Video On Demand Subscriptions – a promising new market
Media Licensing generated $135 million in revenue across APRA AMCOS, increasing by 5.64%.
Radio and television continued to perform strongly, increasing by 7.7% to $125.2 million. In particular, the subscription television sector reaped the benefits of strong long-term licences, growing nearly 18%. On the new media front, licences for general websites increased by almost 19% to $5.4 million.
Subscriptions to Video On Demand (VOD) services took off in Australia and New Zealand this year, increasing by almost 16% to over $3.2 million. While still in its infancy, this emerging market looks to be a promising addition to our revenue mix. Early indications are that this sector will complement the transactional VOD market, rather than be a direct competitor.
Airlines too posted strong gains, up 34% on 2014 revenue, again reflecting the benefits of strong long-term licensing arrangements. With licence fees being based on a per passenger tariff, it now better reflects the value of music within in-flight entertainment services.
The only downturn was in the cinema sector, which decreased by just over 1% to $4.5 million. This reflects a market that is crowded when it comes to audio-visual entertainment. However, early indications for FY16 are that this sector will bounce back, with a great roster of new movies hitting cinemas recently.