EST

VOD

SVOD

Spontaneous night-in with friends/ family

18%

Spontaneous night-in alone

19%

19%

19%

Planned night-in with friends/ family

22%

20%

17%

Planned night-in alone
7%

Movie / TV show during the day
Other (Please specify)

4%

7%

21%

18%

14%
1%

18%

14%

19%

Watching out-of-home (travelling, holiday)

16%

22%

1%

5%

Base: Q1 ‘17 combined: Watched EST (n=197), VOD (n=170), SVOD (n=772)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201765

Consumer Behaviour
GfK ConsumerScope: Viewing day
40%
25%

35%
30%

24%

25%
20%

18%

15%
10%

10%

12%

16%
13%

17%

13%

Monday14% 15%
12%

14%

8%

5% 5%

5%
0%

12% 10%
9%

16%

EST

22%

Tuesday Wednesday Thursday

FridaySaturday

VOD
SVOD

SundayBase: Q1 ’17, Watched EST (n=197), VOD (n=170), SVOD (n=772).

PiracyIn 2017, piracy in Australia reached its lowest level in 7 years. In the last 3 years both direct and indirect piracy experienced
declines, of -39% and -50% respectively.
GfK ConsumerScope: Last month consumption over time (%)% Viewership in the past month

35%
30%

31%

25%

24%

Total Piracy

20%
15%

18%
15%

15%

10%

8%

5%
0%

2014

2015

2016

Direct Piracy

Indirect Piracy

2017

Base: National representative sample of Australian population (aged 14-65)

A number of factors have reduced the impact of piracy on the Home Entertainment market in Australia over the last three
years:•

Legal deterrents: Dallas Buyers Club letters and ISPs blocking access to piracy web sites ordered by Australian 		
courts.

•Affordability: The introduction of SVOD in the Australian market has provided consumers with an affordable 		alternative to piracy. 34% of those who watched SVOD in the past month state that they have reduced their piracy
already or definitely will pirate fewer titles (2017).

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201766

Consumer Behaviour
GfK ConsumerScope: Last month consumption over time – SVOD & Piracy
Proposed ‘three strikes’
legislation (Copyright
Notice Scheme Code 2015)34% 34%31%
30%

21% 22% 23%
19%

39%

37% 38%29% 27%

31% 30%41%

Australian Federal Court
orders blocking of 59 Piracy
Sites by Australian ISP’s

SVOD
PIRACY

19% 20% 21% 20% 21% 19% 21% 19%

16%

Aus. Federal Court has 15%
6%ordered internet companies
to block 5 copyright
infringing websites
Q2 ’14 Q3 ’14 Q4 ’14 Q1 ’15 Q2 ’15 Q3 ’15 Q4 ’15 Q1 ’16 Q2 ’16 Q3 ’16 Q4 ’16 Q1 ’17 Q2 ’17 Q3 ’17 Q4 ’17

8%

8% 8%

Dallas Buyers letters
and Site blocing(Copyright online
infringement) Bill 2015

Base: National representative sample of Australian population (aged 14-65)•

Shorter release windows: The introduction of SVOD in the Australian market has provided consumers with anaffordable alternative to piracy. 34% of those who watched SVOD in the past month state that they have reduced
their piracy already or definitely will pirate fewer titles (2017).

GfK ConsumerScope: Last month consumption over time – SVOD & Piracy
Content is...
Released much later in Australia[VALUE]

Released a little bit later in Australia[VALUE]

Released at the same time

16%
[VALUE]

Released a little bit ealier in Australia[VALUE]

Released much more earlier in Australia

Base: Involved in home entertainment Q4 2017 (n=2014)[VALUE]

Don't know

Catch-up TV
Consumption of catch-up TV has been fairly stable over the last few years, with just over a third ofAustralians having watched catch-up TV in 2017.
% Viewership in the past month

GfK ConsumerScope: Catch-up TV consumption over time
50
45
40
35
35
34
31
30
25
20
15
10
5
0
2012
2013
2014
n=20770n=25176n=25632

33

34

Catch-up TV

2015
n=13047

2016
n=12702

Base: National representative sample of Australian population (aged 14-65)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201767

Consumer Behaviour
While free-to-Air TV and pay TV seem to attract older demographics, catch-up TV particularly
engages younger females.
GfK ConsumerScope: Gender x Age by linear consumption
100%

VALUE

90%

VALUE

80%

VALUE

70%
50%
40%

10%

10%

VALUE

10%

Women 35-44 y.o.

10%

Women 25-34 y.o.

VALUE
4%

Women 18-24 y.o.

VALUE
4%
VALUE

Women 45-54 y.o.

Women 14-17 y.o.

VALUE
VALUE

Men 55-65 y.o.

10%

10%

Men 45-54 y.o.

VALUE

11%

10%

Men 35-44 y.o.

VALUE
4%

VALUE
3%

4%

F2A TVn=10599

CUTV
n=4476

30%
20%
10%
0%

VALUE

VALUE

VALUE
VALUE
VALUE
VALUE

60%

Women 55-65 y.o.

VALUE

VALUE

9%

10%

7%

Men 25-34 y.o.
Men 18-24 y.o.

Pay TVn=4328Men 14-17 y.o.

Base: National representative sample of Australian population (aged 14-65), indicate significant differences vs. total population

With services like Foxtel Now offering a combination of linear and subscription on-demand services to differentiate andmaximise audience reach, the lines are becoming increasingly blurred.

Disc purchase and consumption
In line with declining sales volume, the number of people buying discs has been steadily declining over the last few years.
However, compared to other countries, the physical disc market is still significant in Australia. In Australia per capita discsales (1.25 - 2017) are amongst the highest in the countries GfK tracks.
60%
55%

71

50%

80%
63

62

45%

70%
54

60%

52

50%

40%
35%
30%
25%
20%

36

40
34

32

33

31

30

2011
2012
2013
2014
2015
n=35502 n=20770 n=25176 n=25632 n=13047

35
28

2016
2017
n=12702 n=13256

40%

Millions

GfK POS tracking & ConsumerScope Acquisition incidence & sales volume% Disc buyer
penetration**
Unit Sales*

30%
20%
10%
0%

*Souce: GfK POS tracking **Source: GfK ConsumerScope (Nat rep sample)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201768

Consumer Behaviour
While personal disc purchase still accounts for nearly 60% of total disc volume, there are indications that the number of
titles for personal use is declining while gift giving is increasing.
Disc: Personal vs gift share (%)

