Viaplay’s Nordic Power Play: Consolidation, Soccer Rights, and the Fight for Streaming Dominance
The Nordic streaming landscape is undergoing a significant shift. Viaplay, already a dominant force, is doubling down on its regional strategy with a full acquisition of Allente Group for $112.6 million and a deepened soccer rights partnership with TV2 in Norway. But these moves aren’t just about growth; they’re a calculated response to a challenging financial climate and a rapidly evolving market where content ownership and distribution are increasingly intertwined.
Consolidating Control: Why Allente Matters
Viaplay’s complete takeover of Allente, formed from the merger of Viasat Consumer and Canal Digital, represents a strategic move to tighten its grip on the Nordic pay-TV and streaming distribution network. Allente, with 2024 revenues of SEK6.5 billion, provides a crucial pipeline to millions of households across Norway, Sweden, Finland, and Denmark. This isn’t simply about adding revenue; it’s about controlling the customer relationship and bundling services – a tactic increasingly vital in a competitive streaming environment. The deal, financed through a combination of cash and a new loan facility, will increase Viaplay’s long-term indebtedness to SEK 6.1 billion, a risk the company appears willing to take to secure its distribution advantage.
The Rise of Bundling and the Future of Distribution
The Allente acquisition highlights a broader trend: the resurgence of bundling. After years of “cord-cutting” and the proliferation of standalone streaming services, consumers are showing a preference for simplified, all-in-one entertainment packages. This benefits companies like Viaplay that can offer a combination of streaming content, live TV channels, and broadband services. Expect to see more consolidation in the distribution space as companies strive to create these comprehensive offerings. This trend is mirrored globally, with telecom giants increasingly bundling streaming services with their connectivity packages – a strategy explored in detail by Deloitte’s TMT Predictions.
Soccer as a Key Differentiator: The TV2 Partnership
Alongside the Allente deal, Viaplay’s expanded partnership with TV2 in Norway underscores the critical role of sports rights in attracting and retaining subscribers. The agreement, encompassing over 3,000 soccer matches annually – including major European leagues like LaLiga, the Bundesliga, and the UEFA Europa League – significantly strengthens Viaplay’s sports portfolio. Crucially, it also includes the Norwegian women’s Toppserien, demonstrating a commitment to growing audiences for women’s sports.
The Battle for Premium Sports Content
The escalating cost of sports rights is a major challenge for streaming services. As competition intensifies, broadcasters are willing to pay ever-higher premiums to secure exclusive content. Viaplay’s strategy of sharing rights with TV2 represents a pragmatic approach to managing these costs while maximizing reach. This collaborative model – where both platforms offer overlapping content – could become more common as broadcasters seek to mitigate the financial burden of exclusive rights deals. The focus on soccer, particularly, is a smart move given its immense popularity in Scandinavia. The English Premier League, already a key property for Viaplay, continues to draw massive viewership, and expanding coverage of other top leagues further solidifies its position as a sports broadcasting leader.
Financial Realities and the Path to Profitability
Despite these strategic moves, Viaplay’s recent financial performance remains a concern. Q2 2025 net sales dropped year-on-year to SEK4,313 million, and the company reported a net loss of SEK49 million. However, this loss is an improvement over the previous year, signaling a potential turning point. Viaplay is targeting double-digit EBITDA margins by 2028, a goal that hinges on successful integration of Allente, effective cost management, and continued growth in subscriber numbers. The company’s decision to scale back international operations in recent years suggests a renewed focus on its core Nordic and Dutch markets, a strategy that appears to be gaining traction.
Viaplay’s current strategy isn’t about explosive growth; it’s about consolidation, strategic partnerships, and a laser focus on profitability within its core markets. The acquisition of Allente and the TV2 partnership are key components of this plan, positioning Viaplay to navigate the increasingly competitive streaming landscape and solidify its dominance in the Nordic region. The next few years will be critical in determining whether this strategy will deliver the promised financial turnaround and secure Viaplay’s long-term future. What impact will these moves have on other streaming services operating in the Nordic region? Share your thoughts in the comments below!
