Two-thirds of Aussie adults to watch VOD by end of year

Nicola Riches
By Nicola Riches | 2 May 2016

By the end of this year, more than two-thirds of adults in Australia will be watching video on demand - services such as Netflix and Stan - according to Nielsen.

Nielsen’s latest Connected Consumer Report reported a 4% increase in VoD watching during 2015, to 59%.This year's uptake is expected to be even bigger with a further 8% of people over 16 tuning in.

Nielsen marketing effectiveness and cross platform insights associate director Lillian Zrim says: “While traditional TV remains dominant, Australians are viewing more video content across the various catch-up and subscription services because there is more choice, more up to date content and appealing exclusive content. This is driving a real interest in trialling and subscribing.

The company adds that Netflix access among the online population, for example, will increase by 11% in 2016, meaning over a quarter of the online population will have access to this service in their household before the year is out.

It also forecasts that Stan will increase by 8% this year to reach 11% of the population.

The report, which surveys online Australians on their media content consumption across a growing assortment of devices, also found that TV remains as the most-viewed screen in homes. When looking at screens used to watch video on demand, 56% are using their TV, an increase of 12% since 2014.

“The TV screen is a central part of the Australian home, and people want to watch content on large screens for the best experience possible” said Zrim.

Traditional TV is still the dominant form of TV consumption by far with 89% of the online population watching broadcast or time-shifted TV. Catch-up TV from major publishers has also shown growth, and is the most popular form of video on demand content (equal with TV consumption on YouTube) with 39% of the online population viewing content across Australian catch-up services.

Pirated content has also dropped by 10% in 2015, due to publishers offering foreign content locally with greater speed than ever. This decrease can also be attributed to the ongoing crack down by the federal government on pirate sites.

“Among video on demand viewers, the majority are watching weekly but 21% watch daily, up from 15% in 2014 and 12% in 2013. Engagement in the space has been steadily increasing over the past few years. Not only are there more Australians accessing video on demand content across free and paid services but they are increasingly incorporating viewing into their daily repertoire,” said Zrim.

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