GfK ConsumerScope: Discs: Personal vs. gift share
70%
60%

58

50%

53
47

42

40%

Personal

30%
20%

Gift

10%
0%

2015
n=2519Base: Disc buyers in the period specified

2017
n=2896Birthdays actually appear to be a larger gifting occasion for discs than is Christmas. 71% of disc buyers in 2017 purchased
or intended to purchase a disc as a birthday gift, compared to Christmas at 68%.
GfK ConsumerScope: Gift occasions disc purchased/ intend to purchase for in the past 12 months
Birthdays

71%

Christmas

68%

Father’s Day

23%

Maother’s Day

21%

Valentines’s Day

8%

Easter

6%

Halloween

4%

Other (Please specify)

4%

Base: Disc buyers in 2017 (n=3,886)

Apart from gifting, several other factors are holding up the disc market in the Australia:•

Familiarity with format & strong associations. Compared to other formats, both DVD and Blu-ray
discs are still strongly associated with great sound and picture quality

GfK ConsumerScope: Format associations 2017
DVD

Blu-ray

SVOD

EST

VOD

Excellent picture quality

37%

48%

30%

18%

20%

Excellent sound quality

35%

51%

31%

18%

20%

32%

10%

Formats I prefer

27%

21%

10%

Base: Involved in home entertainment 2017 (n=8168)

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201769

Consumer Behaviour•

Desire for collection / tangibility: Disc collection continues to be the number 1 reason topurchase a disc over EST. However, this has been steadily declining over the last three years.

GfK ConsumerScope: Reasons for choosing discs over EST
70%
65%
I like to own a

61

60%

collection of discs

55%

53

50%

52

51

45%
40%

2014
n=2145

Base: Disc buyers in the period specified

•

•

2015
n=12092016
n=10682017
n=1952

Pricing and promotion: It is important that disc buyers feel they get a good deal as just over half of all discs 		
in 2017 (52%) were purchased on special offer. Only 18% of total discs would have been purchased for full price (ifthey weren’t on special offer).
The most appealing special offers for discs were revealed as 2for1 and Buy 1 get 1 free. This preference for more 		
items, not just cheaper items, may tie into the collection psychology.

GfK ConsumerScope: Most appealing special offer (Q1 2017)
2 for 147%

B1G1F (Buy 1 get 1 free)

37%

x% Off32%

x amount purchased for $ x i.e 2 for $20

31%

Everyday low price $x

31%

Base: Disc browsers in Q1 2017 (n=1108)

Digital barriers: Barriers to digital consumptions still exist such as cost, unfamiliarity with digital formats, and 		
not being able to watch them on a TV screen. 46% of Australians still agree that they prefer more traditional waysof Home Entertainment.
When it comes to retail sales channels, physical channels remain dominant. However, online is likely to continue growing,•in particular with the launch of Amazon in the Australian market in December 2017.

Disc channel share

GfK ConsumerScope: Disc sales channel (Volume share)
90%
83
80%
80

75

72

70%

64

60%
50%
40%
30%
20%
10%

17

0%specified
Base: Disc buyers in the period
2013
n=546820

2014
n=6510

36

28

25

2015
n=33032016
n=31622017
n=2896

InstoreOnlineAUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201770

Consumer Behaviour
JB Hi-Fi remains the dominant player in the market, accounting for 36% of disc sales in 2017, an increase from 31% in theprevious year.
GfK ConsumerScope: Disc retailer share (Volume share)
100%
90%
Retailer shares (volume)

80%
70%
60%
50%
40%

17%
26%
4%
1%
2%
1%
3%

25%

27%

14%

14%

3%
2%
5%
4%

6%
5%
13%

30%
20%

39%

6%

7%
6%

6%
6%

17%

11%

32%

32%

2013
n=1565

5%
5%

Others
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51
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39%

10%
0%

4%

4%
2%
6%
4%

4%

1%
2%
1%
3%

6%
4%

4%

3%

4%

7%
3%

22%

2014
n=651036%

W+<$_$W+<$
W+<+<$
iW$F+K\+$2015
n=33032016
n=31622017
n=2896

Base: Disc buyers in the period specified

Disc consumption is declining at a faster rate than acquisition. Blu-ray consumption and acquisition is declining at a slower
rate than DVD consumption and acquisition.

Disc consumption & acquisition

GfK ConsumerScope: Consumption and acquisition share
70%
63
60%
57
56
51
50%
40%
30%

34

32

33

47
31

30

20%

42
28

Disc consumption

Disc acquisition

10%
0%

2012
2013
2014
2015
2016
n=20770 n=25176 n=25632 n=13047 n=12702

2017
n=13256

Base: National representative sample of Australian population (aged 14-65)

CUTV
n=4476

Pay TVn=4328AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201771

Consumer Behaviour
GfK ConsumerScope: Consumption and acquisition share – DVD vs. Blu-ray
Disc consumption & acquisition

70%
60%

60
52

50%

53

40%
30%

32

46

41

36

29

29

26

27

21

24

19

15

16

18

20%

19

19

22

10%

11

12

14

0%

Disc consumption

11

2012
2013
2014
2015
2016
n=20770 n=25176 n=25632 n=13047 n=12702

Disc acquisition
Blu-ray consumption
Blu-ray acquisition2017
n=13256

Base: National representative sample of Australian population (aged 14-65)

Compared to other formats, discs are still very much loved. Although having a similar number of format ‘lovers’, discs areless polarising than SVOD which has a higher active rejection rate.

Frequency of viewing HE formats

GfK ConsumerScope: Consumption frequency segmentation

100%
90%
80%

40%

51%

39%

71%

62%

66%

70%

AFFAIRS (1-3 times a year)

60%

7%
8%

50%
40%

6%

4%
4%
4%

30%

14%

OCCASIONALS (4-6 times a year)

12%

REGULARS (every month)

9%

20%

38%

10%
0%

REJECTERS (never)

37%
26%

Catch-up
TV

SVOD

Discs

8%
5%
3%

12%
8%
5%

13%

LOVERS (at leastfortnightly)

7%

14%

13%

4%
10%

Piratedtitles

VOD

EST

Base: Re-based tot total population

Disc rental
Disc rental continues to be the fastest declining format in the Australian entertainment landscape. Over the last 6 years,
the proportion of Australians renting physical discs has more than halved, down to 15% in 2017.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201772

Consumer Behaviour
GfK ConsumerScope: Acquisition incidence of disc rental over time

% Acquisition incidence

70%
60%

32
28

50%

24

40%

21

30%

18

16

15

20%
10%
0%

2011
n=355022012
2013
n=20770 n=25176

2014
n=256322015
n=13047

2016
n=127022017
n=13256

Base: National representative sample of Australian population (aged 14-65)

In line with declining acquisition incidences, the number of video stores has drastically reduced. In 2001 there wereabout 2600 video stores, according to the Australian Video Rental Retailers Association (AVRRA). By the end of 2016 that
number had dwindled to 750.

