Newsletter 17th of March: Password Sharing – A Costly Business
NEWSLETTER
17 March 2021
Until very recently, password sharing has not really been an issue – at least not publicly. However, this seems to have changed last week as Netflix raised the subject on password sharing for its’ SVOD service. This coincides with a maturing market and fewer households left to sign up. And, of course, with fierce competition over stacking households. Mediavision has looked at how widespread this phenomenon is in the Nordics, as well as its consequences.
Last week, Netflix initiated a test to combat password sharing. Users reported seeing a screen saying, “If you don’t live with the owner of this account, you need your own account to keep watching”. In the trial, users had to verify the account by a specific code (sent to the subscriber via text or email). To no surprise, with a maturing market and flattening growth, most actors will analyse stricter password sharing policies as a potential revenue source.
So, how severe is this issue in the Nordics? Mediavision figures tell quite a grim story from the actors’ perspective. Looking at all SVOD services, across all Nordic countries, up to 40% admit to sharing a password to a standalone SVOD service with someone outside the household. Shared passwords are especially common among the young, as high as up to 60% among 15-24. Sharing also clearly increases with stacking – the higher stacking, the more sharing.
Zooming in specifically on Netflix, the service seems to be representative of the general password sharing in the Nordics – with approximately 40% of subscribing households sharing passwords outside the household.
Just to further enlighten the magnitude: If all Nordic households sharing an SVOD service instead were to pay, approximately an additional EUR 250 million would (theoretically) have been added to total revenues for the full year 2020. On the other hand, it could well be argued that sharing has been one of the reasons for the very quick transformation of the market by (unintentionally) enabling additional potential subscribers ease of access, and thereby increasing awareness. So far this seems to have served actors very well. But times they are a changing?
Industry News
HBO Max Ad-Supported Tier to Launch
The ad-supported tier of HBO Max is set to launch in June 2021 – with USD 80 million in ad-bookings lined up. Further, the company has raised its subscriber target to 120-150 million HBO Max and HBO subscribers by the end of 2025. HBO currently has 41,5 mn subs.
“Druk” Nominated for Oscar Awards
The Danish movie “Druk” has been nominated for two Oscars; “Best International Film” and “Best Director” for Thomas Vinterberg. This is the first time since 2017 that a Danish movie has been nominated for Best International Film.
Netflix Scored 35 Oscar Nominations
On Monday, the Oscar nominations were finally presented after many delays. Netflix production “Mank” scored the most Oscar nominations – 10 – and as such contributed greatly to Netflix’s total of 35 nominations.
Facebook & News Corp Sign Deal
In Australia, Facebook and News Corp have entered a partnership allowing content from News Corp to be featured on Facebook News. This follows new legislation requiring tech companies to pay for news content. It is the first time Facebook enters such an agreement.
Schibsted News Media Invests in Podcasts
In 2021, Schibsted News Media in Norway will launch a subscription-based podcast offering. Several of NRK’s top talents within podcasts have been recruited for the new venture – including Norway’s most popular podcast “Friminutt med Herman og Mikkel”.
Mediavision in the News
Report: Nordic fiction highly valued by SVoDs
Nordic fiction has a strong reputation on global streaming services. Titles like Home for Christmas and The Rain on Netflix, and Björnstad and Beforeigners on HBO Nordic have been well received by both critics and audiences alike, reports Mediavision.
Vi har Netflix, HBO og Disney+: Alligevel ser danskerne hvert år 19 millioner film ulovligt
Ulovlig streaming og download kan give hackere adgang til alt fra dine kreditkortoplysninger til private billeder.
Disney Plus passerar målsnöret tre år i förväg – har 100 miljoner kunder
Streamingtjänsten Disney Plus har nu passerat över 100 miljoner betalande prenumerationer världen över. Vid lanseringen i slutet av 2019 var målet att nå mellan 60-90 miljoner abonnenter till 2024.
Amazon Prime satsar i Sverige
Close to 70% of Swedish Watch Online Video on a Daily Basis
2020 turned out to be a year of new records for the streaming services in Sweden. More people than ever are paying for video streaming services, while viewing reaches new top levels.
Nordic region SVoD penetration lingers at 33% among viewers over 60 in autumn 2020
Swedish consultancy Mediavision said there is still room for the SVoD market in Scandinavia to expand, as only 33 percent of the over-60 age group was paying for a video service in autumn 2020.
Disney höjer priset – jagar Netflix
Från 0 till 95 miljoner kunder på drygt ett år. Nu ska Disney plus på allvar jaga Netflix i Sverige. Samtidigt lurar nya konkurrenter i bakgrunden.
Fler överger tryckta medier än digitala
Benägenheten att säga upp sitt abonnemang var högre för tryckta medier än för digitala under det fjärde kvartalet i fjol, enligt analysföretaget Mediavisions medieanalys för perioden. Det är tvärt emot hur det brukar se ut.
Tidningarna möter en helt annan konkurrens
Färska siffror från Mediavision visar att den potentiella churnen för digitalt är betydligt mindre än för print. Marie Nilsson, vd på Mediavision konstaterar att de digitala prenumerationerna ökar och är på tillväxt.
Netflix meets its match in Nordic minnow Nent
Propelled by the pandemic, the number of subscribers to internet video services in western Europe last year overtook pay-TV customers for the first time. Yet European media companies are not celebrating this milestone.
Streaming records for Sweden
According to Mediavision, the covid-19 pandemic has had “substantial effects” on the state of the streaming market in the Nordic country and that it has “accelerated the digital transformation.”
Swedish streaming market records 2020 record
Viewing to Swedish streaming services scaled new heights in 2020, according to the Stockholm-based Mediavision consultancy.
Swedish VoD penetration reaches 70% in Q4, up 10 percentage points year on year
Use of streaming services in Sweden increased substantially in 2020, despite a slowdown in growth in the first quarter, according to consultancy Mediavision.
Netflix nådde en ny milstolpe med 200 miljoner abonnenter
Kombinera hitserier som The Queen’s Gambit och Tiger King med ett år av självisolering, så får du ett vinnande koncept. Netflix publicerade i veckan sina siffror för det fjärde kvartalet och kunde rapportera att de nått en ny milstolpe. I Finland är fortfarande Arenan och Youtube de populäraste strömningstjänsterna.
Spotifys stora skifte: ”Behövde en ny story”
Spotify har hittills lagt över 8 miljarder kronor på att bli världsledande på poddar i bolagets största strategibyte sedan starten. Varför vill den svenska tech-jätten få dig att lyssna på annat än musik?