During the first quarter of 2023, growth is again noted for paid streaming services, so-called SVOD. This comes after a clear slowdown during last year. The fact that more households now choose to buy streaming subscriptions is primarily explained by the fact that the subscriptions are bundled with pay TV. This is concluded by Mediavision in the latest analysis of the Swedish streaming market.
Household penetration for paid streaming services in Sweden increased by 9 percent in the first quarter, compared to the same period in 2022. This is a shift, after a period of relatively slow growth. Today, close to 70 percent of households in Sweden have at least one paid streaming service, either as a stand-alone subscription or bundled with another service (Buy through SVOD or B-SVOD, in short), usually pay TV. It is mainly these bundled offers that are now driving growth. This type of subscription increased by a whopping 15 percent in Q1 and is now found in every fourth household.
It is primarily households that previously did not have paid streaming services that are now attracted by this new type of packaging. TV operators, such as Telia and Tele2, have broadly launched streaming content alongside their traditional TV offerings. These bundles are perceived as good value which has likely had an impact on uptake. Subscriptions that are bundled with another service are usually less expensive than buying them separately.
– Bundled offers have developed rapidly, with an increasing number of offerings from more TV operators. We now see that these packages are also attracting brand new households, which previously did not have paid streaming services. There are many indications that this trend will continue, as it has driven both increased access and market turnover, says Marie Nilsson, CEO at Mediavision.
Household spend on media continues to rise in Sweden. In the third quarter, average monthly spend on media reached a new record level of SEK 855 on average. Despite a weaker economy, household media spend has increased by six percent compared to the same period last year. This is confirmed by Mediavision in its Q3 analysis of the Swedish media economy. Growth is primarily driven by an increase in individual purchases, especially cinema tickets. The number of households buying cinema tickets increased by nearly 40 percent compared to the same period last year.
Despite a weakening economy, household spend on media services is on the rise. In the third quarter, a new record level of SEK 855 per month was reached, which represents a growth of SEK 45 or six percent compared to the same period last year. The analysis covers all types of media purchases, such as subscriptions for newspapers and video services, as well as individual purchases, like cinema tickets. Mediavision can confirm that growth is primarily driven by increased spend on cinema, even though individual purchases of, for example, video games have also increased. During Q3, on average, 25 percent of households bought at least one cinema ticket per month, which is a significant increase compared to the same period in 2022. A strong contributing factor is the release of blockbusters Barbie and Oppenheimer, which both attracted a large audience. However, despite the increase, monthly reach for cinema remains significantly lower than before the pandemic.
– Just like during previous economic downturns, we see that paid media services are doing well, comments Marie Nilsson, CEO of Mediavision. When other major expenses are put on hold, media is something many prioritize. This is proof of the strong role that media plays in the lives of Swedes, especially in uncertain times.
Mediavision is a Nordic independent analysis and consultancy firm, focused on analysis and strategy within traditional and digital media. 3,000 respondents between the ages 15 to 74 are surveyed each month in Sweden. The data from the survey consists of self-assessed values from a nationally representative sample.
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