Newsletter June 11: Ad-based streaming services on the rise in the Nordics, meanwhile Netflix and Amazon secure exclusive rights 

11 June 2018

This week we are taking a closer look at ad-funded streaming services in the Nordic region as the market is steadily growing. Meanwhile, Amazon takes a historic step as the first digital actor to secure Premier League rights in the UK, attaining a total of 60 exclusive matches. Also, Netflix makes a foray into entertainment by acquiring exclusive UK rights to “America’s Got Talent”.

Video consumption on ad-based streaming services (below AVOD) is growing in Sweden. This is concluded in Mediavision’s Swedish TV Market 2018/19 analysis, now published for the 18th consecutive year. Sweden isn’t the only Nordic country where AVOD is on the rise. As streaming menus are expanding, AVOD is growing fast across the entire Nordic region. Sweden however, is showing a significantly larger consumer interest for the ad-based services; of course, a consequence of the large supply of ad-based content, also by the commercial, incumbent, TV companies. In IRM:s recently published forecast for AVOD in 2018, the market is predicted a 28% increase year-on-year, adding up to a total AVOD volume of just above 2 bn SEK 2018. Mediavision expects this growth to continue in 2019 as well, presented in this year’s Swedish TV Market 2018/19.

Online Video: Daily viewing time and ad investments 2018 vs 2017 YOY (%) development *
As viewing moves from traditional broadcast to streaming at an increasing speed, AVOD has strengthened its’ position. Furthermore, there are clear signs that locally (Swedish) based actors such as Viafree and TV4 Play are strengthened vis-à-vis the global giants. Mediavision recently highlighted a similar development for subscription based streaming services (see newsletter from May 16).

Looking at streaming services as a whole, including both SVOD and AVOD, Mediavision’s analysis Nordic Video Insight reveals that the TV screen has risen to the top of the list as the preferred screen of choice. Moreover, a recent survey conducted by Boxer and Kantar SIFO states that binge-watching (watching several episodes back to back), is still on the rise in Sweden. As SVOD content, skewed primarily to scripted series and movies, cater to binge-watching, it would be a fair assessment that SVOD viewers are driving the increasing popularity of the TV screen for watching streaming services.

Mediavision blogs:

Enter the age of consolidation – highlighting mergers on the global media market
In this blog post, Mediavision describes the eventful times of consolidation on the global media market, by disentangling the conundrum that is Fox and Sky’s future ownership. In December 2016, 21st Century Fox made a bid on Europe’s largest pay TV […].

Mediavision press releases:

Nordic SVOD market at all-time high
The Nordic SVOD (subscription video-on-demand) market is growing rapidly and 45% of the Nordic households now have at least one SVOD service. According to purchase plans, the SVOD market is still far from saturated. Within a year, half of all Nordic households is expected to have at least one paid streaming service.

Industry news:

Netflix lands America’s Got Talent rights
Netflix has landed the exclusive rights to “America’s Got Talent” in the UK. Netflix will stream new episodes every Thursday after they are aired on NBC in the US. FremantleMedia International struck the deal with Netflix.

Amazon acquires Premier League rights
Amazon has secured the rights to 60 of the remaining 120 Premier League Matches, with BT Sport taking the other half. This means that the Premier League rights is split between three separate actors for the first time.

Nordisk Film acquires Avalanche Studios
Egmont-owned Nordisk Film acquires Swedish Avalanche Studios for SEK912 million. This marks the sixth and biggest investment by a good margin in the gaming sector by Nordisk Film over the course of two years.

Nordic Entertainment Group launches
MTG splits in two, dividing its TV business and e-sports/gaming-focused endeavors in two separate companies. Now, the TV-focused company Nordic Entertainment Group launches. The company is set for an IPO later this year.

PGA Tour and Discovery strikes $2bn deal
PGA Tour and Discovery Inc has signed a $2bn, 12-year deal, to stream and broadcast the PGA Tour outside of the US. For British broadcaster Sky the deal spells trouble, as Discovery is a direct rival and golf is one of its core sports.

Alibaba’s Youku to stream FIFA World Cup
Alibaba-owned streaming service Youku has partnered with China Central Television to stream the FIFA World Cup 2018 in Russia. The deal covers live streaming of 64 matches. Out of China’s big streaming services, Youku is the only one to stream the competition.

Mediavision in the news:

Här är de 45 talarna på Nordic Media Insights
Den 12-13 juni arrangerar Resumé och Bonnier Business Media den andra upplagan av Nordic Media Insights på Münchenbryggeriet i Stockholm. Under tvådagarskonferensen delar 45 talare från nästan lika många företag med sig av sina idéer […].

Konsertjätten ger sig in i e-sport: “Strategisk satsning”
För oss är det här en strategiskt viktig satsning”, säger Henrik Berndtson, partner på Blixten & Co. Bakom Overlord står tidigare Counter-Strike proffsspelaren Oskar ”INS” Holm och […].

Industry events

*Events where Mediavision will be presenting