Australia's subscription entertainment market grew 5 per cent to 57.6 million services in the 12 months to June 2026, according to Telsyte, with ad-supported video subscriptions contributing to the increase.
Subscription video on demand services reached 28 million, also up 5 per cent year on year, as cheaper plans, bundles and broader access to sport helped sustain growth in a more mature market. It was the fourth straight year of single-digit expansion for the category since double-digit growth in FY2022.
Ad-supported subscriptions rose 11 per cent to 7.1 million and accounted for 52 per cent of the net increase in SVOD services. Ad-free subscriptions grew about 3 per cent, while paid subscriptions rose 5 per cent and non-paying subscriptions climbed 17 per cent, driven by free trials and partner offers.
Netflix remained the largest service with 6.5 million subscriptions, followed by Amazon Prime Video with 5.4 million and Disney+ with 3.5 million. Stan and Paramount+ each had 2.4 million, while Kayo Sports had 1.8 million, Binge had 1.6 million and HBO Max reached 1 million after the fastest growth among major services following its launch in March 2025.
The average monthly budget among consumers willing to pay for streaming video rose 4 per cent to $43.5. That matched inflation and was well below the 18 per cent rise recorded a year earlier, even though six of the top 10 SVOD services increased prices during FY2026.
About 12 per cent of households reduced spending on SVOD over the past year. Even so, paid SVOD ranked 12th among 23 areas where households reported cutting back, down from 10th a year earlier, behind categories such as dining out, takeaway, clothing, accessories, groceries and holidays.
Most subscribers noticed higher prices, with 71 per cent saying they were aware when a service raised its fees. More than a third of Australians, or 36 per cent, said entertainment subscriptions were among the last items they would cut from household budgets.
"Cutting streaming services simply does not impact household budgets like bigger ticket items such as whitegoods, travel and eating out," said Foad Fadaghi, principal analyst at Telsyte.
Ad-supported plans appear to be gaining wider acceptance as households look for cheaper options. Telsyte found 51 per cent of SVOD subscribers said the savings from an ad-supported plan were worth the advertising, rising to 58 per cent among those with three or more services.
About a quarter of SVOD subscribers encountered promotional offers over the past year through telecom, utility and financial services partnerships, and most took up the deals. The average discount was 39 per cent for three months.
Service rotation remained common, although it eased slightly. Some 41 per cent of SVOD subscribers said they switched between services more than they had a year earlier to manage costs, down from 46 per cent in 2025, while subscribing households held steady at an average of 3.3 services.
"Ad-supported plans are where subscribers land when budgets tighten. Any price rise from here could see subscribers walk away," said Alvin Lee, senior analyst at Telsyte.
Viewing shifts
Weekly video consumption held steady at about 51 hours, but viewing patterns shifted. Broadcast video on demand recorded the largest gain, rising by 0.9 hours a week, while viewing time on SVOD fell by 0.6 hours despite the increase in subscriptions.
All five main BVOD services reached at least 12.9 million viewers over the past year, helped by major sporting events including the Winter Olympics and the FIFA World Cup. Free ad-supported streaming television services reached 2.4 million users, up 4 per cent, with Samsung TV Plus and LG Channels leading the segment.
Social video also continued to draw large audiences. Telsyte found 18 million Australians watched YouTube, with half doing so daily, largely for creator-led and user-uploaded content.
The study found 5.7 million Australians paid for creator member subscriptions on platforms including YouTube, Twitch, X and Patreon during the past year.
"The creator economy in Australia in aggregate has as many paying subscribers as major streaming providers," said Fadaghi.
Another emerging format is the microdrama: short serialised dramas filmed vertically for phone screens. Telsyte found 26 per cent of Australians had watched microdramas in the past 12 months, suggesting short-form scripted content is taking a place alongside longer streaming formats.
Sport and beyond
Sport also played a larger role in attracting subscribers to general entertainment streaming services. More than one in five subscribers to Australia's top SVOD platforms, excluding dedicated sports service Kayo, said sport was a key reason for signing up.
Local content remained important, although less so than a year earlier. Half of SVOD subscribers said it mattered that services carried stories reflecting Australian voices, culture and values, down from 58 per cent in 2025. The most sought-after themes were working and everyday Australian life, and regional and remote Australia.
Outside video, streaming music subscriptions rose 6 per cent to 20 million, supported by population growth and bundled access. Half of music streamers said access to those services was essential, up from 44 per cent a year earlier.
Games-related subscriptions reached 10 million, up 4 per cent year on year. Growth was driven by Netflix Games, while subscriptions excluding Netflix Games fell 2 per cent as higher prices for subscriptions and gaming hardware weighed on demand.