Viasat Broadcasting’s pay-TV operations in the Nordic region comprise the Viasat DTH satellite broadcasting platform and 21 own pay-TV channels.
The business reported 11% sales growth in 2008. Annualised average revenue per premium subscriber (ARPU) increased by 10% to SEK 3,917 from SEK 3,554 during the year. The rise in ARPU reflected previously introduced price increases, the higher proportion of multi-room and HDTV subscribers, as well as positive effects from the strengthening of the Danish krona.
Total operating costs for the pay-TV business increased by 12% to SEK 3,335 (2,982) million and reflected the addition of 11 new third party and 6 Viasat branded channels to the platform, ongoing price inflation for sports content and increased sales, marketing and customer service related activities during the Norwegian digital switchover.
Total expensed subscriber acquisition costs increased to SEK 582 (555) million, which reflected higher subscriber acquisition levels in Norway and the success of campaigns to promote ViasatPlus, ViasatHD and multi-room subscriptions.
Operating income for the Nordic operations increased by 8% to SEK 682 (631) million in 2008, and the operating margin was stable year on year at 17 (17)%.
| |
31 December |
31 December |
| Subscriber data |
2008 |
2007 |
| Premium Subscribers ('000s) |
754 |
760 |
| - of which, DTH Satellite |
676 |
714 |
| - of which, IPTV |
78 |
46 |
| Basic DTH Subscribers |
69 |
88 |
| Premium ARPU (SEK) |
3,917 |
3,554 |
The total premium subscriber base declined slightly during the year following a period of increased DTH churn in Norway that stabilised at the end of the year. The IPTV subscriber base grew, following the 5 year agreement signed with Telia in Sweden in May, whereby Viasat was enabled to market and sell its pay-TV channel packages to Telia’s more than one million broadband customers and more than 300,000 IPTV customers. The number of basic subscribers continued to decline in line with Viasat’s ongoing focus on up-selling these customers into the premium package tiers.
Significant events A number of new localised premium sports channels were launched in Sweden and Norway in October. Viasat Sport, Viasat Fotboll and Viasat Motor were launched in Sweden, and Viasat Sport and Viasat Motor in Norway. The channels replaced existing Viasat Sport channels. The exclusive live UEFA Champions League football broadcasting rights for Sweden, Norway
and Denmark were also prolonged until the end of the 2011/2012 season, as were the rights for the Formula One world motor racing championship.
The HDTV service ViasatHD was launched in the Nordic region in January. In conjunction with the introduction of the service, TV1000 HD and Viasat Sport HD as well as TV 2 Sport HD (Denmark) were launched.
The satellite businesses in all countries in Scandinavia signed agreements during the year that led to the addition of a number of local TV channels; TV 2, TV 2 Nyhetskanalen, TV 2 Filmkanalen, TVNorge, FEM and TV 2 SPORT in Norway, TV 2 Zulu, TV 2 Charlie and TV 2 Film in Danmark and SVT HD and Kanal 5 in Sweden.
Significant events after the end of year An eighth thematic TV1000 channel for the Nordic countries, TV1000 Drama, was launched in February. The TV1000Play catch up service for the ViasatPlusHD customers, launched in 2008, was extended considerably, with the addition of programmes from TV1000 HD, Viasat Explorer, Viasat Nature and Viasat History in March. The offering is part of ViasatOnDemand which also comprises a catch up service for Viasat customers within the Telia’s IPTV-network as well as an online pay-TV offering with movies, series and live sports events as UEFA Champions League and Formula One.