TV revenue down, but BVOD up.

TV revenue down, but BVOD up.

Total TV advertising revenue has decreased 10% for the 12 months to December 2023, but Broadcaster Video on Demand is again up, at 10%.

The total TV advertising market, which includes metropolitan free-to-air, regional free-to-air and Broadcaster Video on Demand (BVOD) (but excludes SBS), recorded combined revenue of $3.4 billion for the year to December 2023, down 10 per cent compared to the same period ending December 2022.

In the December half, TV advertising revenue was $1.8 billion, down 9% when compared to the same period.

Performance by sector
6 months to Dec 23% change YOY12 months to Dec 23% change YOY
Commercial FTA$1,779,772,204-9.0% $3,389,974,475-10.4%
Metro FTA$1,226,062,541-12.9% $2,346,488,256-14.1%
Regional FTA$324,729,520-5.8% $626,389,805-6.8%
BVOD$228,980,14312.5% $417,096,4149.9%

ThinkTV CEO Kim Portrate said: “The financial result for the past year reflects the perfect storm of economic headwinds faced by many Australian media companies. Inflationary pressures, supply chain disruptions, 13 rate rises, and record-low consumer confidence have collectively created a complex landscape for advertisers. Despite challenging market conditions, Australia’s broadcasters continue to deliver compelling content that engages large audiences, distributed in an increasingly digital way as the market rapidly evolves.”

Advertising investment in BVOD platforms 7plus, 9Now and 10 Play accelerated with BVOD revenue up 12% to $229 million for the six months to 30 December 2023. BVOD revenue for the total financial year was $417 million, up 10% year-on-year.

But there are hopes the new VOZ ratings system will improve network outlooks and reporting.

“The growth in BVOD revenue is a testament to the adaptability and appeal of the Total TV platform. In a time of shifting consumer behaviours, BVOD continues its upward trajectory reaffirming the broadcasters’ commitment to delivering entertainment whenever, and wherever Australians wish to consume it. This is supported by brand-safe, premium advertising solutions, wholistically measured through the transparent and comprehensive VOZ syste,” said Portrate.