Viasat Broadcasting’s pay-TV operations in the Nordic region market and sell Viasat’s premium pay-TV packages, including its own channels as well as leading local and international third party channels, on its own satellite DTH platform and all leading third party IPTV platforms in Scandinavia. Viasat also distributes its 22 Viasat-branded pay-TV channels, comprising ten sports and eight thematic TV1000 movie channels, via other third party pay-TV networks. Viasat also operates the Viasat OnDemand online portal, which offers the most comprehensive online video streaming service in the Nordic region as well as an on-demand TV service via the recordable digital box ViasatPlusHD for Viasat subscribers in the Nordic region.
The business reported 10% sales growth in 2009, which equalled 5% at constant exchange rates. The annualised average revenue per premium subscriber (ARPU) increased by 9% to SEK 4,435 from SEK 4,077 during the year. The rise in premium ARPU reflected price increases, the ongoing uptake of value-added products and services, and positive currency exchange rate movements, but was partially offset by initially discounted subscriber acquisition campaigns in Denmark and Norway.
Total operating costs for the pay-TV business increased by 11% to SEK 3,602 (3,242) million and reflected the addition of 8 Viasat branded channels and 15 third party channels to the platform since 2008, currency exchange rate movements, ongoing investments in the development of HDTV services, the acquisition or extension of several key sports rights, and subscriber acquisition campaigns in Norway and Denmark. Total expensed subscriber acquisition costs increased to SEK 627 (582) million in 2009.
Operating income for the Nordic operations increased by 5% to SEK 725 (692) million in 2009, with a stable operating margin of 17% (18%).
| Subscriber data |
31-dec |
31-dec |
| |
2009 |
2008 |
| Premium subscribers ('000s) |
823 |
754 |
| - of which, DTH satellite |
685 |
676 |
| - of which, IPTV |
138 |
78 |
| Basic DTH subscribers |
45 |
69 |
| Premium ARPU (SEK) |
4,435 |
3,554 |
Viasat added 69,000 net new premium subscribers to its Nordic pay-TV platform during 2009. This comprised 9,000 premium DTH satellite subscribers added following the completion of the analogue TV shut-down processes in both Norway and Denmark, and 60,000 net new IPTV subscribers. The number of HDTV subscribers more than doubled year on year to 106,000 (43,000).
Significant events
Viasat launched its eighth thematic TV1000 channel, TV1000 Drama, in February in the Nordic countries. The Group expanded its TV1000Play catch up service for ViasatPlusHD customers during the year and added programmes from TV1000 HD, Viasat Explorer, Viasat Nature and Viasat History in March.
In Sweden, Viasat’s TV3 Play, TV6 Play and TV8 Play were added to Viasat OnDemand during the year, as well as the state public broadcaster SVT’s Play and commercial broadcaster TV4’s Play services.
The dedicated ice hockey channel Viasat Hockey was launched in Sweden and Finland in September at the same time as Norway got its dedicated football channel, Viasat Fotball, which replaced SportN.
MTG entered into a strategic cooperation with Sanoma in Finland in December 2009 and launched Nelonen Sport Pro, a localised premium sports channel, on 1 February 2010. The new channel features premium sports content from both Viasat and Sanoma-owned Nelonen Media. Nelonen Sport Pro is wholly owned by Sanoma Entertainment and the channel is available exclusively on Viasat’s Finnish DTH platform and to cable subscribers with access to Viasat’s pay-TV packages.
Significant events after the end of year
A subscription ‘video-on-demand’ service was launched on the Viasat OnDemand internet portals in Sweden, Denmark and Norway on 8 February, to complement Viasat’s pay-per-day and pay-per-event services. The subscription service makes an unrivalled range of pay-TV content available over the internet, including live sports events, a wide selection of episodes of hit TV series and 200 feature films.
Viasat Broadcasting signed a long term agreement with Telenor Norge AS in March 2010, which enables Viasat to distribute its premium pay-TV channel packages to Telenor’s broadband customers. Viasat’s channel packages will continue to be available to Telenor subsidiary Bredbandsbolaget’s subscribers in Sweden and are also included in Telenor’s IPTV offering in Norway, following its launch to fibre-connected broadband customers in March 2010.
The exclusive broadcasting rights to England’s Barclays Premier League were acquired in March in Sweden for the next three seasons from the start of the 2010/2011 season.