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/en-au/ or follow GfK on Twitter: twitter.com/gfk?lang=en

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0 DV + Blu-rp2eDevices and Emerging
Viewing Patterns
Devices, and Emerging Viewing Patterns
There are many ways to watch Video Entertainment content, from the big screen TV in your lounge room, to a laptop in
bed or a smartphone on the go.
The TV is the preferred option for consumers, with 54% of content watched via the TV in Q4-17. Following that, computers
are used for a quarter of viewing time and then mobile devices (smartphones and tablets) combine to account for theremaining 20%.
GfK ConsumerScope: Content Viewing Device, Q4 2017
60%

50%
40%
30%

54%

20%

25%

10%

12%

0%

8%

Device viewership has been fairly stable over the years, though we are now seeing mobile devices take a greater shareof overall viewing. Smartphones in particular are being used more often to watch content, enabled by a move to larger
screen phones.
GfK Consumerscope: Content Viewing Device
63

60

60

61
51

54

TV
23
7

26
7

22

23

9

10

7

7

8

7

Q2 - 15

Q4 - 15

Q2 - 16

Q4 - 16

27

25

13

12

10

8

Q2 - 17

Q4 - 17

PC
Mobile Phone
TabletWhich device a consumer uses often depends on what content they are watching. The TV is used across all the different
formats listed below, whilst mobile devices are used to watch the digital services. PCs are often used to watch pirated
material, reflecting the device used to source that content.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201775

Devices and Emerging
Viewing Patterns
GfK Retail Tracking: Smart TV OS Unit Share

84%

53%

67%

71%

45%

TV
16%
21%

14%

17%
15%
Purchased
DVD/BD
n=473

38%

26%

18%

11%
VoD
n=223

Other (please specify)

SVOD
n=1085

Mobile Devices(Smartphones &Tablet)PC/Laptop screen

EST
n=268

Piracyn=525

TV – the most important device
Most Video Entertainment content is watched on a TV, with bigger screen allowing for a greater viewing experience for
consumers. In 2017, 1.8M units were sold in the TV market, a growth of 3% on 2016. This is the second consecutive year of
growth for TVs, following a period of decline. A rising share of premium features ensured that value also increased, leading
TVs to become the second largest value growth category for the year (behind smartphones).
GfK Retail Tracking: Key Features Unit Share of TV Market
69
61
50
36
28

29

41

47

39

>50”

53
Smart TV

36

36

20

54

UHD

18
4

2012

2013

2014

2015

2016

2017

Australian homes rank amongst the largest in the world, though the sizes are coming down due to an influx of newapartments being built (according to the ABS, nearly half of all new buildings are apartments). Despite this drop in averagehome size, TV sales continue to trend towards larger screens. In 2017, 54% of TVs purchased had a screen size of 50” ormore. This has increased in share every year for the last 6 years. Even larger screens, greater than 64”, have taken a 17%
share, up from 12% in 2016.
When buying a TV, smart functionality is becoming more of a standard feature. Nearly 70% of all TVs purchased in2017 had smart functionality, a figure which rises to 92% when looking at large screen TVs over 50”. Smart TVs provide
consumers with another way of directly accessing video content.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201776

Devices and Emerging
Viewing Patterns
Smart TV operating systems have moved from being completely closed proprietary systems to the open operating
systems seen in other devices, such as Android or Linux. This allows for greater connectivity between devices. Samsung’s
Tizen OS accounts for 24% of unit sales, slightly down from 2016, but is the largest of the branded operating systems. GfKRetail Tracking: Smart TV OS Unit ShareOthers
5%

15%
21%

14%

13%

Web OS

29%

24%

Tizen

9%

Linux

94%
48%

24%

FireFox OS

31%

Closed Propriet

14%
2014

2015

26%

21%

2016

2017

Android

Picture quality is another key development within TVs. 4K Ultra HD TVs accounted for 53% of total TV sales in 2017. Nearly
2 million 4K Ultra HD TVs have sold since the technology launched in Australia.
When speaking to Video Entertainment consumers, understanding of 4K Ultra HD is somewhat mixed. 64% of consumers
are aware of the feature, though only 38% say they have either some or a good understanding of what it does. Awareness is
up versus prior years, but this indicates that further education on this technology may be needed.

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

12%

Yes, some understanding

26%

Yes, little/no understanding

26%

Never heard of it

64%
Aware

36%

For more information on 4K Ultra HD discs, please read the GfK chapter on the Video Entertainment software market.
Newer technologies and features are helping to differentiate 4K Ultra HD TVs. Many TV manufacturers are now releasing
OLED TVs. These TVs allow for more vibrant colours, ultra-thin screens and save energy by running more efficiently. Sales
for OLED TVs doubled in 2017, though remaining a niche section of the market, making up 3% of total sales.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201777

Devices and Emerging
Viewing Patterns
Wide Colour Gamut (WCG) is another technology that is being incorporated into some premium TVs. TVs with this feature
are able to produce a wider range of colours than standard TVs. A third of all Ultra HD TVs purchased in 2017 had WCG
technology.

Mobile Devices
Consumers are turning to their mobile devices to watch Video Entertainment content. 20% of content watched in Q4-17
was through a mobile device, up from 17% in Q4-16. Smartphones are the main cause of this increase, driven by larger
screens and an increase in digital video offerings.
Australians spent $4.5 billion on smartphones in 2017. This represented a growth of 7% in value and meant smartphones isthe largest individual category GfK measures. Large screen phones are driving that value, with 41% of phones purchased in2017 having a screen size of 5.5” or more, nearly double the share recorded in 2016.
GfK consumer research has shown that consumers with larger screen phones are more likely to use them to watch VideoEntertainment compared to those with smaller screens.
GfK Retail Tracking: 5.5”+ Screen Size Unit Share of Smartphones Market

41

22
15

0
2012

4
2013

7
2014

2015

2016

2017

Mobile devices let consumers expand their viewing time and offer opportunities for greater consumption of VideoEntertainment content. On-the-go viewing is a key component of this. For more information on this topic, please read the
GfK ConsumerScope chapter.
Tablets are also being used to watch Video Entertainment content, accounting for 8% of viewing time. The tablet market
rebounded in 2017, especially in the second half of the year, where volume grew by 17% year-on-year. With the lifecycle ofa tablet being approximately 5 years, consumers from 2012/13, when the market was at its peak, may be coming back into
the market and helping drive the market back to growth.
Larger screen tablets are taking a greater share in the market. Tablets that are 9” or larger accounted for over half of alltablets purchased in 2017, up from 44% in 2016.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201778

Devices and Emerging
Viewing Patterns
GfK Retail Tracking: Tablet Screen Size Unit Share %

47%

44%

49%

30%

54%

≥ 7.9 < 9

35%

32%

<7

27%

23%

19%

18%

18%

2014

2015

2016

2017

≥ 9 < 11
> 11

Connected 4G tablets give consumers the ability to stream or download content outside the home. This was the growtharea for tablets, increasing in volume by 23% in 2017, compared to a 6% decline for non-connected WiFi tablets. 31% of alltablets purchased in 2017 were connected tablets, the highest share since tablets launched in 2011.

