<<

DEGREE PROJECT IN COMPUTER SCIENCE AND ENGINEERING, SECOND CYCLE, 30 CREDITS , 2020

The Future of Public Service in Sweden A study on challenges and opportunities for SVT Play in a shifting television landscape

MUHAMMAD DACCAK

KTH ROYAL INSTITUTE OF TECHNOLOGY SCHOOL OF ELECTRICAL ENGINEERING AND COMPUTER SCIENCE ABSTRACT This study investigates the changing television landscape and consumption habits and the effects on the Swedish public service television(SVT). Recent shifts have amplified the ongoing decline of linear television and were marked by increasing migration of viewers to online video consumption and global streaming services. These new competitors escalate the challenges facing national broadcasters and emphasize the role of having a strong independent public service television that can remain relevant to all its audiences. SVT has been a pioneer in shifting to online and launched its video streaming service SVT Play in 2006. But the service is unable to recuperate the viewership bleeding from SVT linear channels, and reaching younger audiences has never been more challenging. The study presents a literature review and background referring to recent general trends in the television market, to put shifts and disruptions in the Swedish market in a larger context. We also present a thorough background on the Swedish television market focusing on the position of SVT and SVT Play. We discussed dynamics and drivers of recent structural and consumption shifts through in-depth interviews with key personnel from SVT as well as with other experts from different areas within the media and telecom industry. We seek to answer what future challenges and opportunities are for SVT Play and how to deal with those challenges and opportunities. The data collected were analyzed and reported in this study. The main findings indicate a new era ahead of public service heralded by the unprecedented decline of SVT broadcast and the increased consumption divergence in 2019. The study found that SVT Play has a central future role of public service television and should be further empowered to remain agile and relevant, through diverse, differentiated, and personalized offerings, but also through constant engagement with audiences and continuous learning of what they value and demand in a constantly changing media landscape.

SAMMANFATTNING Denna studie undersöker det föränderliga TV-landskapet och de nya konsumtionsvanornas effekter på svensk public service- TV (SVT). Nyligen har skiftningar intensifierat den pågående minskningen av linjär-TV vilket märkts i den ökande migrationen av TV-tittare till online video-konsumtion och globala streamingtjänster. Dessa nya konkurrenter trappar upp utmaningarna som nationella programföretag ställts inför och betonar vikten av att ha stark och oberoende public service-TV som kan förbli relevant för samtliga målgrupper. SVT har varit pionjärer i övergången till online och lanserade sin streamingtjänst för video, SVT Play, redan 2006. Men tjänsten är oförmögen att hämta upp de förlorade tittarsiffrorna från SVTs linjära TV-kanaler. Samtidigt så har det aldrig tidigare varit svårare att nå de unga målgrupperna. Denna studie presenterar en litteraturgenomgång och bakgrund med referenser till de senaste allmänna trenderna TV-marknad, för att ställa den svenska marknadens förändringar och störningar i ett större sammanhang. Vi presenterar även en grundlig bakgrund av den svensk TV-marknaden med fokus på SVTs och SVT Plays positioner i denna. Vi har resonerat kring dynamiken och drivkrafterna bakom de senaste strukturella förändringarna och förändringarna i konsumtion, genom djupgående intervjuer med nyckelpersoner från SVT samt andra experter inom olika områden av media- och Telecom-industrin. Vi söker svaret till vilka de framtida utmaningarna och möjligheterna för SVT Play är, samt hur man bör handskas med dessa utmaningar och möjligheter. Den insamlade datan har analyserats och rapporteras i denna studie. De huvudsakliga upptäckterna indikerar en ny era för public service, påbörjad av de historiska minskningarna av SVTs sändningar samt den ökande konsumtionsdivergensen under 2019. Studien har funnit att SVT Play besitter en central framtida roll för public service-TV och bör fortsatt vara stärkt i uppgiften att förbli rörlig och relevant, genom varierade, differentierade och personanpassade erbjudanden, men även genom ett konstant engagemang med sin publik och ett kontinuerligt lärande över vad de värderar och önskar i ett ständigt skiftande medielandskap.

The Future of Public Service A study on challenges and opportunities for SVT Play in a shi!ing television landscape

Muhammad Daccak School of Electrical Engineering and Computer Science KTH Stockholm, Sweden [email protected]

continuous learning of what they value and demand in a ABSTRACT constantly changing media landscape. This study investigates the changing television landscape and consumption habits and the effects on the Swedish KEYWORDS public service television(SVT). Recent shifts have amplified Digital disruption; digitalization; public service television; the ongoing decline of linear television and were marked by television; linear television; OTT; online video increasing migration of viewers to online video consumption; video-on-demand; media convergence; consumption and global streaming services. These new television value chain; video streaming; personalization; competitors escalate the challenges facing national content discovery; the role of public service media broadcasters and emphasize the role of having a strong independent public service television that can remain 1. INTRODUCTION relevant to all its audiences. SVT has been a pioneer in shifting to online and launched its video streaming service In the age of ubiquitous fast Internet and streaming war, an SVT Play in 2006. But the service is unable to recuperate unprecedented amount of digital content can be accessed the viewership bleeding from SVT linear channels, and anywhere at all times and the consumer is surely taking the reaching younger audiences has never been more driver’s seat. In the US, subscription video challenging. The study presents a literature review and (SVOD) grew by 450% between 2009 and 2017, and the background referring to recent general trends in the autonomy that consumers enjoy by choosing how, when, television market, to put shifts and disruptions in the and where they view content stands out as the most Swedish market in a larger context. We also present a prominent driver [25, p.4]. Major studios and aggregators thorough background on the Swedish television market have been trying to recuperate their negotiation power and focusing on the position of SVT and SVT Play. We moving downstream the traditional television (TV) value discussed dynamics and drivers of recent structural and chain through direct-to-consumer (DTC) business models, consumption shifts through in-depth interviews with key whereas distributors have been moving upstream through personnel from SVT as well as with other experts from consolidations with TV networks and major studios to different areas within the media and telecom industry. We secure content rights and sustain their threatened last mile seek to answer what future challenges and opportunities are position [12, pp.62-64]. But the streaming giants continue to for SVT Play and how to deal with those challenges and break their spending records. Net!ix, for example, spent $15 opportunities. The data collected were analyzed and billion on content in 2019, and the estimates are $17 billion reported in this study. The main findings indicate a new era for 2020 [17]. "e company claims that as linear TV ahead of public service heralded by the unprecedented (traditional broadcast TV via satellite, cable, or terrestrial decline of SVT broadcast and the increased consumption networks) took over radio in the 1950s and 1960s, streaming divergence in 2019. The study found that SVT Play has a ‘is’ replacing it, by o#ering on-demand and personalized central future role of public service television and should be entertainment that is available on any screen[13]. "e further empowered to remain agile and relevant, through company also states [14, p.4] that the shift from linear to diverse, differentiated, and personalized offerings, but also streaming (VOD) is happening all over the through constant engagement with audiences and world and the speed will increase with media and tech giants launching their streaming services. As for the impact on linear TV[1, p.15]. Other major actors in Sweden are of streaming on traditional TV in the US, more than 500,000 TV4 group, NENT group, and Discovery Networks. Yet, consumers abandoned cable TV in the last quarter of 2017, recent acquisitions and mergers between telecom and TV in with current estimates of 13.5 million households not Sweden (tele2-Comhem, Telia-TV4-Cmore) resulted in subscribing to a traditional TV service, while the prediction media powerhouses with more arsenal and integration to is ‘a steady deterioration in cable and satellite subscriptions win the a%ention and time of consumers. over the next couple of years’[23, p.95]. Similarly, SVT Play has been at the forefront of the digital video digitalization and innovation challenge the role of public o#ering of SVT and has managed to secure the third service media across Europe, but also emphasize the need position–in a rather uphill ba%le–after YouTube and for an independent and diversi$ed public service o#ering Net!ix[1, p.44]. We have marked abundant studies on [11], –‘we’re in the age of audience revenue. For markets and audience research emphasizing shifts in TV media companies, that means business incentives may soon consumption behaviors in Sweden. However, li%le is align what with consumers want’[24, p.141]. reported about the many current challenges or future In Sweden, globalization and digitalization have been the uncertainties ahead of SVT Play, and what e#ects those main drivers for a rapidly shifting TV market and media may have on the service. Our study overviews current consumption. Linear TV continues to bleed in most age disruptions and general trends in TV consumption and brackets, whereas online consumption continues to rise [18, narrows down to explore and gain a greater understanding pp.124-125]. Consumers are able to mix and match between about SVT Play in this transforming landscape to discuss plenty of digital video services, a%racted mainly by that with the study’s expert participants. We want to premium programming, personalized user experience on answer the question: what are the main future challenges SVODs, and also by sociability and interactivity on and opportunities for SVT Play and how to deal with those YouTube. Legacy TV incumbents are $ghting back through challenges and opportunities? online services, digital-$rst strategy, content and rights acquisition, and not the least through consolidations along 2. LITERATURE REVIEW AND BACKGROUND the TV value chain. But it is certain the overall time spent on video consumption hasn’t grown at the same pace as "is chapter consists of three parts. We $rst review relevant content o#ering has, and the linear TV ba%le to reach and theories and literature and then present summarized sustain the viewers has never been so $erce, especially $ndings from reports on media and technology trends and when it comes to the steep migration of younger age disruptions that are reshaping the global TV market. Last, brackets to online. Net!ix and HBO Nordic have established we examine recent trends in the Swedish market and a stronghold in Sweden, while other entrants joined the narrow down to overview the position of SVT Play within war: Apple TV+(November 2019) and Disney+ (September that larger context. 2020). 2.1 Structural Shi!s in the TV Industry "e Parliamentary Public Service Commi%ee report [15, 2.1.1 Convergence of Technology, Media, and Telecom. p.13] indicated that while the rising accessibility to media Various parts of the world are witnessing waves of content can be positive, it brings along fragmented media convergence of media and information systems, and consumption pa%erns that can increase polarization and integrations between di#erent technologies, media, and threaten social cohesion. "e report stressed the importance telecom, resulting in the emergence of new strategies and of having a strong public service as a mean for the Swedish business models. Initially, it is instrumental to touch upon democracy, keeping the public well-informed and exercising three central terms: media convergence, media, and delivery constructive dialogues based on shared worldviews. systems (technologies). Public service broadcasting in Sweden is carried out by Henry Jenkins described media convergence as ‘the !ow of three companies: Swedish Radio (SR), Swedish Television content across multiple media platforms, the cooperation (SVT), and Swedish Educational Broadcasting Company between multiple media industries, and migratory behavior (UR). SVT started its $rst transmissions in 1954 from the of media audiences who will go almost anywhere in search Royal Institute of Technology in Stockholm, and it has of the kinds of entertainment experience they want’. But he pioneered a long online journey launching its on demand argued that media convergence should not be a%ributed play service (SVT Play) in 2006. Today, SVT is still the primarily to technology advancements–availing multiple biggest TV network in Sweden, with 35 % of the time spent

media in one device–but rather to cultural shifts with recent literature and developments–highlighted in the consumers seeking new information[8, pp.2-3]. coming sections–suggest that convergence of networks, communications technologies, and content continue to drive Media, according to Lisa Gitleman’s de$nition, is ‘socially reshaping the media scene. realized structures of communication, where structures include both technological forms and their associated 2.1.2 Vertical and Horizontal Integrations.. A large amount protocols’ [7, p.7]. Jenkins [8, pp.13-15] indicated that of literature has been published on media convergence Gitleman’s de$nition works on two levels: a medium is a between parts of the traditional TV value chain. "at chain technology, and a medium is a set of social and cultural comprises three main levels: production in the upstream practices. He elaborated that the content of certain media position (e.g. independent and a&liated studios); may change, its audience may shift, and its ‘social status’ aggregation in the middle (e.g. broadcast networks and pay can !uctuate, but media are cultural systems that continue TV networks); and delivery or distribution in the to exist, whereas delivery systems are technologies that are downstream position (e.g. cable, DTH–direct-to-home, subject to change ‘history tells us that old media never die. terrestrial) [12, pp.20-22]. "e authors in [5, pp.2-3] What dies are simply the tools we use to access media indicated two major waves of consolidations in the US TV content…delivery technologies become obsolete and get industry. "e $rst wave was propelled by regulations replaced; media, on the other hand, evolve’. Jenkins argued brought by the Telecommunications Act of 1996, facilitating that most of the discourse about media convergence can be convergence of broadcast, Telecom, and cable TV providers. summarized in what he calls !e Black Box Fallacy: "e second wave began in 2004 resulted in four operators controlling the US distribution market – i.e. Comcast, Time ….Sooner or later, the argument goes, all media content Warner Cable, Verizon, and AT&T. "e authors pointed out is going to !ow through a single black box into our that the strong position of cable was challenged mainly by living rooms. If the folks at New Orleans Media video streaming services, and a new level of consolidation Experience could just $gure out which black box would began with the Comcast acquisition of Time Warner Cable reign supreme, then everyone can make reasonable and the AT&T acquisition of DirectTV. "ey also argued investments for the future. Part of what makes the black that the highly fragmented European mobile and cable box concept a fallacy is that it reduces media change to market is ‘likely to lead the third wave of consolidation in technological change and strips aside the cultural levels broadcasting and distribution’. "e authors [5, pp.4- But despite the important role of social and cultural shifts in 8]identi$ed three drivers behind the heating convergence of adoption to change–highlighted by Jenkins, it seems clear cable TV and telecom. "e $rst driver is the impact of that recent media convergence is mainly moved by shifts in streaming services on pay TV subscriptions and the technology and digitalization, and the increased dropping growth margins for telecom operators both in the accessibility to the Internet. Initial observations suggest that US and in the EU. "e second driver is providing an those structural shifts lead–in many ways–to shifts in media inclusive package (mobile, TV, broadband) and reducing consumption behaviors. Perhaps Jenkins also churn and cost of customer acquisition. "e third driver is underestimated the backbox concept. Recently, a black box to achieve economies of scale, e&cient operations, and more becomes a clear reality: mobile phones, Apple TV, and even negotiation power for pay-TV operators to face the surging a connected smart TV would qualify for one access content and rights costs. "e authors warned that although convergent points for all media. there is a strong business rationale behind mergers and acquisitions, failure to integrate di#erent corporate cultures "e media convergence theory has been challenged by poses more questions than answers. "ey also highlighted several writers. "e authors in [6, pp.24-25]questioned the that both horizontal and vertical integrations limit notion of technology, media, and telecom convergence consumer’s choice and undermine diversity while stating ‘convergence of networks, terminals and services was further expected to lead to a convergence of 2.1.2.1 !e AT&T-Time Warner Merger. "e merger of the markets: it would no longer be self-evident where telecom telecom and media giants AT&T and Time Warner markets ended, and media markets started’. "ey reasoned (completed in 2018) is considered the decade’s most debated that media conglomerates will expand across the value integration. "e author in [20, p.2-5] highlighted that unlike chain, but others will move to niche markets. But the previous integrations in the media and telecom sectors, this authors argued whether the term can withstand the merger was a ‘pure’ vertical integration. She stated that ‘complexity’ of media development in the future. Yet, more advancements in technology and connectivity have led to

