The European Parliament is soon to vote on increased consumer protection, for example when purchasing digital content such as TVOD (transactional video on-demand) and SVOD. So, on that subject: How satisfied are the Nordic consumers with their online streaming services? And, how would the new EU proposition make a difference?
Mediavision is following consumer satisfaction in the Nordic households regarding subscriptions on TV and streaming. On an overall level, the consumers are more pleased with their streaming subscriptions than with traditional pay TV, but with significant differences between the actors. Another interesting finding, maybe not surprising, is that satisfaction correlates closely both to the Net Promotor Score (NPS) and to actual churn. There are also indications from several sources that internet speed and stability play an important role; high-speed fiber households being more satisfied than those with slower connections. Keeping the customers happy will become more and more important as the SVOD market matures and penetration levels push towards 60% in the Nordics.
NPS in the Nordics, SVOD average and Netflix, Fall 2018
Meanwhile, the market is getting increasingly crowded. The latest actor to officially reveal its entrance is Apple. Along with a credit card and a gaming service, the company announced its streaming service Apple TV+ on Monday.
If the EU proposition on increased consumer protection is voted through and implemented, customer retention and satisfaction will probably play an even more important role – faulty products and services would then cause a greater backlash. Adding to this the EU content quota regulation, 2019 looks to be a momentous year for the streaming industry.
Who will win the Nordic streaming war?
Competition on the Nordic streaming market is ramping up with several new services about to launch. Content investments are escalating and only partly offset by price increases. In the US, Netflix recently announced +13-18% on subscription fees.
Household media spend on the rise
Swedish households continuously spend more money on media services. During 2018 an average Swedish household spent 450 SEK per month on media subscriptions. The appetite for video services remain high, video spend has increased by […].
*Events where Mediavision will be presenting