Viaplay has garnered praise for its Premier League product after they took over the league from TV 2.
It has not gone well financially and this week has been a nightmare for the media company.
On Monday, the streaming company reported major financial challenges. The share price plummeted a whopping 62 per cent during the trading day.
Midway through Wednesday, it was down a further 16 percent. The share price has gone from 225.40 Swedish kroner to 65.60 in a few days.
– The reactions to what is now happening with Viaplay are some of the most brutal things I have witnessed in the last 20 years in the media industry. The stock collapsed completely, and over ten billion in market value disappeared overnight. Confidence is completely gone, and the slide continues downwards today. It is absolutely terrible to see, said Knut Kristian Hauger, responsible editor in Kampanje, to NTB.
Can put rights in play
The consequences may be that the rights picture for sports changes during this summer and autumn.
FIGHT TO BE SHOWN: With teams such as Liverpool, Manchester City, Arsenal, Chelsea, Manchester United and Tottenham, English football is an important product in the Nordic region.
Here, the company has invested heavily in the Premier League, FA Cup, German Bundesliga, handball, Formula 1, winter sports and more. Several analysts believe that Viaplay went too far when it bought English football.
– The power company already has a running cost program of one billion, but it is far from enough. Profitability plummets in line with failing sales of Viaplay subscriptions, very poor development in the TV advertising market and a weak euro. Here, the savings knife must be further sharpened, bank guarantees and loan conditions must be maintained and to ensure that there is enough cash in the account when the invoices to the rights owners fall due, such as the Premier League, says Hauger.
He speculates on measures Viaplay can take to spruce up the economy. Sell out businesses and companies, close down in certain markets, cut staffing, resell rights within own productions or sports.
NRK has already bought the popular drama series Pørni.
Dramatic development
The background for the share collapse has been that Viaplay adjusted down its expectations for the next quarter, as well as that they expect a decrease of 12-16 per cent in advertising revenue in the second quarter.
The supporters’ union demands an explanation from Viaplay
A lot of anger and dissatisfaction among the supporters after Viaplay decided to increase the prices.
News 16.jan 12:14
Weaker Premier League sales than Viaplay had expected
The Viaplay manager acknowledges that the price increase came earlier than planned.
News 14.feb 11:20
Anders Jensen, CEO of Viaplay, resigned with immediate effect. Several managers, including the sporting director, have left Skuta. Former CEO Jørgen Madsen Lindemann has been given the job as lifeguard.
– It is clear that this is a serious situation for Viaplay. It will be interesting to see how they solve this in terms of costs. I think they are facing tough times. The media market is struggling a lot at the moment, with premium income stagnating and advertising income falling sharply, media expert Lasse Gimnes told VG.
– Viaplay has been a winner in the sports rights market in recent years. I will not be surprised if they sell some of the rights in the future.
Basically, Viaplay has the Premier League until 2028. In autumn, the share fell after they reported weaker Premier League sales than expected. In the middle of the season, they ended up raising the price.
2023-06-08 21:18:00
#Crisis #Viaplay #sale #sports #rights
