Hello and thank you for listening to my various radio and video spots you can find out about in more detail here!
Here’s the short list of topics, you’ll find the longer version below! On TNTRadio, I spoke with Mark Latham, who was filling in for Chris Smith, who was undergoing cataract surgery.
1. Australia’s subscription entertainment market growth eases, with Netflix seeing its first subscriber decline in Australia, but Aussies still see streaming services as vital
2. Generative AI: how is it already changing the way Australians work and live?
3. Samsung has opened the entries for its “Solve for Tomorrow” cometption, designed to engage and inspire the next generation of young Australian innovators and problem solvers aged 14 to 24, using their STEM skills – science, technology, engineering and maths. So what is the competition about, who won last year, and what prizes are on offer for the winners?
4. IFA Berlin is on this week from the 1st to the 5th of September. IFA is the abbreviation for Internationale FunkAusstellung Berlin, which in English translates to the Berlin International Radio Exhibition, and it’s one of the world’s oldest industrial fairs of consumer electronics and home appliances exhibitions held in Messe Berlin Germany.
5. Father’s Day Gift Ideas – all of the major electronics retailers and hardware stores have all of the predictable tools, gadgets, e-book readers, speakers, watches and more, including the old cliche of socks, but what’s something different and better, at least, in my opinion?
6. A new report says Google’s Pixel 8 smartphone range, due in the next couple of months, will match Apple by guaranteeing 5 yaers of operating system updates, with the news yet to be confirmed, but arriving just a couple of weeks before Apple unveils its new iPhone 15 range.
7. PC shipments forecast to decline 13.7% in 2023, but global PC shipments expected to return to growth in 2024 albeit below 2019 pre-pandemic levels
Longer version with all the context:
1. Australia’s subscription entertainment market growth eases, but even though Netflix has seen its first subscriber decline in Australia, Aussies still see streaming services as vital
Note: In the US, Netflix says it added 5.9 million customers after restricting the sharing of accounts between households, something Netflix is also now enforcing in Australia.
The Australian subscription entertainment market, which includes video, music and gaming services, saw a slowdown in annual growth in the past 12 months due to the rising cost of living pressures, according to a new study from leading Australian emerging technology analyst firm Telsyte.
The Telsyte Australian Subscription Entertainment Study 2023 found that the total number of subscription services in Australia increased by 3 per cent to 49.9 million in June 2023. This growth rate is lower than the double-digit increase observed in the previous year. However, the report also revealed that entertainment subscription services remain essential to Australians, with half of them saying that on-demand services are vital to meeting their entertainment needs.
Video competition heats up, Netflix numbers fall
The SVOD segment continued to be the largest and most competitive in the subscription entertainment market, with the number of services reaching 24.6 million in June 2023, up by 5 per cent year-on-year. The average number of SVOD subscriptions per household rose to 3.4, with 39 per cent of subscribing households having three or more services.
The report found that Netflix, the market leader, experienced its first decline in subscriber numbers in Australia as of June 2023, while others gained ground. The report attributed the decline to the backlash to Netflix’s crackdown on account sharing and its introduction of an ad-supported plan, which faced user resistance.
Despite the dip, the study found Netflix (6.1 million) remained the top SVOD service at the end of June 23, followed by Amazon Prime Video (4.5 million), Disney+ (3.1 million), Stan (2.6 million), Binge (1.5 million), Paramount+ (1.5 million), Kayo Sports (1.4 million) and Apple TV+ (1.0 million).
While there has been a slowdown in growth and increased competition, the report showed that SVOD consumption remained strong with over half (55%) of Australians continue to discover new content through their services.
The average total weekly video entertainment consumption reduced by 9 per cent year-on-year to 45 hours from its high in 2022, but consumption of SVOD was one of the only two categories that saw an increase across 9 video categories measured by Telsyte.
However, nearly half (48%) of subscribers claim they are more likely to switch between different services to save money than previously, and only 27 per cent find it difficult to ‘unsubscribe’ their main services even when they don’t use them often.
“Profits, partnerships, and more aggressive behaviour. There’s going to be increasing competition to win people over from other platforms,” TelsyteManaging Director, Foad Fadaghi, says.
Telsyte estimates the total number of SVOD subscriptions could reach over 30 million by June 2027, driven by a new content boom; growth in multiple subscriptions; new market entrants and more ad-supported plans across services.
SVOD market revenue is estimated at $2.7Bn for FY2023, a 14 per cent year-on-year increase driven by subscription cost rises and an increase in service adoption.
