Streaming Platforms Focus on Loyalty Instead of Growth

Australia's leading streaming services are shifting their attention from acquiring new users to keeping existing ones engaged. With the cost of living on the rise, more viewers are switching to cheaper, ad-supported plans. Platforms like Netflix, Prime Video and Disney+ once prioritised expansion but are now concentrating on retaining loyal subscribers, even as that means users are exposed to more ads.

This shift reflects broader changes in consumer behaviour. More than one third of Australian households are now choosing advertising-based video on demand (AVOD) options, up significantly from just 10% the previous year. Data from research company Kantar indicates this trend is being shaped by economic pressures and increased subscription fees, making ad-supported models more attractive.

By June 2025, 34% of households had at least one ad-supported subscription. This figure was 28% just six months earlier. In total, Australians now hold around 27.3 million streaming subscriptions, a rise of 1.4 million in the most recent quarter. Consumers are also subscribing to more services per household, with the national average reaching 3.4. To limit churn, or the number of users cancelling their plans, streaming platforms are expanding their content offerings and leveraging AI-based recommendation systems.

These efforts appear to be delivering results, for now. Netflix has limited its churn rate to 6%, and Prime Video is close behind at 8%. User loyalty is strengthening too. Most Netflix subscribers now stay for over two years, a critical benchmark that helps convert casual viewers into long-term customers.

There is still room for new players in the market. Warner Bros Discovery’s Max service, which launched in March 2025, secured the largest share of new sign-ups during its first full quarter. Meanwhile, Netflix’s original dark comedy Sirens became the most-watched show across all platforms. This demonstrates that unique and attractive content remains a vital driver of viewer interest in a competitive market.

Source: The Australian, Mi3, Mediaweek, TomsGuide

Doga Sydney - Corporate Cuddles & Puppy Yoga

Take what you’re doing offline and circle back on team wellness because real team bonding happens with puppies, not PowerPoint. Give your team an event they’ll actually look forward to with Puppy Yoga!

We’ve got you covered with Corporate Cuddles and Puppy Yoga 🐶