I don't think it's a memory issue; I'm thinking that it has to do with the inefficiency of having that large of an image in terms of Core Animation.
Core Animation can't use it natively, as it exceeds the maximum texture size on the GPU (1024x1024). I would break it up some; individual images might give you the best performance, but you'll have to test to find out.
IIRC, UIImageView does its animating by setting successive individual images, so if it's good enough for Apple….