SYDNEY: Two thirds of online Australians over the age of 16 will be watching video on demand (VOD) by the end of 2016, while the paid over-the-top (OTT) market is poised to take off, according to two new studies
The Australian Connected Consumer Report from research Nielsen predicted that the proportion of online Australians using VOD services would rise from 59% to 67% over the course of this year.
Currently they are mostly using TV catch-up services, but paid OTT services are gaining ground, galvanised by last year's arrival of Netflix.
"We believe Netflix access among the online population will increase by 11% in 2016, meaning over a quarter of the online population," said Lillian Zrim, associate director, marketing effectiveness and cross platform insights at Nielsen.
"We are also forecasting that Stan will increase by 8% this year to reach 11% of the population," she told Marketing. "We're predicting growth for most VOD services this year based on 2015 numbers."
That's down to "more choice, more up to date content and appealing exclusive content – this is driving a real interest in trialling and subscribing".
A separate study by strategy consultancy MTM – commissioned by programmatic company Ooyala and subscriptions firm Vindicia – forecast that the premium OTT market in Australia would grow in value from of $85m in 2015 to $230m in 2019.
While Netflix is driving awareness and adoption of OTT services across the wider Asia Pacific region, it is in English-speaking Australia that it is expected to dominate the market, Mumbrella reported.
The study notes that consumers in Thailand and Indonesia, for example, have a strong preference for local-language content. And local providers frequently "have existing payment relationships adapted to local conditions and are able to bundle low-price OTT offerings with other services".
The Australian Connected Consumer Report from research Nielsen predicted that the proportion of online Australians using VOD services would rise from 59% to 67% over the course of this year.
Currently they are mostly using TV catch-up services, but paid OTT services are gaining ground, galvanised by last year's arrival of Netflix.
"We believe Netflix access among the online population will increase by 11% in 2016, meaning over a quarter of the online population," said Lillian Zrim, associate director, marketing effectiveness and cross platform insights at Nielsen.
"We are also forecasting that Stan will increase by 8% this year to reach 11% of the population," she told Marketing. "We're predicting growth for most VOD services this year based on 2015 numbers."
That's down to "more choice, more up to date content and appealing exclusive content – this is driving a real interest in trialling and subscribing".
A separate study by strategy consultancy MTM – commissioned by programmatic company Ooyala and subscriptions firm Vindicia – forecast that the premium OTT market in Australia would grow in value from of $85m in 2015 to $230m in 2019.
While Netflix is driving awareness and adoption of OTT services across the wider Asia Pacific region, it is in English-speaking Australia that it is expected to dominate the market, Mumbrella reported.
The study notes that consumers in Thailand and Indonesia, for example, have a strong preference for local-language content. And local providers frequently "have existing payment relationships adapted to local conditions and are able to bundle low-price OTT offerings with other services".
Data sourced from Marketing, Mumbrella; additional content by Warc staff
