Swedish SVOD growth dominated by subscription stacking in record revenue year

Swedish standalone SVOD revenues hit a new record in 2021, but the market appears to be hitting a saturation point in terms of SVOD household numbers.

A new report from Mediavision shows that SVOD services performed very well in 2021, hitting a record of SEK5 billion. However, this primarily stems from households signing up to additional services, rather than new households entering the market.

The report notes that the Swedish SVOD market has grown at a CAGR of 10% since 2017, but growth has slowed down over the past two years. In 2021, approximately 6 out of 10 Swedish households subscribed to at least one SVOD service.

Growth in the Swedish market is dominated by subscription staking, with the average household subscribing to 2.1 standalone services today. 

Added competition has also led to a price war, with new services entering the market at lower prices. This has led to an average expense per subscription of SEK118 per month, down 3% year-over-year.

Natalia Borelius, senior analyst at Mediavision, said: “The standalone SVOD market continues to show healthy growth, even during 2021 that was characterised by maturity. The primary driver of growth is stacking, i.e. additional subscriptions rather than new households – existing households are simply paying more for their supply of services. 

“Nevertheless, the price war (ignited by e.g., Disney and HBO) has pushed down average expense per subscription – despite several other, big services imposing price hikes. Going into 2022, we expect an eventful year as price and packaging strategies increase in importance on a maturing Swedish market,” she said.