The study found that paid SVOD services rank 6th (34%) among areas where consumers would consider reducing spending if their household budget becomes tight (with the top 3 being dining out & takeaway, clothing & accessories, and holiday-related expenses). Notably, only 19 per cent of respondents said they had cut spending on paid SVOD services in the past 12 months, coming in at 10th.
“Paid SVOD services as a category exhibits strong retention and near recession-proof characteristics, as other significant spending areas become household budgeting priorities,” says Fadaghi.
Telsyte found over half (51%) of SVOD users are expecting the price of streaming video services to increase this year and have adjusted their SVOD budget accordingly. Among those willing to pay for streaming video services, the average monthly budget has increased by 7 per cent from a year ago to over $36. The increase is similarly in line with the average CPI inflation recorded in 2023.
Crackdown on account sharing faces user resistance
This year saw the beginning of highly publicised crackdowns on account sharing by streaming service providers, making it harder for people to pay for one account and share access to it between family and friends.
Australians are used to sharing their SVOD services, with the study suggesting that 1 in 3 (32%) SVOD subscribers share their services. Among those sharing services, half (50%) share with others who reside in different households.
The majority (>80%) intend to share services for as long as they can, and the top reason for sharing is to save money (55%). However, 48 per cent of Australians claim they will stop sharing altogether if they are required to pay to share these services.
Around 7 per cent of those who have subscribed to Netflix in the last 12 months ended up cancelling Netflix due to the new rules imposed around sharing with others outside the household. At the time of the survey, the uptake of Netflix’s new extra member plan (as of June 23) had yet to exceed the number of cancellations suggested by the survey findings.
While limiting the shareability outside of account owners’ households might provide additional revenue for service providers, Telsyte sees it as a risk for some providers and a reason consumers might explore competing services.
Free and ad-supported services keep people entertained
Paid-for SVOD is here to stay, but Telsyte’s research also found more than 60 per cent of non-SVOD users believe there is enough good quality video content from free sources to keep them entertained and not have to pay for any subscriptions.
Broadcasting Video on Demand services (BVOD, including 7Plus, 9Now, 10Play, ABC iView and SBS On Demand) remained popular and most platforms had more than 10 million viewers during FY2023.
Additionally, nearly 5 million Australians claim they have used free and ad-supported streaming TV (FAST) services, or services that offer FAST channels in the last 12 months.
Australians now have the option of more affordable ad-supported SVOD plans since Netflix and Binge launched their ad-supported options during FY2023. According to Telsyte’s research, there are more than a million non-sport SVOD subscriptions subsidised by advertisements as of June 2023.
The study found that 36 per cent of SVOD users are interested in more affordable ad-supported service plans. Telsyte believes more services could introduce an ad-supported tier to attract a new audience and ad-supported plans could potentially lift the average number of subscriptions per household closer to 4 (currently 3.4) by 2027.
Support for local content remains strong
The study highlighted significant interest in Australian content on SVOD platforms in the past year with two in three (66%) Australians claiming they have watched locally-developed content on SVOD platforms in the last 12 months, and nearly 60 per cent saying they want to see more.
More than half of SVOD watchers also believe it is important to have content that has Australian stories, voices, culture and values in their services. Additionally, a third (34%) of Australians say they are more likely to subscribe to an SVOD service that continues to support and invest in local film and TV production.
Australians are also voicing their concerns over the recent debate about using generative AI to produce video content, with half (50%) not believing generative AI can replace human screenwriters in creating captivating, distinct storylines that capture their interest. Additionally, 57 per cent say viewers should be made aware of the source of material produced using generative AI in videos, TV shows and films.
More than 3 in 5 (62%) also believe production companies should compensate actors and celebrities (and seek consent) if AI-generated digital replicas are used for content production. Overall, Australians show strong support for the local production industry, with 57 per cent advocating for the regulation of generative AI-produced source material in the video and film sector.
Smaller gaming budgets impacting subscription growth
Australians had taken up 8.5 million games-related subscriptions at the end of June 2023, a 2 per cent increase from a year ago.
Telsyte believes the slowdown is due to consumers having a tighter budget for video games, with a slowdown witnessed across content, services and consoles. The annual average consumer budget for video games has also been reduced by 11 per cent from a year ago.
Microsoft’s Xbox Game Pass remains the leader across all types of games-related subscriptions that Telsyte measures as consumers continue to gravitate towards the all-you-can-play subscription model. The Nintendo Switch Online service saw stronger growth, benefiting from the popular Nintendo Switch consoles among younger Australians.
