Newsletter 3rd of November
3 November 2021
As we leave the Halloween festivities behind us, we can conclude that the immense popularity of film and TV expands beyond the screen – film and TV characters were the most popular Halloween costumes this year, making up 27% of Google-searches ahead of the holidays. Anyway, let’s shift our focus – this week, read up on:
- Close to one quarter of Swedish 15-74-year-olds uses 5G in Q3 2021
- Spotify beats expectations in Q3 earnings report
5G spreads among Swedish consumers – despite infrastructure lag
Nine months have passed since the 5G auction was completed in Sweden – with four major telecom operators paying a total of SEK 2.3 billion for access to the 3.5 GHz spectrum.
Mediavision’s latest analysis of the Swedish TV & Streaming market concludes that as of Q3 2021, 35% of 15-74-year-olds state having 5G included in their subscription(s) to mobile telephony. However, if we remove those without the hardware to receive 5G, 23% remains. This means around a fourth of the population has a subscription to – and the hardware to receive – 5G in Q3 2021.
However, construction of the new network in Sweden has not proceeded as expected. Part of the delay is related to the worldwide shortage of semiconductors and issues with transportation.
According to own sources, Tre’s 5G network currently covers 7 cities and 16% of the Swedish population. Telia’s network is available in 25 cities, working towards the goal of being accessible to 90% of the population by the end of 2023. This goal is also set by Tele2, which stated that its 5G expansion will not proceed with full force until next year.
This means that the Swedish expansion is lagging its’ neighbouring Nordic countries, especially Denmark (where TDC Net has delivered the first nationwide 5G coverage) and Finland (where Elisa’s network reaches over 100 locations).
This analysis covers both the and TV- and streaming markets in Sweden. It rests on three pillars: the consumers, the market, and the actors. Analysing the consumers takes us far – but not all the way. Studying the actors and the market as a whole is just as important. Published quarterly.
Spotify exceeds expectations in Q3 earnings report
Last week, Spotify reported its Q3 earnings – and it was full of positive metrics for the company. Highlights included strong advertising-supported revenue growth, subscriber growth exceeding analysts’ predictions and growing podcasts engagement.
– Total monthly active users (MAU) grew 19% YOY to 381 million in Q3, from 365 million in Q2
– Premium subscribers grew 19% YOY to 172 million in Q3, up from 165 million in Q2
– Revenue of EUR 2.501 million after growth of +27% YOY in Q3
– Ad-supported revenue growth was particularly strong, +75% YOY to EUR 323 million
– Among MAUs that engaged with podcasts in Q3, consumption trends remained strong
(+20% YOY on a per user basis)
– At the end of Q3, Spotify had 3.2 million podcasts on the platform (up from 2.9 million at the end of Q2)
Schibsted’s revenue ‘back to normal’ post pandemic challenges
Schibsted’s Q3 report last week showed proof of the business getting ‘back to normal’ after a challenging period during the pandemic. Revenue growth in the business segment ‘Nordic Marketplaces’, including Blocket (SE), Finn (NO) and Tori (FI), was highlighted as one of the main drivers behind the 21% growth YOY in EBITDA margin. Further, Schibsted’s News Media reached a milestone with more than one million purely digital subscriptions.
– Operating revenues increased by 15% YOY, to a total of NOK 3.667 million in Q3 2021
– EBITDA increased by 13% YOY, to a total of NOK 769 million in Q3 2021
– EBITDA margin of 21% remained unchanged from 2020
Mediavision’s Insight: Nordic Media & Markets tracks the progress of individual and household payments per service and actor, as well as overall media expenditures. The primary focus is mapping out the allocation of expenditures across audio, video, text, and access. Published bianually.
The past week has been hectic in the world of social media, kicking off with Facebook’s parent company name change to Meta last Thursday. For those of you who have not yet gotten a full grasp of what this metaverse actually entails – we can recommend this read.
Apple reported financial results for its fiscal 2021 fourth quarter ended September 25th. Quarterly revenue reached a new record high of USD 83.4 billion, representing an increase of +29% YOY – however, this fell below Wall Street expectations and the Apple stock dropped 3% in extended trading.
In other Apple-related news, the company’s introduction of the App Tracking Transparency policy back in April is said to have caused a loss of nearly USD 10 billion for Snap, Facebook, Twitter, and YouTube – so far. The ATT policy forcing apps to ask permission before tracking users.
Meanwhile, Snapchat has announced a deal with NBCUniversal that enables users to use audio clips from its hit films and TV shows, including The Office, Parks and Recreation, Shrek and Saturday Night Live.
Netflix launches games in mobile app worldwide
Viaplay introduces new ‘Medium’ package in Sweden
In its Q1-Q3 2021 report, Danish TV 2 reported EBIT of DKK 422 m compared to DKK 367 m in 2020, mainly driven by revenue growth of 13%. Advertising revenue grew by 20%, subscription revenue by 6%.
Walter Presents launches in the Nordics via C More
Warner Bros. confirms ‘Dune: Part Two’
US MEDIA UNIVERSE
Regularly, Evan Shapiro and his team at ESHAP maps out the US media universe – which, as we all know, continuously changes and may be a bit challenging to keep track of. This is the latest edition, published last Sunday.
Mediavision in the News
Ilta-Sanoma, PlayPilot launch streaming guide in Finland – Rapid TV News
One of the most powerful competitive tools for video streaming services is content exclusivity. Sports rights are by far one of the most attractive content genres in this regard. However, audiobook streaming services rarely apply this tactic. Could exclusive content be a competitive tool also for the audio book actors going forward? – Boktugg
Mediavision: HBO Max to benefit in Nordic region from lower price, extra stream and fictional slant – Telecom Paper
Så många betalar för premiumsport – Journalisten
Over halvdelen af danske husstande betaler for at se sport – MediaWatch
Mediavision: Hushåll med sportabonnemang driver intäkterna – Dagens Media
TV-Dagen: 11 November, Stockholm, Sweden**
MIPCOM: 11-14 October, Cannes, France
Bergen International Film Festival: 20-29 October 2021, Bergen, Norway
SportsPro OTT Summit: 15-18 November 2021, London, UK
IBC: 3-6 December 2021, Amsterdam, Netherlands
CTAM Europe Executive Management Programme: 20-25 March 2023, Fontainebleau, France * Mediavision will attend ** Mediavision will present