Newsletter 9th of March
9 March 2022
This week, let’s focus on these headlines
- Mediavision: Netflix subscribers not sensitive to price increases
- Disney Plus set to launch AVOD-tier
- Responses to Ukraine invasion continues
Mediavision: Netflix subscribers not sensitive to price increases
This week, Netflix raised its prices in Denmark. The standard package now costs DKK 114 per month (previously DKK 99), and the Premium package rose to DKK 149 from DKK 129. This is the latest in a round of price hikes recently made by Netflix. In Sweden, prices increased in October last year – and in the US and Canada, price hikes were implemented in January 2022. Netflix management has cited content investments as the motive for these price increases, underlining the breadth of programming and value of the service.
This strategy differs from the current approach of Netflix’s prime competitors in the Nordics – primarily Disney Plus and HBO Max, which both have entered the Nordics at a lower price point than other services available – paired with heavy promotion deals.
Regardless, Mediavision analysis show that despite higher pricing, Netflix subscribers are to a high extent willing to stay on. Using Sweden as proxy, Mediavision’s latest analysis showed that Netflix subscribers are among the least price sensitive. Netflix obtains the second highest retention rates, should the price of the service hypothetically increase by SEK 30. Only Disney Plus scores higher – but it should be noted that Disney Plus still has a lower price point than its competitors in Sweden. A SEK 30 increase of its price would entail a price point for Disney Plus that matches those of its competitors.
This analysis covers both the and TV- and streaming markets in the Nordic countries. 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.
Amazon launches ‘live radio’ app Amp
Viaplay sets ‘The Meaning of Life’ as next original drama
Felix Herngren’s new movie to premiere exclusively on Cmore
‘The Batman’ scored USD 134 million domestic opening
Acast closes down own podcast application
Adele’s 30 tops IFPI’S global album all format chart for 2021
Disney Plus set to launch AVOD-tier
One year ago, during an earnings call, Disney CEO Bob Chapek was asked if Disney Plus would add adverts at some point. His reply was:
“We’re always revaluating how we go to market across the world, but we’ve got no such plans now to do that. We’re happy with the models that we’ve got. But again, we won’t limit ourselves and say no to anything, but right now we have no such plans for that.”
Seemingly, the go-to-market strategy has been revaluated this past year – as news broke this week that Disney Plus is set to introduce and ad-supported subscription offering. The offering is set to launch in the US late 2022, with plans to expand internationally in 2023. The ad-supported offering is viewed as a building block in the company’s strategy to achieve its long-term target of 230–260 million Disney Plus subscribers by the full year of 2024. Currently, Disney Plus holds 129.8 million subscribers globally.
With Disney Plus getting ads, Netflix and Apple TV+ will effectively become the only major streaming services without advertising. According to MediaRadar’s ad sales intelligence platform, Discovery’s Discovery+, AT&T’s HBO Max, The Walt Disney Co’s Hulu, Paramount’s Paramount+ and Comcast’s Peacock ad revenues amounted to USD 438 million in Q4 2021.
Responses to Ukraine invasion continues
As the Russian invasion of Ukraine continues, more and more media actors are responding. These are a few of the actions taken during the past week.
– Netflix is suspending its services in Russia following a statement made last week, that the service would not comply with a new Russian law that requires large streamers to host 20 Russian propaganda channels, such as NTV and the state-backed Channel One. Further, Netflix announced that it will pause all production and acquisition in Russia.
– Spotify has shut down its Moscow operations indefinitely. However, users in Russia will still be able to access Spotify. Spotify will also take RT and Sputnik News off its platform, both Kremlin-funded news outlets.
– Cannes Lions bans awards entries from Russia.
– TikTok limits its services in Russia – suspends live streaming and new content.
– Apple suspends advertising on company’s App Store in Russia.
Mediavision in the News
Netflix faces Nordic challenges – Broadband TV News
Swedish music subscriptions grew 7% in 2021 – High Resolution Audio
Så mycket dyrare har det blivit att strömma film och serier – SVT
Tufft år för svenska ljudboksbranschen – tillväxttakten halverades – Dagens Industri
Could TikTok spur growth of AVOD in the Nordics? – Senal News
Bråket visar varför Spotify behöver Rogan – SVD
Poddarna – makten och pengarna – SR
Därför kom Clubhouse-hysterin för ett år sedan – och därför dog den – SR
Hushållen tecknar fler abonnemang – rekordsiffror för S-SVOD under 2021 – Dagens Media
CTAM Europe Executive Management Programme: 20-25 March 2022, Fontainebleau, France
Copenhagen Future TV Conference 2022: 7 April 2022, Copenhagen**
MIPTV: 4-6 April 2022, Cannes, France
NEM Dubrovnik: 6-9 June 2022, Dubrovnik, Croatia
* Mediavision will attend
** Mediavision will present