The rise of the YouTube economy

YouTube and Multichannel Networks (MCNs) are disrupting traditional TV by capturing younger audiences and ad spend.

Dan Blair · Venture Insights20 November 2015Period: FY158 min read

Last updated 10 June 2026

71%↑

Digital video CAGR (FY12-15)

A$389m↑

Total Australian Digital Video Market (2015)

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+1more stats

Companies covered:YouTubeGoogleFacebookDisneyWarner BrosSony BMGDreamWorksRTL GroupNetflixVevoMaker StudiosMachinima

Abstract

This report analyses the rapid growth of the digital video market, which expanded at a 71% CAGR between FY12-15. It focuses on the emergence of YouTube and Multichannel Networks (MCNs) as material components of the digital economy. While traditional TV faces a marginal decline in viewing hours, the report identifies Print as the sector at highest risk from shifting advertising expenditures. Key challenges for the YouTube ecosystem include platform risk from Facebook and the need for original content.

Key Takeaways

Digital video in Australia grew at a 71% CAGR between FY12-15 to reach a total market value of A$389m.
YouTube dominates the sector with a 60% global share of views and an estimated A$130m in annual Australian ad revenue.
Multichannel Networks (MCNs) account for 40% of YouTube views and A$52m of the local ad spend.

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Frequently Asked Questions

The market expanded at a 71% CAGR between FY12-15, reaching a total value of A$389 million. YouTube remains the dominant force, capturing an estimated A$130 million in annual local advertising revenue.

No, while traditional TV viewing hours will see a marginal decline, the A$4.3 billion broadcast AdEx pool is relatively stable compared to the Print sector. Print is identified as the industry at the highest risk of revenue loss as advertising expenditures shift toward digital video.

Mobile is the primary consumption driver, with Australian smartphone ownership hitting 77% in 2014. This shift has resulted in more than 50% of all YouTube views now occurring on mobile devices.

Facebook represents a significant platform risk, having scaled to 4 billion daily video views. However, YouTube still maintains a 60% global share of views and a robust local ecosystem where Multichannel Networks (MCNs) account for 40% of total views.

The rise of the YouTube economy

Abstract

Key Takeaways

Frequently Asked Questions

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