Interest in cloud gaming remains high with the adoption of cloud gaming outpacing the slowing video game subscription market. Telsyte estimates the number of gamers adopting cloud gaming services such as Microsoft’s xCloud and GeForce Now is approaching a million, an increase of 73 per cent from a year ago. Cloud gaming remains highly sought after amongst hardcore gamers who play video games for more than 3 hours a day.
Music subscriptions maintain modest growth
Streaming music remains popular with the adoption of subscriptions reaching 16.6 million at the end of June 2023, an increase of 5 per cent from a year ago.
The top 3 streaming music service providers in Australia remained Spotify, Google (incl. YouTube Music and YouTube Premium) and Apple Music. More listeners are using Amazon Music as part of the Amazon Prime subscription.
In addition to music, the study found audiobook subscriptions continue to grow steadily, with close to 1.5 million users in June 2023, up from 1.3 million in the prior year.
2. Generative AI: how is it already changing the way Australians work and live?
According to recent research from Telsyte, who supplied the research on streaming that we spoke about just previously, 5.5 million Australians are now using generative AI services as of June 2023, compared with 1 million Australian users in January.
ChatGPT was the first generative AI system to capture the zeitgeist, the attention of people globally, and it burst onto the scene last November.
Since then, according to www.theresanaiforthat.com, there are nearly 7500 different AI services competing with ChatGPT for attention, working across more than 2000 tasks, from the generalist ChatGPT, Microsoft’s Bing AI and Google’s Bard, through to apps that:
– let teachers and universities to detect when students are passing off AI generated work as their own
– text to image generation
– apps which can inject the content of a PDF and then let you “talk” to that PDF and ask it questions in plain English to get responses from that PDF document
– create animationa and video
– get help with Anxiety
– set appointments for you
– create code for apps and help you be a better programmer
– summarise documents and YouTube videos, and do transcription of videos
– help you do your banking, do bill splitting, search for and recommend books
– give career advice, search for cat images and thousands more topics you can search for yourself at www.theresanaiforthat.com
So, what are the top 10 most popular AI apps in Australia, and what are the top 5 for creating images, artwork, logos and more, right through to photorealistic creations that some would think are real?
How quickly have Generative AI services been taken up compared with digital virtual assistants and smart speakers in Australia?
I’ll post the audio to the radio podcast here with the answers!
3. Samsung’s “Solve for Tomorrow” competition for 2023 has opened!
Samsung Unveils Samsung Solve for Tomorrow 2023: Elevating the Next Generation of Innovators
Samsung Electronics has announced its Solve for Tomorrow competition is back, a nationwide initiative designed to engage and inspire the next generation of Australian innovators and problem solvers using STEM skills.
Free to participate and open to young Australians aged 14 to 24, Solve for Tomorrow is calling on students to use their creative, critical thinking, collaborative and communication skills to create tech solutions that address the social issues they are most passionate about.
As a market leader, Samsung is devoted to uncovering talent and supporting technological innovations that help build a better society. The ability to connect local youth with industry experts continues to be a powerful method to spark new advancements that yield positive transformation.
With the environment, equality, and mental health ranking as the three most important issues today by young Australians. Solve for Tomorrow provides individuals with an opportunity to bring their ideas to life in a meaningful way that drives impact.
The competition also serves as a launchpad for younger generations considering a future career in STEM, at a time when Australian jobs in STEM are predicted to grow over 14.2 per cent by 2026 – twice as fast as non-STEM occupations.
“At Samsung, we believe in a shared mission to create real change that tackles economic, social, and environmental issues,” said Brett Turnbull, Director of Corporate Marketing, at Samsung Electronics Australia.
“As technological connectivity and social media grows, so does activism. Through Solve for Tomorrow, we are providing purpose-driven young Australians a platform to establish themselves as pioneers and channel their passion into creating a better future by building their STEM and critical thinking skills.”
Since winning the overall Solve for Tomorrow 2022 prize pack after presenting her animal conservation idea, Tasmania-based Meg Phillips has gone on to build her honours around the project and is looking to put the prize money towards testing and creating prototypes of her RFID system. Beyond honours, Meg is looking to get the technology to a place where she can run full scale trials and realise her goal of preventing roadkill. In her final year of a Science and Engineering combined degree at the University of Tasmania, majoring in applied mathematics and electrical engineering, Meg is also currently taking part in an Electrical Engineering internship in Singapore.
“The competition allowed me to stretch my skillset and gave me the confidence to pursue other ideas, turning one of my dreams into a reality. I’m grateful for the experience through Samsung and feel good knowing that I can help make a difference, whether that’s through a bigger idea like Solve for Tomorrow, or in my everyday life by the work that I’m doing,” she said.
