Sweden is set to lead the growing Nordics subscription video-on-demand market as global online video platforms ramp up investment in original content aimed at the region.
With more online video subscribers than all of its Scandinavian counterparts, Sweden is expected to deliver the most SVOD revenues over the next four years, according to estimates by Kagan, a media research group within S&P Global Market Intelligence.
Sweden's SVOD revenues — projected at $421.9 million this year — are expected to grow to $544.6 million by 2022.
Streaming giant Netflix Inc. is one key player targeting the Swedish market and the wider Nordics region as it transitions from rolling out original Scandinavian series to delivering local language films.
Last month, Netflix unveiled a multiyear deal with Danish producer and M&M Productions founder Kim Magnusson, in order to produce original, local language films across the Scandinavian market after announcing its first Swedish original series, based on an adaptation of thriller novel "Quicksand," in 2017.
Since launching in the Nordics in 2012, Netflix co-produced local drama series such as "Rita" and "Lilyhammer." The streaming giant also premiered "The Rain" recently, its first Danish original series, which has been renewed for a second season.
Meanwhile, the Scandinavian offering of Time Warner Inc.'s HBO Europe, HBO Nordic, green-lighted its first Scandinavian original, Gösta, last year. The eight-part comedy-drama will be directed by Swedish filmmaker Lukas Moodysson.
Aside from leading the Nordics region in SVOD revenues, Sweden is also ahead in the number of online video subscribers, estimated at 2.8 million this year, followed by Denmark with just over 2.1 million, Norway with 1.7 million and Finland with 1.4 million.
Although Sweden is tipped to deliver the highest rates of growth in SVOD revenues this year, estimated at 16%, Norway is expected to lead in 2019, while Denmark is forecast to report the biggest jump in revenue between 2020 and 2022.
Moreover, Denmark's average monthly revenue per subscription is projected to reach $13.50 this year, the highest in Europe, before growing to $13.94 over the next four years.
By comparison, the average monthly revenue per subscription in Finland, Norway and Sweden in 2022 is expected to reach $11.36, $12.56 and $13.45, respectively.