Nordic SVOD subscribers ready for ad-supported offerings

Over half of Nordic SVOD subscribers would be willing to convert to cheaper options with advertising if the choice is available, according to Nordic research outfit Mediavision.

Of the approximately 17 million SVOD subscriptions on the Nordic market, distributed over slightly more than seven million households, Mediavision found that a little more four million of those subscriptions would be converted into cheaper subscriptions with advertisements.

Mediavision’s recently published analysis of the Nordic TV and streaming market showed that lower pricing could generate additional, new subscriptions – both in existing SVOD households and among those that have not yet signed up for an SVOD subscription. In total, this would expand the market, according to Mediavision.

Currently, a relatively small number of households pay for a subscription service partly financed by advertising in the Nordics, with the service being mainly offered by legacy businesses such as Danish and Norwegian TV 2 Play, Finnish Ruutu Plus and Discovery Plus.

“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,” said 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.”