Video streaming platforms like Netflix are tipped to outstrip Rupert Murdoch's Foxtel and other traditional pay TV services for market share in the next two years as competition grows for Australian subscribers.

The local subscription television market is expected to grow at a 2.9 per cent compound annual rate from 2019 to 2023 bringing it to about $4.6 billion in value, according to PwC’s 18th annual Australian Entertainment and Media Outlook released on Wednesday.

Video streaming platforms are tipped to outpace pay-TV boxes. Credit:Chris Ratcliffe

But not all video players will benefit from the growth, with streaming players such as Netflix and Nine Entertainment Co-owned Stan forecast to grow 13.7 per cent on the same measure, while premium box services like News Corp's Foxtel to fall 2.9 per cent. Nine is the owner of this masthead.

PwC Australia partner Justin Papps, co-author of the report, said the streaming market was set to become more competitive with US entertainment giants like Disney expected to launch direct-to-consumer platforms, and the recent launch of streaming sports platform Kayo Sports by Foxtel.