Report: Nordic SVoD should target 60+ audience
February 17, 2021
The potential for further SVoD growth in the Nordics is among TV viewers aged 60+, according to Mediavision’s analysis. After yet another year of strong growth in 2020, the question in the Nordics is: how to keep momentum in 2021, with fewer households left to convert? Players must broaden their perspective – likely towards the older households.
As Mediavision recently reported, the pandemic helped to push SVoD penetration considerably during 2020. The average Nordic household penetration is close to 60 per cent, or more than 6 million households that pay for at least one subscription.
The flip side of the coin: Fewer households remain to convert, and competition is heavy. The largest potential is among older households where transformation from broadcast to online started later and at a slower pace. On the other hand, viewing as a total is very high in age groups older than 60. During the pandemic, we have also seen how this group has had the largest (absolute) increase in traditional TV viewing as well as in online viewing (relative).
Compared to the overall population, households aged 60+ have so far been less likely to sign up for streaming services and they also hold fewer services (lower stacking factor). Mediavision’s belief is that SVoD actors – local as well as global – now need to seize the opportunity, tuning their offerings to this large consumer segment (that have both cash and hours to spend). To continue growing, there are two ways ahead: More households or more stacking (ideally, both).
Already last year, we saw Netflix targeting more traditional consumer behaviour by testing a scheduled feature called Direct. This was partly to meet the stronger fondness of linear TV among older audiences. The trial was done in France, with results yet to be revealed.