Research: 3m SVoD accounts shared in the Nordics
May 7, 2024
Password sharing is a topic that has received a lot of attention in the past year. Also in the Nordics, SVoD services have communicated their intentions to restrict password sharing, reports Mediavision. Simply put, their desire is to get paid for all users that consume content on their platform and, as the market matures, the services need to find new ways to boost growth. There is a significant potential in converting password sharers into payers.
Some services have already applied a tougher strategy, and almost all are planning to implement stricter rules before long. So far, the outcome is a -10 per cent decrease in shared subscriptions since spring 2023.
The potential is what attracts. A conversion of all shared subscriptions would mean a growth of 3 million new paid subscriptions in the Nordics. Theoretically, that would equal a revenue increase – seen across the Nordic region – of somewhere between €200–300 million.
But there are also reasons to question such a strong outcome. Many households would likely choose not to subscribe if they are forced to pay for a full subscription, or opt for another less expensive alternative with advertising.
“We can expect further efforts from the industry to fight password sharing,” said Fredrik Liljeqvist, senior analyst at Mediavision. “Stricter regulations will likely help drive growth of paid streaming, although the increase is unlikely to reach 3 million new full subscribers. The outcome is uncertain, as also lower priced packages with advertising will come into play. We can see that these mixed packages of both pay and advertising are starting to find a wider audience here in the Nordics. For many households, this can be a way to switch from borrowing to becoming a paying subscriber, but it can also mean that today’s full subscribers will opt for cheaper a cheaper package”.