Online streaming booming amid pandemic, apple tv giving free services, Netflix increases fees

Summary

• Coronavirus pandemic has forced billion around the world to stay at home. People have turned to the online streaming content amid lockdown restrictions.
• Disney has announced to focus on creating and monetising its original content.
• Apple TV is extending its free subscription for its members.
• Netflix Australia increased fees for the basic and standard plan, intends to invest further in series and movies.

One upside of the coronavirus pandemic is that online streaming has become a mainstay in Australian homes. The steep rise in the subscription services shows that Australians are spending more time at home than they did before COVID-19 struck us. Aussies are turning to on-demand entertainment, and they have plenty of options to choose their home entertainment.

Netflix, Stan, Amazon Prime Video, Disney Plus, Kayo Sports and other such platforms offer a wide variety of content which is directly streamed into your home. All you need is an electronic gadget that has internet connectivity, and you are set to binge-watch.

For those who cannot afford many platforms and have to mix and match their kitty, choosing one or two services among so many options can be challenging. Each of these online content providers brings a unique range of television shows and movies; some have sports content, whereas some platforms have kids’ content.

These online platforms target different segments of the audience. Notably, their monthly or yearly fees make a difference as well.

Since the last couple of years, the rise of internet-based streaming services has brought a dramatic and rapid change in the way TV and Video entertainment industry works. The online streaming services also called OTT, are fundamentally changing the way video content is produced, sold, distributed and consumed.

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What to expect from Australia's major OTT/ SVOD platforms?

Australia’s beloved streaming platform Stan recently announced that they would increase its original TV content production. Stan’s parent company Nine Entertainment is expected to strengthen its production potential through Stan. The company plans to increase the investment and will take support from its other partners such as Hollywood Studios and its other international collaborations. Currently, online streaming platform releases five original content per year, in next five year, Stan wants to reach to 30 original content per year.

Stan is experiencing exponential growth in its subscribers’ numbers and delivering positive cash flow.

Nature of these services is continuously evolving and changing as they see unprecedented demand from the consumers. Especially at the time of the coronavirus pandemic where billions of people are stuck at home, these entertainment systems are shaping the way users consume the content. For instance, entertainment industry legend Disney had their significant chunk of business revenue coming from the film they produce and theme parks.

Since the beginning of the pandemic, the theme parks were shut, and movie theatres were closed, which affected Disney's business substantially.

Last year Disney launched its online streaming services Disney+, and within less than a year, they received 57.5 million subscribers as of June 27. With no theatre to release its much-awaited live-action film "Mulan", Disney premiered it on its streaming platform Disney+ with an additional cost.

Now witnessing the enormous growth in the online streaming content business, Disney decided to restructure its organisation. An entirely new division ultimately will churn out the unique content for Disney, while another group will focus only on its distribution and monetisation.

These streaming giants change massive monthly and yearly fees from its subscriber base. Those who allow the users to watch the content for free such as YouTube, earn the revenue from advertisements they display on their content.

Unlike traditional television, these platforms allow the users to watch the content they want to as per their choice. Platforms such as Netflix, Amazon Prime Video, Apple TV have their mobile applications as well, which allows users to manage the content from anywhere they want.

Apple TV offers free services:

Going the extra mile to support its subscribers, Apple TV+ recently announced that they would extend the membership of its subscribers till February 2021. The decision was made because the company understands that people might be going through a harsh winter ahead with COVID-related restrictions to make it worse.

This extension is for the subscribers who are availing the free trial subscription and their end period is in this year. Like Disney, Apple also entered into the already existing competitive online streaming market very late. The leaders like Netflix, Amazon Prime have their loyal set of customers, but Apple+ have carved its niche. Some of its shows starred mega Hollywood actors and getting out of the box reviews.

As per the media reports, the one-year free subscription will now last till February 2021, and the users will be notified soon.

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Netflix increased subscription fees

Netflix fees for Australian users were increased last month. The streaming platform hiked its basic plan from A$9.99 to A$10.99. The standard plan went up from A$13.99 to A$15.99. However, the subscription fees for premium accounts stayed unchanged at A$19.99.

This is the first time Netflix increased its basic and standard plans price in Australia since June 2017. That time Netflix had increased the fees because the Australian Government's tax slab changed as the Government started to charge GST on digital products.

Netflix on their decision to increase the price said that the company is aware that Australians have tons of options to choose their entertainment platforms. Netflix, however, is committed to delivering an experience which exceeds its customers' expectations.

The spokesperson said that the members express to them that the variety of content Netflix provides is very valuable. The online content giant said that it had updated the price in order to invest in more series and films.

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