Online video streaming is becoming more and more popular in Sweden. TV & video services offering content over the internet are growing rapidly. More than one in three Swedes aged 15-74 years watch online video on a daily basis. Meanwhile, traditional TV viewing keeps diminishing. This shift is most prominent among young, with online video accounting for near half of total viewing. Both ad financed and paid services are growing and today 20 per cent of all Swedish households pay for at least one video streaming service.
In the first quarter of 2014, 825 000 households paid for a subscription based streaming service, where households can watch TV content, film, sports etc. online. The American streaming giant Netflix is the clear market leader with approximately 600 000 paying customers. Based on consumers’ purchase plans, Netflix are expected to continue to grow in 2014.
At the same time, it can be noted that traditional TV viewing is decreasing. 2013 saw a 3% reduction in daily viewing compared to 2012, thereby recording the lowest level measured since 2007, according to measurement company MMS. For the first four months of 2014 the drop has even increased: -5% in daily viewing time compared to the same period last year, despite a temporary positive viewing effect during the Sochi Winter Olympics.
– To some extent, reduced broadcast viewing is purely transitional, from traditional TV to online video. This is a gradual shift taking place across all ages, but the young have been the fastest to embrace the new services online. At the same time, we see that the competition over the consumers’ money and, especially, time is increasing also from other media categories and internet activities. Facing that competition is a big challenge for the TV industry as a whole, says Marie Nilsson, CEO Mediavision.
During 2014 the Swedish streaming market will continue to grow, in advertising as well as pay, and online video streaming’s share of the total TV market will keep increasing. In 2014, paid streaming in Sweden will, for the first time, exceed an annual turnover of one billion SEK.
Mediavision follows the development of the emerging streaming market on an ongoing basis.