Players – DVD, Blu-ray and Consoles
Watching physical discs is still very common. 41% of Australians watched a physical disc in the last month, according to
GfK ConsumerScope, while 71% of households own some form of disc player.
Standalone DVD players are the most common, present in half of all Australian households, followed by Blu-ray players
and gaming consoles.
GfK ConsumerScope: Household Penetration Q4 2017
Total Player (incl.DVD,Blu-ray, consoles,4K,3D)

71%Standalone DVD Player

51%

Total Blu-ray Player (incl. consoles)

43%

Total 3D Blu-ray Player

18%

Total 4K Player (incl.consoles)

15%

Xbox One S

4%

PS4 Pro

2%

0%

10%

20%

30%

40%

50% 60%70%80%Over 14 million DVD and Blu-ray players have been sold in the last 10 years, with 655,000 in 2017 alone. Sales for DVD
players (including recorders) dropped by just 4% in 2017 and accounted for 55% of all players sold (excluding consoles).
Blu-ray Players dropped in volume share in 2017, but represent 45% of player sales, while the format only accounts for 14%of the physical disc market volume.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201779

Devices and Emerging
Viewing Patterns
GfK Retail Tracking: Video Player Type Unit Share %

42%

45%

45%

Blu-Ray Recorder

42%

Blu-Ray Player
DVD Recorder
54%

49%

50%

54%

2015

2015

2016

2017

DVD Player

The household penetration of 4K Ultra HD players is 15%. As referenced in the GfK chapter on Video Entertainment
software, there were 33,000 dedicated 4K players sold or 723,000 total 4K capable players, once adding in consoles andplayers with 4K streaming capability. 18% of the Blu-ray players sold in 2017 were 4K Ultra HD.
GfK Retail Tracking: 4K Ultra HD Unit Share % of Total Blu-ray Players

18

12

5

2015

2016

2017

Digital Media Players – Apple TV and Chromecast
Media Players, such as Apple TV and Chromecast, are devices which consumers can use to stream or cast their VideoEntertainment content. 21% of Australian households have a media player, with the Google Chromecast being the mostcommon, in 8% of households.
464,000 of these media players were sold in 2017, a growth of 11% on 2016. Of these, 3% were 4K capable.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201780

Devices and Emerging
Viewing Patterns
GfK ConsumerScope: Media Player Household Penetration, Q4 201721%

8%

Total Media Player

Chromecast

7%

Apple TV

5%

Fetch TV

3%
Other Media Player

2017 and beyond
2017 marked a positive year for Video Entertainment hardware, with sales growth recorded in most categories. TVs
remained the hub for Video Entertainment, while mobile devices were taking share and will be an area to watch in 2018.
Premium features are being rolled out across all the devices and provide an opportunity to enhance the viewing
experience for consumers and the continued delivery of high quality content.
In 2018, sales for smart home devices are likely to increase. With products like the Amazon Echo, Google Home and Apple
HomePod, we will be able to control our homes like never before. This will be the next step in home automation and has
the potential to provide consumers with a simplified and more enjoyable experience..

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 theircompetitive 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.

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Creative Content Australia
Boxes, Blocks and Bryan Brown
By Lori Flekser
Executive Director, Creative Content Australia
In a seminal year, Creative Content Australia (CCA) has been active in releasing two key consumer campaigns, several
highly regarded education resources and two credible and significant research studies.
CCA’s annual research -conducted since 2008 – continues to examine the changing attitudes and behaviours ofAustralians in relation to movie and TV piracy, providing an unparalleled insight into the frequency and incidence of piracy
and the rationale behind it.
Once again, in 2017, we were able to track claimed piracy activity amongst teens aged 12-17 and adults aged 18-64, showing
the growth of online screen content theft has been arrested and remains relatively static.
ACTIVE PIRATES BY AGE
Teens 23%

Adults 21%

40%

37%

35%

29%

30%

24%

25%
20%

17%

17%

15%
10%

6%

5%
0%

12-13yo14-15yo16-17yo18-34yo35-49yo50-64yoIt seems that a combination of factors contributed to there being no increase in piracy levels since CCA’s 2016 research– amongst them an increase in subscriptions to streaming services, the presence of site blocks and the prevalence of
malware.
In further good news, the 2017 study recorded the highest number ever of Australians to agree piracy is stealing/theft(74% of adults and teens) with the majority (68% of teens and 65% of adults) 1 acknowledging that piracy damages the
livelihoods and jobs of those working in the film and television industries.
______________________________________
1
Sycamore, 2017. Project Harrison: Australian Piracy Behaviours and Attitudes. Creative Content Australia.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201783

Creative Content Australia
ADULTS AGED 18-64

Downloading or streaming pirated content is stealing/theft% agree
72

72

72

71

2008

2009

2011

2012

67

64

2013

2014

73

74

2016

2017

This wave of research also investigated the use of set top boxes and infringing apps for the first time and foundthey are ‘piracy’s new frontier’.
31% of Australians aged 12-64 claimed to watch movies or TV shows through a set top box device. 1

Australians using a set top box at home:

1 in 4 teens

1 in 5 adults

use infringing content apps/aaaps thatprovide access to pirated content.
Note: Respondents shown 11 infringing apps Testing more infringing apps would result in higher figures

Set top boxes and their software are not illegal. They allow viewers to watch online services on their TV sets including legal
services like Netflix. However, apps can be downloaded that allow ‘add-ons’ to seek out unlicensed content and deliver
pirated movies and TV shows with ease.
Use of set top boxes has been shown to compromise subscriptions to legitimate services.
______________________________________
1
Sycamore, 2017. Project Harrison: Australian Piracy Behaviours and Attitudes. Creative Content Australia.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201784