the rise of over-the-top services (OTTs) impacting TV and pull-based consumption has lifted the challenge of media and their revenues, as more and more consumers are ‘content discovery’ and curation–unlike the case with either ‘cu%ing’ or ‘thinning’ their cable subscription and prescheduled linear TV– which was addressed by OTTs migrating to cheaper online SVOD alternatives. "e author through automated recommendation engines that present added that these disruptions have jeopardized the personalized o#erings for millions of consumers. ‘gatekeeper’ role of cable operators and pushed traditional 2.2.1 Time Shi!ing. It is good to mark that in [9, pp.12-13] media to vertical integrations. "e study also pointed out the author di#erentiated between catch-up services or time- that while OTTs utilized their strong position in distribution shifting technologies– such as BBC iPlayer–that provide and moved upstream the value chain into content creation, limited content with time-limited availability, and VOD media companies used their strong position in content and services like Net!ix and that o#er more episodes and moved downstream into distribution. "e author mentioned original content and use intricate recommendation systems that insights derived from big data allow OTTs to create as a competitive advantage. "e study [2, pp.3228-29] optimal content, while their international reach and analyzed the e#ects of time shifting on TV consumption economies of scale can support fast recovery of sunk costs. through a random experiment on $rst-time subscribing "e study highlighted that emergence of OTTs presented households to a TELCO entertainment bundle of 10 new business models and disrupted the traditional TV value (commercial-free) premium channels. "e study showed chain since they produce, aggregate, and distribute content that access to time shifting has increased the overall TV ‘under the same roof’, and concluded that the AT&T-Time consumption and did not a#ect the time spent on live TV Warner merger was motivated by those shifts. due to a spillover e#ect of time shifting. 80% of the time 2.1.2.2 More Consolidations. Various reports mentioned that shifted consumption is of content that was live during the the concentration of media into a few conglomerates will last 48 hours. impact the role of free and independent media that have 2.2.2 Social and Mobile Shi!ing. Mobile consumption of been contributing to sustaining democracy and fostering video is another growing pa%ern. For example, the US societal dialogues. For example, the Future today Institute consumer spent an average of $ve hours daily using a [24, p.140]emphasized that consolidations (recent examples mobile device during 2019, and this leads streamers like include CBS-Viacom, Disney-Fox, AT&T-Warner Media) Net!ix, Amazon, and YouTube to o#er temporary will continue, challenging the norms of diversity in press downloads of content for later o#line viewing to ensure the and media, and in!icting further pressure on legacy players, consumer is hooked to their services [23, p.92]. "e same ‘media consolidation a#ects governments, businesses, and report highlighted that live news streaming on social media citizens everywhere’. platforms is increasing and is moved by more people 2.2 Shi!ing Consumption Habits watching content on their phones and computers, interest in live information, and easy access to live streaming. "e Other studies observed the changing TV consumption impact of this shift on news media is whether or not to re- pa%erns in this changing landscape, e.g. mobile broadcast content streamed through social media and to consumption, time shifting of media consumption, and decide what serves best ‘the public interest’ [23,p.96]. binge-watching. "e author in [3] highlighted that the digitalization and Internet are changing the supply and 2.2.3 Binge-Watching. One common de$nition of binge- consumption of media. "e author di#erentiated between watching refers to longer watching sessions of serialized the current wave of Internet developments, where the mass content. "e author in [9, pp.7-8] examined that concept as online video consumption is impacting the development of a mainstream practice and argued that it o#ers ‘an entirely media, telecom and Internet industries, and a second wave di#erent media experience’ as consumers control their where ‘Future Media Internet’ can present ‘the next schedule and viewing behavior, once controlled by generation of media and personalized content services’. broadcasters. She mentioned that Net!ix realized the high Another study [12, pp.52-53] highlighted that VOD and demand for DVD box sets of quality drama and availed a mobile video have created new consumption habits and ‘binge-model’ when they launched their streaming service ‘expectations’. "e author mentioned that personalized TV in 2007. "e author highlighted that Net!ix’s binge-model scheduling, anywhere, and at any time has become a ‘de and personalized recommendation have become the facto’ model, especially among the young audience, a ‘de- standard for publishing content on VOD services and is linearization’ that impacted traditional TV networks. "e partially linked with quality ‘binge-worthy’ sophisticated study also pointed out that the preference for time shifted storytelling that encourages this viewing protocol [9, pp.9-

15]. "e author argued that binge-watching departs from assistants to control smart TV and searching for content is the passive watching of ‘whatever’ is on the ‘low-brow’ TV advanced mainly by the rapid improvements in AI medium and indicates a di#erent deliberate consumption of processing and understanding the human language, where quality content. "is habit can denote a new way of big tech companies are competing to be ‘the voice of consuming TV and ‘may even function as a linguistic consumer’[26, p.26]. alternative to ‘watching TV’[9, pp.18-19]. 2.3 Overview of Market Shi!s and Video 2.2.4 Personalized Entertainment and AI. As mentioned Consumption Trends in the US earlier in [3,9,12,13] a personalized entertainment o#ering In this section of the background chapter, we review trends is a core value for consumers and a major di#erentiator for in the US TV market. Our study does not aim to present a streamers. VODs resort to advanced algorithms and comparison between the US and Swedish TV markets. machine learning to provide personalized user experience, Instead, we provide an overview of trends in an in!uential optimal content recommendations, and improved quality of market that are a#ecting the Swedish TV market–among streaming. "us, it is suited to present a brief about AI and other markets to varying degrees–in several ways, e.g. some of its applications in this $eld. American international streamers, technologies, "e Big Nine [22, p.27] de$nes AI as ‘a system that makes innovations, American content. American streamers and autonomous decisions’ which imitates the human tech companies relate to direct implications on the structure intelligence in understanding its surroundings and devising of the TV market in Sweden as well as the market share and strategies to solve problems. According to Amazon CEO, future of SVT and other local actors. "us, it is suited to Je# Bezos, problems we are solving with the help of AI were relate to those trends in this chapter. To preserve earlier ‘in the realm of sci-$’. He mentioned that AI will consistency in numbers in this section we examine two ‘improve every business’, and machine learning presents consecutive editions of Digital Media Trends reports from countless values, including improved search results and Deloi%e Insights. Following is a brief about these two product recommendations for customers[10]. "e Future studies, (see Appendix C for more details about each study). Today Institute explained that AI is growing and argued Digital Media Trends the 12th Edition had a panel of 2088 that ‘AI represents the next era of computing’. "e report respondents. "e survey provides insight into how $ve di#erentiated two types of AI, i.e. weak and strong, and generations of US consumers are interacting with media, clari$ed that examples of weak–or narrow–AI include text products and services, mobile technologies, and the Internet. auto-complete functions and system recommendations such Data were collected in November 2017 and were weighted as that of Spotify and Amazon, while strong –or general– back to the US census to give a representative view of the AI systems can think and make decisions on their own like average US consumer[25,p.3]. humans. "e report added that machine learning is the part of AI that helps systems anticipate user’s behavior and Digital Media Trends the 13th Edition had a panel of 2003 make ‘real-time’ autonomous decisions, while deep learning US consumers that was weighted back to the US census to is a new branch of machine learning, whereby systems give a representative view of the average US consumer. learn through combining deep learning algorithms with Data were collected by an independent research company ‘terabytes’ of data[23, pp.20-21]. from December 2018 to February 2019[26,p.4]. "e author in [4] emphasized that AI is changing the media It is good to note that $ndings from Deloi%e Insights are and entertainment industry and major OTTs are investing used as a main source of insights among many institutes heavily in this technology to understand the consumer’s and organizations, and–not the least–are referred to in new consumption preferences, o#er personalized services reports by other research institutes, e.g. [23], and be ‘future-ready’. "e article underlined that AI ‘is here 2.3.1 The Surge of SVOD, Premium Original Content to stay’. Using AI to create trailers is just an example of the Ma"ers. Deloi%e Insights in [25] observed that Americans capabilities of this technology, while content recognition spent, ‘nearly as much time watching video as they do on and tagging facilitate search on management systems, and their jobs’, an average of 38 hours per week out of which 15 streamers like Net!ix already rely on AI for personalized hours are streamed. "e rise during the past years is recommendations and also for optimized video quality and a#ecting the time spent on other media and is mainly delivery. Deloi%e Insights signi$ed the promise of voice- driven by streaming –55% of US households subscribe to enabled digital assistants for changing the way people streaming services. "e survey indicated that, in 2017, interact and consume media. Early adoption of digital SVODs overtook the time spent on free video on demand

services (FVODs). Consumers who strongly agreed in the the value for the dollar, and a#ordability. "e study pointed survey, answered as follows: SVOD allows me to watch to another challenge: 56% keep their pay TV only because it content when I want, it allows me to watch content without is packaged with their home Internet connection, and commercials, I value the quality of original content o#ered, underlined those subscribers might be encouraged to leave it allows me to watch content on multiple devices. "e pay TV when 5G connectivity is widely available [25, p.8]. report pointed out that award-winning original content drives this surge–54% of SVOD subscribers mentioned that they subscribed to watch quality original content. It also emphasized that traditional broadcasters would have to ‘rethink business models’ as they continue to face pressure from streamers, but also from technology entrants shifting from distribution to content creation, and from media companies that are going DTC. Figure 2.3.1.1 shows that in 2017 streaming reach has increased in all age brackets, and 48 % of all US consumers streamed TV content daily or weekly, compared with just 37 % in 2016. "e challenge for Figure 2.3.2.1: Households that have cut the cord on pay streamers is how many subscriptions a consumer can keep TV during 2017. You indicated you and/or your household and is willing and able to pay for; various subscriptions can do not currently have a pay TV service. Please tell us when be expensive and confusing, and consumers may ‘choose to you canceled your pay TV service. Source: printed with scale back’ [25, pp.4-6]. permission from Deloitte Digital media trends survey, 12th edition. 2018 Deloitte Insights. 2.3.3 Generation X Joins Digital Savvy. "e survey highlighted that 64% of Generation X had a streaming service, shown in Figure 2.3.3.1. "e rising digital media adoption and the rising ‘disposable income’ of Generation X, challenge pay TV providers to hold them in, and presents an opportunity for streamers [25, pp.10-11].

Figure 2.3.1.1: Daily/weekly reach growth of streaming activity. How frequently do you stream television programming?. Source: printed with permission from Deloitte Digital media trends survey, 12th edition. 2018 Deloitte Insights. 2.3.2 More are Cu"ing the Cord. "e authors in [25] mentioned that when consumers can access the freedom of watching the content they want, at the time, and on the Figure 2.3.3.1: Generations Z, millennials, and X fuel the device they want with streaming services, they are rise of SVOD. Does your household subscribe to a reconsidering the value of pay TV (satellite or cable) streaming video service? Source: printed with permission subscriptions. IPTV penetration has dropped from a stable from Deloitte Digital media trends survey, 12th edition. position around 75% over the past years, to 63% in 2017. 2018 Deloitte Insights. Within the respondents who no longer have a pay TV 2.3.4 More Binge-watch More. "e Digital media trends subscription, 27% ‘cut the cord’ during 2017, shown in survey pointed out that consumption of long-form content Figure 2.3.2.1, and 16 to 22% of Generations Z, Millennials, on mobile phones has increased dramatically, with Generation X households never had pay TV subscription generation Z, millennials, and generation X, due to and are ‘probably unlikely to do so in the future’[25, p.7]. streaming services and unlimited data plans. Binge- "e authors also clari$ed that the main reasons behind watching has also increased: 91% of generation Z, 86% of cord-cu%ing are dissatisfaction with pay TV, the comfort of millennials, and 80% of generation X say they binge-watch, streaming services, a strong appetite for original content, and also the number of episodes they consume has

increased [25, p.12]. Figure 2.3.4.1 shows that millennials multitude of video streaming services has its shortcomings binge around 7.5 episodes of a TV series in one go. and clari$ed that the studios are increasingly pulling back their content and launching their DTC services. Although

original content is the main reason for subscribing to a streaming service, a ‘broad library’ of content is also important: 57% of consumers feel frustrated ‘when shows disappear from libraries on streaming services’. Another problem lifted in the survey was the ‘discovery di&culties’: 48% said ‘it is harder to $nd the content they want to watch when it is spread across multiple services’ and 43% of consumers said ‘they give up on the content search if they cannot $nd it in a few minutes’. Spreading personal and $nancial information across multiple subscriptions is also becoming a worry as consumers fear ‘identity theft, $nancial loss, and the use of sensitive data without their Figure 2.3.4.1: Generations Z, millennials, and X are heavy authorization’ and they want to be in control. [26, pp.7-8] binge-watchers. When binge-watching, what is the average number of episodes you view in a single sitting?. Source: printed with permission from Deloitte Digital media 2.4 Overview of Market Shi!s and Video trends survey, 12th edition. 2018 Deloitte Insights. Consumption Trends in Sweden Having presented an overview of major US trends, we 2.3.5 Personal Data and Personalization. "e Digital media trends survey indicated that consumers are willing to share move to discuss the Swedish market. We $rst present a brief personal data in exchange for value–premium content, on the Swedish public service main challenges in this personalized experience, relevant ads– but they want shifting landscape and then elaborate on the TV control. "e authors highlighted that consumers have consumption trends in Sweden and narrow down the focus always been communicating to markets what they want and to the position of SVT Play. "e main quantitative data are willing to pay for services they value–with money, time, reviewed in the following sections of this chapter are taken or data. "is value-trade represents an exceptional business from SVT as well as from MMS, Ungdomsbarometern, "e opportunity ‘companies that have aligned their o#erings to Swedish Internet Foundation, and Nordicom. Some numbers meet these consumer values have been wildly successful’ might slightly vary between di#erent studies depending on [25, p.16]. methods and time of study, but general trends remain the same. We refer to these studies to highlight di#erent 2.3.6 Video Streaming Surpasses Pay TV. Deloi%e Insights’ aspects and gain a be%er understanding of the Swedish TV following year survey [26] indicated that, for the $rst time, market and the position of SVT Play. Below is a brief about streaming has become the ‘preferred’ way to consume video each study (see Appendix C for more details). in the US: overall respondents who have at least one SVOD are 69%, versus 65% who have a pay TV subscription, while "e Swedish Media Barometer (Mediebarometern) 2019 for millennials it is 88% versus 51% respectively. However, survey measures the daily reach of di#erent media among a traditional pay TV still has a strong presence: 43% of all random ratio selection sample of 6011 participants of the households still have both to access live TV, news, sports, population in Sweden between 9 and 79 years old. "e and TV shows that are available on traditional pay TV sample is drawn from the Swedish Population Register. "e networks[26, p.3]. "e survey indicated that the number of survey took place in February-June and August-December SVOD subscribers who said ‘they subscribed to access 2019[16. pp.1-5]. Respondents with a university degree original content’ increased from 57% in 2018 to 71% in 2019. were over represented in the study. Also, since the study is "e authors emphasized that streamers are spending billions conducted in Swedish, the part of the population that does of dollars to di#erentiate with award-winning original not speak Swedish was ‘severely under represented’[16. content and are excelling in this mission–Net!ix was on top p.9]. Mediebarometern is a yearly survey that has been of the 2018 Emmy awards with 112 nominations and tied carried out by the Nordic Information Centre for Media and with HBO, 23 winnings each [26, p.5]. Communication, (Nordicom) at Gothenburg University since 1979, ‘which makes the survey the oldest of its kind in 2.3.7 Featured Drawbacks of Streaming. "e authors in [26] the world’. Also, the sample size of this survey is the largest highlighted that the ‘freedom’ of choosing among a amongst other studies.

