OTT viewing in the Nordics continues to thrive with close to 7 million daily viewers.
But new research from Mediavision suggests the increasing use of ad blocking services risks cutting off revenues for content suppliers, as users browse the web without exposure to ads.
According to Mediavision over 40% of daily OTT viewers use a service to block ads. The heaviest usage of ad blockers is among the most frequent OTT viewers, ie young men. While usage is increasing rapidly, content providers apply different strategies to counter this trend. Some allow ad block users to consume content without restrictions, whilst others try to limit the users’ experience in one way or another.
“Ad blocking services pose a serious threat to any OTT actor that rely on ad financing, says Marie Nilsson, CEO of Mediavision. The message from the consumer is clear; either pay to avoid ads or block them. The question is how the industry will respond to this threat and whether it will have an effect on consumption in the long run.”
Across the Nordic region the share of viewing given to ad funded VOD services is descreasing in favour of subscription services such as Netflix, HBO Nordic and Viaplay.