Creative Content Australia
Because I know I can find an unauthorised
copy of the film...
I spend less moneyon cinema
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

I spend less money
on DVD/Blu-Ray
43%

41%
29%
22%

Regular infringers

Set-top-box infringers

2

CCCA launched The Price of Piracy consumer
campaign in August 2017, featuring leading
Australian actor Bryan Brown, and drawing
attention to the link between malware and piracy.
Numerous international studies confirm thatstreaming and downloading from pirate sites
has become a key method for rogue players to
propagate malware on the Internet.
The launch followed the Federal Court ruling by the Hon. Justice John Nicholas ordering ISPs to block 42 websites foundto be primarily engaged in facilitating access to copyright-infringing content (Roadshow Films Pty Ltd & Others). Orders
were also made, in a separate case lodged by Foxtel in the Federal Court, to block a further 17 infringing websites. Since
the first site-blocking orders were made in December 2016, the Federal Court has ordered 65 piracy sites to be blocked,
and over 340 domains.
The court decision validated the creative industry’s contention that pirate sites infringe copyright and negatively impact
copyright holders’ ability to recoup their investment in film and television content.
The Price of Piracy alerted consumers to the increased online risks posed by streaming or downloading pirated content
from the remaining sites.
______________________________________
2
The Industry Trust, 2017. IPTV Piracy: A study on set-top-box and stick infringement for the industry. .

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201785

Creative Content Australia

The campaign was unprecedented in its
scale, coverage and industry support,
involving the production, distribution,
exhibition, television and online sectors.
It received extensive media coverageand screened in cinemas throughout
Australia, with significant presence on
free-to-air and subscription televisionand on selected websites.

In addition to the Price of Piracy campaign, CCA produced a range of resources for schools to raise awareness of thosedangers amongst teachers and students.
These include a 3-minute animation to assist teachers to understand copyright and piracy and teach their students about
it, and a 90-second animation for primary school students, warning them not to support piracy and risk “being paid a visitby the Malwares”.

The CCA education portal NOTHING BEATS THE REAL THING had 78,067 page views in 2017, with Meet the Malwares
downloaded 2,565 times.
In February 2018, CCA released a new Australian study showing that court-ordered site blocks, year-on-year, led to a 25%
reduction in piracy overall and a 53% reduction in use of the online pirate sites subject to a blocking order.3
Incopro’s Australian Site-Blocking Efficacy Report, compiled after the Australian Federal Court ordered the blocking of
59 pirate sites in August 2017, echoes the findings of a UK study by Carnegie-Mellon University4 which showed that overallpiracy was only significantly reduced when a substantial number of sites were blocked simultaneously.
______________________________________
3
INCOPRO, 2018. Australia. Site Blocking Efficacy – Key Findings. Australian Screen Association.
4
Carnegie-Mellon University, 2016. Website Blocking Revisited: The Effect of the UK November 2014 Blocks on Consumer Behaviour.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201786Creative Content Australia

Access Blocked

Access to this site has been blocked by an order of
the Federal Court of Australia because it infringes or
facilitates the infringement of Copyright.
If you think you have been redirected to this page
incorrectly, please contact your service provider.

The Incopro research clearly shows theassertions made by vocal opponents of siteblocking – who claimed it was ineffectual –were unfounded and incorrect. The reductionin piracy that the research confirms offers
proof to all the “site-blocking naysayers” that
not only is it working well, but it hasn’t broken
the internet.

Reacting to the research, Graham Burke AO, Chairman of Creative Content Australia welcomed the figures, but pointed
out that to effectively combat the piracy in Australia requires other parties, such as search engines, to do the right thingand “shut the back door” by eliminating easy access to infringing proxy and mirror sites. Burke believes that the reductionin piracy could be greatly increased if that were to happen.
CCA simultaneously released a new consumer campaign - ‘Say No to Piracy’ – celebrating Australian creativity andinnovation in the screen industries and showing the vast array of behind-the-scenes professionals it takes to make screen
content.

The 2018 campaign highlights some of the best Australian films and TV shows of recent years, including excerpts fromRED DOG, HACKSAW RIDGE, TOP OF THE LAKE, PAPER PLANES and LION.
‘Say No to Piracy’ was written and directed by talented director and emerging filmmaker, Curtis Hill, Goodoil Films, whosays: “It was film school that opened my eyes to how many skilled people it takes to make screen content. I want to havea career making feature films and TV drama, but piracy is having a major impact on my ability to do that. It reduces
investment in the creative industry which leads to fewer projects. That’s less opportunities for people like me and less jobs
for thousands of crew and cast.”
The various research studies, the increasing numbers of downloads of the education resources and the incredible reachof the consumer campaigns, is evidence that local activity is making a difference and the work of CCA and its stakeholders
is raising awareness of the issue and maintaining pressure on policymakers to ensure strong copyright protection for thecreative industries.

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Theatrical Film Industry:
2017 Box Office
MPDAA contribution
By Mike Baard, MPDAA Chair & Managing Director, Universal Pictures Australasia & Lori Flekser, MPDAA General Manager
THAT’S A WRAP

The movies are dead, according
to two distinguished The end is near for cinema. Go tomoviemakers
the movies while there’s still time.
Why Is Cinema Dying And What Can We
Do To Save It?
HOME > FILM > NEWSWith the rise of streaming services like Netflix geable to survive the competition?...

MARCH 27, 2017 8.00AM PT

The Reckoning: Why the Movie
Business Is in Big Trouble

Don’t believe everything you read online or in the press. Reports of the demise of the cinema are premature. The 2017
annual MPDAA statistics confirm another successful year for Australian cinema box office, with a box office CUME of
A$1,201,343,000 Down only a small percentage -from the biggest year EVER in 2016 - year on year, this is definitely
something to smile about.
From an annual perspective, the 2017 Australian Box Office results revealed that cinema-going is still one of the mostpopular forms of entertainment in this country and, despite economic flux and in the face of ever increasing leisureoptions, remains resilient.
A 2017 research study by Screen Audience Research Australia showed that 75% of Australians go to the cinema at
least 5 times a year with 58% saying they are “very engaged” when watching movies in cinemas, far higher than the 29%
engagement claimed while watching films via SVOD.
Beauty and the Beast led the way in 2017 as the #1 movie of the year, grossing $47.95 million. Star Wars: The Last Jedi
closed 2017 at $45.54m after only 2 weeks in cinemas, while Thor: Ragnarok ($35.1m), Guardians of the Galaxy Vol. 2($32.94m), and Despicable Me 3 ($32.93m) took the #3, #4 and #5 slots in the top 10 films for the year.
Wonder Woman, directed by Patty Jenkins, took up 6th Position in the Top 10 Films of 2017 ($31.3m) while Australian film
Lion performed brilliantly, taking $29.46m in the 7th spot. The films rounding out the Top 10 were The Fate of the Furious($28.42m), Spider-man: Homecoming ($25.7m) and IT ($23.68m).

