- Viaplay added one million subscribers in the last quarter
- UK launch has been bolstered by Premier Sports purchase
Nordic media giant Viaplay says it is not concerned by recent negative trends in the streaming market, believing it has a sustainable business model and plenty of room for growth because it is competing against traditional broadcasters rather than other direct-to-consumer (DTC) services.
While Netflix and Disney+ have lost subscribers due to the rising cost-of-living, Viaplay is expanding into new markets and acquiring more sports properties. During the past three months, it added more than one million subscribers across Europe.
Viaplay chief executive Anders Jensen told the Financial Times that its focus on regional sports rights and Nordic drama meant it was not competing with global streaming platforms and was therefore more immune to certain pressures.
The logic is that while a household might consider Netflix and other streaming services to be substitute goods, Viaplay’s offering would be different enough to survive any cost-saving exercises.
“We couldn’t compete with Netflix on their half of their pitch,” he told the newspaper. “So sports is the bridge, the thing that makes us stand out in a unique way. For us, it’s a mix [between drama and sport]. It’s the one way that a regional player can compete against the globals. We’re not there to replace them.”
Viaplay has acquired Premier League soccer rights in several territories and plans to launch a UK service later this year, strengthened by the UK£30 million (US$36 million) acquisition of Premier Sports and its portfolio of sports contract.
As a mature pay-TV market, the UK has been a challenging environment for newcomers. However, Jensen believes the arrival of streaming services will weaken Sky Sports and BT Sport’s effective stranglehold on premium rights and provide a platform for Viaplay to expand its share.
SportsPro says…
Viaplay has always believed in the power of live sport to drive its business. The company’s recent expansion beyond its home market has so far successfully deployed a blend of Nordic original content with premium rights properties.
The UK has seen challenger pay-TV services come and go, with only BT Sport being able to break Sky’s dominance of the market in any significant way. The acquisition of Premier Sports linear channels will help Viaplay in this regard, as lack of traditional broadcast distribution was what curtailed Eleven’s bid to break the UK market.
Ultimately what will be the deciding factor in Viaplay going beyond establishing itself as a niche proposition will be whether it bids for Premier League rights. Viaplay’s chief sports officer Peter Nørrelund knows this well, having told SportsPro last year exactly how he goes about building a winning sports portfolio.
