Sweden: Sharp increase in ad-tier streaming subscriptions

Streaming subscriptions are multiplying in Sweden. Over the past 12 months, more than two million new subscriptions have been added to the market, representing just over 30% growth. In total, Swedish households now have over nine million streaming subscriptions. The cheaper, ad-supported subscriptions drive this growth, according to Mediavision’s Q1 analysis of the Swedish streaming market.

During the year's first quarter, the Swedish streaming market surpassed nine million paid subscriptions. Compared to the first quarter of 2024, this is an increase of over two million subscriptions, representing a growth of just over 30 percent. This is a new record in the number of paid subscriptions. Streaming services that are partially funded by advertising offer consumers a lower monthly cost. It is primarily this type of subscription, also known as HVOD (“hybrid-VOD”), that is experiencing strong growth. In recent years, an increasing number of services have started offering HVOD, and today, over 25 percent of households have acquired at least one such ad-supported subscription. Streaming services bundled via TV and broadband operators have also shown strong growth over the past 12 months.

"The new, cheaper, partially ad-funded subscriptions have contributed to significant growth in the Swedish streaming market over the past year," commented Fredrik Liljeqvist, Senior Analyst at Mediavision. "It is clear that these cheaper subscriptions have led many households to acquire more services, and that advertising will become an increasingly common part of the streaming market. Both global and local services are growing during the first quarter. One example is Netflix, which today has over 1.8 million paying households in Sweden, making it by far the largest service in the Swedish market. Local actors, such as TV4 Play, are also growing, with ad-supported subscriptions clearly driving the development. Consumers appreciate the option to choose cheaper, ad-supported subscriptions. This is positive for the industry, as it contributes to strong growth. Everything points to more advertising funding in streaming going forward. The media industry has always relied both on advertising and subscription revenues," concludes Fredrik Liljeqvist.