Nordics a Growing SVOD Market, Despite Saturation

After the U.S. and Canada, Scandinavian countries account for the most-developed when it comes to consumer adoption of over-the-top video services. That said, new data from eMarketer suggests the region remains primed for growth.

In Norway, Denmark, Sweden and Finland, household penetration of streaming video services tops 78%, compared with 66% across Western Europe. That said, Finland will see the largest market increase in 2021, at 7.4% year-over-year, while Sweden and Norway will approach 6% growth, and Denmark, 5% growth.

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“We expect the Nordic subscription OTT market to become even more competitive,” Brian Lau, associate forecasting analyst, said in a statement. “Established players like Netflix and Amazon are ramping up their investment in local content. Meanwhile, newer services from the U.S. and the rest of Europe, such as Disney+, HBO Max and Sky Showtime, have recently entered the picture or are preparing to do so.”

Indeed, Netflix in April announced it would open a production hub in Sweden, while Amazon jumpstarted Prime Video service in the region with the introduction of local original content. Meanwhile, Nordic Entertainment Group has reported strong paid subscriber growth for its Viaplay streaming platform.

“As competition for viewers heats up, we expect steady growth in subscription OTT service users over the coming years,” Lau wrote. “In 2022, across all the Nordic countries we track, more than three in five Internet users will watch content on those services each month. By the end of our forecast period in 2025, this will be the case for more than two-thirds of the region’s Internet users.”

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