Streaming TV is now firmly part of how audiences are viewing content in Australia, but the next phase of its growth will not be defined by viewership alone. As more premium video shifts into ad-supported environments, the viewer experience will increasingly determine whether audiences stay engaged and whether both platforms and advertisers can fully capture the opportunity.
Because while Australian viewers are comfortable with streaming and increasingly open to ad-supported options, they are also bringing TV-grade expectations into digital environments and are looking for platforms that add value rather than friction.
For advertisers and publishers, this creates both an opportunity and a responsibility. FreeWheel Viewer Experience Lab’s new research into Australian audiences shows that ad-supported streaming can support a positive viewer experience but only when the ad environment is managed with the same care as the content experience.
Streaming has become a permanent part of how Australians watch
Australian viewers now have more ways to watch premium video across ad-free and ad-supported services, and streaming has become a central part of how they access content. Paid subscription streaming services now capture 68% of viewership, up from just 29% in 2017.1 What’s more is that FreeWheel’s research found that when the same content is available, 56% of viewers choose to watch it on a streaming service instead of traditional TV.2
Just as important, this shift is backed by satisfaction. 85% of Australian viewers say they are satisfied or very satisfied with their overall streaming experience,2 suggesting that streaming is not just widely used – it is meeting expectations for convenience, choice, and content quality.
Ad-supported models are now part of this mainstream experience: 70% of viewers have access to an ad-supported streaming service, and half say they chose an ad plan at sign-up, often citing cost savings as the benefit.2 For the streaming industry, this is an important signal: Viewers are accepting ads when the value exchange is clear and the experience respects the way they want to watch.
Viewers accept ads when the experience feels TV-like
The strongest ad experiences in streaming often resemble what viewers already understand from television, such as structured breaks, premium content, live moments, and a clear relationship between content and advertising. This is especially true in live sports, where ads are already an expected part of the viewing experience: Nearly half of viewers of live content are used to seeing ads while watching, and they are 9% less likely to find ads disruptive than viewers of episodic content.2
Sports are emerging as one of the most important environments for streaming advertising because it combines live attention, shared viewing, and a familiar ad rhythm. It’s no surprise that Deloitte research confirmed 3 in 4 Australians watched sports every week in 2024,3 and 54% of global sports viewers say they often watch live sports with others.4 For advertisers, that creates a premium setting where ads can feel like part of the event rather than an interruption to it.
BVOD is a viewing staple across Australian households and the recent growth in FAST further points to the value of a TV-like experience. The data shows that viewers respond positively to strong content, a familiar linear-style environment, a more seamless ad experience with diverse brand mixes, strong competitive separation and controlled frequency.2 This signals that viewers are open to ads when the experience is predictable, well-paced, and aligned with the content they came to watch.
Poor ad quality threatens growth, but AI offers a path forward
The opportunity for ad-supported streaming in Australia is clear, but it is not guaranteed. As ad-supported viewing has scaled, viewers have become more sensitive to the quality of the experience. Factors like ad load, repetition, and relevance will play a central role in whether audiences continue to see advertising as a fair value exchange or as a reason to disengage.
The research shows that ad repetition is already testing patience, with viewers noting that the same creatives can appear multiple times within a single break.2 Relevance remains another major gap: Only around a third of viewers feel ads are tailored to their interests or aligned with the content, making nearly half perceive ads as intrusive. These issues do not just affect individual campaigns; they shape how viewers feel about the entire streaming environment.
This is where AI can help move the industry forward. AI-powered tools and solutions can support smarter ad decisioning, better frequency management, stronger contextual alignment, and more relevant creative experiences at scale. Importantly, viewers are open to this evolution when it improves the experience. The goal is not simply to insert more intelligence into ad delivery, but to use technology to make ads feel more considered, less repetitive, and more connected to the content experience.
The next phase of streaming growth in Australia depends on the right technology
For Australia’s streaming industry, the next phase of growth will depend on protecting the viewer experience as much as expanding reach. Audiences are satisfied with streaming and willing to accept ads, but that acceptance depends on execution. Advertisers and publishers both have a role to play in creating ad experiences that feel TV-like where it matters, more relevant where possible, and seamless enough to keep viewers coming back to the content they love. The key is partnering with the right technology platforms that are built for premium video and can help ensure the viewer experience is prioritized.
To learn more about how FreeWheel is helping improve ad environments for viewers across premium video platforms, visit here.
Sources
1. Australian Communications and Media Authority, Communications and Media in Australia: Trends and developments in viewing and listening 2024-25, March 2026.
2. FreeWheel Viewer Experience Lab survey through Dynata, n= 800. Base: Australians who have watched video content (excluding social media) in the past 3 months and subscribe to/have access to paid streaming or FAST in their household.
3. Deloitte, Media & Entertainment Consumer Insights 2024 [pdf], 13th edition, 1 November 2024.
4. FreeWheel, It’s Only Live Once: How TV Advertisers Can Capture Audiences in the Moment, 2024.
