Global players take grip on Swedish online video arena
| 01 November 2014
In Sweden, the rise of online video has more than compensated for a declining traditional TV industry but new reports suggests that local operators are being squeezed out of this rich new vein of business.
NetflixOrangeAccording to figures from Mediavision, online video consumption in the country has been driven not only by new services but also the almost ceaselessly growing number of smart, connected devices such as smartphones and tablets. Online video viewing was found to be increasing across all age groups, especially among young people. Meanwhile, linear TV viewing was down 4% year-to-date.
Perhaps not surprisingly, among streaming online video services YouTube grabbed the biggest consumer reach by far, with 1.3 million daily Swedish viewers in the third quarter and also a quarter of all online video viewing as a proportion of total consumed online video minutes. To put this in perspective, the Google subsidiary claimed as much as what the local TV companies SVT, TV4, MTG and SBS Discovery achieve online all together. The analyst also noted that it was of interest that among the local TV companies, it was public service broadcaster SVT that was the most successful player online, with a 13% share of the online viewing. By comparison SVT claims more than 30% of all traditional TV viewing in Sweden.
“Swedish players are in addition battling for viewers with other International players, such as Netflix and HBO Nordic. Even though the Swedish players are increasing their online viewing, they have lost viewers in total during the last year. Competition is simply much tougher now,” said Mediavision CEO Marie Nilsson.