Receive our latest updates!
Blogg | Mediavision | Affärsutveckling och strategi för medieindustrin

Sveriges bästa företagsbloggar 2017
2019-03-05

Who will win the Nordic streaming war?

Competition on the Nordic streaming market is ramping up with several new services about to launch. Content investments are escalating and only partly offset by price increases. In the US, Netflix recently announced +13-18% on subscription fees. For the Nordic players, the prime question will be how to relate to this astounding surge of both services and content. One way forward could be a tougher attitude towards sharing subscriptions, something that more than 1 in 3 households do. In any case, we should expect new pricing and packaging strategies as the market is reaching maturity.

Nordic consumers have a wide range of online video services to choose from, both global and local. And soon the palette will grow even greater. Disney is about to launch  Disney+ (anticipated to be the biggest threat to Netflix’ dominance) with original content from Marvel, Pixar and other brands, as well as content from the recently acquired 21st Century Fox (including X-Men and Avatar). WarnerMedia, the division of AT&T that includes HBO, Turner and Warner Bros, has also announced the launch of a three tier streaming service.

It has also been speculated how much and what content will be removed from Netflix, as the fight between the US giants ramp up. Interestingly, in its Q4 2018 report, Netflix said it is more concerned about competition from other types of activities (especially mentioning Fortnite – currently one of the world’s most played video games) than from Disney. Earlier, in 2017, Netflix CEO Hastings made a similar comment when he mentioned “sleep” as a competitor to binge viewing.

The conclusion, nonetheless, is that we are facing even larger content investments. Netflix, for example, is expected to spend the almost incredible sum of USD 15 bn on content 2019. Likely, Netflix’s recent price hike on the US market is a result of increased content investments. And now the American giant is testing price increases in Europe. So far, trials have been reported in Poland and Italy. In the Nordics, no such move has been observed – yet. The latest price raise was in 2017 (chart below).

The price increase in Sweden did not (seemingly) impact Netflix’ customer growth; the number of subscribers has grown steadily ever since. Mediavision’s tracking of price and packaging for Nordic SVOD services show that most actors continuously adjust their prices – either by simply increasing the price, or by changing both content and price. To illustrate, TV 2 Play in Denmark offered three different packages in 2016 – today only two (Basispakken and Hele pakken), but with four different price options.

Another way for streaming services to increase ARPU, would be to become less generous in allowing households to “share” subscriptions. In H2 2018, on average 40% of the Nordic subscribing households said that they shared their SVOD subscription outside the household. Mediavision estimates that for Netflix in the Nordics this means losing out on revenues close to 10 million EUR each month. The giant stays positive on sharing however, claiming it to be a “great marketing” channel. Maybe another reason to sit back is the obvious risk that such a move would backfire in an expansive and unwanted mobility, i e churn.

So, who will be the winner 2019 on this quickly maturing Nordic market? Not an easy question to answer – and even tougher to execute. A balancing act for the streaming companies; the right amount of investment on the right kind of content with the right price tag. And as Netflix is the clear market leader, its’ price strategy will greatly impact all other services – local as well as new global. On the consumer side, maybe the conclusion is easier: Stacking will grow, resulting in bigger bills – even if prices are stable. Interesting times ahead!

2019-02-27

The Swedish gambling market: part 3

Läs mer
2018-12-21

The Swedish gambling market: The upcoming re-regulation, part 2

Läs mer
2018-12-05

The Swedish gambling market: The upcoming re-regulation, part 1

Läs mer
2018-10-31

Premium sports market: Online migration and tough competition over subscribers

Läs mer
2018-08-13

Summer TV viewing and the FIFA WC

Läs mer
2018-07-06

Netflix’ pricing and packaging strategy – going Ultra

Läs mer
2018-06-29

The decades’ largest media merger – Implications?

Läs mer
2018-06-08

Enter the age of consolidation – highlighting mergers on the global media market

Läs mer
2018-05-17

Youtube Music to increase competition among music streaming services

Läs mer
2018-03-14

Melodifestivalen: Beloved “campfire” minimally affected by digital transformation

Läs mer
2018-02-22

E-sports continues to grow, but the market is still under construction

Läs mer
2018-02-08

Bigger is better, but content still king.

