The move is part of a broader industry trend aiming to diversify revenue streams, with potential to reduce piracy and attract new, younger viewers.
Less than two months ago, Viaplay kicked off its HVOD (hybrid video on demand) offering in Denmark, after several streaming services such as SkyShowtime and Max launched cheaper ad-supported tiers in the Nordic region in spring. The platform later launched in Norway and Sweden.
In detail, Viaplay launched an HVOD offer named Films & Series, with advertising. The new package provides the same supply of films, series and children’s content as the non-ad Films & Series package, with children’s content remaining ad-free. In addition, the subscribers of the ad-supported tier are not able to download content, which the ad-free Films & Series package allows for.
Viaplay stated that the new tier holds fewer commercial minutes per hour than linear TV channels do. In the online version, content being shorter than 20 minutes will start with one block but will not include any commercial breaks. A film or a series of one hour will normally hold two to three advertising breaks. However, Viaplay added that the number of ads may vary.
In Denmark, Viaplay Films & Series with ads costs 99 DKK per month, which is 50 DKK less than the ad-free Film & Series package (149 DKK per month). In Norway and Sweden the Films & Series with ads package are priced at 109 NOK (50 NOK less than the ad-free plan) and 99 SEK (70 SEK cheaper than the ad-free plan), respectively.
NFTVF spoke to Adrian Grande, research analyst of the Swedish firm Mediavision, to take stock of the impact of this market move within the wider HVOD landscape in the region. “Presently, the HVOD landscape in the Nordics is evolving, as streaming services explore various business models to maximise revenue and cater to diverse consumer preferences. The introduction of HVOD, which combines subscription-based access with advertising, is particularly notable for offering a more affordable alternative to purely subscription-based services.”
“The HVOD model is more established in Denmark and Norway compared to Finland and Sweden. For instance, TV2 in both Denmark and Norway offers all their packages, including sports, as HVOD packages. In contrast, few providers in Finland and none in Sweden currently offer sports via HVOD,” he further explains.
To date, the region’s key players are Max, Discovery+, SkyShowtime, Disney+ (excluding Finland), TV4 Play (in Sweden), MTV Katsomo (in Finland), Ruutu+ (in Finland), TV 2 (in Denmark and Norway), and the aforementioned Viaplay (excluding Finland).
Commenting on the launch of Viaplay’s HVOD in Denmark, Sweden and Norway, and how it may impact the local HVOD market, Grande says: “The launch of Viaplay HVOD is part of a broader industry trend towards diversifying revenue streams. Viaplay’s introduction of HVOD in Denmark - now also in Norway and Sweden - addresses market saturation and economic pressures.”
“The Danish subscription streaming market, with approximately 65% household adoption and an average of nearly three subscriptions per household, is maturing. With rising content costs and increased competition, offering a cheaper, ad-supported option can attract more cost-conscious consumers and potentially reduce piracy by providing legal, affordable access to content.”
When asked about the demographics more keen to use the HVOD offering, Grande admits these tiers “generally appeal to younger demographics and households with tighter budgets”. Zooming in on the content where the HVOD model might work best, he adds: “Given the preferences of younger audiences, entertainment and reality shows are particularly popular. Additionally, sports content, despite its typically higher price points, has significant potential within HVOD offerings due to its appeal and effectiveness in reducing piracy.”
Finally, Grande seems confident HVOD may have a positive effect on reducing piracy across the Nordics. According to one of the latest Mediavision reports, published in May, piracy is soaring, and there are currently 5 million pirates (400,000 more than in 2023) in the region.
“HVOD has the potential to reduce piracy by offering an affordable and accessible alternative to illegal content sources. By providing a legitimate way to access popular content at a lower price point, HVOD can attract users who might otherwise turn to piracy,” he argues.