Viaplay was fined.
Viaplay has been in the headlines lately. Jenni Gästgivar
Media giant Viaplay has experienced another setback. According to the Swedish newspaper Expressen Viaplay has been fined 50,000 kroner, or around 4,400 euros.
According to Expressen, Viaplay, struggling with financial difficulties, was fined when it ran unauthorized advertisements over an ice hockey match.
The ads were shown during the World Cup match between Sweden and Switzerland under the age of 20 in August 2022. The ads were shown on two separate occasions, even though the match had continued after short breaks.
The first time the ads run for 26 seconds. The second time, the ads were shown for 46 seconds.
According to the decision of the Swedish Administrative Court, the advertising violated the rules, according to which advertisements must run only during natural breaks.
According to Expressen, this was the second time that Viaplay fell victim to unauthorized advertising.
Economic crisis
Viaplay has struggled in a deep financial crisis. It said in January that 2023 is going to be a negative year. Viaplay Group estimates that the entire company’s turnover was 1.6 billion euros last year. At that time, the company estimated that the result would be EUR 97.7 million in loss.
At the same time, it said that it had missed its subscriber target and blamed the Finns for it. There were 6.5 million Viaplay subscribers worldwide. The target set by Viaplay Group was 6.6–6.7 million.
– The change is due to the decrease in the Finnish subscriber base in the last quarter, as well as increased customer turnover and general uncertainty in international markets, from which Viaplay is exiting, the release said.
In January, Viaplay also held a crisis company meeting and received support for its emergency aid package, thanks to which it can continue operating. It said at the time that the companies taking on the bet responsibility commit to raising a good 350 million euros in additional funding for the company.
At the same time, small owners, such as the Norwegian media giant Schibsted, suffer losses of millions.
– The small owners were practically completely wiped off the table, the Swedish expert Sverre Linton commented at the time to Svenska Dagbladet.
– I would have liked Viaplay’s management to act more openly in the middle of the crisis. For example, SAS was very honest with shareholders and said “don’t buy our shares”. Viaplay has not done so.