Published April 21st, 2017
According to the recent data from Dataxis research, the Nordic region comprising Denmark, Norway, Sweden and Finland leads the SVOD market in Europe. According to the report, Nordic region represented 20 percent of all SVOD subscriptions in Europe in Q4 2016 and in the same quarter number of SVOD subscriptions in Nordic region were equivalent to the number of subscriptions in Germany and Italy. The average revenue per user (ARPU) for each SVOD offer in Nordic is higher than in the rest of Europe. Nike Air Max 2014 Dame Dataxis estimates that the ARPU per offer in Nordic was around $10.6 in Q4 16 and this is explained by the fact that SVOD offers in Nordic cost relatively higher than in the rest of Europe. Nike Air Max 90 Honeycomb Heren For example, the standard offer of Netflix costs 89 DKK ($12.7) in Denmark versus 9.99 EUR ($10.7) in France. Consequently, there is a higher SVOD spending per person in Nordic than in the rest of Europe. Nike Air Max Heren According to Dataxis, the total customer spending on SVOD in Nordic reached almost 800M EUR ($848.2M) in 2016. There are four main SVOD actors in the Nordics: Viaplay, HBO Nordic, C More and Netflix, with the later accounting for almost half of the market. Nike Darwin Goedkoop • Netflix: Launched in Q4 2012 in Nordic. With its early launch, Netflix has immediately dominated the Nordic SVOD market offering local and international content in the language of each country. • Viaplay: Launched in 2011, it’s the historical actor in Nordic. It expanded in Estonia, Latvia and Lithuania in July 2016. Air Max 2015 Heren Goedkoop • HBO Nordic: Launched just after Netflix in Q3 2012. HBO offers SVOD only in Nordic but faced some constraints at the beginning to get subscribers because the offer was not aligned on Viaplay and Netflix: no free trial and 12 months’ mandatory commitment. • C More: C More, a pay TV actor, launched Filmnet in October 2012 in Sweden and in 2013 in Denmark, Finland and Norway. In 2015, Filmnet moved to C More website.An interesting move in term of monetization is the launch of SF Kids Play (an SVOD offer for kids) in Nordic in February 2016. SF Kids Play is the first SVOD offer of the giant TVOD actor in Nordic, SF Anytime (Bonnier AB Group). The launch of Amazon Prime Video in December 2016 in more than 200 countries including all the Nordic countries is going to intensify the competition and could change the top 4 in 2017.
Jul 01, 2015
Jan 18, 2018
Jan 22, 2019
There will be more than 777 million global SVOD subscriptions by 2023, more than double from 2017 according to Ooyala’s new State of the Broadcast Industry 2019 report, which also found that the momentum only stands to increase.
The report – which draws on Ooyala’s own data and analysis as well as research conducted by other organizations – also underscores that viewers of all ages are increasingly adopting streaming services as their primary source of TV content. While Boomers and the Silent Generation (those born before World War II) remain the lifeblood of traditional broadcasters, they too are increasingly adopting over-the-top (OTT) and video on demand (VOD) platforms.
2018 was a year of significant change in the broadcast industry. There was a surge in M&A activity, an increase in the amount of time consumers spent with SVOD and AVOD content and a significant decline in pay-TV subscribers in North America as viewers changed how they watch TV… OTT jumped into the mainstream. There’s even more change in the cards for 2019.
Among US adults 50-64, OTT viewing increased 45% between 2016 and 2017; among US adults 65+, viewing was up 36%.
The report also postulated that mobile platforms will be a significant factor in OTT consumption in the future, given that estimates say video could make up as much as 90% of all 5G traffic.
“For OTT, that means faster and smoother delivery of video, no buffering, higher resolution, and a better, more engaging experience for users; for AVOD companies specifically, it will foster the collection of better, deeper data that could be used to better personalize advertising,” said the report.
The lesson for traditional broadcasters, the report noted, is to adopt the mindset of a diversified media company – as more programmers and distributors are joining, rather than fighting, the push into OTT.
“Subscription and ad-supported OTT services are steadily replacing traditional content delivery, and there’s no end to the opportunity to create connections with a global audience,” said Ooyala principal analyst Jim O'Neill. “OTT is not traditional TV. It thrives upon consumer choice, often random interaction, and the convenience of viewing when, where and on what device a consumer chooses. It thrives upon its own ability to iterate in order to respond to the changing conditions of the new TV environment.”
Meanwhile, as mobile viewing soars, it turns out that screen size still matters to the majority of consumers. A full 40% of US consumers who replaced a TV between October 2016 and October 2018 said they wanted to purchase a bigger screen, per The NPD Group. And consumers are going all-in on 4K UHD, driven largely by SVOD services, like Netflix, and the promise of 4K and UHD content from major sporting events, like the Winter Olympics and the FIFA World Cup.
“Content owners have seen a massive increase in the demand for their products,” continued O'Neill. “That will continue as OTT services push out across the globe and original content maintains — and grows — its value. It’s becoming increasingly important for media companies – both big and small – to closely monitor and control the content supply chain.”
New OTT Services Aren’t Saturating the Market, they ARE the Market
Is the influx of new OTT services creating saturation in the market? Not by a long shot. While there’s likely a limit as to how many SVOD services users really are ready to pay for, that upper limit hasn’t yet been reached. And, as we see more channels become available a la carte, that limit may continue to rise, especially as younger consumers — who see streaming as the norm — grow older.