Newsletter 23rd of October: Nordic Satellite Operators Join Forces


23 October 2019

Consolidation of the Nordic media market continues as yet another significant deal has just been announced. NENT Group and Telenor aim to combine Viasat Consumer satellite pay TV and broadband TV operations with the satellite pay TV offering from Canal Digital. There are of course several implications to be expected once this partnership has been approved by the EU commission in spring 2020.

Each party will hold 50 percent of the new joint venture company which is expected to entail substantial cost synergies of up to SEK650 million (€60.5 million) and reach full effect by 2022. Additional sales synergies with Viaplay upsell opportunities as well as reduced churn are also expected. Market reactions were positive and the NENT price per share soared +14 percent during the first day following the announcement (23/10). In contrast, Telenor decreased slightly by -1.4 percent during the day. However, this change was also related to a weaker than expected quarterly performance.

Satellite TV distribution, also known as DTH, has seen a steady declining subscriber base for the past couple of years. Since the first half of 2014, total Nordic DTH subscribers (including Viasat broadband TV), have decreased with a CAGR of -4 percent.

Total Nordic DTH (Viasat and CD) + Viasat broadband TV subscriptions (‘000)

During the same time period, SVOD has been on the rise, transcending multiple traditional forms of TV distribution. By the first quarter of 2019, total number of Nordic households with SVOD amounted to 5.8 million, following an +18 percent average annual increase during the same period in 2014.

Number of Nordic SVOD households (‘000)

Despite joint venture cost synergies and increased competitive strength, the decline for DTH will certainly continue, all the while SVOD continuous to reach new heights. Last night’s announcement is a way to smooth the transition and bolster the product offering when the structural pressure tightens.


Industry News

Verizon will provide all of their current and new 4G LTE and 5G customers with a full-year subscription to Disney+. The announcement caused Netflix´s stock price to fall by 3,2% in the opening of Nasdaq.

A dramedy focusing on the life of anxious people will be the third Netflix Original produced by FLX. The series is based on the book by Fredrik Backman and will be directed by Felix Herngren.
Red Bee to Focus on Women´s Football
In 2020, Swedish sports rights agency Spring Media and Red Bee are set to launch an OTT service exclusively streaming women´s football. The service will combine content from top tier leagues in Europe, Asia and America with international games.
In the report “Mediernes Udvikling 2019”, the Danish cultural department states that podcast listening in the country has increased at the expense of traditional, linear radio. 19 percent of the Danes listens to podcasts daily.
In a deal reaching from 2024 to 2028, NENT Group has secured the rights to air the Ice Hockey World Championships. NENT already possessed the rights for Sweden but will now include the other Nordic countries in their broadcasts as well.
In the quarterly report released last week, Netflix reported revenue growth of 31 % compared to the same quarter last year. In total, their revenue amounted to $5.2 billion and they attracted 6,255 million new subscribers globally.


Mediavision Press Release

I en alldeles färsk analys kan Mediavision slå fast att 17% av svenskarna idag abonnerar på någon ljudbokstjänst. Ljudbokskunderna är också större köpare av tryckta böcker jämfört de som inte abonnerar. 

Mediavision in the News

Esportsföräldrarna kommer att driva på utvecklingen
Veckans avsnitt av ”Allt om esport” gästas av Gunnar Klöfver på Mediavision som delar med sig om intressant data om esportare.

Lugnet innan strömningstormen bryter ut för fullt – Netflix får stora utmanare 
Mycket talar för att slutet av året kan bli omtumlande på strömningsmarknaden. Då får Netflix två stora utmanare: Apple TV+ och Disney+.