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Video and gaming driving Aus traffic and dollars

But lags behind Asian neighbours

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Australian online data consumption continues to escalate but fixed internet access revenue is set to decline, according to the latest report from PricewaterhouseCoopers.

The Australian Entertainment and Media Outlook 2011-2015 reports that the volume of data downloaded increased by 57 percent in the year to June 2010 with online video consumption fuelling much of the growth. However, while traffic surges, fixed internet access spending is set to grow from $AU4 billion to $AU4.19 billion or just 1.6 percent compound annual growth rate in the period to 2015.

Wireless access spending is set to grow by 9.6 percent over the same period from $AU2.2 billion to $AU3.02 billion, driven by tablet use. PwC forecasts that by 2015, 5.5 million Australians - one in every four - will own a tablet computer.

The report predicts that interactive gaming will expand from 8.8 percent of consumer online spending in 2011 to 11.4 percent by 2015, taking it from $AU1.7 billion today to $AU2.5 billion.

“As we continue to shift our media consumption to mobile devices, entertainment and media companies have an imperative to find different business models that will meet the new needs of consumers. By 2015, most of the successful entertainment and media companies will have digital collaboration infused into their DNA,” PwC head of technology, information, communications and entertainment David Wiadrowski said.

He also warned that Australia is not falling in line with the growth rates of its Asia Pacific neighbours.

Australian consumer spending across entertainment and media products and services is expected to grow to $AU22.5 billion by 2015 while the Asia Pacific market is set to reach $AU248 billion. ®

“Australian entertainment and media companies are slow to leverage our geographic advantages. It is time for Australian businesses to think about how best to share in the boom taking place on our doorstep,” Wiadrowski said.

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