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The Nordic region comprising Denmark, Finland, Norway and Sweden leads the SVoD market in Europe. According to Dataxis research, the Nordic region represents almost 20 per cent of all SVoD subscriptions in Europe at Q4 2016. In the same quarter, the number of SVoD subscriptions in Nordic region is approximately equivalent to the number of subscriptions in Germany and Italy. This is partly explained by the fact that households of this region often subscribe to more than one SVoD offer and that the churn rate is low.
The average revenue per user (ARPU) for each SVoD offer in Nordic is higher than in the rest of Europe. Dataxis estimates that the ARPU per offer in Nordic was around $10.6 in Q4 16 and this is explained by the fact that SVoD offers in Nordic cost relatively higher than in the rest of Europe. For example, the standard offer of Netflix costs 89 DKK (€12) in Denmark versus €9.99 in France. Consequently, there is a higher SVoD spending per person in Nordic than in the rest of Europe. According to Dataxis, the total customer spending on SVOD in Nordic reached almost €800 million in 2016.
There are four main SVoD players in the Nordics: Viaplay, HBO Nordic, C More and Netflix, with the later accounting for almost half of the market:
An interesting move in term of monetisation is the launch of SF Kids Play (an SVoD offer for kids) in Nordic in February 2016. SF Kids Play is the first SVoD offer of the giant TVoD player in Nordic, SF Anytime (Bonnier AB Group). The launch of Amazon Prime Video in December 2016 in more than 200 countries including all the Nordic countries is going to intensify the competition and could change the top 4 in 2017.