The media industry across Australia and New Zealand experienced another year of rapid structural change in 2025, with traditional business models under increasing pressure while digital alternatives struggled to achieve sustainable economics in many cases.

Free-to-air television continued its gradual decline with audience shares and advertising revenue both contracting. The combined metropolitan FTA audience share in Australia fell to approximately 62% in 2025 from 65% in 2024, with streaming services and YouTube capturing the viewing time lost from broadcast television.

However, major sporting events still delivered substantial audiences to FTA television. The Australian Open, State of Origin, and AFL finals all achieved viewing numbers that remain difficult for advertisers to replicate elsewhere. Sports rights therefore maintained value to broadcasters despite broader audience declines.

Television advertising revenue declined approximately 6% in Australia during 2025, accelerating from the 3-4% declines of recent years. The COVID-era pause in television revenue decline has definitively ended. Advertisers continue shifting budgets toward digital platforms where targeting and measurement capabilities exceed broadcast television.

New Zealand’s television market experienced similar patterns with FTA audience and revenue declines. TVNZ and Warner Bros. Discovery both faced challenging market conditions that required cost reduction and strategic refocusing. Both organisations reduced content spending and staff numbers during the year.

Streaming service penetration continued increasing in both countries, reaching approximately 78% of households in Australia and 72% in New Zealand. However, the number of streaming subscriptions per household declined slightly as consumers became more selective about which services to maintain.

The streaming market showed signs of maturation in 2025 with subscriber churn increasing. Consumers adopted patterns of subscribing to watch specific content then cancelling, rather than maintaining continuous subscriptions to multiple services. This created revenue volatility for streaming platforms.

Stan, Binge, and Paramount+ all increased prices during 2025 as the streaming business model shifted from subscriber acquisition to revenue per subscriber. Netflix similarly implemented price increases. The streaming price advantage over traditional pay television narrowed as the industry matured.

Radio broadcasting proved more resilient than television in both countries during 2025. Radio listening hours remained relatively stable, though the proportion of listening through digital channels versus traditional FM/AM increased. Podcast listening continued growing but mostly added to rather than displaced traditional radio consumption.

Newspaper and magazine publishing faced continued revenue pressure in 2025. Print circulation declined another 12-15% while digital subscription growth slowed from earlier years. The business model transition from advertising-supported print to subscription-supported digital remained incomplete and challenging.

Several regional newspapers ceased publication during 2025 as their advertising-supported business models collapsed. The loss of local news coverage in these communities creates genuine democratic deficits that alternative information sources don’t adequately replace.

Public broadcasting faced funding pressures in both countries. The ABC operated under continuing efficiency requirements while TVNZ shifted to a fully public service model without commercial revenue. Both organisations adapted their content strategies and cost structures to resource-constrained environments.

Digital advertising markets continued consolidating around major platforms. Google and Meta combined captured approximately 62% of digital advertising spending in Australia, up from 59% in 2024. While smaller than in previous years, their market share growth continues at the expense of other digital publishers.

The news media bargaining code in Australia generated approximately $200 million in annual payments from digital platforms to news publishers during 2025. While meaningful for recipients, questions persist about whether these arrangements are sustainable and whether they’re effectively supporting journalism versus subsidising existing businesses.

New Zealand implemented its own news media platform payment mechanism in 2025, though the specifics differed from Australia’s approach. Initial payments were substantially smaller than Australian equivalents given New Zealand’s smaller market, raising questions about whether the revenue is sufficient to materially impact news media sustainability.

Out-of-home advertising showed surprising resilience during 2025, growing approximately 4% despite economic headwinds. Digital out-of-home installations increased, offering advertisers dynamic content capabilities that traditional static billboards can’t provide. The format benefits from recovering foot traffic as workers return to offices and tourism rebounds.

Cinema advertising recovered further in 2025 as theatrical exhibition continued rebuilding from pandemic impacts. However, the market remained below 2019 levels as streaming availability of new content reduced exclusive theatrical windows and some consumers developed streaming-first habits.

Audio streaming platforms including Spotify and Apple Music continued growing listenership in both countries. However, artist payment controversies persisted, with many musicians arguing that streaming economics don’t adequately compensate creators. The industry continues negotiating appropriate payment structures.

Podcast advertising revenue grew approximately 25% in both countries during 2025, though from a relatively small base. The format offers advertisers engaged audiences and integration opportunities that other media can’t replicate. However, measurement standards and proof of advertising effectiveness remain less developed than for traditional media.

Gaming and esports viewership continued expanding, particularly among younger demographics that advertisers struggle to reach through traditional media. Several brands increased investment in gaming-related advertising and sponsorships. However, the effectiveness of gaming advertising relative to traditional formats remains debated.

Social media platforms evolved their monetisation approaches during 2025. Meta emphasised its Reels short-form video product to compete with TikTok. X (formerly Twitter) struggled to stabilise advertising revenue after multiple controversial policy changes. LinkedIn maintained steady growth in B2B advertising.

Influencer marketing matured during 2025 with more sophisticated measurement and clearer disclosure requirements. Advertisers became more selective about influencer partnerships, focusing on genuine audience engagement rather than just follower counts. Several influencer marketing agencies consolidated as the market professionalised.

Content production in both countries faced cost pressures during 2025. International production activity that had surged during pandemic years moderated as other locations became available again. Local content production budgets were constrained by broadcaster and streaming platform spending discipline.

Government content production incentives in both countries supported ongoing activity. Location offset programs and producer offset schemes made Australia and New Zealand competitive for international productions. However, global competition for production work remains intense.

Journalism employment continued declining in both countries during 2025. Multiple newsrooms reduced staff numbers as revenue pressures persisted. Experienced journalists left the profession for communications roles in other sectors, creating knowledge loss that’s difficult to replace.

Media diversity concerns intensified as ownership concentration continued. The number of independent publishers declined while corporate media groups consolidated. Regional areas particularly suffered from reduced media ownership diversity.

Looking ahead to 2026, the media industry faces ongoing structural adjustment. Traditional media businesses must continue adapting to digital-first audiences while finding sustainable business models. Digital platforms face increasing regulatory scrutiny and market maturation. Content creators navigate fragmenting audiences and evolving monetisation options.

What 2025 demonstrated clearly is that media transformation isn’t a temporary disruption—it’s a permanent restructuring of how content is created, distributed, and monetised. The institutions and business models that dominated 20th century media won’t necessarily survive the transition. New models are emerging but their long-term sustainability remains uncertain.