Crisis-stricken Viaplay is backtracking economically and losing subscribers as well. The media company is, however, struggling with another major problem:
3 out of 10 customers violate their agreements when they share their accounts, according to CEO Jørgen Madsen Lindemann to TT.
Customers who share their account information with others have been a major problem for various streaming services, and for example, the giant on the TV market, Netflix, announced last year that they would take action.
This now also applies to Viaplay, which is doing the same regarding account sharing as well as piracy. By limiting the number of "streams" to an account, account sharers will ultimately become paying subscribers.
In the Netherlands, the initiative has had good development, and we also see early signs in Nordic countries that people have respect for our products, says Jørgen Madsen Lindemann.
Many cheaters
According to him, it's about 30 percent of customers who do this, and in the last quarter, the company also had 4.7 million subscribers.
It's a pretty big problem, to be honest. It's like someone buying a movie ticket, watching the movie, and then going out and giving the ticket to someone else who does the same. Then it will become economically difficult, says Jørgen Madsen Lindemann.
Economically, Viaplay has had challenges, to put it mildly, over the past year. The stock has plummeted 95 percent over the past year after the company had to sell off a number of TV series to competitors.
As a result of the crisis, the company has also implemented extensive price increases. In May, it became clear that the company is buying the rights to football's Champions League, a prestige deal for Viaplay.
According to the CEO, it's not entirely impossible that they might consider selling certain parts of the Champions League rights to other actors.
It may be that we initiate a collaboration specifically around the Champions League, it's a possibility, but I cannot provide more details due to competitive reasons, he says.
Besides the Champions League, they are also choosing to focus on reality TV programs, or as it's also called, docu-soaps. In the interim report, the CEO mentions, among other things, a new investment in the much-debated "Paradise Hotel" as well as "Expedition Robinson" in a Danish version.
Is there still interest in these series?
It's about relevant storytelling. I believe products like "Lyxfällan" or "Expedition Robinson" are still relevant. We should be able to deliver something that stands out and can compete on the market.
