Revenue from traditional pay-TV services fell for the first time in 2015.
In its annual report on the Swedish TV market, Mediavision says it’s a consequence in the recent shift of TV viewing from linear to online.
The overall Swedish TV market had a turnover of SEK 21.5 billion in 2015, representing growth of just 2.4% when compared to 2014.
“The trend has clearly changed and standard pay-TV providers are losing their ability to compete with new, internet-based services. Previously, they have kept their foothold through clever bundling and pricing. What we see now, is the inevitable consequence of the digital shift on revenues, says Marie Nilsson, CEO of Mediavision. “Traditional pay -V providers will continue to play an important role in the market, but as in many other media sectors, effects of digitization are becoming clearer and clearer.
TV subscriptions from traditional pay TV operators, such as Boxer, Telia, Com Hem etc, generated SEK 9 billion in revenues in 2015. This is a decline of SEK 11 million compared to 2014 and is a turning point, as traditional pay-TV has previously shown constant growth.
Revenues from new forms of pay-TV services, such as Netflix, HBO Nordic and Viaplay, are growing. According to Mediavision figures, online pay TV generated SEK 1.6 billion in revenues last year and thereby growing with more than 400 million compared to 2014.