Newsletter November 28th: Gambling ads and the upcoming gambling market re-regulation

28 November 2018

Gambling companies regulated outside of Sweden, i e “off-shore”, are currently in a vivid fight over customers and market shares, awaiting the new legislation of Jan 1, 2019. This in turn has spurred an advertising frenzy in certain media companies, not regulated in Sweden. Looking forward, it is somewhat vague who will reap these benefits under the new legislation. However, it seems pretty clear that competition over gambling advertising funds will ramp up in 2019.

Discovery and NENT Group, both based in the UK, have since long been carrying ads for off-shore gambling companies. This has distinguished them from their competitors in Sweden. Tech and social media giants in Sweden, such as Google and Facebook, have also stayed clear from gambling ads. Once the new regulation comes into effect, all licensed gambling companies will operate under the same legislation. This also implies that advertising will be on equal footing.

Taking a look at traditional TV advertising during Q3 of 2018, the conclusion is that gambling accounts for a significant share of total Discovery and NENT Group advertising revenues. In total, 24 percent of Discovery’s delivered TRPs and 27 percent of NENT Group’s delivered TRPs are gambling ads. This is an increase from the already high shares of Q3 last year.

Gambling ads share of total delivered TRPs during Q3 2018 (%)

So, by Jan 1 2019 all licensed gambling companies will follow the same advertising legislation. This implies that (e g) Google, Facebook and TV4 will be opened up as viable marketing channels also for the currently off-shore gambling companies. Mediavision follows this development closely. We have recently published a full analysis of the Swedish gambling market. Read more about it here.

Another interesting topic this week, with implications for the media industry, is the ongoing Brexit negotiations. Depending on the outcome, UK based broadcasters could be affected as the UK could possibly be considered a third country and UK jurisdiction might not comply with EU law. Apparently, some broadcasters have already started applying for licenses elsewhere in Europe.

Mediavision blogs:

Premium sports market: Online migration and tough competition over subscribers
With the transition from traditional to digital viewing in full swing, sports content is in a league of its own. The sports genre has both exceptional strength as a driver for “live” viewing and creates very loyal customers or subscribers.

Mediavisio press releases:

Mycket stor dominans från USA i skandinaviskt streamingutbud
Nyligen presenterade EU ett förslag om innehållskvoter för streamingtjänster. Redan i december kan förslaget om minst 30 procent lokalproducerat innehåll bli verklighet.

Industry news

Netflix to adapt Roald Dahl stories
Netflix has announced it is to adapt several Roal Dahl classics next year, with titles including Charlie and the Chocolate Factory and the Twits. Netflix confirmed that the production will begin in 2019, but no schedule has been announced.

Film fund invests in DR series
Danish public service broadcaster DR’s next big series “Fred til lands” is being backed by the regional film fund FilmFyn. FilmFyn describes the investment as one of the most significant in recent years in a press release.

Spotify’s India launch draws near
Spotify is allegedly launching its service in India within the next six months. All three major record labels have now given Spotify the thumbs up regarding licenses in India. The news sent the Spotify stock upwards by 7 percent.

Youtube to make new originals free to watch
In a shift in strategy, the Google-owned video platform said that starting next year it will move to make all of its new original programming available for free for anyone to watch.

Disney inks advertising deal with Google
The Walt Disney Co. is moving all of its digital brands and properties worldwide — including Disney, ABC, ESPN, Freeform, Marvel, Pixar and Star Wars — to Google’s advertising platform.

Mediavision in the news

Netflix dyrast i Danmark och Sverige
Kostnaden för strömningstjänsten Netflix är högst i Skandinavien, sett till hur många filmer och tv-serier man får för avgiften. Allra mest betalar danskarna, men även svenskar och norrmän betalar mångdubbelt mer än exempelvis kanadensare.

Amerikanskt innehåll dominerar på svenska streamingtjänster
Bara 10 procent av alla titlar på de svenska streamingtjänsterna består av svenskt innehåll. Det visar Mediavisions senaste kvartalsrapport. Det amerikanska innehållet uppgår till nära 45 procent.

Industry events

*Events where Mediavision will be presenting