Nordic Entertainment Group (NENT) said the U.S. entry was not
about going head-to-head with streaming giants such as Netflix,
HBO Max and Disney+, but "a tailored service offering
high-quality Nordic drama series" with a planned launch in late
2021.
Nordic Noir crime stories set in Scandinavia with bleak
landscapes and shocking violence - such as "The Bridge" and "The
Girl with the Dragon Tattoo" - have enjoyed international
success.
"We have done customer surveys in the U.S., which rank Nordic
drama very high, but no one has packaged it the way we will
now," NENT CEO Anders Jensen told Reuters in an interview.
NENT also unveiled plans to roll out Viaplay in 10 international
markets by the end of 2023, and to target 10.5 million
subscribers by 2025, versus 2.8 million at the end of September.
To fund the expansion, which would also include large markets
such as Poland, NENT is considering an equity raise.
"Viaplay is a proven Nordic success story and we are now ready
to expand internationally and become the European streaming
champion," NENT said, adding it was also considering a secondary
share listing in the United States.
Viaplay aims to more than double its Nordic subscriber base to
around 6 million and increase subscriptions elsewhere to around
4.5 million, with Europe still making up the majority.
"This acceleration in the group's development is expected to
generate 18-20% compound annual organic sales growth for
2020-2025, with the Nordic operations generating 13-15% growth,"
NENT said.
NENT expects to have a 15% operating margin in the Nordics by
2025 - compared to a 6.2% adjusted group margin in the third
quarter, and also to reach profitability in its international
operations by then.
Shares of the company rose 1.4% by 1052 GMT.
(Reporting by Johannes Hellstrom; Editing by Simon Johnson,
Niklas Pollard and Barbara Lewis)
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