SYDNEY, Oct. 22, 2013 /PRNewswire/ -- Australia's online video market is being driven by the growing popularity of mobile devices and tablets and boosted by the preference of younger consumer age groups towards online video channels as a direct substitute for traditional TV.
Frost & Sullivan predicts expenditure on online video advertising to grow strongly at a CAGR of 31% over the next five years, increasing from $133 million in 2013 to $513 million in 2018.
Frost & Sullivan's latest report, Australian Online Video Market 2013 finds that in 2013, 87% of consumers watched TV shows and/or movies on a TV screen at least once month; a decline from 94% in 2012. Meanwhile, the frequency of consumer viewing on tablets and smartphones increased from 20% in 2012 to 24% in 2013. 27% of smartphone users watch user generated content on sites such as YouTube on most days, while 60% do so at least once a month.
Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan said, "Larger and higher resolution smartphone screens has improved the viewer experience significantly, whilst monthly data cap limits offered by mobile operators have risen significantly."Video content produced in HTML5, which is platform independent and works seamlessly across all devices, overcomes barriers to watching some forms of video content via online channels on certain devices. "Live and sporting events and news will be a key driver in taking the online video experience to a mainstream audience. For example, watching live news on devices while commuting on a train, is becoming more common and offers a real substitute to the TV lounge room viewing," Harpur elaborated. Smartphones and tablet users typically multi-task across different devices and platforms as these mobile devices can be connected with and integrated into the overall viewing experience. "48% of tablet owners also use their tablet whilst they watch traditional TV, always or most of the time," Harpur stated.