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Viaplay Group Shows Revenue Growth Amidst Subscriber Losses
Table of Contents
- 1. Viaplay Group Shows Revenue Growth Amidst Subscriber Losses
- 2. Price Increase Impact
- 3. Viaplay’s Response
- 4. The Future of Viaplay
- 5. What strategies is Viaplay Group implementing too win back subscribers and continue growing?
- 6. Interview with Kenneth Andersen: Viaplay Group’s Strategies amidst Subscriber Fluctuations
- 7. Kenneth Andersen, seize the day, Kenneth. the Viaplay Group has weathered a storm of subscriber losses but still managed to boost its revenue.
The Viaplay Group,a leading television and streaming company,released its quarterly report on Thursday,revealing positive financial results despite a decrease in the number of subscribers. The adjusted operating profit increased to NOK 174 million, a meaningful improvement from the negative NOK 230 million reported in the same quarter last year.
For the full year, the company achieved a pre-tax profit of NOK 208 million, a remarkable turnaround from a loss of NOK 10.5 billion in the previous year.
Despite the overall positive financial performance, the report acknowledged a decline in the subscriber base. The number of subscribers fell from 484,300 in the fourth quarter of 2022 to 475,700 in the same period last year, representing a 1.8% decrease. Though, the average revenue per subscriber saw an increase, reaching SEK 2.6 million compared to SEK 1.96 million in the previous quarter.
Price Increase Impact
The company attributed the subscriber decline partially to the price increases implemented throughout the previous year. While the average revenue per subscriber rose, some viewers may have opted to cancel their subscriptions due to the higher cost.
the controversy surrounding Viaplay’s pricing model was further highlighted by comments from social media influencers and industry professionals.
TikTok personalities behind the Buzz Studio content group expressed concerns about the affordability of the service, stating that “quite a few people earn ‘so small’ that NOK 749 is a significant sum a month, and if you get more than just the Premier League you can expect over 1200 kroner.”
Kjetil Røyset Jørgensen, general manager of a pharmacy in Grimstad, revealed that the high cost of broadcasting football matches made it unprofitable for his business to continue showing them.
Viaplay’s Response
Facing criticism over the price hikes, Viaplay’s Norwegian Manager Kenneth Andersen defended the company’s strategy. He stated they believe their pricing model is competitive and reflected the value proposition of their extensive sports coverage, including access to various popular leagues and tournaments.
“We no that most sports-interested viewers want access to a wider sports portfolio.With our total package, they get access to many of the most sought after sports rights in the world,” Andersen asserted.
The Future of Viaplay
While the subscriber decline presents a challenge, Viaplay’s focus on expanding its sports rights and providing a comprehensive streaming experience might attract new subscribers and retain existing ones. Continuing to analyze consumer behavior and adapting to changing market dynamics will be crucial for Viaplay’s future success.
What strategies is Viaplay Group implementing too win back subscribers and continue growing?
Interview with Kenneth Andersen: Viaplay Group’s Strategies amidst Subscriber Fluctuations
Kenneth Andersen, seize the day, Kenneth. the Viaplay Group has weathered a storm of subscriber losses but still managed to boost its revenue.
Archyde: Could you walk us through how Viaplay Group achieved this financial turnaround despite losing subscribers?
Kenneth Andersen: Thank you for having me. The increase in adjusted operating profit and pre-tax profit was primarily driven by our strategy to invest in high-quality content and sports rights. While we’ve seen a decline in subscriber numbers due to price increases,our average revenue per subscriber has notably increased.
Archyde: You mentioned price increases. How have subscribers reacted to this strategy?
Kenneth Andersen: We’re aware that some subscribers have canceled due to the higher cost. Though, we believe our pricing model reflects the value we offer, with access to a wide range of popular leagues and tournaments. we understand affordability is a concern for some viewers, and we’re continuously monitoring and addressing these issues.
Archyde: Speaking of affordability, what’s your response to concerns raised by social media influencers and businesses like Kjetil Røyset Jørgensen’s pharmacy in Grimstad?
Kenneth Andersen: We appreciate the feedback and dialog with our customers and the public. We’re always looking to improve and make our services more accessible. We’re currently exploring ways to provide more value for money, such as bundling packages that cater to different viewer preferences.
Archyde: Looking ahead, what strategies does Viaplay Group have in place to win back subscribers and continue growing?
Kenneth Andersen: We’re focusing on expanding our sports rights and content library to attract new subscribers. We’re also continuously analyzing consumer behaviour and market dynamics to adapt our offerings and pricing strategies. We’re confident that providing a extensive streaming experience will help us retain existing subscribers and attract new ones.
Archyde: based on Viaplay Group’s experience, what advice would you give to other streaming services battling similar challenges?
Kenneth Andersen: It’s crucial to stay committed to your long-term vision, invest in high-quality content, and be open to feedback. Continuously analyze and adapt your strategies based on market dynamics and consumer behavior. It’s a competitive landscape, but by providing value and responding to customer needs, you can navigate challenges and grow.