Läs mer
2018-02-01

E-sports breaks viewer records and enjoys broadened demographics

Läs mer
2018-01-26

Swedish OTT market in focus at Mediavisions breakfast seminar

Läs mer
2018-01-18

Influencer marketing going strong and might be in for an upswing

Läs mer
2018-01-11

Big changes in media infrastructure, content next?

Läs mer
2017-12-19

Eventful 2017 for Swedish gambling market as re-regulation draws closer

Läs mer
2017-12-14

Nordic TV market: Consumer transition as market competition abounds

Läs mer
2017-12-07

Man vs machine: Youtube, Facebook and the advertiser backlash

Läs mer
2017-11-30

AT&T’s purchase of Time Warner, Fox up for sale, and Nordic drama goes global

Läs mer
2017-11-24

New gambling regulation could possibly attract operators to move off-shore

Läs mer
2017-11-17

Mediavision’s e-sports analysis: Swedish gaming/e-sports viewers prefer DreamHack over LoL WC

Läs mer
2017-11-06

Facebook, Snapchat, Google, and Discovery make advances in video while Spotify refocuses their video strategy

Läs mer
2017-10-27

Regulatory strike against gambling advertising in Sweden while several gambling companies report strong Q3 results

Läs mer
2017-10-20

Com Hem, MTG and Netflix first out of the gates in third quarter earnings season

Läs mer
2017-10-13

VR popular area of investment despite slow consumer growth

Läs mer
2017-10-06

Localized globalization strategy increasingly apparent among global OTT actors

Läs mer
2017-09-29

Foreign based gambling firms’ growth in Sweden driven by casino, but sports betting still important

Läs mer
2017-09-22

Digital streaming giants win big at the Emmy Awards and draw closer to releasing Nordic originals

Läs mer
2017-09-14

Apple’s newfound focus on AR from a Nordic perspective

Läs mer
2017-09-08

Swedish game developers growing rapidly and US TV actors advance on Nordic TV market

Läs mer
2017-08-25

Traditional TV actors move into new areas as subscribers turn online

Läs mer
2017-08-14

The Nordic TV summer, Facebook launches video services, and Disney’s acquisition of BAMTech

Läs mer
2017-07-03

Facebook sänder Champions League, Google gör VR-annonser, och podcastmarknad med stark tillväxt

Läs mer
2017-06-16

E-sport & gaming: E3-mässan, sommarens stora evenemang, och fördjupat samarbete mellan ESL och Intel

Läs mer
2017-06-02

Sociala medier och rörlig bild, Twitter livesänder politisk debatt och Snap gör drönare

Läs mer
2017-05-22

Mediavision analyserar utvecklingen bland aktörer på amerikansk TV-marknad, Q1 2017.

Läs mer
2017-05-15

Händelserik start på svenskt spelår: Spelutredning och kasinospel i centrum

Läs mer
2017-05-05

5 maj: Discovery Networks, Twitter, MTG, HBO, och Magine

Läs mer
2017-04-28

Lokalt kontra globalt i fokus när Mediavision höll frukostseminarium

Läs mer
2017-04-21

Bonnier Broadcasting genomför besparingar, Sky och HBO samarbetar, och Facebook satsar på AR 

Läs mer
2017-03-29

Annonsörer fortsätter fly Youtube medan Discovery och Spotify satsar mer annonsdrivet.

Läs mer
2017-03-24

E-sports event breaks viewing record, Youtube and Facebook ramp up e-sports and gaming investments.

Läs mer
2017-03-17

Ny e-sport/gaminganalys, Facebook satsar på sport och Googles annonsintäkter växer

Läs mer
2017-03-16

Stark säsong för Melodifestivalen

Läs mer
2017-03-03

Gamla och nya medier möts och Snapchat börsnoteras

Läs mer
2017-02-23

Transparens bland växande webb-TV-tjänster och blockerad piratkopiering.

Läs mer