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201789

Theatrical Film Industry:
2016 Box Office
Australian films took $49.4m at the Australian box office in 2017 with Lion booking a global CUME of $147.5m. It was the 5th
biggest opening weekend for an Australian film and is the 5th most successful Australian film at the local box office. The
film also took $140m internationally.
Red Dog: True Blue, released on Boxing Day 2016, accrued a further $5.95m in 2017 for a CUME of $7.5m. Jasper Jones,
Dance Academy and Mountain all grossed more than $2m.

The Australian BO is growing in its diversity of content that includes film origin, language & gender.
• In 2017, 696 films were released from over 36 countries.
• Female Directors have made an impact with Patty Jenkins at the helm of the $31m+ blockbuster - Wonder Woman.
• Ali’s Wedding, from Madman, with over $1.4m in BO, showcased a majority Muslim cast and two female Producers.
• And Warwick Thornton’s Sweet Country, from Transmission, has passed $1.5m after receiving immense critical 				acclaim from the festival circuit.

It’s a great time to be in this Industry in Australia – record-breaking numbers, a slate of great movies across all genres, goodquality cinema experiences and some of the best launch marketing campaigns in the world.
Our local innovation and marketing creativity are second to none and combined the MPDAA Studios alone spend over
$150m to drive awareness and hype for the movies. Leaving no media unturned, we create noise and event status for eachfilm with every audience. We are one of the highest spending release-driven categories in market.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201790

Theatrical Film Industry:
2016 Box Office
One of the MPDAA’s key achievements for the last 2 years has been to fund and conduct important Industry consumer
research. Whether you embrace research or not, there is no denying that we need to understand our consumer better if
we are to keep audiences engaged in a fast moving world of exceptional choice and tradable brand loyalty.
As a group we wanted to learn and adapt so we can maximize all areas of the consumer journey.
Cinema remains a popular form of out-of-home entertainment with 29% of adults going at least once a month or more.
32% go 5-10 times a year – up from 23% in 2016.
It’s no surprise to find that younger audience - 18-34 year olds – faced with an increasing number of ways to see movies,
are watching more subscription TV than ever. SVOD programming is improving with millions of dollars spent by content
subscription services, like Netflix, to create original content.
However, 38% of consumers (aged 18-64) still perceive cinema as good or excellent value for money, with a further 41%
saying the value is “OK”.
Trailers play a major role in promoting new films with 71% of consumers saying this is the first place they hear about a new
movie and 69% saying they really enjoy watching them. For 18-34yo’s however, trailers on social media are of equal value
in film promotion.
Cinema is still perceived as a “great place to access new releases”, providing a “totally immersive experience”, that allows
the consumer to “escape into another world”.

It was better to see
the movie on a big
screen as there wasa lot of action it
wouldn’t be thesame on TV

Away fromreal life. Big
screen madthe film moreenjoyable

A moving experience
because of thesound & visual
effects quality. A
large screen makes
it feel more real

I like the comfortableseating and theatmosphere of thecinema. Also watching
the film on a large screen.

With an incredible line-up of exciting films in 2018, we look forward to another great year at the movies.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201791

Market overview

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by v olu meAUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017

92

AHEDA members directory
AHEDA

MADMAN ENTERTAINMENT PTY LTD

Level 33, Australia Square,

Level 2264 George Street,

289 Wellington Parade South

Sydney NSW 2000

East Melbourne VIC 3002

Tel:(02) 9258 1971

Tel: (03) 9261 9200

Fax: (02) 9258 1111

Fax: (03) 9261 9211

Chief Executive:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Simon Bushwww.madman.com.au

Marketing and Operations .  .  .  .  .  .  .  .  .  Francesca Zarrino

Joint Managing Director Australia
New Zealand:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Paul Wiegard

DEFIANT SCREEN ENTERTAINMENT

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

Suite 1001,

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

4 Daydream Street

Director of Operations: .  .  .  .  .  .  .  .  .  .  .  .  . Michael Hillyard

Warriewood NSW 2102
Tel:

PARAMOUNT HOME MEDIA
INTERNATIONAL; APAC

(02) 9997 3936

Fax: (02) 9997 3938

Level 1, 65 Pirrama Road

http://www.defiant-ent.com/

PYRMONT NSW 2009Managing Director:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  Marilyn Greig

Tel:

Marketing Director:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  Justine Butler(02) 9265 0200

Executive Director Digital Content /Sales Director:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .Michelle GodmaireMarketing, APAC:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Richard Clarkson

Operations Director:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Geoff Doyle

Director, Regional Sales

Finance Director:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  Glenn Casey

TV Distribution ANZ  .  .  .  .  .  .  .  .  .  .  .  .  .  Carolyn Johnston

ENTERTAINMENT ONE FILMS AUSTRALIAPTY LTDManager, Digital Content /Marketing ANZ:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .Lauren Kennedy

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:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  Sandie Don

Fax: (02) 9552 2510

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

www.roadshow.com.au

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

Co-CEO:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Chris Chard

Head of Marketing - Home Entertainment: … Nicky Smart

CSO:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .John Davie(02) 95528600

CMO:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Phil Oneile
Marketing Director: .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .Amanda Allegos

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017

93

AHEDA members directory
STUDIOCANAL AUSTRALIA
Level 2, 47-49 Murray Street

WALT DISNEY COMPANY(AUSTRALIA) PTY LTD

Pyrmont NSW 2009

Melbourne Office:Tel: (02) 9003 3980

Building 10, Level 3

www.studiocanal.com.au

658 Church Street

CEO Australia & New Zealand:  .  .  .  .  . Elizabeth Trotman

Richmond VIC 3121

Head of Home Entertainment ANZ .  .  .  .  Graeme Rogan

Tel: (03) 9832 6000
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

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 Operations Australia:  .  .  .  .  .  .  . Wendy Fraserand Licensing:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Meagan Sanders

Director of Sales Australia: .  .  .  .  .  .  .  .  . Kerry Drinkwater

GM of Studios & Live Entertainment ANZ:  .  .  .  Jo Bladen(02) 8622 8444

Director of Marketing Australia: .  .  .  .  .  .  .  .  . Claire Bryant

Associate members
FOXTEL

Vice President, Finance,
Asia Pacific: .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . Mats Weiss

