Password sharing for paid video streaming has become a growing concern for the media industry as the market matures. In the Nordics, as elsewhere, several actions have been taken to counteract this development. However, the habit is widespread, and despite efforts more than three million SVOD subscriptions in the Nordics are shared, with only a marginal decrease of around 250 000 subscriptions over the last year.

Password sharing is a topic that has received a lot of attention in the past year. Also in the Nordics, SVOD services have communicated their intentions to restrict password sharing. Simply put, their wish is to get paid for all users that consume content on their platform. And as the market matures, the services need to find new ways to boost growth. There is a significant potential in converting password sharers into payers.

Some services have already applied a tougher strategy, and almost all are planning to implement stricter rules before long. So far, the outcome is a -10 percent decrease in shared subscriptions since spring 2023.

The potential is what attracts. A conversion of all shared subscriptions would mean a growth of 3 million new paid subscriptions in the Nordics. Theoretically, that would equal a revenue increase – seen across the Nordic region – of somewhere between EUR 200–300 million.

But there are also reasons to question such a strong outcome. Many households would likely choose not to subscribe if they are forced to pay for a full subscription, or opt for another less expensive alternative with advertising.

– We can expect further efforts from the industry to fight password sharing, says Fredrik Liljeqvist, senior analyst at Mediavision. Stricter regulations will likely help drive growth of paid streaming, although the increase is unlikely to reach 3 million new full subscribers. The outcome is uncertain, as also lower priced packages with advertising will come into play. We can see that these mixed packages of both pay and advertising are starting to find a wider audience here in the Nordics. For many households, this can be a way to switch from borrowing to becoming a paying subscriber, but it can also mean that today’s full subscribers will opt for cheaper a cheaper package.

Video viewing via social media has increased significantly in recent years. Mediavision’s latest analysis clearly shows that young people in Sweden are devoting more of their time to this video format. Generation Z, or 15–24-year-olds, spend on average almost an hour daily watching video on social media.

15–24-year-olds in Sweden spend average 55 minutes per day watching videos on social media. This accounts for nearly half of all online video consumption for this group, often referred to as “Generation Z.” This finding is presented by Mediavision in its third-quarter analysis of the Swedish TV & streaming market. Social video is available on platforms such as Facebook, Instagram, and TikTok. These services primarily offer short video clips in endless feeds, where content is customized for the user through algorithms. TikTok is the platform with the highest viewing time among these services.

“Growth in social video has not gone unnoticed. It has become increasingly common and is now a natural part of media consumption, especially in younger audiences,” comments Fredrik Liljeqvist of Mediavision.

Watching videos on social media is particularly common among younger people. However, even in slightly older groups, such as those aged 25–44, consumption is widespread. Viewing time in this age group is approximately 30 minutes per day, spread across various platforms.

“Since video consumption has grown so much, and across such large groups, it will impact all media companies moving forward,” Liljeqvist continues.

The changing viewing habits mean that platforms like Facebook, Instagram, and TikTok are competing with traditional TV and streaming providers. At the same time, there are strong indications that discussions about youth’s safety on social media will further intensify in the coming years. For example, Australia recently voted for a law setting a minimum age of 16 for social media use.

“Discussions about regulating young people’s use of social media have increased over the past year, even here in Sweden. This could, of course, impact both media consumption and industry players. Regardless of the outcome, we can already state that social video holds a central place in many Swedes’ media consumption,” concludes Liljeqvist.