Scandinavian streamer Viaplay has announced a significant shift in its content strategy, opting to move away from high-cost original dramas towards more popular and profitable local formats and Hollywood content. This decision was revealed by the company's president and CEO during a recent statement.
The company has taken steps to sell rights to several original productions to global media players and has also divested or closed its production businesses. Additionally, Viaplay is reducing its sports rights commitments by sublicensing selected rights to focus on those that have a more significant impact on its operations.
This strategic realignment mirrors trends seen in the broader entertainment industry, where major players are adopting a more selective approach to costly original content. Viaplay had previously outlined plans to concentrate on its core markets in the Nordics and the Netherlands, leading to the discontinuation of streaming services in the U.S., Canada, and the U.K., as well as staff layoffs.
As part of cost-cutting measures and in response to various business challenges, the company explored strategic options, including a potential sale. Recent developments include the sale of its U.K. operation, the withdrawal from the Baltics and North America, and plans to exit Poland by mid-next year.
The focus now is on enhancing Nordic operations, the Netherlands, and Viaplay Select, with the aim of achieving positive free cash flow for these businesses by 2025 and gradually increasing profitability to double-digit margins. Viaplay has adjusted its pricing to align with its entertainment value proposition for subscribers and business partners.
The CEO emphasized the company's commitment to growing its subscriber base and average revenue per user through a disciplined approach to subscriber acquisition costs, pricing strategies, churn management, and customer lifetime value. The goal is to avoid costly and value-destructive practices in pursuit of short-term gains and instead prioritize long-term value creation.