"e and the Internet (Svenskarna och internet) is a is challenged by declining numbers in public trust as well as yearly survey of the Swedish Internet Foundation. "e increasing pressure from competition and it is critical that survey is designed according to a revolving panel design. public service succeed in catering to all citizens in Sweden. "e samples are drawn from the Swedish Population "e report noted that digitalization and globalization are the Register and Marknadsinformation to include a main drivers behind the fast shifts in the media scene. "e representative sample of the population. Participants in the authors underlined that the growing market share of global 2019 study were divided into age groups starting from 12+ streamers, like Net!ix, imposes new game rules for local years with no upwards age limit. In this study, 1,701 people actors since such players operate on a global scale with (57%) participated in the survey via an online survey and investments beyond the reach of national players. 1,302 (43%) via telephone. "e 2019 survey was conducted "e report emphasized that these developments have in February and March 2019 [18, pp.164-65]. It is good to increased the pressure on SVT and other actors to improve mark that the 16-25 age group was slightly over represented both the ‘quantity and quality’ of their o#ering[15, pp.33- (16.4% in the study, versus 13.5% as per SCB) which stood 37]. "e authors also highlighted that consumers are out among other slightly over or under-represented recently able to access an increasing number of media over segments. Svenskarna och internet provides insights on the the Internet and can choose when, where, and how to Internet habits of people in Sweden, how the Internet usage consume media. But they emphasized that while this is is developing, and the digitalization of society. positive, it can also contribute to di#erences in media MMS measures the consumption of video and delivers daily consumption and access to information and it can lead to viewing $gures for TV and online. "e TV panel consists of polarized opinions and worldviews [15, p.38]. "e report 3000 households with TV meter (people meter) installed on underlined that the shifting viewing habits and competition every working TV set in every household. In addition to the on the audience’s time pose many challenges for public whole household ge%ing a certain weight, each member of service, related to technical and content aspects for reaching the household is weighted to re!ects how many in the the audiences, especially younger age groups [15, p.48]. In population this individual's TV viewing represents. "e 2019, the public trust and social value numbers of SVT have period for this annual report, MMS TVÅret-2019, is 2018- stabilized among the audience, while the time spent, and 12-31/2019-12-29. It is noteworthy that using people meter personal value numbers have increased. But these numbers provides accurate time spent and reach numbers, compared varied between di#erent age groups–social value numbers to numbers derived by other methods, e.g. surveys or and personal value numbers were lower among the 20-39 interviews. It is also important to mark that this report years group, 57%, and 47% respectively, compared to 68% gauges consumption and access of media based on data and 59% among 16-80 years [19, pp.53-57]. derived throughout the whole year, which allows for more 2.4.2 The Internet and Online Consumption. Svenskarna och detailed insights on–for example– daily, weekly, quarterly internet 2019 indicated that 98% of the Swedish households pa%erns or growth. have access to the Internet (rising from 85% in 2010), 95% of "e Youth Barometer (Ungdomsbarometern) is a leading the population uses the Internet, and 91% uses the Internet research institute that studies the youth in Sweden and daily. "e survey indicated that access to $ber increased to tracks their habits and changing behaviors. "e 57% in 2019 from 48% in 2017, the number of connected Ungdomsbarometern – Rörligt Innehåll 2020 study [21] was devices in the household also increased, and access to conducted online among 4.261 participants nationally mobile broadband increased to 32% from 27% in 2017 [18, representative sample, of ages 15-49, between 18 November pp.7-8]. In the following sections, we discuss mainly and 2 December 2019. "e institute has core expertise in average daily time spent and average daily reach $gures to market research for 15-30 years age groups, but extends to present a consistent overview–reach refers to the older age groups as well. Ungdomsbarometern provides percentage of consumers who access a certain medium or insights for various sectors, e.g. government agencies, content at least once during a certain period (day, week, interest groups, media houses, consumer goods companies. month) [16, p.11]. "e research and reports of Ungdomsbarometern spans Figure 2.4.2.1 presents the reach growth of online video education, work-life, society and lifestyle, digitalization and since 2007, whereby the daily reach more than doubled communication, brands, and consumption. between 2015 and 2019. "is increased consumption is 2.4.1 SVT Strategic Goals. "e Parliamentary Public Service thro%led by younger audiences as 7 in 10 between 12–25 Commi%ee report [15, p.14] emphasized that public service

years watch video over the Internet daily, compared to 1 in and more consume video over the Internet [18, pp.124-125]. 10 of the 65+ years of Internet users [18, p.129]. Figure 2.4.2.1.1 illustrates the current Swedish TV value chain. "e outline highlights that actors in the traditional

structure (content, aggregation, and distribution) can bypass the chain and reach consumers directly through the Internet.

Figure 2.4.2.1: Online video reach: percentage of Internet users (12+ years) who watch video/!lm on the Internet. Source: printed from Svenskarna och internet 2019. However, this increased consumption of online video did not add up to the overall time spent on video (moving image). Instead, it was accompanied by the declining share of linear TV presented in $gure 2.4.2.2.

Figure 2.4.2.1.1: An outline of the television industry value chain in Sweden 2020 2.4.3 Divergent Consumption across Age Groups. 2.4.3.1 Moving Image: Daily Reach. Mediebarometern highlighted that, in 2019, of the overall population between 9 and 79, 90% had a daily reach to a form of moving image. Figure 2.4.2.2: Moving image developments: average time spent per day and per person (16-66 years) on all video. While traditional linear TV had the highest daily reach with Source: adapted with permission from MMS-TV-året 2019. 58%, streaming services (SVODs, FVODs, AVODs: ad- MMS indicated that between 2010 and 2019, the overall supported video on demand), apart from YouTube, followed average daily reach of linear TV dropped from 70% to 56%, with 47% daily reach, and YouTube came third with 41% the overall average daily time spent dropped from 160 to daily reach [16, p.34]. "e survey marked the divergent 127 minutes, while among younger age groups the decline behaviors among younger and older audiences whereby was even steeper, e.g. the average daily time spent for 15-24 streaming services were preferred among 9-44 age groups age group dropped from 100 minutes to 29 minutes the over linear TV, but for the 45-69 groups, it was the opposite. same period [1, pp.11-12] Extreme divergence can be marked in $gure 2.4.3.1.1: for the 15-24 group, YouTube had the highest daily reach (80%), 2.4.2.1 !e TV Value Chain in Sweden. Besides the traditional radio and TV, Swedes can access an followed by streaming (65%)–the highest reach for unprecedented number of options and content over the streaming services among all age groups– and last linear Internet, including streaming services–made possible TV (35%). For the 65–79 group, linear TV had the highest through digitalization and new communication technique reach (89%), followed by streaming (22%)–the lowest reach [15, p.34]. Although traditional TV still has a strong for streaming services among all age groups– and last position, 57% of 16+ years access traditional TV daily, more YouTube (11%).

100 continued to gain grounds and were the service of choice 90 for the majority in 2019 [21, p.10]. Figure 2.4.3.3.1 shows 80 70 that as SVOD grew on ‘explorative viewership’ from 26% to 60 35% between 2017 and 2019, preference for linear TV 50 dropped from 32% to 22%, and free streaming services–like 40 30 SVT Play, TV4 Play, Viafree, – dropped from 13% to 20 10% during the same period. 10 0 40% Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years 35% Moving image total* TV total Linear TV 30% Streaming TV YouTube 25% Figure 2.4.3.1.1: Moving image: average daily reach, 9–79 20% years, 2019 (percent). *All forms of moving image, 15% including those not presented in the !gure. Source: 10% adapted with permission from Mediebarometern 2019 5% (Nordicom: Gothenburg University). 0% Turn to SVOD* Turn to YouTube Turn to linear TV Turn to free play Turn to others Not sure/don’t know 2.4.3.2 Moving Image: Time Spent-Linear TV, Streaming TV, service* YouTube. In 2019, the overall population between 9 and 79 2017 2018 2019 spent daily an average of 120 minutes on linear TV, 58 minutes on streaming services, and 34 minutes on YouTube Figure 2.4.3.3.1: SVOD is the main choice for ‘explorative’ [16, p.38]. Similar to the daily reach pa%erns, there was a viewership, average total 15-49 years. *SVOD (e.g. Net"ix, HBO Nordic) free play services* (e.g. SVT Play, TV4 Play). clear correlation between younger age groups and the time #estion: if you do not know what you are going to watch, spent on streaming services and YouTube. where do you turn to !rst? Source: adapted with permission from Ungdomsbarometern-Rörligt Innehåll Figure 2.4.3.2.1 shows that age group 15-24 spent the 2020. highest time on streaming among all age-groups, higher "e survey indicated that this explorative viewership than their time spent on linear TV (92 minutes and 89 preference varied widely across age groups. For 15-24 years, minutes respectively), while age-group 65-79 spent 146 preference was for YouTube/ SVOD, for 25-44 years SVOD, minutes–the highest time spent on linear TV among all age whereas for 45+ years it was linear TV. "e authors of the groups–and 27 minutes on streaming. report emphasized that the biggest change between 2018 160 and 2019 was the shift of the 40-44 age group from linear 140 TV to SVOD and anticipated the next age bracket (45+) is 120 likely to shift habits thereafter [21, pp.11-12]. 100 2.4.3.4 Pay TV versus Streaming Subscriptions in 80 Households. MMS marked that between 2015 and 2019, the 60 overall reach of play services–AVOD and broadcast video 40 on demand (BVOD)–grew by 28%, play services excluding 20 YouTube grew 18%, whereas SVOD grew by 123% pushing 0 the overall growth of online consumption [1, p.36]. "e Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years Mediebarometern indicated that, in 2019, 63% of the Linear TV Streaming TV YouTube population 9-79 in Sweden had access to a video streaming subscription at home, and half the population had access to Figure 2.4.3.2.1: Moving image: average daily time spent, 9–79 years, 2019 (minutes). Source: adapted with a pay TV package[16, p.112]. As illustrated in $gure permission from Mediebarometern 2019 (Nordicom: 2.4.3.4.1, access to video streaming subscriptions was Gothenburg University). highest among younger age groups (9-44), and access to pay 2.4.3.3 !e Viewers’ Choice for Exploring Content. "e TV was lowest for the 15-44 age groups. It is also Ungdomsbarometern survey highlighted that when interesting to mark that the 45-64 age group had the same consumers (15-49 years) were asked which service they access to video streaming subscription as it had for pay TV would choose to explore when they do not know what to (60%), leaving the 65-79 the only age group that is lagging watch, SVODs–like Net!ix, HBO Nordic, Viaplay, Cmore– behind this high streaming subscription penetration.

90 Spåret, Eurovision Song Contest, Årets Julvärd 2019), and in 80 total had 7 of the top 10 list in 2019. 70 60 45 40 50 35 40 30 30 25 20 20 15 10 10 0 5 Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years 0 Streaming Subscription Pay TV subscription SVT1 TV4 SVT2 TV3 TV6 Kanal 5 SVT 24 SVT Barn Figure 2.4.3.4.1: Pay TV/Streaming subscription: household Kunskapkanalen access, 9–79 years, 2019 (percent). Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University). Figure 2.4.4.1.1: 2019 Daily reach of top 9 TV channels, 9- 79, 2019 (percent). Source: adapted with permission from Not only SVOD took over pay TV subscription share, but Mediebarometern (Nordicom: Gothenburg University). the stacking of SVOD subscriptions per household has also "e $ve channels of SVT combined (SVT1, SVT2, SVT increased [1, p.38]. Figure 2.4.3.4.2 illustrates the number of Barn, SVT24, and ) had a 44% daily reach consumers who have access to more than one SVOD service [16, p.41]. Across genders, SVT2, Kunskapskanalen, and has more than doubled between 2015 and 2019, and the SVT24 had higher reach for males, but for TV4 it was the majority of consumers have access to at least two opposite. Lower reach for linear TV among younger subscriptions in 2019. audiences was also exhibited as the reach of SVT linear channels combined was lowest among the age group 15-24 (19%), and highest among the 65-79 group (78%), a similar pa%ern can be also marked with TV4, see table 2.4.4.1.1.

Table 2.4.4.1.1: TV Channels: daily reach%, 9–79 years, 2019 SVT Total SVT1 SVT2 Kunskapskanalen SVT Barn SVT24 TV4 Total(9-79) 44 40 24 8 4 3 37 Females 44 40 19 7 5 2 40 Males 44 40 28 9 4 4 35 9–14 years 28 17 6 3 15 1 25 15–24 years 19 17 6 3 2 1 22 Figure 2.4.3.4.2: Stacking of SVODs: Share of 9-99 years 25–44 years 25 20 10 3 7 2 23 who have access to SVOD service/s. Source: printed with 45–64 years 57 53 33 11 3 3 46 permission from MMS-TV-året 2019 65–79 years 78 75 48 18 2 7 62 2.4.4 Overview of SVT Linear Channels. Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University). "e Mediebarometern 2.4.4.1 SVT Linear TV: Daily Reach. 2.4.4.2 SVT broadcast: A Rapidly Aging Audience. MMS survey marked that among linear channels during 2019, underlined that for linear TV, time spent and reach are both SVT1 had the highest daily reach (40%) for total population declining in all age groups, apart from the 60+, and the 9-79, followed by, the biggest commercial channel, TV4 divergence of consumption pa%erns among younger and (37%), SVT 2 (24%), Kanal 5 (12%), while other channels had older age groups becomes bigger [1, p.16]. "is bleeding on a reach below 10% [16, p.40], see $gure 2.4.4.1.1. "e almost all age groups has left the medium with an authors in [1, p.14] stressed the importance of big formats increasingly aging audience. "e department of Audience as the main driver for viewership. Among the highest and O#ering Analysis at SVT (SVT Publik- och viewed programs on TV, SVT1 came in the top 5 Utbudsanalys) highlighted that for every year that passes, ( 19 , Final Kalle Anka och hans Vänner, På the audience of SVT1 ages a year, and the median age for

the audience on SVT1 in 2019 was 69 years, the highest 2.4.5.1 SVT Play: Daily Reach. "e average daily reach of among linear TV, marked in $gure 2.4.4.2.1. "e report video streaming in 2019 for the total population 9-79 was indicated that having a ‘mature’ audience is a prerequisite 47%. Figure 2.4.5.1.1 shows that, with 29%, Net!ix had the to a%ain the reach and high time spent for broadcast, but highest reach among streamers. SVT Play came second with alarmed that reaching families and younger audiences has 19%, Viaplay/ViaFree and C More/TV4 play had 10% each, been in decline, whereas the viewership of young and while HBO Nordic had a daily reach of 6% [16, p.44]. young adult age groups has never dropped as it did in 2019. 35 SVT today has no regrowth of viewership [19, p.7]. 30

25

20

15

10

5

0

Netflix Dplay Strive Others SVT Play UR play HBO Nordic Viaplay/Viafree Amazon Prime C More/TV4 Play Figure 2.4.5.1.1: Streaming services: daily reach, 9-79, 2019 (percent). Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University). However, across di#erent age groups, streamers had their highest daily reach numbers among the 15-24 age group, see $gure 2.4.5.1.2, whereas–like SVT linear channels– SVT Play fell short in reaching this group, and instead had the highest reach among streamers in the 65-79 age group [16, p.44].

Figure 2.4.4.2.1: Median age for the viewers of linear TV. 70 Source: printed with permission from Publikutfall 2019, 60 SVT Publik-och Utbudsanalys-MMS 50 Despite the reach increase for SVT online, the overall reach 40 of SVT (online and linear TV) continued to drop, due to the falling reach of its linear channels, and this decline was 30 steeper among young and young adults[19, p.43]. 20

2.4.5 Overview of SVT Play. "e Ungdomsbarometern 10 marked that apart from YouTube, viewers of AVODs 0 (Viafree, Dplay, TV4 Play) often know what they want to Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years watch when they start the service, highlighted in $gure Total * SVT Play Viaplay/Viafree C More/TV4 Play

2.4.5.1. In comparison, Net!ix and YouTube are the only services that ‘magically succeed in both; to be explorative Figure 2.4.5.1.2: Streaming Services: daily reach, 9–79 and get the viewers to stay longer– adding up many more years, 2019 (percent). *All streaming services, including those not presented in the !gure. Source: adapted with minutes’[21, p.23]. permission from Mediebarometern 2019 (Nordicom: Gothenburg University).

