Australians are increasingly turning to lower-cost, ad-supported streaming services as inflation and the prospect of rising interest rates put pressure on household budgets. New data reveals that over 25 percent of all Netflix viewing in the country now occurs via its advertising-supported tier.
Netflix introduced a cheaper, $9.99 per month ad tier in late 2022, breaking from the prevailing industry trend where most streaming platforms operated without advertisements. Since then, competitors including Disney+, Amazon Prime Video, Paramount+, Binge, and Stan have followed suit with their own ad-funded subscription options.
The extent of Netflix’s ad-tier usage has become clearer after the Australian television ratings body OzTAM reached a unique agreement with the streaming giant, allowing access to detailed viewing data. OzTAM, co-owned by the major networks Seven, Nine, and Ten, measures viewing habits across more than 8,000 Australian homes. Its ratings directly influence billions of dollars in advertising investments.
Starting in February, Netflix’s viewership figures will be incorporated into OzTAM’s consolidated television ratings, enabling comparisons of Netflix original series such as The Diplomat, East of Eden, and Adolescence against established free-to-air programs like Married at First Sight, MasterChef Australia, and Australian Idol. Karen Halligan, OzTAM’s chief executive, called the partnership “really new methodology” for tracking global streamers alongside traditional broadcasters.
According to OzTAM data for the July to September quarter, antenna-based free-to-air television still comprises 48.7 percent of total television viewing minutes, though this share is gradually declining. The remainder increasingly consists of online streaming services. YouTube leads streaming video apps on television, accounting for 23.2 percent of streaming minutes, followed by Netflix at 19.7 percent—of which 5.1 percent is attributed to the ad-supported service. Free-to-air broadcasters’ video on-demand apps collectively hold 21.7 percent, while Disney+ and Amazon Prime Video stand at 6 and 6.1 percent, respectively.
Netflix remains Australia’s dominant streaming platform, with about 6.5 million subscribers as of June 30, marking a 2 percent increase year-on-year, according to research firm Telsyte. Amazon Prime Video ranks second with 5.4 million subscribers, up 6 percent, followed by Disney+ at 3.5 million, also up 6 percent. Stan’s subscriber base fell 5 percent to 2.4 million, matching Paramount+, which grew 12 percent to the same level. Foxtel platforms showed mixed results: Kayo Sports rose 5 percent to 1.8 million subscribers, while Binge declined 3 percent to 1.6 million.
Analyst Alvin Lee of Telsyte noted that tighter household budgets are driving consumers toward more affordable streaming plans supported by advertising. Approximately half of Australians now find the trade-off between ads and cost savings acceptable, making advertising a vital revenue stream for streaming platforms. Lee pointed out that subscription video-on-demand markets have experienced single-digit growth for four consecutive years, reflecting a maturing sector where providers increasingly rely on ads and promotions to maintain subscriber growth.
Lee also emphasized that streaming services have raised prices beyond inflation rates, prompting consumers to reduce spending in other areas such as home appliances, renovations, and travel.