Web TV drives the growth during 2017, and now represents close to 25 percent of the commercial TV market’s turnover, excluding public service. An increasing consumer interest in streaming services is expected to drive the TV market also during 2018, according to Mediavision’s forecast.
The Swedish TV market is strong. Combined revenue for broadcast TV and web TV reached close to 24 billion SEK 2017. This means that 2017 was yet another year of strong growth, with online services being the driving force. In total, web TV now represents 23 percent of the commercial TV market, public service excluded. Furthermore, web TV revenue soared, increasing 20 percent compared to 2016.
The TV market is continuously transforming. Consumers are at an increasing rate choosing streaming services and web TV viewership will continue to rise during 2018 according to Mediavision’s forecast. However, since broadcast TV viewership keeps dropping, the overall TV consumption in Sweden remains stable during 2018. Despite 2018 being an eventful year with several large events such as the Olympics and the FIFA World Cup, broadcast TV consumption is expected to drop an additional six percent compared to 2017.
With consumption becoming increasingly digital, web TV revenues are rising – both ad and subscription revenues. The growth in viewership and turnover can largely be attributed to subscription based streaming services (SVOD) such as Netflix, Viaplay and C More. Mediavision predicts SVOD revenue to surpass three billion SEK during 2018.
“During 2017 revenue has shifted toward streaming services, which naturally reflects a change in consumption habits. At the same time, traditional TV revenues remain strong despite the absolute majority of growth in consumption happening on the digital side. What’s driving the growth at the moment is an increase in subscribers, as well as ad based streaming services rising quickly. Mediavision believes in a continued strong growth over the coming years due to streaming services improving and consumption continuously rising,” said Marie Nilsson, CEO of Mediavision.