Netflix rival Viaplay's organic sales growth slows in Q1 (updated)
23/04/2024 07:29
(Adds year-ago growth in paragraph 1, background in paragraphs
2 and 6, sales details in paragraph 3, comments on account
sharing in paragraphs 4-5)
April 23 (Reuters) - Swedish video streaming company
Viaplay's VPLAYb.ST organic sales grew by 5.6% in its core
operations in the first quarter of 2024, down from 27.3% a year
ago, as it focuses on improving operations after a
recapitalisation drive.
After replacing its CEO and laying off 30% of its workforce
last year, Viaplay unveiled a rescue plan in December that
included raising equity and restructuring debt, and focusing on
the core Nordic, Dutch and Viaplay Select operations.
The group, which competes with Netflix Inc NFLX.O and Walt
Disney Co's DIS.N Disney+, said net sales from those
operations rose to 4.46 billion Swedish crowns ($410 million) in
the quarter, although that growth was hampered by customer churn
following price increases and account sharing by users.
Viaplay estimated that about a third of its premium
subscribers have been sharing the account details for their
subscriptions, which it said is a major issue for the whole
industry.
It said it is in talks with distribution partners to tackle
account sharing, and plans to implement further initiatives to
limit that this summer.
Viaplay completed a 4 billion crown recapitalisation
programme in February, including a cash injection from main
stakeholders that it says should be sufficient, as it seeks to
stabilise the business hit by waning demand amid high living
costs.
($1 = 10.8845 Swedish crowns)
(Reporting by Marta Frąckowiak in Gdansk; editing by Milla
Nissi)
((marta.frackowiak@thomsonreuters.com))