Major international brands are continuing to make their presence felt in the Nordic OTT market.
Stockholm-based consultancy Mediavision says that on an average day about one-third of the Nordic population is watching streaming video, with international Giants including YouTube, Facebook and Netflix the most like.y beneficiaries.
In its 5th annual study, Mediavision says SVOD is generating a far greater total market value than either AVOD or TVOD.
While Nordic media companies were quick to market their position has been slowly eroded by the international players. YouTube has seen its position strengthened and Netflix is a worthy runner up.
Netflix is number one as SVOD provider in every Nordic country and benefits greatly from an early entrance on the market.
“The new and emerging digital TV market puts some pressure on the incumbents. Global US media companies are very strong here, both in SVOD and advertising. The consumer demand for local content is evident, but each Nordic country is quite limited in size. This makes content relatively more expensive, with local actors producing for much smaller audiences. It is another business case for national content actors compared to the global players who profit from an economy of scale business,” says Marie Nilsson, CEO of Mediavision (pictured).
“Right now we see many different types of strategies, where local actors test various ways towards a sustainable OTT business. What we have already seen for sure, is that the consumer is the ultimate judge.”
Combined YouTube and Netflix account for the largest overall share of OTT viewing in the region. Apart from these two, local public service broadcasters hold a strong position in the Nordics and are among the top 3 OTT players in all countries.
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