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Newsletter April 11: Web viewing Q1, Spotify on NYSE and the Swedish gambling market | Mediavision | Affärsutveckling och strategi för medieindustrin

Newsletter April 11: Web viewing Q1, Spotify on NYSE and the Swedish gambling market

Q1 web TV viewership
Mediavision concluded last week (press release April 3) that Swedes love streaming services and are avid streamers. This week, Mediavision takes a look at the major “free” Swedish web TV services (i e AVOD and public service) SVT Play, Viafree, Dplay and TV4 Play. According to MMS, all of these saw an aggregated growth in viewing during Q1 compared to the same period of last year.

Analyzing the major free services in Q1, SVT achieves both the largest number of started streams and largest viewing in terms of hours. However, Discovery is showing the biggest increase over the corresponding period last year, highly driven by the Olympics. Its’ increase in streams was 95% and in hours spent +77%. SVT saw an increase in started streams by +63% and +46% in hours spent. TV4 increased it’s started streams by 31% and hours spent by 21% while Viafree decreased its number of started streams by -18% and hours spent being on the same level. Viafree’s decline can partly be explained by the move of popular docu/entertainment “Paradise Hotel” (on the service Q1 2017). The 2018 season of Paradise Hotel is set to air this fall.

Q1 18 (Jan 1 – Mar 31) compared to Q1 17 (Jan 1 – Mar 31)

Spotify’s first week on the stock market

Spotify’s listing on the New York Stock Exchange (NYSE) last week was a hit. On the first day of trading the stock started trading at $33 above the reference price ($132). During its first week, the share initially declined before stabilizing just below the $150 mark. Now, into its’ second week, the price has started climbing again, closing Tuesday the price per share was $154.9, the highest closing price since trading started last week.

NYSE: SPOT USD (Apr 3 – Apr 10)

Re-regulation of the Swedish gambling market

On April 5, the Swedish government presented the bill “A re-regulated gambling market”. The bill proposes a new gambling act to regulate all actors on the Swedish gambling market. Including the purely digital off-shore operators (eg Unibet, Bet365 and Betsson) who currently operate outside of Swedish legislation and tax jurisdiction.

Mediavision found (press release September 9 2017) that 3 in 5 newly registered gambling accounts in Sweden were with off-shore regulated operators. Given that an increasing share of the Swedish gambling market is operating outside of Swedish legislation, a new gambling act has become increasingly important to implement. The bill, if it passes, is planned to result in a new gambling act in January 2019.

One important factor addressed in the gambling bill is advertising. In short, the bill proposes equal terms for all advertisers and publishers, which could alter the current ad market quite profoundly. To illustrate, the Swedish TV ad market could undergo substantial changes as the new gambling act would allow all regulated actors to advertise on equal terms. Currently, the offshore-regulated operators can only advertise in channels that broadcast from outside the Swedish border. Potentially, this could be a challenge for actors such as MTG and Discovery (regulated in the UK) – today the main media channels for the non-Swedish gambling operators. According to Mediavision analysis, approx. 15-20% of MTG’s and Discovery’s ad inventory consisted of off-shore gambling ads during Q1 2018.

Mediavision press releases:

Today’s DPO of Swedish Spotify has gathered much attention in both Sweden and internationally. The broad impact in Sweden is partly explained by Swedes’ great interest in digital media services. Mediavision finds that over 60 percent of Swedish households subscribe to at least one service for music or TV streaming.

Industry news

Swedish gambling market re-regulation
The Swedish government proposes a new gambling act that aims to regulate all actors on the Swedish gambling market. Including the purely digital off-shore regulated actors such as Betsson, Bet365 & Unibet.

Radio tops the list of media investments
During march the total media investments in Sweden increased by 2.2 percent YOY. Topping the list with a yearly growth of 53.8 percent is radio. According to Sveriges Mediebyråer media agencies have spent SEK3.6 billion on advertising during Q1 2018.

Endemol Shine partners with Youku
Endemol Shine Group has announced a partnership between Chinese VOD giant Youku and Endemol Shine China. The two parties will co-produce two big budget original series for the Chinese market during 2018.

Apps in The App Store decreased during 2017
The number of apps in The App Store decreased for the first time ever in 2017. The number of apps decreased from 2.2 million to 2.1 million during 2017. The decline can be partly explained by Apples decision to remove apps that are incompatible with newer iPhones.

Global pay-TV to gain 95 million subscribers
Digital TV research estimates that pay-TV subscribers will increase by an additional 95 million between 2017 and 2023. According to forecasts for 138 countries, the grand total of pay-TV subscribers passed 1 billion during 2017.

Mediavision in the news

Swedes love streaming services
The DPO of Swedish Spotify has gathered much attention in both Sweden and internationally. The broad impact in Sweden is partly explained by Swedes’ great interest in digital media services. Mediavision finds that over 60 percent of Swedish […].

Sweden embraces music streaming services
Mediavision research finds that over 60 per cent of Swedish households subscribe to at least one service for music or TV streaming. And among the streaming households, almost half subscribe to a music service, a high figure also internationally.

Swedish interest in Spotify shares reflects uptake of subscriptions
Swedish consultancy Mediavision said 14 percent of Swedes are interested in investing in the newly listed Spotify share, according to Swedish online stockbroker Nordnet.

Zweden tonen interesse in aandeel Spotify
Het Zweedse consultancybedrijf Mediavision meldt dat 14 procent van de Zweden zou willen investeren in streaming muziekdienst Spotify, dat onlangs naar de beurs toog. Volgens de onderzoekers ligt de interesse hoog omdat Zweedse consumenten […].

Industry events

*Events where Mediavision will be presenting