Streaming service that launched in the UK last year now faces tough financial situation.
Viaplay rapidly expanded internationally last year, taking the service beyond its original Nordic and Baltic homelands. In the UK, Viaplay bought out Premier Sports and acquired a number of sports rights to boost its appeal.
But Viaplay this week announced a serious downgrade of its short-term outlook. The trouble has resulted in Group CEO Anders Jensen leaving the company.
Viaplay has warned investors that advertising revenues are expected to be down 12-16% in the current quarter, following a rapid deterioration in advertising markets. The company also says the rising cost of living is resulting in lower than expected subscription sales. It’s also resulted in a higher churn levels (more people cancelling) where it’s put up prices.
In addition to the set-up costs in countries where it has expanded to, the TV and radio advertising market in Nordic markets has undergone a “accelerated deterioration”, according to the company. Operational and financial targets until 2025 have been withdrawn. A further statement on its financial situation and outlook is due in July.
The company calculated it could afford to expand rapidly on the assumption of attracting sufficient subscribers and receiving enough advertising revenue to be profitable. Its Nordic business remains profitable, but not to the extent previously forecast. Its international division is expected to extend its losses, cancelling out gains in Nordic countries.
Slow progress in UK?
In the UK, 2023 has so far seen no announcements regarding any new sports rights on top of those it acquired in 2022 or inherited from Premier Sports.
Last year, the company also announced changes to the former Premier Sports channels to include Viaplay’s series and films. There have been no further developments on the matter.
It did however announce a deal bringing Viaplay to Roku devices in the UK.
Viaplay launched with sports rights including LaLiga, Scottish Cup, Scottish League Cup and Coppa Italia football; BKT United Rugby Championship, Rugby Football League and TOP 14 rugby; NHL, IIHF Ice Hockey World Championship, Champions Hockey League and Elite Ice Hockey League; CEV volleyball; KSW mixed martial arts; EHF handball; ISU figure skating and speed skating; World Athletics Continental Tour Gold and Indoor Tour.
Viaplay offer
The company is currently offering a £59 upfront annual subscription, linked to a 12 month contract.
This gives viewers access to all of Viaplay’s live sport offering. It’s available to buy via Sky or directly through Viaplay. The offer, which expires on 20th June 2023 is for new and returning customers in the UK, Isle of Man and Channel Islands.
Marc Thornham