New this year, Samsung has partnered with Student Edge, an independent online platform that provides students and teachers with on-demand courses to learn practical life skills, and access job opportunities, and deals, competitions, surveys, student articles and free resources.
The organisation will help connect its network of 1.3 million students to the Solve for Tomorrow competition through its existing How Did I Get Here podcast and a series of five in-person Design Sprints structured to help potential participants brainstorm, shape, and present their ideas. All ideas will receive immediate entry into the Solve for Tomorrow competition, offering a chance to win multiple prizes.
“Creating success stories for students is at the heart of what we do, and we are honoured to work with an industry leader like Samsung on Solve for Tomorrow,” said Damien Langley, Co-Founder at Student Edge.
“It’s a thought-provoking global initiative and locally, offers today’s youth a means to inspiring others and showcasing their passion for STEM.”
To participate, young Australians are invited to submit video or written project proposals by via the Solve for Tomorrow website. A panel of judges will review the proposals and select the winners based on their STEM application, creativity, feasibility, relevancy, and presentation. Applications are open now until 7th January 2024.
With seven chances to win across the Design Sprints and Solve for Tomorrow competition, entrants could receive up to $10,000 in cash from the major prize alone to bring their idea to life. Two outstanding projects will be recognised as runners-up, and an additional will walk away as the Samsung Employees’ Choice winner as part of a polled vote for the best entry. Each winner will also receive a Samsung Productivity Pack, including a Samsung Z Flip4 5G, 27” M5 Smart Monitor, and Galaxy Buds2 Pro.
For those interested in a product draw for one of Samsung’s latest devices, Student Edge will offer a “You Say” competition and an eLearning quiz competition for the chance to win either a Samsung Z Flip4 5G or 1 of 4 of the Galaxy Buds2 Pro.
Since launching in Australia in 2021, Samsung Solve for Tomorrow has empowered young innovators and reached thousands of students, fostering their passion for STEM and encouraging them to pursue careers in the industry.
For more information on Solve for Tomorrow, how to enter and the upcoming Design Sprints, please visit: https://www.samsung.com/au/solve-for-tomorrow/.
*T&Cs apply. Entry is limited to Australian residents aged 14 – 24yrs. Entry closes 11:59 PM (AEDT), Sunday, 7 January 2024. For full terms and conditions and entry instructions visit: https://www.samsung.com/au/solve-for-tomorrow/terms
4. IFA Berlin is on this week from the 1st to the 5th of September. IFA is the abbreviation for Internationale FunkAusstellung Berlin, which in English translates to the Berlin International Radio Exhibition, and it’s one of the world’s oldest industrial fairs of consumer electronics and home appliances exhibitions held in Messe Berlin Germany.
This is just a short heads up to note that we’ll have tons of news about all the major things that were launched on next week’s IFA Berlin consumer electronics show, from the world of smartphones, smart TVs, smart home technologies, autonomous vehicles, AI services and much more.
The two big keynotes we’ll see on Friday, September 1, are from two big Chinese tech companies. The first is HONOR, which isn’t that well known in Australia, but the second certainly is – Hiense, most well known for its TVs and a range of white goods appliances.
Honor, which makes smartphones, will explore the rise of foldable technology and how consumer demand is driving tech innovation.
The company says it foresees foldable technology to drive transformative change in smartphones, impacting various facets of our lives, from personal style to our identities and lifestyle. George Zhao, CEO, will discuss how HONOR strides in enhancing the design, functionality, and durability of their foldable smartphone range, asserting their eagerness to reshape life experiences and take centre stage.
From Hisenes, its President Fisher Ui, will look at the scenario-driven future of tech. Mr Yu’s talk will diverge from single-products and instead delve “into diverse scenarios to create intelligent, user-centred innovations”, elaborating and showcasing how this approach “facilitates technical system development for innovation, upgrades, and optimisation across its business. Hisense is also set to make a major announcement that will highlight the company’s ever deeper connection with European consumers.”
5. Father’s Day Gift Ideas – all of the major electronics retailers and hardware stores have all of the predictable tools, gadgets, e-book readers, speakers, watches and more, including the old cliche of socks, but what’s something different and better, at least, in my opinion?
There’s a website called ShopBack, which gives you additional money back on a range of purchases from a range of online stores, which includes purchases from a company called Red Balloon, which sells a range of experiences.
