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Netflix drives VOD boom in Australia

ott lifestyle netflixUse of VOD and SVOD in Australia will increase sharply with Netflix spurring much of the growth, according to new research.

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.”