Figure 2.4.5.1: Explorative consumption on YouTube and Net"ix goes hand in hand with more time spent than intended. #estions: How o$en do you know what you want to watch when you start [X]? How o$en you watch longer than you have planned when you watch [X]? Source: adapted with permission from Ungdomsbarometern-Rörligt Innehåll 2020. 2.4.5.2 SVT Play: Time Spent. MMS reported that the 2.4.5.3 SVT Play: Reach Growth. When it comes to weekly average daily time spent on SVT Play for the total reach growth –apart from YouTube– SVT Play was the population (9-99 years) was 10% of the total time spent biggest streamer in Sweden in the last quarter of 2019. But online in 2019[1, p.44]. SVT Play had the third position SVT Publik- och Utbudsanalys [19, pp.24] also pointed out after YouTube and Net!ix, as highlighted in $gure 2.4.5.2.1, that the growth rate of SVT Play was lower than that of and remained a clear leader among all other national other streamers, while that growth is characterized by a streamers (40% bigger than the second local streamer steep seasonal curve seen in $gure 2.4.5.3.1. Viaplay).

Others 14% YouTube 25% Twitch 3% HBO Nordic 3% Facebook* 4% Instagram* 4% TV4 Play 4% CMore Play 4% Ne,lix ViaPlay 23% 6% SVT Play 10% Figure 2.4.5.3.1: SVT online and SVT Play weekly reach Figure 2.4.5.2.1: Top 10- Online Video daily time spent (percent) quarterly growth for 9-99 years, 2015-2019. percentage (9-99 years) *moving image. Source: adapted Source: printed with permission from Publikutfall 2019, with permission from MMS-TV-året 2019. SVT Publik-och Utbudsanalys- MMS Finally, as we have seen throughout the above sections, covered. "e exact wording and order of the open questions studies about TV consumption are abundant. "e Swedish varied based on the !ow of each interview. Additional TV market and consumption are undergoing profound and follow-up questions were asked as needed. fast transformations. But, li%le is known about future Sampling included expert personnel from key positions at dynamics, and current challenges are many, and these have SVT as well as other media experts with diverse expertise not been studied yet. We have seen that while broadcast from various actors in Sweden and the Nordics who have continues to lose ground, SVT Play is still in a leading extensive knowledge about the topic, see table 3.1. position among local streamers. However, the divergent consumption on the service, its weaker position among 15- Table 3.1 Participants background and ID reference 24 years, and the steep growth of other streamers– Participant ID Participants Background spearheaded by Net!ix–remain among many challenges for A Key personnel at SVT the service to stay relevant for all audiences. B Key personnel at SVT To gain a be%er understanding of the future of SVT Play, C Key personnel at SVT we discussed topics based on $ndings from this chapter D Key personnel at SVT with participants from SVT and other experts that have E Media researcher, lecturer, author F Senior Consultant, media and markets extensive expertise in these topics. Methods of our study are G Media& telecom expert presented in the next chapter and our results are reported and discussed thereafter. We led systematic procedures, followed a code of conduct with all participants in this study, and obtained informed consent for participation. We used the in 3. METHODS all our correspondence and all interviews. All interviews "e study follows a !exible design. Relevant literature was have been recorded and side notes have been taken. Data reviewed as a starting point to support a more detailed were collected between February and May 2020. After the design and qualitative data collection and to gain a be%er initial interviews, we evaluated the adequacy of data and understanding of recent developments, see $gure 3.1. State analyzed common pa%erns that stood out as clear themes of the art studies and reports have been examined and re$ned our questions as the data collection and analysis thoroughly and relevant $ndings were presented within the progressed. "e total time of interviews amounted to 15,12 literature review and background to map out general trends hours from ten interviews with an average of 91 minutes and de$ne the scope of this study. Initial $ndings were then per interview. Data collected were transcribed, analyzed, wrapped among the inquiries discussed with the coded, condensed and categorized into major themes and participants of this study. sub-themes, summarized, and reported in this study. "e quantitative data reviewed in this study are taken from SVT and di#erent entities that research and publish media reports and statistics, including Deloi%e Insights, MMS, Ungdomsbarometern, "e Swedish Internet Foundation, and Nordicom (see Appendix C for more details about each study used). "ese institutes were contacted and permissions to refer to insights and $gures from their reports in our study were obtained as applicable. While some numbers might slightly vary between di#erent studies depending on the methods and time of a study, general trends remain the same.

4. RESULTS Figure 3.1: Framework for the research design "e analysis of data collected from the interviews is Relevant internal reports at SVT were also examined, but structured in eight interconnected recurrent themes. Each the main instrument used for data collection was in-depth theme contains subthemes and concepts presented in its interviews with a checklist of topics and questions to be subheadings, see $gure 4.1

Upholding Central question for Democracy Swedes

Unbiased quality Building and journalism bonding Society Adaptability to Fewer broadcast future challenges channels in future The role of Public SVT Play ahead Public Service Service in Sweden Online shifting agility The future of Other drivers SVT broadcast

Reaching SVT Play function young adults Distribution-TV SVT Play position convergence News position on Further mergers and SVT Play acquisitions Broadcast on SVT Always a challenge International Play streamers Reasons of this challenge

Local streamers Addressing this challenge Pressure on SVT’s Content on SVT financing model More subscriptions Play per household SVT Play exclusives Fiction and drama Personalization on Competition Content publishing SVT Play and promotion Content Acquisition

Seasonal curve and content publishing Entertainment Current Situation Content discovery Rights limitations Formats Better knowledge Cross-platform about audiences experience Open archive

Figure 4.1: %ematic network from data analysis 4.1 The Future of SVT Linear Channels that broadcast TV has during COVID-19 ‘for older audiences, broadcast has become a daily companion’. "e $rst topic discussed with participants (Ps.) aimed to capture their feedback on where SVT linear channels could 4.1.2 Online Shi!ing. Ps. highlighted that online shifting and be heading, and what factors control the shift so that we new consumption pa%erns drive the decline of linear gain a be%er understanding of the future role of SVT Play. channels. P.A mentioned that the linear consumption behavior of stumbling into something on a prescheduled 4.1.1 Fewer Channels in the Future. Ps. mentioned that playlist on a linear channel might still be there, but online linear TV is fading out but agreed it would be around for personalized playlists, based on the consumer’s habits and the next 10 to 20 years. Several Ps. indicated that there needs, supported by algorithms and curation, will continue would be less SVT linear channels. P.F motioned ‘there is to grow. Several Ps. highlighted that SVT’s approach is to still some life left in it’ and P.A elaborated ‘if we are talking advance towards online. P.C elaborated that global 2040, I think broadcast is dead. It could be faster or could be streamers did not penetrate Eastern and Central European slower. But if it is going to be an important playing $eld, no. territories at the same pace they did in the Nordics, and Linear channels are not where the future is’. P.C ‘I will be those territories did not take wide steps towards surprised if you will have the same amount of broadcast digitalization yet, whereas ‘for the past seven years we have channels from SVT, in ten years as we do today, but also to been adjusting processes, adjustment for organizational see a situation where we don’t have at least one broadcast changes so we can have a similar focus online as we have channel’. P.G also predicted less linear channels in the on broadcast’. P.A ponied out that SVT online is growing future, aiming mainly at niches of older age groups that do ‘the playing $eld is going to be online; it already is’. P.D not or might not be interested to shift online. P.C ‘this is the year where our digital products are greater than underlined the standpoint of public service ‘you have to television (linear channels). But this doesn’t mean that we serve everyone in society, and as it is today, a lot of people foresee that television will be extinct’. P.C ‘I think we are in the older demographic 65+ are not comfortable using moving towards having online as your main service’. P.G online service. So, therefore you will have to use broadcast explained that the shift to online started with the younger as well’. Similarly, P.G emphasized the mission of public audiences and have been ‘eating itself up into the older age service ‘to reach each and every one from the population. If bracket…50+ age groups haven’t switched habits that a large part or at least some part of the Swedish population extensively yet. But when this shift is going to happen, we is not found on SVT Play, well they really need to continue are going to see a huge drop in linear viewership, and that in serving that audience’. P.A highlighted the crucial role is probably going to be sooner than later’. 4.1.3 Other Drivers. Ps. pointed out other factors that could ‘many (from audience) are saying: the main thing that I use lead to a faster decline of broadcast TV. P.A noted that it for is watching a few things or something that I failed to viewers of SVT1 are aging a year every year, and the see when it was sent on a linear TV’. P.B also mentioned channels are not adding new viewers ‘we are a%racting that it is currently a complementary catch-up service, but it younger audiences on the digital side but not on SVT1’. P.E is growing and moving towards replacing broadcast mentioned ‘broadcast is expensive. I guess that a lot of channels in the future. P.C ‘I think it has a catch-up people want to shut down the traditional broadcast’. P.G function, more so than VOD service. I think it is often that also presented a similar view ‘from a commercial you need to have a prior relationship to the brand via standpoint, how long it’s viable to have linear broadcast’. P.A also pointed to the !uctuating viewership programming, not quite sure’. P.B. elaborated that broadcast curve on SVT Play–up in Q1 and Q4, down in Q2 and Q3 over the airwaves using radio spectrum would be deemed due to summer and holidays– following the typical seasonal ine&cient at some point ‘it is not actually the best use of curve of broadcast and compared that to the steady growth this limited resource, because it locks up quite a lot of of Net!ix across the year. P.G emphasized that for digital- frequencies…especially right now with 5G and new mobile only SVT users, SVT Play has to $nd its position ‘as technology’. Ps. A and G mentioned that while online something else in the default set up of YouTube, Net!ix and shifting has been going on for years, digital video not much else’. P.G brought a very signi$cant view while consumption during COVID-19 managed to fast-forward commenting on a background insight on explorative these trends years ahead. P.F stated ‘I think there will be viewing on YouTube and Net!ix adding to more time spent live TV but I’m not sure it will be distributed terrestrial, or on the services than intended, and emphasized that while via satellite, the way it is now’, and P.G se%led ‘I don’t Net!ix succeeds in locking audiences by premium and wide know if there is a future for linear channels or linear content catalog, YouTube does that, mainly, by being social, programming, but there is de$nitely a future for live ….You are on your own when you are on SVT Play, on programming’. your own when you are on Net!ix… You can’t see the 4.2 The Position of SVT Play number of views, you can’t see any reactions, thumbs up or thumbs down, you can’t see anything! Only on "is theme aggregates Ps.’ comments on the function and YouTube, a part of the platform is interaction…YouTube position of SVT Play in the online market. P.C mentioned is social by nature, but no other streaming service is ‘we have already shifted the focus of the organization social by nature. "ey’re quite unsocial really…the towards being SVT Play and SVT Nyheter as main younger parts of audience–that have grown up with services’. Ps. A and B pointed out that younger audiences YouTube, and grown up with social media and twitch, have been leaving broadcast for many years but now the and know nothing else–think that the old platforms are shift is steeper, and that SVT Play is growing but has not quite boring in comparison…I think the platforms are been able to win back all the lost viewership from the really doing a poor job in channeling that sort of broadcast. P.B elaborated ‘people are watching more engagement that the audience has. moving-picture, much more than before, but that time is being shared between us, YouTube and Net!ix and 4.2.2 News on SVT Play. "e approach of the news section everything…"e organic growth in the market is much on SVT Play was not clear for Ps. D, E, and G. "ey see the bigger than us to sustain a position’. Ps. A and C half hour format Rapport and Aktuellt will not be able to emphasized that part of the audiences reach SVT through a%ract new or younger audiences. P.E ‘for me, it is not Play and not through broadcast, and this implies that SVT where I go, the news of SVT Play doesn’t feel very modern’. Play could no longer be treated as a secondary platform. P.E P.G ‘I never use SVT Play for news, although I am a news emphasized the position of SVT Play ‘online services are junkie and I really like SVT Play. "e position 'Nyheter' on part of the future. I think it’s very important they succeed SVT Play is not entirely clear for me’. P.D elaborated, with SVT Play’. P.B marked that the reach of both online ….I think news is in a di#erent marketplace. You can put and broadcast is combined, and underlined ‘we have a traditional !agship news programs like Aktuellt, be%er position of moving consumers over to Play in a Rapport, and Agenda on SVT Play, but that would be the strategic manner’. digitization of traditional television shows, not 4.2.1 SVT Play function. Most Ps. marked that SVT Play is digitalization. Although this is also important because seen as a ‘compliment’ to linear channels. P.G mentioned we do get some additional viewers on SVT Play when it that SVT Play is currently more of a time-shifting service comes to our traditional programs, but I don’t think that

this is the area where we can a%ract new audiences, or capital-intensive mature telecom sector looking for audiences in the future. di#erentiation with content and looking to present a triple o#ering (mobile-broadband- TV), and ‘growing the value P.G added ‘if you want to a%ract audience with news on out of each customer’. P.B also highlighted that distributors SVT Play, especially young audience, I think there will be a used to be the ‘king’ because they owned the last mile, but need for a shorter format, and perhaps another news they became a li%le humbler when content became the king. product, although I think SVT News (Nyheter) is already P.A mentioned that Internet and the simplicity of online that product’. P.E also emphasized the signi$cance of news give TV channels direct relation with consumers, while for a%racting the younger audiences by providing ‘good operators have been watching the drainage of their position information around news topics. "e room for improvement in the Swedish market ‘the play$eld has moved from the big is how to approach your audience’ guys (distributors), saying that you need us to reach the 4.2.3 Broadcast on SVT Play. When asked about making consumer and we own the consumers’. Answering the SVT linear channels available on SVT Play on all platforms, question of would everyone (content, aggregators, several Ps. mentioned that this would not add big value to distributors) be doing everything, Ps. B and C mentioned viewers, based on where the service and the consumption that everyone is trying to do everything, P.C mentioned that pa%erns are heading, but also mentioned several di&culties everyone does not need to do everything. P.G emphasized for doing that. P.C ‘I don’t think online streaming of that everyone cannot do everything ‘is a telecom company channels will be a big thing in the future’. P.A mentioned really a good home for an entertainment company?’. P.A that consumers would want the autonomy to start when referred to the recent struggle between distributors and they want and that everything on linear channels is already aggregators ‘twice now within two months, the customers available on SVT Play ‘Life news, morning shows, or have been a#ected by channels taken down by service whatever big event on linear channels are sent live on SVT providers… it is a big risk that these operators are taking’. Play, it is just not packaged in a linear channel’. Ps. A and B P.B argued that distributors should focus on ‘the role they also pointed out that most households have cable packages, play on the Internet, that they are actually distributing and where SVT linear channels are already included. Other Ps. that they’re not brands in themselves. "ey make money on pointed to rights restrictions and mentioned that linear distributing and not by being gatekeepers’. P.B concluded channels on SVT Play ‘is a cost’. P.B added that the this topic by stating that local streamers, channel houses, question of distribution becomes irrelevant at some point, and distributors will learn to adapt to each other. whether through Internet, cable, or antenna ‘if there is a 4.3.2 Further Mergers and Acquisitions. Most participants demand to watch linear channels because it ful$lls a need emphasized that mergers and acquisitions increase the that the VOD doesn’t, then will make that available’. P.G pressure on SVT Play, and expected more of that in the near mentioned that linear channels on SVT Play might add future. But while Ps. anticipated further consolidation some value for older target groups or cord-cu%ers but was among local actors, they expected some actors to exit the unsure of the added value to the platform for di#erent market. P.G mentioned ‘it is a very crowded place right segments in the audience. now…Due to the international competition from Net!ix, 4.3 Competition Apple, Amazon, and from Disney+, I don’t think that is going to hold up for very long’. Similar thoughts were Competition was a widely recurrent theme in the expressed by P.C ‘it is hard to see how commercial Swedish interviews, which spilled over into most of the other broadcasting companies will be able to catch up’. P.A themes. In this theme, Ps. pointed to various types of direct questioned if it would be viable for one actor to keep several and indirect competition that SVT has always been facing. similar VOD brands (Telia: Telia Play+, Cmore Play, TV4 However, they emphasized on the increasing direct pressure Play). P.G indicated ‘there is room for a few local or on SVT Play. P.C indicated ‘now everything is coming to regional players, but a bit of plethora of streaming services the same screen, so all these di#erent types of media are and everyone gets their share of the wallet, I don’t think !owing into the same screen which makes them compete that is going to happen’. In the same vein, P.A doubted all with us more directly’. local streamers will be able to create a viable business model 4.3.1 Distribution-TV Convergence. P.A noted that the ‘we are still in the growing phase and it is $ne for some not recent consolidations and structural shifts added to the to have a good year, but then you have to show pro$t’. P.F pressure on SVT Play. P.G explained that the integration did not exclude the possibility of global actors seeking between telecom and content was mostly driven by the acquisitions in Sweden, looking for scale.