Depending on where you live in Australia, there are hot air balloon rides, gourmet cooking classes, winery tours, hot laps in racing cars, and all kinds of adventures, whether just for Dad, or adventures you can share with two people.
My suggestion is to buy Dad an experience that genuinely creates unforgettable new memories, not just yet another gadget.
6. A new report says Google’s Pixel 8 smartphone range, due in the next couple of months, will match Apple by guaranteeing 5 yaers of operating system updates, with the news yet to be confirmed, but arriving just a couple of weeks before Apple unveils its new iPhone 15 range.
Earlier today, Apple launched the latest versions of its developer and public betas of the iOS 17 operating system for iPhones, with the final version to arrive when the iPhone 15 range is launched in the next couple of weeks.
We’re also going to see the new Google Pixel 8 and 8 Pro launch in the next couple of months, too, with most Android devices normally having to wait months before being able to install the latest operating system updates.
The exception has always been Google, with its Pixel-branded smartphones, which have always been able to update globally at the same time, when Google releases its updates, and while that’s great for Google Pixel users, there are more than a billion Android users who aren’t getting an Android device.
From memory, Samsung was first to guarantee 5 years of updates, matching Apple, at least on its Flagship S range, but Google is now matching it.
7. PC shipments forecast to decline 13.7% in 2023, but global PC shipments expected to return to growth in 2024 albeit below 2019 pre-pandemic levels
The road to recovery for personal computers (PCs) has been challenging coming off explosive years in 2020 and 2021, but signs of growth are finally returning. According to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, PC shipments are forecast to grow 3.7% year over year in 2024 reaching 261.4 million shipments. This shipment volume will be higher than the 259.6 million in 2018, but still below 2019 levels. The industry still faces challenges including concerns around the consumer market refresh cycle, businesses pushing device purchases forward, and education budgets that are not rebounding in many markets. As a result, 2023 shipments are forecast to decline 13.7% year over year to 252 million units.
“Consumer demand remains tepid at best as the segment continues to face economic headwinds,” said Jitesh Ubrani, research manager for IDC Mobility and Consumer Device Trackers. “Consumer demand for PCs also faces challenges from other devices including smartphones, consoles, tablets, and more, marking 2023 as the year with the greatest annual decline in consumer PC shipments since the category’s inception.”
The commercial PC market is getting very interesting for several reasons. From a processor standpoint we are arguably seeing some of the biggest shifts in commercial PC history with AMD reaching 11% share in 2022 and Apple just over 5% in 2022. Additionally, the introduction of generative AI has all IT decision makers questioning where to prioritize budgets. And while AI-capable PCs are not ready today, they are coming and have shifted some of the discussion around device purchasing within businesses. Lastly, the move to remote/hybrid work environments has not gone away and as a result we’re still hearing that many companies are listening to the requests of their employees. This includes which brands, types of PCs, and whether multiple PCs are needed for those that are in a hybrid work environment.
“These days it’s hard to have a conversation that doesn’t involve AI and where and how to invest,” said Ryan Reith, group vice president with IDC’s Worldwide Mobile and Consumer Device Trackers. “Commercial PCs will remain interesting for years to come with technology advances adding an extra element to decision making, but it’s important to remember that Windows 10 end of support comes in 2025 and this will drive commercial refresh regardless of whether companies are waiting on more advanced PCs or just needing to update an aging installed base. It seems clear that Apple sees an opportunity to continue its growth in the commercial segment and this will be an angle to watch closely going forward.”
| Worldwide Personal Computing Device Forecast by Product Category, Shipments, Year-Over-Year Growth, and 2023-2027 CAGR (shipments in millions) | |||||
| Segment | 2023 Shipments | 2023/2022 Growth | 2027 Shipments | 2027/2026 Growth | 2023-2027 CAGR |
| Consumer | 112.0 | -16.2% | 124.8 | 1.6% | 2.7% |
| Education | 31.1 | -11.2% | 35.7 | 0.1% | 3.5% |
| Commercial (ex. Edu) | 108.9 | -11.7% | 124.5 | 2.4% | 3.4% |
| Total | 252.0 | -13.7% | 284.9 | 1.7% | 3.1% |
| Source: IDC Worldwide Personal Computing Device Tracker, August 28, 2023 | |||||
Notes:
- Traditional PCs include Desktops, Notebooks, and Workstations and do not include Tablets or x86 Servers. Detachable Tablets and Slate Tablets are part of the Personal Computing Device Tracker but are not addressed in this press release.
- Shipments include shipments to distribution channels or end users. OEM sales are counted under the company/brand under which they are sold.