Angus Pitt

UNIVERSAL SONY PICTURES HOME
ENTERTAINMENT (AUSTRALIA) PTY LTD

www.foxtel.com.au

SONY DADC

Level 30, 1 Market Street,

Steve Voorma

Sydney NSW 2000

www.sonydadc.com

Tel:

TECHNICOLOR(02) 9266 2800

www.facebook.com/TheViewingLounge

Iain Fynes-Clinton

Managing Director:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  Jim Batchelor

www.technicolor.com.au

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

TELSTRASales Director:  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .Rob Davey

Moira Hogan

Director of Marketing &www.telstra.com.au

Corporate Strategy:  .  .  .  .  .  .  .  .  .  .  .  .  .  . Cindy McCulloch

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201794

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201795

On average, per title,2017 new releases
generated 13% morevalue than titles
released in 2016.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201796

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 26% in 2017.
A potential factor for that drop in sales was the number of new titles launched into the category, with 40% fewer Children’s
titles released in 2017, compared to 2016. This led to a smaller value contribution to the Children’s category from newer
titles, which tend to have higher average prices than older titles.
On average, per title, 2017 new releases generated 13% more value than titles released in 2016.
Paramount’s ‘Paw Patrol’ was the top selling Children’s license of the year, selling double the next biggest license. 9 of the
top 10 selling Children’s titles were for the Paw Patrol license.
GfK Retail Tracking: Top 10 selling licenses, Children’s, 2017, ranked by volume

LICENSE
DISTRIBUTOR_________________________________________________________________________
Paw Patrol
Paramount
Wiggles
Roadshow
Lego
Universal
Peppa Pig
20Th Century Fox
Teenage Mutant Ninja Turtles
Paramount
Mickey Mouse
Walt Disney Studios
Blaze & The Monster Machines
ParamountThomas & Friends
Roadshow
Scooby Doo
Roadshow
PokemonBeyond_________________________________________________________________________________
Like TV series, there is a potential impact from digital, as the availability of Children’s content continues to increase on
those platforms. Utilising the GfK ConsumerScope service to get a read of Children’s behaviour, just under one in twoparents stated that their children (less than 14 years old) watched more digital content than a year ago.

Categories: Other Direct to Video‘Other’ titles in the disc market include genres such as documentaries, anime and sport titles.
This sector has dropped to its lowest share in the last 10 years, making up just 9% of the total market value. The drop cameacross all the Direct to Video genres, with documentaries recording one of the larger declines at 31%.
Despite this overall drop, the top selling documentary, Roadshow’s BBC title, Planet Earth II, generated more value than
the top selling documentary title in 2016 (Sony Pictures’ Beatles: 8 Days a Week the Touring Years). It also outsold the prior
Planet Earth release, selling 27% more volume during the new release period.

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201797

Appendix
GfK Retail Tracking: Top selling Documentaries, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR_________________________________________________________________________________
1
Planet Earth Ii
Roadshow2
The Beatles Eight Days A Week
Sony Pictures
3
Conor Mcgregor Notorious
Universal
4
Jojo Siwa My World
Paramount5
I Am Bolt
Universal
6
Planet Earth The Collection
Roadshow7
MclarenSony Pictures
8
Planet Earth The Complete Series
Roadshow9
EmbraceSony Pictures
10
The Hunt (2015)
Roadshow_________________________________________________________________________________For Anime, Madman Entertainment titles dominate and accounted for 8 of the top 10 sellers
GfK Retail Tracking: Top selling Documentaries, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR_________________________________________________________________________________
1
Your Name
Madman Ent.
2
My Neighbor Totoro
Madman Ent.
3
One Punch Man Season 1
Madman Ent.
4
A Silent Voice (2017)
Madman Ent.
5
Howls Moving Castle
Madman Ent.
6
Boruto : Naruto The Movie
Madman Ent.
7
Princess Mononoke
Madman Ent.
8
Rwby Vol 4
Shock Records
9
My Hero Academia Season 1
Universal
10
Evangelion 3.33 You Can (Not) Redo
Madman Ent.
_________________________________________________________________________________
And finally, within the Sport, Health and Fitness genres, long suffering Richmond fans jumped on their chance to grab amemento of their sides AFL premiership win.
GfK Retail Tracking: Top selling Sport and Health and Fitness titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 		1
AFL Premiers 2017 RichmondBeyondSport
2
WWE Wrestlemania 33
Madman Ent.
Sport
3
AFL Premiers 2017 Richmond Tigers Victory Pack
BeyondSport
4
Zumba Slim Down Party
Universal
Health & Fit
5
WWE Royal Rumble 2017
Madman Ent.
Sport.
6
Zumba Fitness
Universal
Health & Fit
7
Charlotte Crosbys 3 Minute Belly Blitz
Universal
Health & Fit
8
Wwe Survivor Series 2016
Madman Ent.
Sport
9
Wwe Fast Lane 2017 / Elimination Chamber 2017
Madman Ent.
Sport
10
Monster Jam World Finals Xv / World Finals Xvi / Freestyle 2013 Universal
Sport_________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201798

Appendix
Top Seller Charts by Film GenreGfK Retail Tracking: Top selling Action titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 			1
Fast And The Furious 8
Universal
Action2
Wonder Woman (2017)
Roadshow
Action3
Logan
20Th Century Fox
Action
4
John Wick Chapter 2
Sony Pictures
Action5
The Mummy (2017)
Universal
Action6
Pirates Of The Caribbean 5
Walt Disney Studios
Action7
Underworld Blood Wars
Sony Pictures
Action8
Assassins Creed
20Th Century Fox
Action9
The Magnificent Seven (2016)
Sony Pictures
ActionJack Reacher Never Go Back
Paramount
Action10_________________________________________________________________________________
GfK Retail Tracking: Top selling Adventure titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 			1
Fantastic Beasts
Roadshow
Adventure2
Guardians Of The Galaxy Vol 2
Walt Disney Studios
Adventure3
Doctor Strange (2016)
Walt Disney Studios
Adventure
4
Miss Peregrines Home For Peculiar Children
20Th Century Fox
Adventure
5
Spiderman Homecoming
Sony Pictures
Adventure
6
The Great Wall (2016)
Universal
Adventure
7
Kong Skull Island
Roadshow
Adventure
8
King Arthur Legend Of The Sword (2017)
Roadshow
Adventure
9
Guardians Of The Galaxy
Walt Disney Studios
Adventure
10
A Dogs Purpose
20Th Century Fox
Adventure_________________________________________________________________________________
GfK Retail Tracking: Top Selling Animated titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 			1
Moana
Walt Disney Studios
Animated2
Trolls (2016)
20Th Century Fox
Animated
3
Sing (2016)
Universal
Animated
4
The Boss Baby
20Th Century Fox
Animated
5
Despicable Me 3
Universal
Animated
6
The Secret Life Of Pets
Universal
Animated
7
The Lego Batman Movie
RoadshowAnimated
8
Ballerina (2016)
Sony Pictures
Animated
9
Cars 3
Walt Disney Studios
Animated
10
Finding Dory
Walt Disney Studios
Animated_________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 201799