4.3.3 International Streamers. Ps. pointed out that while 4.3.4 Local streamers. Several Ps. highlighted that major international streamers, spearheaded by Net!ix, are local streamers such as Viaplay and Cmore are gearing up depleting the prospects of local streamers, SVT Play is still for the future by investing heavily to di#erentiate through the largest Swedish service by far. When asked whether exclusive sports rights and original content and building SVT Play should compete with commercial actors, P.F strong archives. P.C mentioned that many national commented ‘I think how they could not. Because as a streamers o#er ‘the same business idea of what Net!ix and consumer you are not going to be a sole public service other streamers are already doing, and they are very good consumer’. Similarly, P.C commented on competitions from at’ and P.F argued that local streamers ‘need to $nd international streamers ‘we have had that in the past as another position’. P.G asserted that original content is the well. Competitions from cinemas, direct competition from main reason to subscribe and stay on a service. P.A newspapers, and direct competition of terms of what people emphasized that Viaplay is ‘working fearlessly’ and is spend their time on’. P.G mentioned that compared to producing 20+ drama series every year, besides acquiring international giants, SVT Play is quite small ‘it’s really the Premier League rights until 2026. uneven playing $eld, you are competing with the biggest of 4.3.5 More Subscriptions per Household. P.A. indicated the the biggest’. P.F also emphasized ‘the pressure is de$nitely split so far has been around 40% for local streamers and 60% increasing from the global actors and they have massive for international streamers and the churn is within local content budgets that is really di&cult to challenge’. streamers and national streamers. P.F mentioned that Regarding content on international streamers, Ps. ‘SVOD penetration is not increasing as much as it used to underlined the centrality of original content and mentioned be before. However, stacking is’. P.E also anticipated that Net!ix can also be a player on Swedish content. P.E consumers to have more SVODs ‘I think we are turning indicated that Net!ix is not only producing Swedish drama more into an easy way to switch subscriptions. to ful$ll the EU requirements on local production ‘I also Subscriptions per household will witness growth, especially think it’s a ma%er of going local because local content has with big families’, while P.G did not see it feasible for a always been a key for a big audience. Even when American household to stack $ve streaming services and pointed to drama is important, having local Swedish content is very ‘the winner takes it all, or few winners take it all dynamics’. important. Content is king and it has always been’. P.G 4.3.6 Pressure on the Public Service Financing Model. pointed out that ‘only a few have done really well’ in local Several Ps. highlighted that SVT’s secured $nancing model $ction and Net!ix is a strong competitor on that. P.C is crucial for planning and trying di#erent strategies. But emphasized that international streamers have ‘an amazing they also mentioned that this model has always been under production quality’ but also underlined ‘they are not pressure and anticipated this to increase due to escalating commissioning based on what the Swedish audience are tensions within the industry and pressure from saying, they are basing it on their global audience a%itude’. international actors. P.F emphasized that the pressure from On the growth of international streamers in Sweden, P.G local actors is also due to external competition ‘much of the pointed out that Net!ix de$es market dynamics with its new digital dollars go to the global actors… If you are steady growth in Sweden ‘normally you don’t get that big looking from the point of view of public service SVT this on a market, because then competitors will come along and will also increase the pressure… I think the public service eat your market share, but Net!ix is the subtle $nancing model is going be challenged’. P.B indicated that exception…and still have lots of headroom to grow in older this has always been the case ‘everybody wants everybody’s age brackets, de$nitely’. P.A pointed out that even Apple money…but somehow, it’s harder to get the money back TV+ managed in few months to be double the size of a from Google’. P.C added that a stable $nancing model ‘is Swedish TV operator that has been in the market for many also part of the idea of having a public service company years and controls 40% of the TV distribution. P.B also accountable to the audience’. Similar remarks were shared predicted that Disney+ will be ‘a household name, you just by other participants. P.E underlined that secured $nances have it’, and P.F highlighted that many households with allow public service to plan and try di#erent strategies, and kids will subscribe to Disney+ ‘at least for a while’. P.G emphasized the importance of a public service $nanced underlined that Disney+ might be a ‘big threat’ to the VOD ‘people that don’t want to spend money on strong position of SVT Play with kids. subscription can always watch SVT Play… and I think it’s important that it is there and available for everyone’.

4.4 Content on SVT Play 4.4.2 Content Acquisition. P.E highlighted that SVT cannot Content was the most prominent and recurrent theme in the produce everything ‘they’re bound to buy content’, while data. It is also closely interconnected with other themes, e.g. P.F mentioned that it will become more di&cult for SVT to reaching all audiences, competition, the position of SVT buy content due to intense competition. P.C mentioned that Play, the role of public service. In this overarching theme, since major studios have their streaming services, it would we narrow-down to content on SVT Play. be harder for SVT to acquire American content, but mentioned that the focus will shift more to local content ‘if Several Ps. marked that there is no di#erentiated content on the national $ction is going to be a%ractive, it doesn’t SVT Play from that on SVT broadcast. P.A pointed out that necessarily have to be an American $ction…But we should although the focus is shifting towards digital services, it is be the most curious company in terms of buying still challenging to balance the resources between SVT Play international rights. Not necessarily the biggest volume. and broadcast, emphasizing the role of content ‘it always But, surely, we should be as curious as we could be’. about content, about programming and there is a continuous work and that is a primary work’. Similarly, P.F. 4.4.3 Formats. P.F also emphasized that new formats require underlined that content approach on SVT is a ‘strategic big investments ‘will we see new På Spåret?’. P.A choice’. P.C mentioned that transferring the same broadcast mentioned that $nding the next ‘crown jewel’ is a content model to SVT Play can be a challenge ‘what has continuous work but added ‘the cost for crown productions been our strength on broadcast might be seen as a weakness is humongous’. Ps. B, and C also mentioned that big formats in the online world if we are competing with catalogue are expensive and the competition for talent is $erce. But services like Net!ix and the others’. P.G emphasized that it P.B emphasized ‘we will not probably bid for the talent or is much more di&cult to a%ract digital viewers when there for the Tom Cruises. We could be probably building up new is ‘this much of good content at any given time’ as opposed talents and then le%ing them go’. P.C had the same view to the limited o#erings on linear channels in the past. that SVT had lots of talents over the years, but then they would move on ‘content is being internationalized as it is 4.4.1 Entertainment. Regarding entertainment on SVT Play with talents’. P.C also underlined that SVT will always Ps. emphasized this content is broad and is ge%ing more encourage new talents ‘we should be the $rst place where expensive. Several Ps. mentioned that while it is still needed they perform’. for SVT Play to remain relevant for the audiences, SVT Play can also focus on other content important for the audiences 4.4.4 Fiction and Drama. P.F emphasized the importance of that will not be o#ered by commercial actors. P.B original content ‘there’s always going to be demand for mentioned that competing with commercial streamers on local content’. P.A mentioned that on average SVT produces entertainment would not be possible due to budget eight drama series per year and does coproductions with limitations but also because SVT has to serve all Swedes other actors including Net!ix. P.F noted that there have with diversi$ed programming ‘we would be doing been fewer drama productions on SVT lately, but on the entertainment and drama as well, but those will not be other hand, they had be%er quality. P.A highlighted that competing with others. Speci$c programming like news, commissioning a drama series for SVT could take up to cultural programs, local and societal programs, and niche three years, and mentioned that when producing sequels, it programs are the things that will make us strongest’. P.C could become a challenge ‘to maintain the hype after a long elaborated on SVT Play’s approach ‘we say that we are interval between two seasons’. P.E underlined the trying to provide a contemporary view of Sweden, whether importance of high-quality production ‘I think local high- it’s $ction or entertainment or whether it is news then we end content actually ma%ers, because the audience will can provide a fuller kind of picture’. P.G underlined ‘there immediately notice if something is low budget, especially are lots of entertainment being available everywhere at all young audience’. P.A also highlighted ‘it has to compete times. But the things that are not available everywhere at all with the story and the quality because the expectations of times to everyone is where SVT really $lls the void. "at is consumers are so high in a world that you are competing the most important aspect of SVT continuing to be relevant with giants’. P.B expanded that SVT will not be able to to me’. P.B added that the approach for local content is a sustain a budget for premium drama production, and it is balance between the limited resources and the value o#ered rather a challenge of $nding a creative path to deal with to the audiences as well as ‘building the idea of public that. Similarly, P.A pointed out that SVT has been able to service Swedish brand’ produce successful drama series with a technique that can tell a good story and maintain high quality within the given

budget ‘but you cannot do that on everything’. P.E C mentioned that publishing content on SVT Play aims to emphasized that if a production is low budget it will be o#er new content continuously and build a library. P.A more challenging to reach and convince the audiences ‘it elaborated that content publishing depends on the type of has to be very special and extraordinary to win high program and on what works be%er for driving di#erent audience’. audience. P.A also mentioned that SVT Play tends to publish new episodes once or twice a week ‘because if we 4.4.5 Rights Limitations. Commenting on limitations that put everything at once we will burn all our content, but the hinder SVT Play from keeping at least all SVT productions trend goes for pu%ing all episodes out at once and le%ing and building a strong catalog like what other streamers are the user decide’. P.C highlighted that publishing on SVT doing, P.A mentioned that many SVT productions are on Play is a continuous work ‘I think we need to rethink the limited license. P.B mentioned that SVT’s model is more of way we have done things before’. P.C mentioned how ‘a traditional broadcast model for viewing rights’, for a changing the publishing of SVT’s award-winning limited period and number of runs, ‘it is very rare we have documentaries have driven audiences’ a%ention ‘we full rights. "at is also because of the budget. It used to be grouped together all of our documentaries and we created a important to show the program for the Swedish people not brand for documentaries online so that you can $nd them that we own it. But now with a VOD catalog, this is kind of easily on SVT Play’. changing’. P.C elaborated that owning full rights would mean having less content on SVT Play ‘we would have to 4.4.8 SVT Play Exclusives. When asked about SVT Play severely lower our production volume if we want to originals or exclusive content, P.C said ‘it is important to hundred percent $nance all the dramas that we provide to remember that SVT has only one content budget’ and SVT maintain the rights for eternity. We have done a lot of Play di#erentiates that content o#ering through the changes and we have done work around rights and how to publishing model. As for SVT Play exclusive o#erings, Ps. A maintain them in an e&cient way’. and C named many viewership ‘success stories’ and pointed to further work in this direction. P.A elaborated ‘some 4.4.6 Content Publishing and Promotion. ‘It is always shows are published on SVT Play before the broadcast, or content is King and publishing is 'een’, P.A. Most Ps. the broadcast is used for weekly then all episodes are put on emphasized that content publishing and promotion is SVT Play’, and emphasized ‘we have one million users only crucial for SVT Play. P.C mentioned that Net!ix succeeded using SVT Play and they don’t know anything about SVT in promoting the depth of their catalog, although users linear channels’. A di#erent viewpoint was expressed by watch mainly new shows once they subscribe. Similarly, P.B P.G ‘I think it (content) should be available on all platforms highlighted ‘the audience cares about content and branding. at the same time; it should be available to all audiences’. I think Net!ix has done quite well because the content is not that great actually, but they have a brand, they have a 4.4.9 Open Archive on SVT Play. It was highlighted in the service’. As for promoting SVT Play content, P.A pointed literature and background chapter and by many Ps. that out that there is a very limited amount of content that has Net!ix uses its vast catalog as a competitive advantage. trailers and mentioned that SVT is experimenting with AI When asked about leveraging the depth of SVT’s Open for trailers’ production, but ‘not fully there yet’, and also Archive on SVT Play, P.A pointed out ‘the whole catalog is using images for promotion. P.A also highlighted that cross- bigger than everything on SVT Play. We need to have the promoting on SVT linear channels is not as e#ective as it basic structure of personalization before we get good use’. used to be ‘now to reach certain audiences we need to show P.E also mentioned that it will be di&cult to navigate the trailer so many times on linear channels’. through the Open Archive ‘without a good recommendation system’. Similarly, P.G mentioned ‘surfacing the Open 4.4.7 Seasonal Curve and Content Publishing. P.A Archive would be really good, but you really need viewers highlighted the relation between content publishing and the to explore it, you need to help the viewers to explore it. A viewership curve on SVT Play, whereby in low seasons (i.e. good recommendation system is really key. Just having a Q2, Q3) viewers could opt for competition ‘everybody gets big catalog, well, it’s not going to be discovered’. used to going to Net!ix the whole time because they have something across the year’. But P.A also pointed out that 4.5 Personalization and Login on SVT Play publishing content across the year would also mean "is theme summarizes Ps.’ comments on content additional costs. "e same remark was echoed by P.B ‘we recommendation and a login function on SVT Play. "is should put more content on SVT Play. Some of the reasons topic was widely emphasized by Ps. and seen as a crucial we don’t, have to do with money and rights’. Ps. A, B, and

