The Australian streaming market is entering a new phase of growth, marked by a clear structural shift in how audiences engage with video. The model is moving beyond passive, on-demand viewing towards a more dynamic ecosystem shaped by live sport, real-time events and ad-supported streaming tiers.
New Entertainment on Demand (EoD) data from Worldpanel by Numerator shows that Q1 2026 represents a turning point for the industry, as subscription behaviour becomes increasingly driven by immediacy, perceived value and access to live experiences.
A market driven by moments, not just content
In Q1 2026, Prime Video led new paid streaming subscriptions in Australia with 16%, followed by HBO Max (11%) and Kayo (10%). This highlights an increasingly competitive landscape, spanning both global streaming platforms and local or specialist services.
However, the more significant shift lies in how and why consumers subscribe. Sport and live events now account for up to one in three new streaming subscriptions, signalling a move away from traditional content libraries towards real-time, event-driven viewing.
From cricket and NBA coverage on Prime Video, to AFL and NRL driving demand on Kayo, and live entertainment formats gaining traction on Netflix, streaming platforms are now competing in what can be defined as the “live attention economy”.
Ad-supported streaming becomes mainstream
One of the most important developments in the Australian video-on-demand (VoD) market is the rapid growth of ad-supported streaming (AVoD).
More than half of Australian VoD households now use AVoD services — up from 38% a year ago — with one in three new subscribers choosing lower-cost, ad-supported plans in Q1 2026.
This shift reflects increasing price sensitivity, as average household spend on streaming declines from $52 in Q4 2025 to $49 in Q1 2026. Platforms such as Netflix and Paramount+ are seeing particularly strong adoption of ad tiers, while HBO Max and Binge report that around half of their user base is now on AVoD plans.
The recent launch of Disney+’s ad-supported tier at $9.99 is expected to further accelerate competition in this value-driven segment of the market.
Prime Video expands leadership through ecosystem strategy
Prime Video continues to lead new subscriptions, supported not only by its content offering but by the strength of its broader Amazon ecosystem.
Bundling with Amazon retail benefits is playing an increasingly important role in subscriber acquisition, while more than two-thirds of users are now on ad-supported tiers — the highest proportion among major streaming platforms in Australia.
Annual plan adoption has also increased to 35%, helping to maintain relatively low churn levels at 6.5%.
Beyond retention, Prime Video is strengthening its role as a content discovery platform. Subscribers are engaging not only with flagship Originals such as The Boys and Deadloch, but also with a broader mix of live sport, films and transactional content.
HBO Max grows through intent-driven viewing
HBO Max presents a different growth dynamic, driven by highly intentional viewing behaviour.
Rather than relying on passive discovery, users are increasingly subscribing with a specific title in mind, often joining the platform once content availability is confirmed.
In Q1 2026, 42% of new HBO Max subscribers in Australia cited a single title as their primary reason for subscribing, with The Pitt (Season 2) and Heated Rivalry among the key drivers.
This strong content-driven demand is also translating into improved brand perception. HBO Max’s Net Promoter Score (NPS) doubled quarter-on-quarter to 12 points, overtaking Stan and reinforcing the role of premium content in a crowded and competitive streaming market.
However, the growth of ad-supported tiers introduces new challenges, particularly in maintaining a high-quality advertising experience as more than half of users shift to these plans.
Sport becomes a structural growth engine
Sport and live content are now firmly established as structural drivers of growth within the streaming industry.
Platforms such as Kayo, Prime Video and Netflix are all benefiting from increased demand for live experiences, with sport and live events contributing to as many as one in three new subscriptions.
This trend is especially pronounced among Gen Z and Millennial audiences, who now represent more than half of new subscribers. These groups prioritise flexibility, mobile access, immediacy and multi-screen viewing experiences.
At the same time, improvements in user experience are driving stronger engagement and advocacy. Net Promoter Scores have risen significantly for platforms such as Kayo (+28 points year-on-year) and Stan Sport (+21 points), supported by positive word of mouth and trial-driven adoption.
FAQ: Australia streaming market trends in 2026
Is the streaming market in Australia growing in 2026?
Yes, the Australian streaming market continues to grow in 2026, but the drivers of growth are changing. Instead of being led primarily by on-demand content libraries, growth is now increasingly driven by live sport, real-time events and ad-supported streaming models.
What are the main trends shaping the Australian streaming market?
The key trends include the rise of live and sport-driven subscriptions, rapid adoption of ad-supported streaming (AVoD), increasing price sensitivity among consumers, and more intentional, content-driven subscription behaviour.
How important is live sport for streaming subscriptions in Australia?
Live sport is now a major driver of growth. In Q1 2026, up to one in three new streaming subscriptions in Australia were influenced by sport or live events, making it one of the most powerful acquisition drivers in the market.
What is AVoD and why is it growing in Australia?
AVoD stands for ad-supported video on demand. It is growing rapidly in Australia because consumers are becoming more price-sensitive and are willing to watch ads in exchange for lower subscription costs. More than half of VoD households now use AVoD services.
Are Australians choosing cheaper streaming plans?
Yes, there is a clear shift toward lower-cost plans. Around one in three new subscribers in Q1 2026 opted for ad-supported tiers, while average household spending on streaming declined slightly, indicating increased focus on value.
Which streaming platforms are leading in Australia?
Prime Video leads new subscriptions in Australia, followed by HBO Max and Kayo. Each platform is growing through different strategies, including ecosystem bundling, premium content and live sport offerings.
Why is Prime Video performing strongly in Australia?
Prime Video benefits from its integration with Amazon’s broader ecosystem, including retail bundling, as well as a strong mix of live sport, original content and ad-supported pricing. This combination supports both subscriber growth and retention.
What is driving HBO Max subscriptions in Australia?
HBO Max is driven by intent-based viewing. Many users subscribe specifically for individual titles, with 42% of new subscribers citing a single show as their main reason for joining the platform.
How are younger audiences influencing streaming trends?
Gen Z and Millennials are key drivers of streaming growth in Australia. They prioritise live content, mobile access, immediacy and multi-screen experiences, which is accelerating demand for sport and real-time viewing.
Is streaming becoming more competitive in Australia?
Yes, the Australian streaming market is becoming more competitive as global platforms, local players and sport-focused services compete for attention. Differentiation is increasingly based on live content, pricing models and exclusive programming.
Is streaming becoming more expensive in Australia?
Overall, consumer spending is stabilising or slightly declining. While subscription prices vary, the growth of ad-supported tiers is helping offset costs, making streaming more accessible at lower price points.
Andrew Northedge, Consumer Insight Director, Worldpanel by Numerator
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