NENT Group OTT is planning to launch in five markets, UK, Canada, Germany, Austria and Switzerland, and be available in total of 16 countries by end of 2023. Two years after that, the Nordic SVOD plans to targets approximately 12 million subscribers by end of 2025
Nordic Entertainment Group (NENT Group)will expand its streamer Viaplay in five new markets by the end of 2023: in the UK it will be in SH 2022 and then in Canada, Germany, Austria and Switzerland during the following year. The service will then be present in a total of 16 countries, compared with the original target of 15 announced in November 2020. The Nordic Group has also increased its target for the total number of Viaplay subscribers by the end of 2025 from approximately 10.5 million to approximately 12 million, of which approximately 6 million are now expected to come from international markets, compared with the original target of approximately 4.5 million.
The accelerated expansion, in combination with successful recent launches in Estonia, Latvia, Lithuania and Poland, and upcoming launches in USA and the Netherlands, is now expected to contribute to Group compound annual organic sales growth in 2020-2025 in the upper end of the previously provided target range of approximately 18-20%. Furthermore, the ongoing positive development of the Group’s Nordic operations is now expected to result in compound annual organic sales growth in 2020-2025 in the upper end of the previously provided target range of approximately 13-15%, with Viaplay growing at a compound annual rate of approximately 23-25% in the Nordic region over the same period.
The domestic Nordic operations are expected to have a significantly higher EBIT margin of approximately 15% in 2025, and a long term 20% margin potential. NENT Group’s accelerated investments in new market launches, premium sports rights and original content have increased both the revenue and subscriber growth potential, as well as the cost base, for the international operations.
Anders Jensen, NENT Group President & CEO, commented:‘We have stepped up the pace and scale of Viaplay’s international expansion. We have acquired virtually all of the international sports rights that we targeted and for multiple cycles in several cases; added one more market to our roll-out ambition; signed innovative partnership agreements; and raised the bar when it comes to our investments in original content’.
‘As a result, we are increasing our subscriber and revenue growth targets, as well as our target profitability levels. We are investing more short term to create even higher long term returns due to the considerable operating leverage that this creates. We are investing in this growth right now, in order to capitalise on the opportunity created as the shift to streaming video consumption continues to accelerate, and demand for high quality and locally relevant stories increases’, he added.
‘Viaplay is already our largest revenue generator, and will already account for more than half of the Group’s revenues in a couple of years’ time. We aim to be the most diverse and inclusive storyteller with our amazing range of original, acquired, local and live content that offers something special for everyone. And we take an open approach to partnering that ensures Viaplay is available as broadly as possible. This is a unique value creation story’, concluded Jensen.
The OTT will local and international series, films, documentaries and kids content, both original and acquired. Viaplay Originals will be a cornerstone of the streamer line-up in all markets, but the Group plans to further add selected sports rights for some of the new European territories. It will be available in the new markets on a direct-to-consumer basis, as well as through partnerships with local distributors.