step if the service is to facilitate content discovery, o#er a recommendation is ‘telling people that you have the personalized recommendation, provide a cross-platform content. Otherwise, you would have fantastic content, but user experience, and learn more about its users. no one $nds it, then it’s useless. Service and content have to go together all the way’. P.C underlined, 4.5.1 Current Situation. Few Ps. mentioned that login on SVT Play could be di&cult. P.E mentioned that login would ….Content by itself is not king, it is $ndable content that be ‘a challenge’ since ‘they need to be accessible to is king. "ere can be so much content out there but if I everyone’. P.E also mentioned ‘I can understand why we can’t $nd it, it doesn’t ma%er. So, I think search function don’t have it: we have already paid for the service, why do and navigation is king. I think that is something we can we have to register?’. P.B elaborated that SVT has been always improve on. To me it’s not intuitive how SVT ‘circling’ around this question for several reasons, ‘it has to Play approaches this, and I know there has always been do with internal politics, it has to do with user’s experience, a struggle between di#erent factions within the it also has to do with resources and money. A good login company, whether you believe in the algorithm models solution with optimization, AI, and recommendations, you or whether you can believe more in a kind of curated can spend most of the public service budget just working editorial sort of human doing the curation. So, I think we with that question’. P.A mentioned that the current content have missed that ball a bit. recommendation model at SVT Play is based on what the In the same vein, P.A underlined that the lack of crowds are watching and what a speci$c user is watching, personalization ‘can be a killer’ for SVT Play and explained which suggests a 70-80% content match, ‘you can’t get to ‘we might have perfect content that suits you very well, but the level of personalization that Net!ix and others have. We if we mix that with so many di#erent things and you cannot take data at an aggregated level and then we can make $nd it, we’re not going to be relevant enough for you. general assumptions’. But P.A underlined that personalized You’re going to $nd other services that have this ability of section "ör dig ‘is very crude’ and further personalization is tailored o#ering that is more relevant’. P.G highlighted that ‘a challenge’ being worked out ‘in this new world, we need the question of content recommendation is essential for a also to be personalized and relevant to create that individual VOD service ‘how do people $nd what is in the catalog?’. value’. P.G emphasized that currently, the best curation the service o#ers is ‘o#-service…a weekly email that I get from 4.5.3 Cross-platform Experience. Another aspect emphasized SVT–somewhere I said that I am interested in SVT Play in the interviews on the question of login is the documentaries. So, each week I get a good recommendation di#erentiated user experience across di#erent platforms. for documentary content. "is is really good curation, but I P.A mentioned that since the current personalization model would want to have that on the site’. Commenting on on SVT Play does not collect data needed, it is limited to having a login on SVT Play, P.B mentioned ‘there is a layer one device ‘if you’re using di#erent devices, then we are that will need login. I think we’re not completely there yet. I losing track’. P.G underlined ‘there is no cross-platform think we can do a lot with recommendations and making compatibility whatsoever, and that is detrimental from a the user experience be%er. "ere are lots of things to work user experience perspective. I start watching on my phone with already. But I think at some point we will reach as far and my computer doesn’t want to know that I watched it’. as we can go’. P.A also explained ‘we need to get our basic 4.5.4 Be"er knowledge about the Audience. Ps. highlighted data structure in place and use the data that we already that a login system could provide crucial knowledge about have before adding this layer of collecting your data’. users and allow SVT Play to serve them be%er. P.E pointed 4.5.2 Content Discovery. Ps. emphasized the importance of out ‘I do not understand why they do not have a login content recommendation and discovery on SVT Play. P.F system. Since they don’t have that much data on who is indicated if SVT Play cannot apply these adjustments ‘it’s actually watching and when they stop watching. I think really going to be di&cult’. P.E mentioned ‘it is a very they should use these data to o#er more relevant content’. versatile service, and it is di&cult to recognize all the P.A also mentioned that audience reports (e.g. MMS) do not material. "e user just gets squares with categories and include the audience age groups ‘we cannot measure that, can’t make orientation of what can be interesting’. P.G gave because we don’t have a login’. Most Ps. concluded that it is an example ‘I’m never going to watch anything related to very intuitive and crucial to have a login on the service. P.E sports on SVT Play. So, I mean, SVT Play servicing sports ‘If I watch SVT Play, I would like to have it’. P.G ‘most content to me, well that’s really not going to be interesting users are so used to needing to provide at least some degree under any circumstances’. P.B also emphasized that a good of personal information in order for a service to $nd out

what is relevant. "at’s the foundation of all digital services, comfortable with the traditional model of media you need to feed them with something in order to get consumption at home’. P.B had the same viewpoint ‘all the something back, and the younger part of the audience are time and all generations had the same case’. A di#erent quite $ne with it’. P.E ‘you get the impression that they do viewpoint was pointed out by P.E ‘this also has something not have enough knowledge about who is actually visiting to do with how you approach the audience’. P.D, similarly, SVT Play’. P.C concluded this topic, mentioned ‘that’s been a bit of tradition of the a%itude of a company that used to be a monopoly a few decades ago, ….We don’t have a login function yet, which many of our that we know what the audience needs’. Ps. C, E, and G colleagues do, and in some cases, there have been marked that young audiences are very di&cult to follow, complains about creating a login, and sometimes they see and every other media company is trying to build that e#ective and communicate the reason behind it. So, I relationships with. P.B emphasized that SVT used to say think that the fact that we haven’t really took a stance in that young adults ‘will $nd us back when they grow up and terms of whether we should have login or not means that buy a Volvo because that what happens’, but warned that we have missed out on building a clearer navigation ‘this may not be true for this generation’. P.G had another model. perspective ‘everyone cannot do content for young 4.6 Reaching Young Adults individuals’, and mentioned, Commenting on the challenge of reaching younger age ….I’m not sure that a couple of adults at SVT would be group, i.e. 15-24 years, presented in the literature and able to do that on the sort of basis that is needed to background chapter, Ps. underlined that reaching this age a%ract younger audiences. I actually think no platform is group through SVT has been a ‘historic challenge’. "is really capable of doing that, except people who belong to theme summarizes Ps.’ comments on why this remains a the age bracket themselves who are very capable of challenge and how SVT Play could address this challenge. deeming what is interesting at the moment, this shifts sort of from week to week, from month-to-month. 4.6.1 Always a Challenge. Ps. emphasized that SVT has a vast mission to reach to the whole population and is already "e same view was echoed by P.E ‘I think they should have creating diverse o#erings for that, but reaching this age actually young people working for them. Because if you are group has been a problem for many years. Several Ps. old, you don’t have a clue on what actually works for described SVT’s viewership age group breakdown as a younger audiences.’ hammock –hängma#a– e.g. high with kids, low with young 4.6.3 Addressing this Challenge. When asked how SVT Play adults, high with older age groups. P.C pointed out that it is would be able to deal with this challenge, Ps. indicated crucial that SVT Play engages with all age groups, and content as the main key. P.C clari$ed SVT’s approach for emphasized ‘that’s what should you get for engaging with young adults ‘we are not competing to a%ract the younger public service’. "is view was also echoed by P.D ‘the audiences only to be able to sell ads’. P.F pointed out that ‘it philosophy behind having a broad public service is that if is a challenging target group, and they (SVT) won’t do any everyone is paying for the media, you have to be able to type of content; they will never do programming YouTube deliver something for everyone’, whereas P.E mentioned ‘I or EX on the Beach celebrities style’. Similarly, P.B guess it’s not easy for SVT to reach young audience. mentioned that while SVT Play is unlikely to go the path of "ey’re supposed to target the entire population’. mainstream entertainment and reality shows available 4.6.2 Reasons for this Challenge. Ps. mentioned various commercial channels ‘debates, documentaries, and other reasons behind this challenge. P.G pointed out that things form a more interesting menu to $ght for when it competitors have ‘quite unfair advantages’ whether the ‘big comes to younger audiences. If you’re a public service, you catalog of block-busters of Net!ix’ or the simplicity and don’t have to win every ba%le all the time’. Other Ps. interactivity on social media, and explained that on indicated that dealing with this challenge also has to do YouTube, younger audiences can create content, market it, with how the service approach this age group. P.E interact with their audiences, and learn in real-time. P.C mentioned few series that succeeded with the younger brought another perspective that this age group is seeking audiences on SVT Play and highlighted a reason ‘they have new ways of expressing themselves, and this has been the done a lot of research with young audiences and what do case across many generations ‘that was true when I grew up they want. "ey should not be afraid of producing content in the 70s and 80s and that was true in the 60s. Every that some people will think this is not for me’. "e short generation has in the same way that they’re not really answer of P.D to the same question of how to reach

younger audiences was ‘to see what is working out to else really’. Ps. pointed also to the success of SVT Nyheter, a%ract younger audiences’. P.D elaborated, P.G ‘it’s doing fabulously good’. ….I think the most important thing is to be curious and 4.7.1 Adaptability to Future Challenges. Most Ps. mentioned humble about the needs of the audience, and not to take that SVT can deal with future uncertainties, while some for granted that you understand what people need. I viewpoints indicated that the way ahead is more think in this situation where you have a totally di#erent challenging. P.B mentioned that SVT made a lot of good landscape and di#erent competition–competition not decisions and has lots of good people and added ‘I think only from other news organization but from everything easy targets were not easy when they were done. It is that could a%ract the a%ention–then you need to have a ge%ing harder and harder with the competition. Also, the di#erent approach and really try to understand what is barriers to entry and technology are ge%ing more relevant for a younger audience and to make a product expensive. But I do believe it’s possible, absolutely!’. P.C that is interesting for them. Someone said don’t tell me also emphasized that SVT’s ability to adapt to future that you do good things, do good things and I will tell uncertainties is largely due to people ‘a vast group of talent my friends. among the sta# and the sta# are commi%ed to one thing, to produce good content. "ey see SVT as a place not only to P.E also mentioned ‘I think it’s be%er to $nd a pro$le that is get a salary from, but also as a platform for them to explore a public service and $nd things that young people still value the creativity’. and appreciate, young people are very particular about authenticity and credibility, that is a quality public service Other participants emphasizing the success of SVT Play and already has. If you are sincere and put e#ort into it, I think the ability of SVT to change also marked that the legacy young people would recognize it’. P.B pointed out that corporate culture at SVT can be a barrier. P.G underlined young adults are ‘intelligent, and they want to be ‘they are very curious, they want to learn, they want to entertained and do other things. We will probably not $ll improve, and they want to invent. However, I don’t know if their entertainment needs, but we might $ll other needs, that it sometimes moves a li%le slower than they want, and those needs might not be an hour and a half per day, but if for what reasons it does move slower’. Similarly, P.E we get them for 20 minutes, then probably that is what we mentioned that SVT has strong adaptability and also need to hold on to for now’. Similar comments were echoed mentioned SVT Play as an example but underlined ‘perhaps in the concluding remarks of several Ps. P.C ‘I think it is they’re hesitating a li%le more. For instance, when you go natural for SVT Play not to necessarily be at its best in to SVT Play to check what you need and just see these reaching the 15 to 24 years old’. Similarly, P.G elaborated squares’. P.D –commenting on the question of transformation and the ability to change ‘transformation is ….Perhaps it’s an impossible task to get the 17 years old – not about technology, it’s not about the organization, it’s at any given moment in time on a daily basis. Perhaps no not even about resources. It’s a lot about leadership and it is one, if it is SVT Play or TV4 or others, is able to do that about culture. It’s about transforming the way of thinking in 2020. Half of the adults use SVT Play on a regular and the a%itude towards the audience’. P.D, highlighted the basis, among the younger parts of the audience a third transformation process of SVT Nyheter as an example and does. Is that a band number? Well, it’s still far ahead of underlined that approach, all local streaming services. I mean it’s nothing to compare to YouTube and Net!ix, but no one is…Perhaps ….We came with curious and humble questions to adding 17 years old isn’t the easiest trick in the book. understand the audience. It was not marketing, it was learning. Hundreds of co-workers had to go out and sit 4.7 Public Service Agility down at kitchen tables and talk to the audience (Fika "is theme comprises Ps.’ comments on the topic of the med SVT) and understand how they thought about news, ability of public service to remain relevant in the future. Ps. and what they wanted from news, and how they wanted indicated that public service has a long history of to consume news. It was really a cultural change in the innovation and leadership and has succeeded throughout newsroom that made a huge impact in a totally di#erent the years and will continue doing so. All Ps. underlined the way, compared to if we have researchers that go out and long journey of SVT Play and how it pioneered the come back with statistics. It was an important step to streaming space in Sweden– e.g. P.F ‘that was the $rst change the culture and change our a%itude towards the online service available. "ey were really ahead of anyone audience and understand that we might not be representative…I think the drivers for success is that we

had very clear objectives and we wanted to be more Interestingly, P.E argued that SVT should lay full focus !exible, but also, a lot of focus on content, what did the online instead of investing on linear channels ‘their position audience demand, rather than what we wanted to do, in digital is very important. Now they have $ve channels in what kind of resources we have, or what will be simple terrestrial. I guess since it costs a lot of money it’s be%er to to do. put the money in the online services and use the money for be%er content online’. 4.7.2 SVT Play ahead. P.A stressed that SVT’s digital products will continue expanding ‘future steps will go 4.8 The Role of Public Service in Sweden further into the online’. P.B emphasized that SVT Play is ‘in "e last theme summarizes Ps. remarks on the overarching the middle of a transformation of the whole industry’ and topic of the role of public service in Sweden. All Ps. this requires clever choices and big investments in emphasized that public service plays an indispensable role technology and content. P.B mentioned that SVT Play in upholding democracy and shaping and bonding society. cannot compete on equal levels with international streamers but emphasized a balanced approach ‘we have been 4.8.1 A Central #estion for Swedes. A common stance navigating, but we are saying no to somethings because we among Ps. was that the role of public service has always have to’. P.C pointed out ‘I think we need to experiment been highly debated among politicians. P.F emphasized that more, and maybe start looking at more purely online brands it is a political question ‘do you want an independent state- and see what they use and their ways of communicating. owned actor?’, but mentioned that politicians are ‘very So, I think we need to look beyond other broadcasters and satis$ed’ with public service ‘except for maybe some other traditional television companies for inspiration’. P.G fractions’. P.E , similarly, indicated that politicians always underlined that an ‘interesting’ position for SVT Play could have a shared view on the importance of the public service, be built on its distinctive value proposition ‘the knowledge but SVT should always be vigilant ‘not to lose their component’. P.G elaborated that –apart from YouTube–no position’. P.G mentioned that the question of the role of other streaming service has that, except for SVT Play, SVT has become more prominent on the societal level with recent shifts in the media landscape ‘it is also a discussion ….A third of those (audience) watching SVT Play on a in Swedish society as well. What is SVT’s role in this new regular basis, felt that SVT Play makes them more world or new society that looks like this?’. educated…"e education and the knowledge part are really interlinked with being a strong public service. I 4.8.2 Upholding Democracy. Ps. highlighted that public think that is really important thing to keep on service plays a key role in the Swedish democracy. P.F ‘I developing. Perhaps a catalog of knowledge is an think it’s really important to have SVT in the market’. P.B interesting position. Because no one will describe Net!ix underlined ‘I do think it will be a less interesting place in as a catalog of knowledge, Cmore as a catalog of the media landscape. We all believe that democracy and knowledge. But SVT really has that if you want to learn open conversation in Sweden is held by having a company things you can go there. I mean, of course, SVT should like SVT. "at’s what we believe in, and that’s why we have drama and news and other things because they work there’. P.C emphasized that if the media scene will have a very broad mission, but being a catalogue of become dominated by global commercial actors then things that are actually useful for you, not just for killing ‘Sweden has a di#erent problem…it has to do with identity, your hours here and there. to do with democracy, to do with how well we can get the society to function’. Comparable viewpoints were echoed by other Ps. P.C indicated that SVT Play would continue focusing on things 4.8.3 Unbiased #ality Journalism. Ps. underlined the that are relevant and speci$c to the Swedish audience, importance of having the impartial quality journalism of public service. P.E stated ‘some say it is too left and some …."at is a part of our DNA…You won’t turn into say too right. In the Swedish mind, public service is an Net!ix to understand what it is like to live in Sweden. If independent source…It is the foundation of the news market you want to do that you will turn into SVT…We need to in Sweden’. P.G had similar comments ‘I think if SVT stops inform we need to educate we need to entertain. I think to exist tomorrow, there is a really huge void of journalistic that the other thing that we have which isn’t a budget as products. "at will have really dire consequences. For such, but it is value for the money we have, for the example, Uppdrag Granskning is not a commercially viable knowledge of what it is like to live and be a Swede. format. It takes a lot of e#ort and costs, but it really sets the agenda for important discussions in society’. P.D also

