Yesterday, all eyes were on Spotify when the Swedish music streaming service was listed on the New York Stock Exchange (NYSE). The global music industry recently saw a return to growth in 2015 following a loss of nearly 40 percent in revenues between 1999 and 2014, according to figures from IFPI. While physical copies of music have seen a steady decline in recent years, digital revenues have grown significantly. In 2016, 50 percent of the global music revenue was digital. This development is closely connected to Spotify’s growth in paying subscribers.
As mentioned by Mediavision in a recent press release (April 3), Swedish media consumers are highly digital and embracing streaming services. Mediavision analysis shows that +60 percent of Swedish households today subscribe to a music and/or video streaming service. And out of that, +40 percent subscribe to a music service.
Building up to the DPO (direct public offering) Spotify was valued at an all-time-high of about SEK200 billion. This is the biggest listing of a Swedish company since Telia back in 2000, has garnered a lot of attention on the international scene. According to figures from Nordnet, 14 percent of Swedes express an interest in purchasing Spotify stocks following the listing. Trading started at $165.9 per share; 26 percent higher than a reference price of $132 set by NYSE on Monday. The stock ended the day at $149, valuing Spotify at $26.5 billion, a valuation higher than both Twitter and Snap.
Another form of streamed audio on the rise are podcasts. In a recent report Swedish Acast estimates that 23 percent of the UK population and 29 percent of the US population listened to a podcast “during the last month”.
Also, podcasts are increasingly being marketed as an effective medium for advertising with actors like entertainment giant Marvel recently established on the podcast market. In the report by Acast, 76% of UK podcast listeners claim to have acted on a podcast advert, either by visiting a brand’s site or sharing information about a brand online.
After three episodes of the new Swedish TV4 primetime show (Saturdays at 20:00) “Stjärnonas stjärna” produced by Baluba (based on the Norwegian format Stjernekamp) it can once again be noted that the landscape for big TV definitely has changed. A strong headwind is blowing up against what used to be the big glossy floor shows. Rating has declined from 9% to 6% since the premiere, which equals a drop in viewers from 906.000 to 592.000 – probably far from the TV4 target. Traditional TV viewing time in general is also continuing its’ decline in Sweden, right now at an average of -6 percent YOY.
Swedish music streaming market in forefront
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.
Spotify’s NYSE listing
Spotify has been valued at SEK200 billion over the last weeks, the company’s highest valuation as of yet. When the NYSE closed yesterday, Spotify was valued at SEK222 billion, higher than both Twitter and Snap.
UK podcast listeners keen to follow up on ads
According to The Western Europe Pay TV Forecasts report released by Digital TV research pay TV subscriber numbers will increase by 3 million to reach 106 million in 2023. Pay TV revenues, however, are expected to fall by $2.11 billion in 2023.
Disney could take over Sky News
21st Century Fox has given the UK Competition and Markets authority two new proposals addressing their concerns regarding the planned takeover of Sky. One proposal is that The Walt Disney company could take over Sky News.
The European Union ends geo-blocking
On April 1st, European citizens will be able to access pay-TV subscriptions wherever they are, within Europe. The EU estimates that 5.7% (29 million) of European consumers could make use of cross-border portability.
Pay-TV providers’ OTT efforts are paying off
In a recent survey, 21% of US respondents said they subscribe to an online video service through their pay-TV provider, up 10% from last year. Parks Associates attributes the jump to an increasing number of partnerships between pay TV and OTT actors.
Swedish music streaming market in forefront
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 […].
We take a look at future gaming technologies
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*Events where Mediavision will be presenting