Ad-supported video-on-demand (AVoD) plans are now in 30% of Australian households, up from 12.5% a year ago, according to Worldpanel’s Q1 2025 Entertainment on Demand report.
One in five new streamers chose an AVoD tier, rising to half for platforms offering the option.
Netflix continues to lead in retention, but 60% of its new sign-ups now choose its ad-tier, up from 42% last year. Churn is higher among Netflix AVoD users (8%) than ad-free subscribers (6%), with users dissatisfied by the number of ads, despite reporting high value for money.
Meanwhile, paid ad-free streaming (SVoD) now reaches 68% of households, down from 72% in Q1, 2024. Total paid streaming remains stable at 75% penetration, or 7.9 million households. The average number of services per household rose to 3.3, with 22% holding five or more subscriptions.
Paramount+ claimed the largest share of new subscribers. Its $6.99 ad-tier, launched mid-2024, now accounts for 30% of its base and has helped grow total subscribers by 13% YoY. Paramount+ subscribers stack an average of 5.1 services, raising churn risk. Overall churn sits at 21%, among the highest.
NPS rose 14 points but remains below average. Satisfaction improves significantly when accessed via Prime Video Channels, which also yields higher NPS (35ppts). Expanding this partnership may aid retention and reach.
Binge lost momentum in its final quarter with full HBO access. New subscriber share slipped 1 point to 9%, and subscriber growth slowed to 3% and planned cancellations rose to 13%.
Binge is shifting toward local content and sport to offset HBO losses. Though uptake for sport remains limited by overlap with Kayo and low awareness.
Meanwhile, Apple TV+ has the highest planned cancellation rate (17%) and Prime Video’s Reacher series was the most viewed title of the quarter.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.