Analyst: Nordic media driven by subscriptions

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Mediavision’s analysis of the Nordic media market shows that subscriptions now account for the majority of each household’s spend on both media and access (i.e. mobile and broadband).

An average Nordic household spends €150 per month on media and access. The split between media and access is slightly in favour of mobile and broadband compared to media services.

Mediavision states that the Nordic media industry is highly subscription driven. In all categories, this is the dominating business model and accounts for most of households’ monthly media spend.

Within audio, 75 pr cent of spend is earmarked for subscriptions, predominantly driven by music streaming services.

The largest share of spend (77 per cent) allocated to subscriptions is found within video. Video subscriptions (both for pay-TV and SVoD) have since long constituted a large share of household spend and have remained strong during this pandemic period. Comparably, and understandably, cinema (a share of the single purchases within video) has suffered significantly.

Single purchases account for 46 per cent of the total spend within the text category, mainly accredited to tabloids, magazines and printed books. However, Mediavision predicts that this share will decrease going forward, as consumers increasingly move towards subscriptions also for text.

In conclusion, Mediavision’s outlook for 2021 is that the importance of consumer revenues will increase even further, as the media industry aims to mitigate the weakened advertising market. By that, the subscription model will continue to gain ground.


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