emphasized the role of public service in maintaining and have a non-commercialized $eld of di#erent areas, news, fostering dialogues ‘people in Sweden that do not agree pop music, entertainment, theatre, feature $lms all of with their political opponents still listen to them. People those kinds of things are important. I think I would that are conservative still watch the news’. probably invent SVT Play, maybe a social media platform, who knows, but something like that. 4.8.4 Building and Bonding Society. Several Ps. also shared their viewpoints on the societal role of the public service. P.G ‘it is an important pillar of society’. Similarly, P.A 5. DISCUSSION mentioned that SVT’s main mission is to create value for Our study presented a thorough review of recent structural society and the viewers’. P.A and F pointed out that this shifts in the TV landscape and mapped shifting role ‘became clearer’ during COVID-19. P.D ‘If we would consumption pa%erns to establish a be%er understanding of have a weaker public service, we would have a more the position SVT and SVT Play. We discussed topics against polarized society’. P.C elaborated on that societal role, this background with expert participants to gain further ….I’m a full believer that we have a role of actually being insights about the future of SVT Play and we found several that kind of glue in society, that we need to build bridges key insights which are discussed in this chapter. between di#erent parts of the Swedish society, so that 5.1 Discussion of Key Findings people experience the same thing, so you can develop an experience based on similar events…the public service 5.1.1 The Future of SVT Linear Channels. A review of the role has to guarantee quality news, unbiased, fact check current TV scene (see section 2.4.2.1) indicate a major news, but it also someone who gather communities from structural change of the Swedish TV value chain the nation as it is, down to smaller communities. characterized by increasing penetration of global actors, recent consolidations and convergence between aggregation P.G underlined that it is crucial for the Swedish society to and distribution, and various local DTC business models. have public service o#erings, and explained, "e results indicate that there would most likely be fewer …."ere is a need in a democracy for public service SVT broadcast channels after 10 years and no broadcast content. I don’t think Net!ix, or any commercial player, TV–the way it is today–in 20 years. "e main reasons for will be really interested in that. I think there is a big shoe this change would be the steep online shifting of for SVT to continue $lling. Public service is broad as of consecutive age brackets, consumption divergence, and the today, it has lots of di#erent types of programming, it aging audience on broadcast. Another reason the results has sports, it has entertainment, it has documentaries, it pointed out is that broadcast will be at some point deemed has debates, it has news, it has sort of the broader unjusti$able and uneconomic use of limited resources picture…"ere are segments of the population that are (airwaves and return on investments). "e results also not commercially viable to serve. For example, di#erent suggest that the increased online consumption during parts of the Swedish minorities are served with really COVID19 would help accelerate this shift. We found that good content. Children, for example, are served with while broadcast will fade away, the need for live TV really good curated, ad-free, nice content that isn’t viable consumption would remain for some types of content, e.g. on commercial grounds. big events and sports. P.C mentioned that there are several challenges for SVT 5.1.2 SVT Play: Central Role. "e results suggest that recent Play and the service is open for future improvements but developments emphasize a central role for SVT Play as a asked a hypothetical question ‘if one is to invent SVT today, major part of the future of public service television, e.g. P.E what service would one invent?’ and elaborated, ‘online services are part of the future. I think it’s very important they succeed with SVT Play’. "e service is seen …."e idea of having a free video on demand service, as a strategic online tool to recover lost SVT broadcast $nanced through a license fee, or a similar model, with viewership. However, SVT Play remains in an unclear the ambition of serving the audience as a whole, with a position in the streaming scene: although the focus of SVT broad kind of content package, I think it’s hard to not has shifted more towards online, SVT Play is seen as a end up in that $nal territory at least. "en you can have compliment to linear channels, mainly as a catch-up service the discussion: should you have that thing, or should you and not as fully-!edged public service VOD, e.g. P.C ‘it is have this one? But I personally don’t think that we often that you need to have a prior relationship to the brand should lead entertainment and $ction or whatever only via broadcast’. We found this position re!ects in hampering for commercial voices. I think it is important that we

seasonal curves similar to that on broadcast which hinders these di#erent types of media are !owing into the same the growth of the service compared to the steady and steep screen which makes them compete with us more directly’. growth of competition. "e results indicate that the service "e results emphasize that SVT Play will be facing severe should $nd a clearer VOD position to serve the one-in-ten and escalating pressure from international streamers Swedes that reach SVT only through Play, but also to be gaining a larger market share; national streamers gearing ready to recuperate bleeding from broadcast to online. As up with original content and exclusive rights; recent further age brackets continue to leave SVT broadcast, it will telecom-TV consolidations; a likelihood of further be more challenging for the SVT Play to serve mainly as a consolidations; an increasing number of subscriptions per catch-up function. household; and even an increasing pressure on the $nancing model of public service due to the mounting "e results also suggest that the news position on SVT Play market competitiveness and revenues migration from is not clear, and simply digitizing traditional news from national actors to American global ones. We found that broadcast and put that on Play–P.D ‘although this is also Apple+, within few months, managed to secure a market important’–might not succeed in a%racting new or younger share bigger than that of a major Swedish TV operator. audiences for various reasons, e.g. format, duration, Net!ix would continue to challenge the market dynamics approach. "ere was an emphasis in the results that news and achieve further growth among 45+ age groups. Most o#ers a big opportunity to engage with younger audiences, signi$cantly, Disney+ will become a household name for e.g. P.E ‘good information around news topics. "e room for families with kids and is likely to be a major threat to the improvement is how to approach your audience’. recent strong position of SVT Play with kids. We also found that the position of linear channels on SVT 5.1.4 Content on SVT Play. "e study noted that content is Play is also unclear. Linear channels are available at some at the center. Content is even more important to reach platforms but missing on others for various reasons, e.g. consumers online when there are limitless o#erings at all rights, restrictions, investments. "e results suggest that the times, in contrast to what used to be on broadcast. But we cost of overcoming this issue is more than the value o#ered found that there is no di#erentiated content o#ering on for audiences–already accessing these channels through SVT Play from that on SVT linear channels. "e results cable for now. But the data also suggest that having linear indicate that it is a challenge to balance between SVT Play channels might add value to parts of the audience. We and broadcast, mainly due to limited investments and found that having linear channels on Play on all devices resources, but also due to a traditional public service would allow seamless strategic migration of major parts of content model, e.g. P.C ‘what has been our strength on older audiences from broadcast to Play in the near future, broadcast might be seen as a weakness in the online world let alone serving current and future cord-cu%ers who might if we are competing with the catalog services’. "e study still want to relate–albeit occasionally–to linear found that while entertainment is still important for SVT programming for di#erent reasons, e.g. the sense of Play to remain relevant for all audiences, it is still debatable togetherness, the sense of connection to live viewership. if the service should compete on similar grounds with A signi$cant secondary $nding in the results suggests that commercial actors. "is is due to various reasons, e.g. public the service could consider adding interactivity elements, e.g. service approach to audiences, limited resources, number of views, thumbs up, thumbs down, e.g. P.G ‘the competition on talents. But most importantly the data younger parts of the audience–that have grown up with emphasize a di#erent role for public service, e.g. P.G ‘if SVT YouTube, and grown up with social media and twitch, and walkover on entertainment tomorrow, would that a#ect the know nothing else– think that the old platforms are quite Swedish society in the same way?’. "e results suggest that boring in comparison’. Another secondary $nding suggests SVT Play should keep focusing on other types of content SVT should direct full focus to online and cut down on important for the Swedish society that will not be o#ered by broadcast. But the results also indicate that broadcast has commercial actors, e.g. P.C ‘provide a contemporary view of been a companion for an older audience and this role was Sweden, whether it’s $ction or entertainment or whether it clearer during COVID19. is news’. We also found that content acquisition will become more challenging due to competition, but also due 5.1.3 Competition. We found that although SVT has always to major studios launching their streaming services in the been facing di#erent types of direct and indirect Swedish market. "e results suggest that the service is competition, recent media, technology, and content moving the focus towards more local content while at the convergence fueled more direct competition, e.g. P.C ‘all

same time aiming to remain as curious as possible for 5.1.5 Personalization and Login on SVT Play. We found an securing diverse international rights. emphasis in the results that the service will need to collect basic personal data through a user login function–e.g. P.G "e results note that local content remains a major driver ‘that’s the foundation of all digital services’, P.B ‘service for audiences and the main reason to start or remain on a and content have to go together all the way’–to provide a service, e.g. P.F ‘there’s always going to be demand for local personalized experience, the main feature on VODs. "is content’, P.E ‘local high-end content actually ma%ers’. "e becomes essential to facilitate content discovery and main challenges marked in the study for original content on recommendations, provide a cross-platform user experience, SVT/SVT Play had to do with dealing with limited and learn more about users. "e results mark that the resources, a limited number of productions compared to service has been moving around this challenge for various other local streamers, and not the least a long reasons, e.g. P.B ‘it has to do with internal politics, it has to commissioning process. "e study marked that SVT has do with user’s experience, it also has to do with resources’. been dealing with the challenge of limited resources with Although the data indicate the current recommendation creative solutions that allow for decent quality and good system can suggest up to 70-80% content that match the storytelling. But the results emphasize that this does not user’s preference, the personalized section is seen as ‘very always succeed, and the audience tends to compare, e.g. P.E crude’-P.A, and the best recommendation/curation the ‘the audience will immediately notice if something is low service does is ‘o#-service’-P.G. "e results suggest that the budget, especially young audience’. service is not helping users to engage with content, e.g. P.E "e results indicate that publishing and promotion are as ‘the user just gets squares with categories and can’t make important as the content itself, e.g. P.A ‘it is always content orientation of what can be interesting’. "e results is King and publishing is 'een’. But we found that the emphasize that content recommendation is even more service is only able to promote some programs since trailers important than the content itself, e.g. P.G ‘how do people production is a cost challenge. Also, cross-promotion on $nd what is in the catalog?’, P.C ‘it is $ndable content that SVT linear channels is not re!ecting an e#ect as it used to is king’. be. Publishing and promotion become detrimental to the "e results also mark that SVT Play’s di#erentiated user growth of SVT Play, e.g. P.A ‘everybody gets used to going experience across di#erent platforms is disadvantageous for to Net!ix the whole time because they have something the service, e.g. P.G ‘there is no cross-platform compatibility across the year’. "e results indicate that the service has whatsoever’. Moreover, the results indicate that a login been trying to balance a limited original content o#ering– system provides crucial knowledge about users and allows due to limited resources–, build a library, and experiment SVT Play to serve them be%er, e.g. P.E ‘I do not understand with publishing models that work best to engage with why they do not have a login system’, P.A ‘we cannot audiences. However, we found that the service could direct measure that, because we don’t have a login’. more focus on both the quality and quantity of original content as well as on promotion and branding, e.g. P.B ‘the "ere is strong evidence in our study that not dealing with audience cares about content and branding’. this challenge is a missed opportunity for SVT Play to move forward, e.g. P.C ‘we have missed that ball a bit’, and the Moreover, the results mark that it is essential for SVT to lack of personalization can be detrimental for the service. adapt its traditional broadcast rights management model, We found that it is crucial for the service to have a login, e.g. P.B ‘it is very rare we have full rights’. "is becomes especially when it can be optional and combined with clear crucial for allowing SVT Play to–at least– keep SVT’s communication. productions on the service and build a strong public service VOD catalogue, in the same fashion other local streamers 5.1.6 Reaching Young Adults through SVT Play. "e results are doing and excelling in that. "e challenge remains to indicate that most media want to engage with this age balance the limited budget, the number of new productions, group, and it is di&cult for SVT Play to direct full focus on and e&ciently maintain rights. "e results also indicate that this group within its broader mission, compared to the SVT Play could leverage the depth of SVT’s Open Archive, competition which has many advantages over SVT Play e.g. provided that the service could help users to explore it, e.g. P.F ‘it is a challenging target group, and they (SVT) won’t P.G ‘a good recommendation system is really a key. Just do any type of content’. "e results also suggest that it having a big catalog, well, it’s not going to be discovered’. might be natural for SVT Play not to be able to engage best with this age group, e.g. P.G ‘perhaps adding the 17 years old isn’t the easiest trick in the book’. "e results further

highlight that this age group–across generations–does not culture. It’s about transforming the way of thinking and the relate best to what might be perceived as a traditional a%itude towards the audience’. "e results underline that medium and might seek other ways to express themselves. unbiased journalism, di#erentiated and reliable public However, the results also mark this has to do with how SVT service o#ering as well as continuous innovation instills this approaches this group, e.g. P.D ‘that’s been a bit of tradition trust. We found that SVT Play could keep building on this of the a%itude of a company that used to be a monopoly a trust and keep innovating and looking for inspiration few decades ago, that we know what the audience needs’. beyond TV and broadcast limits. "e results suggest that More signi$cantly, the results indicate that it will be more SVT Play should remain agile while maintaining its vast challenging for SVT Play to win back and engage with this o#ering and at the same time remain a catalog of generation when they grow up in this online era. We found ‘knowledge’, e.g. P.G ‘a catalog of things that are actually that this could lead to a decline in reaching 25+ years useful for you, not just for killing your hours’. through the service and deplete succeeding age brackets thereafter. When combined with the imminent threat of 5.2 Social Sustainability and Ethical Implications losing the strong position with kids to Disney+, this might "e study found that public service plays an indispensable become more urgent to address. It would render SVT Play role in upholding democracy and in shaping and bonding mainly reaching parts of the older age groups that manage the Swedish society, e.g. P.G ‘it is an important pillar of to shift online and manage to stay with SVT in the future. society’. Although highly debated among politicians, the role of public service becomes more prominent for the "e results suggest that content is key for engaging with whole society with a fast-changing media scene. "e results this age group, and also learnings from content succeeded note that public service is a primary source of impartial with younger audiences on SVT Play, e.g. P.E ‘they have news and is seen as the foundation of quality journalism in done a lot of research with young audiences’. Most Sweden. "e results emphasize that many news products of signi$cantly, the results suggest that SVT Play should SVT are not commercially viable, but they set the agenda in engage with this age group through large-scale and Sweden and maintain public dialogues, e.g. P.D ‘people in thorough qualitative research to understand what they value Sweden that do not agree with their political opponents still and demand from the service in this changing TV scene. listen to them’. "e study found that if the media scene "e results emphasize that this age group is very keen about becomes dominated by commercial and global actors, the trust and credibility, e.g. P.E ‘a quality public service e#ects will be detrimental to social sustainability and to already has’. A signi$cant secondary $nding in the results how well the Swedish society functions. A marginalized suggests that SVT Play could employ/work with young public service would also be detrimental to democracy and talents capable of judging what is most relevant for this age would lead to increased divergence of access to information group, e.g. P.E ‘if you are old, you don’t have a clue on what and more polarized worldviews and opinions in the society, actually works for younger audiences’. We found that the e.g. P.G ‘there is a need in a democracy for public service stabilized public trust numbers of SVT have among the content. I don’t think Net!ix, or any commercial player, will audiences in 2019 presents an opportunity for SVT Play to be really interested in that’. "e results also mark that align to that and keep building bridges with this age group serving minorities and children with well-curated content is and make sure they reach the service in the future. unsustainable on commercial grounds. Public service is seen 5.1.7 Public Service Agility and SVT Play ahead. "ere was in the study as the cornerstone that promotes cultural an emphasis in the results on the ability of public service to sustainability and sustains the Swedish cultural heritage and remain strong and agile in the future. "e results indicate identity–e.g. P.C ‘what it is like to live and be a Swede’–in that this trust is based on a long history of innovation and an increasingly globalized media and persuasive leadership and that public service will continue doing that technologies landscape. in the future. However, the results indicate that recent shifts make the way ahead more challenging for various reasons, 5.3 Strengths and Limitations of our Study e.g. $erce competition, investment barriers, technology "e study design allowed extensive review of recent shifts barriers. "e results also suggest that the legacy corporate in the TV industry for a greater understanding of current culture can be a barrier, e.g. P.G ‘it sometimes moves a li%le shifts in Sweden and narrowed down to put SVT Play in slower than they want, and for what reasons it does move that larger context. "e design also provided wider slower’, P.E ‘perhaps they’re hesitating li%le more’, P.D ‘It’s knowledge about topics and questions discussed later with (transformation)a lot about leadership and it is about expert participants in the study to further explore the

