According to Mediavision’s latest Content Analysis, there is a growing demand for locally produced content among Nordic streaming viewers. In fact, consumer demand for local content is significantly higher than the supply available in the Nordics. With the past year’s economic downturn taking its toll on many local media companies, this gap is at risk to increase as local content productions are cut.
Nordic online video viewers’ demand for local content grew in the fall of 2023 compared to the same period 2022. Local fiction and entertainment now account for 25 percent of all online viewing on curated on demand content. This excludes live sports, news, and social media content. However, the available streaming supply of local content is significantly lower than the demand. The share of local fiction and entertainment available on streaming services on the Nordic market is 6 percent.
As many actors have experienced a turbulent 2023, especially several locals, the number of new locally produced titles are at risk of being cut, consequently leaving viewers with even less new local content to enjoy. The economic circumstances will most likely mainly affect fictional content, as production costs for such titles are generally higher than for entertainment. Meanwhile, several global actors have communicated increased investment in Nordic content. However, the locals still account for the lion’s share of the local content supply.
– As the financial pressures persist, the production of local titles is at risk of declining in 2024, despite growing consumer demand. Much depends on how global actors are going to invest in Nordic productions going forward, comments Hanna Ranby, analyst at Mediavision. In the wake of the economic strain, we have also seen several new production collaborations here in the Nordics, which alleviates the cost for individual actors, while catering to the substantial appetite for local content among the Nordic viewers.
The consumption of video on social media is growing. Platforms like Instagram, TikTok, and Facebook together reach 2.5 million Swedes every day with their video content. Among the younger audience, TikTok stands out, with over 30 percent of all 15-24-year-olds watching video content daily. This is highlighted in Mediavision’s latest analysis of video on social media.
The use of video on social media has significantly increased in Sweden. Unlike traditional media, the content is dominated by short clips presented in endless feeds. Platforms like Facebook, Instagram, and YouTube offer similar formats, but TikTok has emerged as a leading actor in the market. Just over 30 percent of all Swedes aged 15-74 watch video on social media on an average day, and over a week, this figure rises to 50 percent.
TikTok, which launched in Sweden in 2017, has played a crucial role in the development of social video and is now one of the largest platforms among young people.
According to Mediavision, TikTok now reaches over 1 million daily viewers in Sweden, with a large portion of these being young people. Among individuals aged 15-24, over 30 percent use the platform on an average day.
— “Social media, and particularly TikTok, has a very strong influence among younger audiences,” says Marie Nilsson, CEO of Mediavision. “The increase in recent years is significant. Social video is taking up a growing share of both viewing interest and advertising revenue,” Nilsson adds.
TikTok, like other social video actors, is financed through advertising. As viewers increasingly spend their time on social video, advertisers’ interest also grows. According to estimates, advertising revenue for social video in Sweden already exceeds 3 billion SEK. This is as much as all other video streaming advertising, such as on YouTube and Swedish ad-supported streaming services.
— “There is now a significant difference in viewing habits between younger and older people,” adds Nilsson. “Social video is further proof of how major changes in consumption also affect how media companies generate revenue,” Nilsson concludes.