Introduction
Online video content services in Australia is the first in a series of three research reports to be published as part of the ACMA’s Communications report 2011–12 series. The other research reports will be:
Report 2—Australia’s progress in the digital economy: Participation, trust and confidence, expected to be released in late October 2012
Report 3—Smartphones and tablets: Take-up and use in Australia, expected to be released in November 2012.
This suite of reports is designed to complement the ACMA Communications report 2011–12, which is produced to fulfil reporting obligations under section 105 of the Telecommunications Act 1997. These four reports together make up the communications report series for 2011–12.
The communications report series seeks to better inform ACMA stakeholders about convergence and the digital economy, and their impacts on communications and media services and consumer behaviour. As an evidence-based regulator, the ACMA is interested in understanding the digital economy, and the role digital communications and media are playing in its development.
This report draws on a range of resources, including annual reports, industry papers and consumer research in the form of a commissioned survey, to provide an update on developments in IPTV, catch-up television and mobile TV industries, and the level of take-up among Australia’s internet users.
This report also seeks to update and complement two previous ACMA reports:
IPTV and internet video services (2008)
IPTV and internet video delivery models (2010).
Reference will be made to these earlier reports where relevant, with less focus on technological details already established by previous reports. This report places a greater emphasis on consumer behaviour—including how and when Australians are using the internet in all its forms—to serve their media viewing needs. The report also references developments in the UK and other international markets.
Definitions/scope
This report focuses on professionally-produced, long-form video content that is provided over a broadband internet connection or mobile network in a way that both complements and competes with existing modes of professional content delivery, such as FTA and subscription broadcast television. Developments in the delivery of short-form clips and user-generated content such as YouTube clips are not covered.
Delivery models that are within the scope of this report include:
Catch-up television: Internet service typically provided on FTA and subscription broadcasters’ websites enabling users to watch—at any time—a recent episode of a television program for a limited period of time.
Content aggregator: A business that offers—either directly to consumers or as a wholesale product—video content from multiple content producers as a single product, such as Fetch TV.
Cloud storage: Internet-based data storage capacity, available to be purchased (and sometimes provided free of charge), on an as-needed basis and usually expandable as more storage capacity is required.
IETV: Internet-enabled television. In this report IETV is used to denote TV sets with ethernet ports that can be used without a PC to access OVC.
IPTV (Internet protocol television): High-end multimedia services such as television, video and graphics delivered over managed IP-based networks that provide an acceptable quality of service, quality of experience, security, interactivity and reliability.
Mobile TV: For the purpose of this report, Mobile TV is a service in which OVC is accessed on a smartphone or other handheld digital device. Mobile TV can operate over the 3G/4G mobile network or via a WiFi connection.
Over-the-Top (OTT): Online delivery of video direct to the consumer without the internet service provider being involved in the control or distribution of the content itself.
Time-shifting device: Time-shifting devices allow video content to be recorded and played back at a time convenient to the owner. Devices that enable time-shifted viewing include Personal Video Recorders (PVRs, such as FOXTEL iQ, AUSTAR MyStar and TiVo), and Digital Video Recorders (DVRs).
Growth in online participation and digital media usage
The majority of adult Australians (persons aged 18 years and over) now have access to the internet and go online regularly. At May 2012:3
86 per cent (15.1 million) had a home internet connection
80 per cent (14.1 million) had a home broadband internet connection.
Australians also continue to spend more time online with 36 per cent of the adult population (6.4 million persons) spending more than 15 hours a week online at June 2012 compared to 33 per cent (5.7 million persons) at June 2011.4
While traditional activities such as communications and accessing information continue to be the main reasons for going online5, 5.6 million Australians accessed a range of content online during the month of June 2012 alone.6
The increasing intensity of online participation and growth in online content activities is reflected in Figure 1, which shows that from the June quarter of 2010 to the June quarter of 2012, the average volume of data downloaded per internet subscriber in Australia increased by 114 per cent.
Figure Average volume of data downloaded by Australian internet subscribers (GB)
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Note: Data relates to household, business and government subscribers, as previously published. Excludes mobile phone handsets.
Source: ABS, 8153.0 - Internet Activity, Australia, June 2012.
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For communications and media players, growth in the online participation and activities relating to online media represents a potential market for the development of new revenue streams.
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