The Nordic leads the SVOD market in Europe
The Nordic region comprising Denmark, Finland, Norway and Sweden leads the SVOD market in Europe.According to Dataxis research, the Nordic region represents almost 20% of all SVOD subscriptions in Europe at Q4 2016. In the same quarter, the number of SVOD subscriptions in Nordic region is approximately equivalent to the number of subscriptions in Germany and Italy. This is partly explained by the fact that households of this region often subscribe to more than one SVOD offer and that the churn rate is low.The average revenue per user (ARPU) for each SVOD offer in Nordic is higher than in the rest of Europe. Dataxis estimates that the ARPU per offer in Nordic was around $10.6 in Q4 16 and this is explained by the fact that SVOD offers in Nordic cost relatively higher than in the rest of Europe. For example, the standard offer of Netflix costs 89 DKK ($12.7) in Denmark versus 9.99 EUR ($10.7) in France. Consequently, there is a higher SVOD spending per person in Nordic than in the rest of Europe. According to Dataxis, the total customer spending on SVOD in Nordic reached almost 800M EUR ($848.2M) in 2016. There are four main SVOD actors in the Nordics: Viaplay, HBO Nordic, C More and Netflix, with the later accounting for almost half of the market.