Last spring, Viaplay presented one production after another from Dutch soil. But after the sudden departure of CEO Anders Jensen in June, “you could of course feel the downpour,” says a Dutch former employee. He does not want to talk on the record about the circumstances under which Viaplay suddenly pulled the plug last summer on at least three of the four Dutch series and a Christmas film that had previously been announced as “the Christmas gift of 2023 for every Viaplay subscriber.”
The Swedish video service is doing badly. The plans on which Viaplay’s expansion in various countries was based turned out to be “too optimistic”, according to interim chairman Simon Duffy, in an explanation of a rescue plan presented last week.
In 2023, Swedish Viaplay has become the epitome of a loser in the displaced market of streaming video services (SVOD). The small European challenger to American competitors Netflix, Disney and Amazon has almost collapsed, with a evaporated stock market value and tens of millions of euros in losses per quarter against limited growth in turnover (406 million in the third quarter of 2023, compared to 353 million in the same year). quarter in 2022). A third of the staff has been fired or left this year. The short-term loans taken out for this purpose make the debt mountain larger than the equity.
Viaplay hopes to save the day with a capital injection that was announced around the (delayed) presentation of the third quarter figures. The largest shareholders have agreed to cooperate in a rescue plan, on the condition that various creditors partly convert their claims into shares and agree to extended repayment terms. The shareholders must still agree with a two-thirds majority.
‘Claim emission’
The most important is a so-called rights issue. Shareholders can purchase additional shares in proportion to their current ownership. If 0.9 billion Swedish krona (80 million euros) is raised from existing shareholders, the largest two (including the French Canal+ Group) are prepared to invest another 2.7 billion Swedish krona. This plan should be completed in early 2024. Viaplay sees no other option, otherwise bankruptcy is likely.
The involvement of Canal+ Group, part of the French media giant Vivedi, may be strategically interesting. Canal+ launched its own video service in the Netherlands, as previously in the Czech Republic and Austria. Provider Ziggo offers this service and there is an app from Apple and Google (Play). The offering includes Viaplay series and documentaries. In the meantime, Viaplay is withdrawing, as was previously announced. As of 2025, the service will leave the Baltic states, Poland, the United Kingdom and the US. Outside of Scandinavia, Viaplay only remains active in the Formula 1-crazy Netherlands. While it lasts.
Viaplay broke through in the Netherlands in 2022 after an important coup in the broadcast rights market. Just before Max Verstappen’s first world title in 2021, it was announced that the Nordic Entertainment Group, now Viaplay Group, took over the rights from Ziggo to broadcast Formula 1 in the Netherlands. A substantial market share was therefore guaranteed.
But with the appointment of two new commentators, some fans were disappointed. Veterans Olav Mol and pit reporter Jack Plooij, well-established but leaning towards unbridled chauvinism, did not join Viaplay. When connection problems were also encountered when watching Grand Prix, the F1 people were upset. Those struggles are now behind us, Alexander Bastin said earlier this year. He was responsible for Viaplay in the Baltics, Poland and the Netherlands.
In January, the service announced a price increase as of March 1 from 13 to 16 euros, a message that Viaplay tried to soften with a three-part documentary about Max Verstappen.
Regional CEO Bastin was able to promise several titles in March. He no longer works at Viaplay. Only a series inspired by the murder of Marianne Vaatstra would still be in production. Two Dutch people responsible for local productions are no longer active for Viaplay. Besides stating that this went “neatly”, they do not want to elaborate on the problems with the video service.
All hope is now focused on the sport: Viaplay has the rights for Formula 1 in the Netherlands until 2024, as well as a long-term deal to broadcast the English Premier League. Dutch top hockey can also be seen on Viaplay.
Viaplay noted in its 2022 annual report that it has 1.2 million subscribers in the Netherlands. It is unclear how many subscribers there are now.
Investment obligation
It is now unclear how Viaplay plans to meet the investment obligation that applies from January 1, 2024 for video services that achieve a turnover of more than 10 million euros in the Netherlands. This change in the law, implemented under the now departed outgoing State Secretary Gunay Uslu (Media, D66), is a potential millstone, especially for Viaplay. 5 percent of Dutch turnover must be spent on Dutch productions (films, drama, documentaries).
Due to the number of subscribers, thanks to Formula 1, Viaplay achieves tens of millions of turnover in the Netherlands. But the costs incurred for the registration of live sports do not count as an investment.
In practice, Viaplay still has until 2026: then the 5 percent turnover must have been invested in Dutch productions since 2024 at the latest. Perhaps drama series will be picked up again – or there will no longer be Viaplay at all. Viaplay was unable to respond to questions in a timely manner this week.
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