Newsletter 22nd of April: Netflix Strong Subscriber Growth, But Not in Sweden


22 April 2020

According to Netflix, the streaming service acquired 15 million new subscribers in Q1 2020, where of 7 million in EMEA. Netflix now has almost 183 million subscribers on a global basis and 52 million of those in EMEA. Growth is strongest in APAC (+22% QoQ) and EMEA (+13% QoQ). However, figures from Mediavision’s Q1 analysis of the Swedish market for TV & streaming tell a different story.

According to Mediavision’s latest data Netflix’s penetration among Swedish households has shown no substantial growth in 2019 – and the trend continues in Q1 2020. Approximately 2.1 million Swedish households had access to Netflix in Q1 2020 , which is more or less the same amount as in Q1 2019. Whereas Netflix’s global subscriber base grows, the Swedish market shows clear signs of maturity. Increased stacking, which means that households take up more services, is another indication of market maturity.

Still, the corona pandemic’s effect on the Swedish video online market might be more visible in Q2. Due to lockdown and quarantine directions, streaming services could break through the current plateau. More and more subscribers are also sharing services with other households. In the soon to be released Q1 analysis, Mediavision can see that this factor is growing strongly during the last weeks of March. This means that SVOD services reach more households, though they may not get paid for it. This may very well be a breeding ground for continued growth, if the online services in the future choose to have less generous sharing rules.

Industry News 

Telia Reports Earnings Below Forecast 

Telia reported quarterly earnings below market forecast in its Q1 report on Wednesday morning. Weaknesses in the TV and Media division impact the results, but Telia has seen limited effects of the Corona pandemic on the other business areas so far.

Snap Stock Surges 20%

Stocks for Snapchat’s parent company rose by 20% following their Q1 earnings report on Tuesday. Sales exceeded expectations despite the impact of Corona on advertising sales. Revenue came in at $462 million, +44% from $320 million reported in Q1 2019.

Tele2 Reports Losses in Wake of Corona

Telecom operator Tele2 released its Q1 report on Tuesday, presenting a fairly stable organic growth of -1%. However, the company reports -50 million SEK per month due to the Corona outbreak and has decided to withdraw the special divided as a result.

”Netflix for Manga” Set to Launch

Hulu Japan’s previous CEO Buddy Marini is backing new streaming service MangaMe, described as Netflix for Manga. The service is available globally through mobile phones and tablets, via an application developed by Swedish bureau North Kingdom.

Apple Services Available in New Markets

The tech giant is set to launch its services in additional markets. Apple Music will add 52 new markets, totalling availability in 167 markets and thereby beating Spotify by 88 markets. Appstore, Apple Arcade, Apple Podcasts and iCloud will be launched in 20 new markets.

NBCU’s Fandango to Purchase Vudu

Digital movie and TV streaming platform Vudu, owned by Walmart, has been acquired by NBCU’s Fandango division. NBCU has previously run competing service FandangoNow, The two services are expected to be merged following the acquisition.

Facebook’s New Gaming App Launched

Facebook’s new gaming application is now live on Android. The IOS-version is pending Apple approval.The app is focused on live streaming of games, competing with Twitch and You Tube, and providing access to Facebook´s own games.

PL Returns in FIFA 20 Tournament

Following a month with no games played due to the Corona pandemic, Premier League stars will now face off in a virtual alternative played in FIFA 20 instead. Proceedings will be donated to the UK National Health Service.

Fake Netflix Websites Boom Amid Corona

As hackers are attempting to capitalize on increased viewing on streaming services amid the Corona pandemic, +700 websites impersonating Netflix and 4 copycatting Disney+ arose in week 15, according to Mimecast.

Jysk Fynske Medier Buys Newspapers

North Media disposes of its newspaper division as Jysk Fynske Medier purchases the division. North Media distributes a number of weekly newspapers in Denmark, as well as Helsingør Dagblad. It reported a turnover of 93,8 million DKK in 2019.

‘One World’-gala Draws 21 Million Viewers

The ‘One World: Together at Home’-concert special and fundraiser aired on Saturday and attracted 21 million viewers only in the US. The event raised more than 100 million USD to support front-line workers in the Corona pandemic.