Interest in AVOD services is high among Nordic customers, says the Mediavision conultancy.
There are currently an approximate 17 million subscriptions spread across seven million Nordic households. Research by Mediavision suggests that if these subscriptions were to be converted into cheaper ones, with interuptions for commercials, this would impact on a total of 4 million subs.
Mediavision’’s analysis shows that lower pricing could also generate additional, new subscriptions – both in existing SVOD households and among those that have not yet signed up for an SVOD subscription.
“Interest in subscriptions partly financed by advertising is especially high among households paying for several subscriptions. Expectedly, the analysis shows that pricing plays an important role in consumers’ willingness to sign up for a subscription, comments Marie Nilsson, CEO of Mediavision. “Increasing price sensitivity among consumers in times of economic uncertainty does not come as a surprise either. Hence, cheaper subscriptions partly financed by advertising appears to be a viable route for SVOD actors to induce further growth. Mediavision’s conclusion is that new hybrid offerings could have a successful future in the Nordics.”
So far take up of SVOD subscriptions in the Nordics is low and is predominantly restricted to established broadcasters TV 2 Play, Ruutu Plus and Discovery Plus.