Morrow says since Netflix launched NBN data consumption has surged 60 per cent
Morrow speaking this afternoon.
Bill Morrow CEO of NBN has revealed that online streaming giant Netflix caused a 60 per cent surge in his network’s data usage, since it formally launched in March.
Speaking on the sidelines of the ASTRA 2015 conference, Morrow confirmed the surge of traffic and noted that over the top (OTT) players Foxtel GO and Fetch TV, along with all the video streaming players Netflix, Stan, Presto were all seeing a surge.
“It has been phenomenal,” Morrow told Mumbrella. “Since Netflix was launched in the country we have seen a near 60 per cent lift in terms of data consumption.”
“While we thought there might have been a bit of a relaxing (in demand), we had heard that was the case in other countries and there was but since then it has continued to go up.
“Just over this last month there has been a six per cent lift, so for us we realise this is here to stay it is an important technology that many consumers like.”
Asked about the cause of the lift which had seen average usage per consumer go from 78GB to an average of 121GB per user, per month, he said: “I think they really like and enjoy having content when they want, it how they want, where they want it. We are seeing the data consumption as a result.”
When addressing the ASTRA conference, Morrow noted that much of the SVOD growth was coming from younger demographics.
“When you look at the top countries around the world, in terms of the consumption, it is areas of the youth group that is focused on watching everything through streaming video,” he said. “It is an indication of the disruptive nature that this technology will bring and how it will change the way programming is delivered.
The shift in consumer habits will also have an impact on traditional broadcaster who Morrow argued need to adjust to the new landscape.
“If there is a major sporting event, maybe that is delivered over a classic broadcast network, not the data network,” said Morrow.
“If you are outside that delivery, and you want it, when you want it on a device you want it that it is more a streaming application.
“That changes the way Australians see their video programming and breaks the tyranny of distance in regional Australia.”
Morrow’s comments come on the same day Roy Morgan estimated that US online streaming giant Netflix now has 855,000 Australian homes signed up to its streaming video on demand service.
Nic Christensen
Is he talking about NBN consumption going up 60% or all data consumption going up 60%? I would find the latter hard to believe.
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Hi Pietro,
Morrow was referring to the NBN network. We’ve clarified the lead.
Cheers
Nic – Mumbrella
$56 Billion or so of infrastructure investment so that people can really like and enjoy having Netflix when they want, it how they want, where they want it.
Nice…
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Of course increases in download GBs doesn’t necessarily mean an increase in time spent viewing – but probably a better quality picture.
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