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TVNZ 1st among streaming services, MediaWorks 4th out of 13

More than eight out of 10 New Zealand adults are now turning to streaming services.

The most used, by 59% of adults, is TVNZ OnDemand. The total with access equates to around 2,132,100 million people.

ThreeNow, owned by loss-making Mediaworks TV, which is now looking for a buyer, with some speculating possible closure by Christmas, is being used by 28% of adults (around 1,013,000 people).

Mainstream free-to-air broadcasters, and other media, have been struggling to make money from large audiences as viewers and advertising revenue has gone increasingly to other major services like Netflix, Facebook and Google.

The latest figures for online streaming services use come from a Horizon Research nationwide survey of 1,047 adults, undertaken between October 3 and 9. The maximum margin of error is +/- 3.1%.

It finds 7% of adults, about 255,300 people, at that time had access to Spark’s Rugby World Cup service. At an average of 2.16 people per household, this indicates the new service has 118,200 households with access. (This was prior to the All Blacks qualifying for the quarter finals).

The number using TVNZ OnDemand has been growing steadily to overtake Netflix.

56% of adults, around 2,020,700 people, in around 935,200 households, say they now have access to Netflix. Sky TV runs third with 29% (1,042,700 people, around 482,600 households).

Census 2018

Total Population 18+3,595,500
Total Occupied Households1,664,000
Average no. people 18+ per Occupied Household2.16

Who will pay for online news?

The country’s news organisations are also struggling to make money from large online audiences.

In the same survey, Horizon finds 8% of adults would pay a subscription for news online, equivalent to around 287,600 people.

Assuming the same ratios apply to both the NZ Herald and Stuff, that indicates about 80,000 of the adults using the Herald online news website in the past 30 days are potential buyers, as are about twice that number of Stuff users. At $3 per week 80,000 news subscriptions would earn around $124 million a year.

6% say they would buy a subscription to news online if it were combined with a print subscription.

48% say they would not pay for an online news subscription at all, and 27% say they would not pay for news online or in print at all.

A full analysis of streaming and online news subscription markets is available from Horizon Research.

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