Today, close to 70% of the Swedish households have at least one SVOD service, according to Mediavision’s latest report, which also notes that a subscribing household on average pay for 2.5 services. Over the past year, the number of subscriptions per household has grown by eight percent, in line with the average annual growth since 2019.
The main driver of market growth in recent years is the existing households that acquire more subscriptions, the report says. Over the next 12 months, however, consumer acquisition plans suggest a break in the upward trend, indicating an unchanged number of subscriptions per household.
According to Mediavision, despite the more negative attitude of the consumers, there are ways to achieve continued growth. Restrictions in account sharing is one method for actors to gain more customers. Another is to offer hybrid packages. For example, less expensive offerings with advertising (as several streaming actors now are launching).
“The streaming market is maturing, which of course means a slowed down growth. For the SVOD services, it will now be about how to navigate in this new landscape. There are several ways to address this, such as offering cheaper or hybrid subscriptions including ads. Several services have launched HVOD this fall and many customers will appreciate this alternative,” commented Marie Nilsson, CEO of Mediavision.
“The services become cheaper, or in some cases, free. Paired with a stricter policy on password sharing, the intention is to push revenues further. In the long run, costs and revenues must be balanced, which has not been the case for several streaming actors in recent years,” Nilsson added.