By the end of the year two thirds of Australians over 16 who have an internet connection will be accessing VOD services. Nielsen says 67% will be watching OTT video by end-2016, compared with 59% in 2015.
Media agency WARC noted that most of the VOD usage is catch-up services, but Netflix is driving strong growth in paid-for services.
The value of the Australian OTT market will rocket from AS$85 million in 2015 to A$230 million in 2019, according to a separate study from consultancy MTM.
“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.
While Netflix has established an SVOD lead other local players are establishing a foothold.”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.”