Appendix
GfK Retail Tracking: Top Selling Comedy titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 			1
Baywatch (2017)
Paramount
Comedy2
Bridget Jones Baby
Universal
Comedy3Central Intelligence
Universal
Comedy4
Why Him
20Th Century Fox
Comedy5
Bad Moms
RoadshowComedy6Snatched (2017)
20Th Century Fox
Comedy7Ghostbusters (2016)
Sony Pictures
Comedy8
Daddys Home (2015)
Paramount
Comedy9Sausage Party
Sony Pictures
Comedy10
Going In Style (2017)
RoadshowComedy_________________________________________________________________________________
GfK Retail Tracking: Top Selling Drama titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 			1
LionSony Pictures
Drama
2
Fifty Shades Darker
Universal
Drama
3
Hidden Figures
20Th Century Fox
Drama
4
The Girl On The Train
20Th Century Fox
Drama
5
Passengers (2016)
RoadshowDrama
6
The Revenant (2015)
20Th Century Fox
Drama
7
The Dressmaker
Universal
Drama
8
Patriots Day
RoadshowDrama
9
Victoria & Abdul
Universal
Drama
10
Sully (2016)
RoadshowDrama_________________________________________________________________________________
GfK Retail Tracking: Top Selling Sci-Fi titles, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 			1
Rogue One A Star Wars Story
Walt Disney Studios
Sci-Fi2
Transformers The Last KnightParamount
Sci-Fi3
Alien Covenant
20Th Century Fox
Sci-Fi4
Arrival (2016)
Roadshow
Sci-Fi
5
The Martian
20Th Century Fox
Sci-Fi6
War For The Planet Of The Apes
20Th Century Fox
Sci-Fi7
Independence Day Resurgence
20Th Century Fox
Sci-Fi
8
Star Trek Beyond
Paramount
Sci-Fi9Life (2017)
Sony Pictures
Sci-Fi
10Star Wars Episode Vii
Walt Disney Studios
Sci-Fi_________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017100

Appendix
GfK Retail Tracking: Top Selling titles – All other genres combined, Full Year 2017, ranked by volume

RANK TITLE
DISTRIBUTOR
GENRE_________________________________________________________________________________ 			1
Beauty And The Beast (2017)
Walt Disney Studios
Musical2
Hacksaw Ridge
20Th Century Fox
War
3
La La Land (2016)
20Th Century Fox
Musical4
Inferno (2016)
Sony Pictures
Thriller
5
Dunkirk (2017)
RoadshowWar6
It (2017)
Roadshow
Horror
7
Red Dog True Blue
Roadshow
Family8
Petes Dragon (2016)
Walt Disney Studios
Family9
Resident Evil 6 The Final Chapter
Sony Pictures
Horror10
Split
Universal
Thriller_________________________________________________________________________________The best of all time: Life-to-Date Sales
2017 marked the 20 year anniversary of GfK measuring Video Entertainment sales in Australia. Disney’s Finding Nemo is
the top selling title of that time, having launched in 2004 on physical disc.
Fox’s Avatar has retained its spot as the top selling new release title of all time, as well as the best-selling Blu-ray.
The only title to make the top 15 in recent years is Disney’s Frozen and Star Wars VII: Force Awakens, which rank as the 7th
and 14th best-selling new release titles respectively.
GfK Retail Tracking: Top selling titles Theatrical New Release (0-13 Weeks), Life to Date, ranked by volume

RANK TITLE
DISTRIBUTOR
Release 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 Pictures
14/04/2010_______________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017101

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

RANK TITLE
DISTRIBUTOR
Release 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
Frozen (2013)
Walt Disney Studios
30/4/2014_______________________________________________________________________________________
GfK Retail Tracking: Top selling DVD titles, Life to Date, ranked by volume

RANK TITLE
DISTRIBUTOR
Release Date______________________________________________________________________________________ 		
1
Finding Nemo
Walt Disney Studios
13/1/2004
2
Avatar (2009)
20Th Century Fox
29/4/20103
Frozen (2013)
Walt Disney Studios
30/4/2014
4
Cars
Walt Disney Studios
25/10/2006
5
Lotr Two Towers
Roadshow
23/8/2003
6
Monsters Inc
Walt Disney Studios
30/9/2002
7
Lotr Return Of The King
Roadshow
25/5/2004
8
Harry Potter & The Chamber Of Secrets
Warner Bros
11/4/2003
9
Lotr Fellowship Of The Ring
Roadshow
6/8/2002
10
Harry Potter & The Prisoner Of Azkaban
Warner Bros
1/12/2004_______________________________________________________________________________________
GfK Retail Tracking: Top selling Blu-ray titles, Life to Date, ranked by volume

RANK TITLE
DISTRIBUTOR
Release Date______________________________________________________________________________________ 		
1
Avatar (2009)
20Th Century Fox
29/4/2010
2
Hobbit An Unexpected Journey
Warner Bros
1/5/2013
3
Star Wars Episode Vii
Walt Disney Studios
13/4/2016
4
Marvel The Avengers
Walt Disney Studios
29/8/2012
5
Star Wars Episode I-Vi
20Th Century Fox
14/9/2011
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
16/4/2014
9Transformers Dark Of The Moon
Paramount
10/11/201110
Batman The Dark Knight
Warner Bros
10/12/2008_______________________________________________________________________________________

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017102

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 Age20th 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
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&PrisonerofAzkabanWarnerBros
1/12/2004_________________________________________________________________________________		

AUSTRALIAN HOME ENTERTAINMENT DISTRIBUTORS ASSOCIATION Yearbook 2017103

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

10/11/2011

Batman The Dark Knight
Warner Bros
10/12/200810		_________________________________________________________________________________

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clients to improve their competitive edge and enrich consumers’ experiences and choices.
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