Newsletter 6th of September
6 September 2023
These are the main topics this week:
- Mediavision: SEK 900 million in lost streaming revenue due to sharing
- TV4 pauses long-running primetime shows Let’s Dance and Talang
- Meta may offer paid ad-free versions of Facebook and Instagram in the EU
Mediavision: SEK 900 million in lost streaming revenue due to sharing
Sharing SVOD subscriptions is a widespread phenomenon. At the turn of the year, approximately 1.4 million SVOD accounts were used by people outside of the paying household. This has become a growing concern for streaming actors as it hampers growth. Several companies are now reviewing the possibilities of limiting sharing. Theoretically, those that share today could contribute to continued growth, if they were transformed to paying customers. If they would pay the same average price av everyone else, Mediavision estimates the value of today’s forgone revenues to approx SEK 900 million (excl. VAT) per year.
In Sweden, close to 1.4 million SVOD subscriptions were shared outside the paying household at the turn of the year. Almost half of everyone with a SVOD subscription shares at least one subscription with someone outside the household. If sharing was stopped, the SVOD market could potentially grow up to 16 percent compared to today. The number of subscriptions would then increase from today’s 7.3 million to 8.7 million. Based on average household spend on stand-alone streaming subscriptions, the lost revenue is estimated to a value of close to SEK 900 million per year (excluding VAT).
Read up on the full press release here with commentary from Mediavision’s CEO Marie Nilsson.
This analysis covers both the 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.
TV4 pauses long-running primetime shows Let’s Dance and Talang
TV4 has decided to put a temporary halt to the long-running primetime shows Let’s Dance and Talang (Swedish equivalent to Britain’s Got Talent). Let’s Dance has run for a total of 18 years, and Talang for 12 years, of which 11 has been on TV4. Talang has previously had a break between the years 2012 and 2016. The broadcaster has cited declining viewership and an overall content renewal as the main reasons for putting the show on hold, but emphasizes that it is indeed a pause, not a cancellation.
“Despite the fact that Let’s Dance is still a program with more than one million viewers every week, the viewership has been falling steadily in recent years. We want to break that trend and then we need a break to review how we could renew ourselves and come back again in 2025 with new energy,” says Fredrik Arefalk, content and channel director at TV4.
The decision to pause the two primetime shows comes shortly after the merger of C More into the new enhanced online platform TV4 Play, as well as the company’s implementation of a savings package. Arefalk also stated that TV4 will not buy as many international films and series in the future.
One show that most likely will replace Let’s Dance or Talang in a primetime slot is Bäst i test (the Swedish version of Taskmaster). This spring, it was announced that TV4 had acquired the rights to the popular show, which SVT previously had for seven years.
This analysis provides in-depth understanding of the entire audio market – including audiobooks, music, podcasts, and radio. The analysis focuses on the digital transformation of both listening and consumer payments, on both aggregated and actor specific levels.
Meta may offer paid ad-free versions of Facebook and Instagram in the EU
Meta is reportedly considering introducing paid versions of Facebook and Instagram for users in the EU. These versions would be a response to the privacy regulations and other scrutiny from the EU, by providing an alternative to their now ad-based services that rely on the users’ data.
Earlier this year, the EU laws prompted the Irish Data Protection Commission to fine Meta a total of EUR 390 million for forcing users to accept personalized ads as a condition of using Facebook. This is stated as one of the reasons for the potential launch of paid versions of the social media platforms. The regulatory concerns are also reported as the reason that Meta has not yet launched its X (previously Twitter)-competitor Threads in the EU.
Meta has not commented the matter, so the details regarding the eventual price and launch date remain unknown. Meta is expected to continue to offer its free ad-based versions of Instagram and Facebook within the EU.
During the second quarter of 2023 in Sweden, both Facebook and Instagram grew significantly also in online viewing. Both platforms are now in the top five for daily online video reach and each service reach over 10 percent of the 15-74-year-olds in Sweden every day. This is presented in Mediavision’s Q2 analysis of the Swedish TV & streaming market.
Mediavision in the News
Svenskarnas kontodelning kostar jättarna nära 1 miljard kronor – Dagens Industri
Sweden: SVoDs losing €75m per year to account sharing – Advanced Television
Svensk login-deling koster streamingudbydere over en halv milliard årligt – Mediawatch
Delning innebär förlorade streamingintäkter på nära 1 miljard – Dagens Media
Trendbrott: Fler svenskar piratkopierar film och tv – Dagens Nyheter
Streamingbranschen har fått växtvärk – Sveriges Radio
Poll: Illegal streaming on the rise in Nordic countries – Yle
MIPCOM: 16-19 October 2023, Cannes, France
Stockholm Film Festival: 8-19 November 2023, Stockholm, Sweden
MIPTV: 15-17 April 2024, Cannes, France
* Mediavision will attend
** Mediavision will present