May 21, 2020
The Nordic video markets have always led global trends when it comes to over-the-top video, transactional VOD and packaged media. It’s no different during a pandemic.
Sweden, Denmark, Norway and Finland enjoy high penetration of superfast broadband, wide adoption of the English language, a strong market for entertainment and a high level of disposable income.
New data from Futuresource Consulting finds that while consumers in the region subscribe to multiple SVOD services, they are also driving a return to growth for the transactional video market.
“To see transactional video shifting course and moving into a growth phase is something of a rarity,” market analyst Tristan Veale said in a statement. “These countries are expected to be amongst the first markets to experience the reversal, a direct result of changing consumer behaviour in the face of COVID-19.”
London-based Futuresource expects transactional VOD consumption or renting across DVD, Blu-ray Disc and digital to grow 4% in 2020, the second consecutive year of growth. The biggest player in the digital transactional space remains Apple iTunes, though key growth service Viaplay is successfully upselling transactional video to its existing subscriber base and is a close second
Despite the rise in transactional video, the Nordics market remains dominated by SVOD, which accounted for 80% of all home video spend in 2019, with Netflix, Viaplay and HBO Nordic leading.
“The Nordic love affair with SVOD continues to blossom,” Veale said. “In 2019, for every dollar spent on transactional video, four dollars were spent on SVOD.”
Futuresource expects established services Netflix, HBO Nordic and Viaplay to be pushed by Apple TV +, which launched in Q3 2019, and the upcoming Disney+ debut.
On Netflix alone, consumers across Sweden, Norway, Denmark and Finland spent over half a billion dollars in 2019 and Netflix remains the leading SVOD provider, but it is slowly approaching saturation, as over half of all households across these four Nordics have a subscription.
“We expect SVOD subscriptions and spend to be pushed to a whole new level,” Veale said.