The ease of access to news and directories online has up-ended several traditional industries during the past five years.
Melbourne, Australia (PRWEB) September 17, 2013
Until 2007-08, the Internet Publishing and Broadcasting industry in Australia mainly recorded double-digit yearly revenue growth. It took the dramatic collapse in the global financial markets to stunt the strong growth, as this event increased conservative spending patterns by both businesses and consumers. However, the rapid improvement in information technology networks throughout the past five years has created many growth opportunities for industry participants, and thus the downturn was brief. According to IBISWorld industry analyst Craig Shulman, “the ease of access to news and directories online has up-ended several traditional industries during the past five years, with more industries expected to undergo similar struggles in the coming five years.” IBISWorld estimates that industry revenue has increased at an annualised 12.3% over the past five years. In 2012-13, revenue is forecast to grow by 10.7% to $1.6 billion.
Increasing internet penetration has enabled industry operators to introduce free content with revenue derived from advertising. However, many players have attempted to profit from this business model with little success. Rather, the most successful players have been those that are subscription based, and this trend is expected to continue over the next five years. “Firms that have become major players in the industry have all focused on online directory publishing, an easily monetised online business model with a domestic focus,” says Shulman. The industry is highly exposed to international competition, meaning that services that are established for a non-Australian audience are often remotely adaptable to serve an Australian audience. Global giants in this space such as Facebook have used this strategy to break into the Australian market without establishing a formal local presence. The Internet Publishing and Broadcasting industry is classified as having a medium level of concentration. Market concentration has remained relatively stable, with REA Group Ltd, Seek Limited, and Carsales.com Limited among the major players.
The Internet Publishing and Broadcasting industry is expected to continue to grow over the next five years. Increasing internet accessibility, improving internet technology and rising business capital expenditure increase demand for the industry's services. The National Broadband Network is expected to improve internet accessibility dramatically, paving the way for significant growth in the industry's video and audio segments. This will be assisted by the end of internet exclusivity agreements with Foxtel over the next five years. Increasing smartphone use is also expected to assist industry growth.
For more information, visit IBISWorld’s Internet Publishing and Broadcasting in Australia industry report page.
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IBISWorld industry Report Key Topics
This industry is mainly engaged in publishing and/or broadcasting content on the internet. Businesses provide textual, audio and/or video content of general or specific interest on the internet. Businesses do not provide traditional (non-internet) versions of the content they publish or broadcast.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.