Digital driving growing Swedish TV market
The substantial effects of digitalisation are being felt greatly in a Swedish TV industry undergoing a major transformation according a report from Mediavision.
The analyst observed that viewing is shifting from traditional broadcast to online and that revenues from online services are taking substantial shares of the overall market.
Mediavision calculated that in total, the Swedish TV market had a turnover of SEK 21.5 billion in 2015, representing growth of just 2.4% compared with the previous year. An increasing proportion of the TV market revenues came from digital services.
For the full year 2015 Mediavision estimates that 15% of the total turnover (excluding public service), was generated by online TV, equivalent to SEK 2.5 billion. The increase in digital revenues came from advertising as well as consumer spend. Mediavision expects the effects of digitalisation to intensify in 2016, predicting online video to account for approximately a fifth of total TV revenues, as both reach and viewing time continue to rise. In addition, Swedish consumers were showing increasing interest in streaming subscriptions. International providers such as YouTube and Netflix were gaining market shares at the expense of domestic actors.
“The number of streaming subscriptions in Sweden is growing steadily, both through new customer acquisitions as well as an increase in total number of subscriptions per household,” said Marie Nilsson, CEO of Mediavision. “At the same time, online video advertising is facing several challenges such as ad blocking and a lack of standardised measurement, which has a restraining effect on the otherwise growing market. Nordic media companies experience an exciting era where their ability to build digital competencies and adapt their offerings will be crucial.”
Editor | 28 May 2016
The substantial effects of digitalisation are being felt greatly in a Swedish TV industry undergoing a major transformation according a report from Mediavision.
The analyst observed that viewing is shifting from traditional broadcast to online and that revenues from online services are taking substantial shares of the overall market.
Mediavision calculated that in total, the Swedish TV market had a turnover of SEK 21.5 billion in 2015, representing growth of just 2.4% compared with the previous year. An increasing proportion of the TV market revenues came from digital services.
For the full year 2015 Mediavision estimates that 15% of the total turnover (excluding public service), was generated by online TV, equivalent to SEK 2.5 billion. The increase in digital revenues came from advertising as well as consumer spend. Mediavision expects the effects of digitalisation to intensify in 2016, predicting online video to account for approximately a fifth of total TV revenues, as both reach and viewing time continue to rise. In addition, Swedish consumers were showing increasing interest in streaming subscriptions. International providers such as YouTube and Netflix were gaining market shares at the expense of domestic actors.
“The number of streaming subscriptions in Sweden is growing steadily, both through new customer acquisitions as well as an increase in total number of subscriptions per household,” said Marie Nilsson, CEO of Mediavision. “At the same time, online video advertising is facing several challenges such as ad blocking and a lack of standardised measurement, which has a restraining effect on the otherwise growing market. Nordic media companies experience an exciting era where their ability to build digital competencies and adapt their offerings will be crucial.”