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Research: More Swedish homes choosing streaming with ads

May 7, 2024

Currently, 65 per cent of households in Sweden have a paid streaming video service. It’s a stable level, with no growth in the number of paying households, reports Mediaivision. One way to increase consumer interest is to offer cheaper subscriptions through hybrid video-on-demand (HVoD), which is partially financed through advertising

Since the turn of the year, 60,000 new households in Sweden have chosen to subscribe to HVoD. Today, a total of six per cent, or over 250,000 households, have at least one hybrid subscription. Last autumn, several services introduced such tiers, and today Disney+, TV4 Play+, Discovery+, and Skyshowtime offer partially ad-supported alternatives in Sweden. But more services are expected to follow. Both Viaplay and the new Max (formerly HBO Max) are set to release similar solutions this year. In the US, both Netflix and Prime Video offer cheaper ad-supported options, but nothing has been announced regarding their plans in Sweden yet.

Many actors hope that growth will pick up again thanks to these hybrid subscriptions. For the industry, this also means additional revenue through advertising. There is much evidence to suggest that this subscription model will grow, as it allows households to afford more, and cheaper, services. In many ways, this resembles how TV was financed in the past. Households are familiar with, and accept, advertising as a means of partially financing TV content.

“Hybrid subscriptions are growing, and we believe this trend will continue in the years to come,” commented Marie Nilsson, CEO of Mediavision. “A lower cost allows households to subscribe to more services. There are strong indications that advertising will also become a way to finance increasingly expensive content, such as sports. In many ways, this is a return to the conditions that existed before the streaming services were launched over ten years ago”.

Categories: Advertising, Articles, Consumer Behaviour, Markets, Research, VOD

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