After a period of slower growth, the Swedish streaming market is now experiencing a significant upswing. In the recently concluded third quarter, there were 600,000 new streaming subscriptions compared to the same period last year. The primary driver of this growth is the introduction of more affordable, ad-supported subscription options. This trend is highlighted in Mediavision’s latest analysis of the Swedish streaming market.
Nearly 600,000 paid streaming subscriptions have been added in the past year, driven by Swedish households’ interest in more affordable, ad-supported options. These lower-cost subscriptions have seen rapid growth as more services introduce ad-based models.
“The new, affordable subscriptions have gained substantial traction in Sweden this fall,” says Marie Nilsson, CEO of Mediavision. “It’s clear that many households find ad-supported, lower-priced options appealing.”
As subscriptions become more affordable, households are increasingly subscribing to multiple services. Today, the average Swedish streaming household holds nearly three subscriptions—an all-time high and a significant increase from the same period last year.
“While ad-supported subscriptions are on the rise, ad-free services still dominate the market,” Nilsson adds. “Currently, 90 percent of all subscriptions are ad-free or what is often referred to as premium. This includes all Netflix subscriptions in Sweden.”
The analysis also reveals that most households adopting ad-supported plans already subscribe to at least one full-price service. Many are supplementing their existing subscriptions with these cheaper, ad-supported options.
“Platforms like Viaplay, Max, Disney, and TV4 Play have recently introduced ad-supported tiers,” Nilsson notes. “We can see that this type of service is popular among consumers and is currently fueling strong growth. With lower prices, households feel they can afford more services. For the market as a whole, this is a positive sign after a relatively slow period over the past year.”
Streaming subscriptions are growing rapidly in Sweden. Over the past 12 months, more than two million new subscriptions have been added to the market, representing growth of just over 30 percent. In total, Swedish households now have over nine million streaming subscriptions. It is particularly the cheaper, ad-supported subscriptions that drive this growth, according to Mediavision’s Q1 analysis of the Swedish streaming market.
During the first quarter of the year, the Swedish streaming market surpassed nine million paid subscriptions. Compared to the first quarter of 2024, this is an increase of over two million subscriptions, representing a growth of just over 30 percent. This is a new record in the number of paid subscriptions.
Streaming services that are partially funded by advertising offer consumers a lower monthly cost. It is primarily this type of subscription, also known as HVOD (“hybrid-VOD”), that is experiencing strong growth. In recent years, an increasing number of services have started offering HVOD, and today, over 25 percent of households have acquired at least one such ad-supported subscription. Streaming services bundled via TV and broadband operators have also shown strong growth over the past 12 months.
– The new, cheaper, partially ad-funded subscriptions have contributed to significant growth in the Swedish streaming market over the past year, comments Fredrik Liljeqvist, Senior Analyst at Mediavision. It is clear that these cheaper subscriptions have led many households to acquire more services, and that advertising will become an increasingly common part of the streaming market.
Both global and local services are growing during the first quarter. One example is Netflix, which today has over 1.8 million paying households in Sweden, making it by far the largest service in the Swedish market. Local actors, such as TV4 Play, are also growing, with ad-supported subscriptions clearly driving the development.
– Consumers appreciate the option to choose cheaper, ad-supported subscriptions. This is positive for the industry, as it contributes to strong growth. Everything points to more advertising funding in streaming going forward. The media industry has always relied both on advertising and subscription revenues, concludes Fredrik Liljeqvist.