research question. "e $ndings of this study are based on the audience the service will remain relevant. "e study the aggregated well-informed insights of the participants. found that SVT should increase its !exibility, especially While the study $ndings might support projection of future when many platforms are competing to o#er what the shifts and promote further discussion, they remain audience value and demand. We also found that reaching insu&cient as advice on the future of SVT Play, SVT, or young adults becomes a more urgent goal for public service, public service, as these questions are beyond the scope of as recent online shifting suggests that part of this age group this study. "e methods chosen for data collection o#ered might not relate to public service in the future. Diverse an opportunity to conduct in-depth interviews with chief di#erentiated o#erings and original content remain keys to personal at SVT as well as complement that with educated engaging with all audiences, but $ndable content and insights of other experts from diverse $elds in the Swedish personalization are equally important in a highly media and TV industry, covering audience and market competitive personalized online space. "e study found that research, media and telecom, academia, and media the public trust in SVT and the public service brand remain consultancy. Although the sample was adequate and the biggest assets. It is essential that SVT Play keeps weighted against the focus of the study (SVT/SVT Play) we fostering these assets through constant dialogues with could have bene$ted from a supplementary perspective of a audiences and continuous learning of what they value, to participant from global actors in the Swedish market, e.g. align the public service a%ributes with that the audience Net!ix, HBO Nordic. But this is unlikely to have e#ects on demand, and to remain agile and relevant in a constantly the study as the main focus of the study is SVT and SVT changing media landscape. Play, and such data were already collected from existing participants. ACKNOWLEDGMENTS "e author would like to thank SVT for welcoming the 5.4 Further research research proposal and supporting this study. "e author is We found no recent studies on SVT Play, SVT, or public in debt to all participants for their invaluable contributions service. It becomes recently very pressing to engage in and their generosity and full support. "e author would also further research on these domains as the $ndings of our like to thank Deloi%e Insights, MMS, Nordicom, and study emphasize major structural and consumption shifts Ungdomsbarometern for their consent to refer to their and forecast further regression of public service television, material in this study. "e author would like to thank Head which might have dire consequences on the future role of of Digital Partnerships at SVT Johan Wahlberg for public service in Sweden. We also recommend further supervising the study at SVT, Professor Leif Dahlberg for research on SVT Play and its central role highlighted in this supervising the study at KTH, and Associate Professor study–along with other online products– as the future of Anders Hedman for examining the study at KTH. public service television. We suggest multiple case studies investigating how comparable actors, e.g. public service in REFERENCES the Nordics or BBC, are dealing with this profound [1] Anshelm, M., Aldén, D., Lindkvist, M., Malmsten, K., & Egge, T. (2020). TV-året 2019. MMS. h!ps://mms.se/?p=5385 transformation and what the future public service would [2] Belo, R. , Ferreira, P., de Matos M. G., Reis, F. (2019). !e Impact of look like. Most importantly, we recommend SVT to expand Time Shi"ing on TV Consumption and Ad Viewership. Management on audience research through large-scale $eld studies and Science 65(7):3216-3234 [3] Da Silva Gonçalves, V. G. (2016). Online Video in the Future Internet consistently engage with all audiences, to align o#erings to Age: Business and Policy Dynamics (Doctoral thesis). Faculteit what they value and demand from the service in this fast- Economische en Sociale Wetenschappen and Solvay Business School, shifting and highly competitive playing $eld. Vrije Universiteit Brussel [4] Dwivedi, R. (2018). Online Streaming & Arti#cial Intelligence: A New Era for OTT. Muvi. h!ps://www.muvi.com/blogs/online-streaming- 5.5 Conclusion arti"cial-intelligence-new-era-o!.html "e study found a new era is ahead of public service, [5] Evens, T., & Donders, K. (2016). Mergers and acquisitions in TV broadcasting and distribution: Challenges for competition, industrial heralded by the unprecedented decline of SVT broadcast and media policy. Telematics and Informatics, (special issue: and increased consumption divergence in 2019. Digital Television distribution – economic dimensions, emerging policies), 33(2), 674-682. technologies, globalization, and integrations in the media [6] Fagerjord, A. & Storsul, T. (2007). $estioning convergence. industry will continue to o#er further possibilities and Ambivalence Towards Convergence: Digitalization and Media shifting consumption pa%erns. We found that SVT Play Change. 19-31. [7] Gitelman, L. (2006). Always Already New: Media, history and the should be further empowered to sustain the mission of data of culture. MIT Press. public service television. It is through remaining closest to [8] Jenkins, H. (2006). Convergence culture: Where old and new media collide. New York University Press.

[9] Jenner, M. (2017). Binge-watching: Video-on-demand, $ality TV and [18] Internetstiftelsen. (2019). Svenskarna och Internet 2019. Stockholm Mainstreaming Fandom. International Journal of Cultural Studies. 20. h!ps://svenskarnaochinternet.se/rapporter/svenskarna-och-internet- 10.1177/1367877915606485. 2019/ [10] Kharpal, A. (2017). Tech Transformers. CNBC. [19] SVT Publik- och Utbudsanalys. (2020). Publikutfall 2019. SVT h!ps://www.cnbc.com/2017/05/08/amazon-je#-bezos-arti"cial- [20] Tyagi, K. (2018). Implications of AT&T/Time Warner decision for intelligence-ai-golden-age.html Vertical Integration and Media Business Models in the age of [11] Lombao, T. F., Valencia-Bermúdez, A., & Campos, F. (2016). Digitization. SSRN Electronic Journal. 10.2139/ssrn.3198183. Innovation as the Key for the Future of Public Service Media. New [21] Ungdomsbarometern. (2020). UB Medier 2020—Rörligt Innehåll, Advances in Information Systems and Technologies (pp. 489–496). Nyheter & Sport—SVT, 200306. Springer. [22] Webb, A, (2019), !e Big Nine: “how the tech titans and their [12] Mohan, D. (2014). !e Evolving Value Chain in the Television thinking machines could warp humanity”, New York, NY 10104 Industry: Changes in Pay TV Delivery and its Implications for the [23] Webb, A. et al. (2019). 2019 Trend Report for Journalism, Media & Future(Master’s !esis). Massachuse!s Institute of Technology. Technology. %e Future Today Institute. h!ps://dspace.mit.edu/handle/1721.1/90718 www.futuretodayinstitute.com [13] Net$ix. (2020). Net%ix—Overview—Long-Term View. [24] Webb, A. et al. (2020). Tech Trends—2020 Report. %e Future Today h!ps://www.net$ixinvestor.com/ir-overview/long-term- Institute. h!ps://futuretodayinstitute.com/2020-tech-trends/ view/default.aspx [25] Westco!, K., Loucks, J., Downs, K., & Watson, J. (2018). Digital [14] Net$ix. (2020). Net%ix— FINAL-Q4-19-Shareholder-Le&er. Media Trends Survey, 12th Edition. Deloi!e Insights. h!ps://s22.q4cdn.com/959853165/"les/doc_"nancials/2019/q4/FINAL h!ps://www2.deloi!e.com/global/en/insights/industry/technology/di -Q4-19-Shareholder-Le!er.pdf gital-media-trends-consumption-habits-survey- [15] Nordh, S., et al. (2018). E& Oberoende Public Service 'ör Alla: Nya 2018.html?icid=dcom_promo_featured|global;en Möjligheter och Ökat Ansvar: Slutbetänkande- Norstedts Juridik. [26] Westco!, K., Loucks, J., Downs, K., & Watson, J. (2019). Digital [16] Ohlsson, J., Hellingwerf, K., Facht, U., & Bucht, C. (2020). Media Trends Survey, 13th Edition. Deloi!e Insights. Mediebarometern 2019. Nordicom, University of Gothenburg. h!ps://www2.deloi!e.com/lt/en/pages/technology-media-and- [17] Spangler, T. (2020). Net%ix Projected to Spend More !an $17 Billion telecommunications/articles/digital-media-trends-survey-13th- on Content in 2020. Variety. edition.html h!ps://variety.com/2020/digital/news/net$ix-2020-content-spending- 17-billion-1203469237/

Appendix: A Tables

2.4.4.1 SVT Linear TV: Daily Reach

Table 2.4.4.1.1: TV Channels: daily reach, 9–79 years, 2019 (Percent) SVT Total SVT1 SVT2 Kunskapskanalen SVT Barn SVT24 TV4 Total(9-79) 44 40 24 8 4 3 37 Females 44 40 19 7 5 2 40 Males 44 40 28 9 4 4 35 9–14 years 28 17 6 3 15 1 25 15–24 years 19 17 6 3 2 1 22 25–44 years 25 20 10 3 7 2 23 45–64 years 57 53 33 11 3 3 46 65–79 years 78 75 48 18 2 7 62

Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University)

3. Methods

Table 3.1 Participants background and ID reference Participant ID Participants Background A Key personnel at SVT B Key personnel at SVT C Key personnel at SVT D Key personnel at SVT E Media researcher, lecturer, author F Senior Consultant, media and markets

G Media& telecom expert

Appendix: B Figures

2.3.1 The Surge of SVOD, Premium Original Content Matters

Figure 2.3.1.1: Daily/weekly reach growth of streaming activity. How frequently do you stream television programming?(Source: printed with permission from Deloitte Digital media trends survey, 12th edition. 2018 Deloitte Insights | deloitte.com/insights)

2.3.2 More are Cutting the Cord

Figure 2.3.2.1: Households that have cut the cord on pay TV during 2017. You indicated you and/or your household do not currently have a pay TV service. Please tell us when you canceled your pay TV service. (Source: printed with permission from Deloitte Digital media trends survey, 12th edition. 2018 Deloitte Insights | deloitte.com/insights)

Appendix: B Continued

2.3.3 Generation X Joins Digital Savvy

Figure 2.3.3.1: Generations Z, millennials, and generation X fuel the rise of SVOD. Does your household subscribe to a streaming video service? Source: printed with permission from Deloitte Digital media trends survey, 12th edition. 2018 Deloitte Insights | deloitte.com/insights

2.3.4 More Binge-watch more

Figure 2.3.4.1: Generations Z, millennials, and generation X are heavy binge-watchers. When binge-watching, what is the average number of episodes you view in a single sitting? Source: printed with permission from Deloitte Digital media trends survey, 12th edition. 2018 Deloitte Insights | deloitte.com/insights

Appendix: B Continued 2.4.2 The Internet and Online Consumption

Figure 2.4.2.1: Online video reach: percentage of Internet users (12+ years) who watch video/!lm on the Internet. Source: printed from Svenskarna och internet 2019.

Figure 2.4.2.2: Moving image developments: average time spent per day and per person (16-66 years) on all video. Source: adapted with permission from MMS (TV-året 2019)

Appendix: B Continued

2.4.2.1 The TV Value Chain in Sweden

Figure 2.4.2.1.1: An outline of the television industry value chain in Sweden 2020

Appendix: B Continued 2.4.3.1 Moving Image: Daily Reach

100 90 80 70 60 50 40 30 20 10 0 Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years

Moving image total* TV total Linear TV Streaming TV YouTube

Figure 2.4.3.1.1: Moving image: average daily reach, 9–79 years, 2019 (Percent). *All forms of moving image, including those not presented in the !gure. Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University)

2.4.3.2 Moving Image: Time Spent-Linear TV, Streaming TV, YouTube

160

140

120

100

80

60

40

20

0 Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years

Linear TV Streaming TV YouTube

Figure 2.4.3.2.1: Moving image: average daily time spent, 9–79 years, 2019 (minutes). Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University)

Appendix: B Continued 2.4.3.3 The Viewers’ Choice for Exploring Content

40%

35%

30%

25%

20%

15%

10%

5%

0% Turn to SVOD* Turn to YouTube Turn to linear TV Turn to free play Turn to others Not sure/don’t know service*

2017 2018 2019

Figure 2.4.3.3.1: SVOD is the main choice for ‘explorative’ viewership, average total 15-49 years. *SVOD (e.g. Net"ix, HBO Nordic) free play services*(e.g. SVT Play, TV4 Play). #estion: if you do not know what you are going to watch, where do you turn to !rst? Breakdown: time comparison. Source: adapted with permission from Ungdomsbarometern-Rörligt Innehåll 2020

2.4.3.4 Pay TV versus Streaming Subscriptions in Households

90 80 70 60 50 40 30 20 10 0 Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years

Streaming Subscription Pay TV subscription

Figure 2.4.3.4.1: Pay TV/Streaming subscription: household access, 9–79 years, 2019 (percent). Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University)

Appendix: B Continued

Figure 2.4.3.4.2: Stacking of SVODs: Share of 9-99 years who have access to SVOD service/s. Source: printed with permission from MMS (TV-året 2019)

2.4.4.1 SVT Linear TV: Daily Reach 45 40 35 30 25 20 15 10 5 0

SVT1 TV4 SVT2 TV3 TV6 Kanal 5 SVT 24 SVT Barn

Kunskapkanalen

Figure 2.4.4.1.1: Daily reach of top 9 TV channels, 9-79, 2019 (Percent)

Appendix: B Continued 2.4.4.2 SVT broadcast: A Rapidly Aging Audience

Figure 2.4.4.2.1: Median age for the viewers of linear TV. Source: printed with permission from Publikutfall 2019, SVT Publik-och Utbudsanalys, MMS

2.4.5 Overview on SVT Play

Figure 2.4.5.1: Explorative consumption on YouTube and Net"ix goes in hand with more time spent than intended. #estions: How o$en do you know what you want to watch when you start [X]? How o$en you watch longer than you have planned when you watch [X]? Filter: the participant who answered always or o$en. Source: adapted with permission from Ungdomsbarometern-Rörligt Innehåll 2020

Appendix: B Continued 2.4.5.1 SVT Play: Daily Reach

35

30

25

20

15

10

5

0

Netflix Dplay Strive Others SVT Play UR play HBO Nordic Amazon Prime Viaplay/ViafreeC More/TV4 Play

Figure 2.4.5.1.1: Streaming services: daily reach, 9-79, 2019 (percent). Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University)

70

60

50

40

30

20

10

0 Total (9-79) 9–14 years 15–24 years 25–44 years 45–64 years 65–79 years

Total * Netflix SVT Play Viaplay/Viafree C More/TV4 Play

Figure 2.4.5.1.2: Streaming Services: daily reach, 9–79 years, 2019 (percent) *All streaming services, including those not presented in the !gure. Source: adapted with permission from Mediebarometern 2019 (Nordicom: Gothenburg University) 2.4.5.2 SVT Play: Time Spent

Appendix: B Continued Others 14% YouTube Twitch 25% 3% HBO Nordic 3% Facebook* 4% Instagram* 4% TV4 Play 4% CMore Play 4% Ne,lix ViaPlay 23% 6% SVT Play 10% Figure 2.4.5.2.1: Top 10- Online Video daily time spent percentage (9-99 years) *moving image. Source: adapted with permission from MMS (TV-året 2019) 2.4.5.3 SVT Play: Reach Growth

Figure 2.4.5.3.1: SVT online and SVT Play weekly reach (percent) quarterly growth for 9-99 years, 2015-2019.Source: printed with permission from Publikutfall 2019, SVT Publik-och Utbudsanalys, MMS

Appendix: B Continued 3. Methods

Figure 3.1: Framework for the research design 4. Results

Upholding Central question for Democracy Swedes

Unbiased quality Building and journalism bonding Society Adaptability to Fewer channels in future challenges future The role of Public SVT Play ahead Public Service Service in Sweden Online shifting agility The future of Other drivers SVT broadcast

Reaching SVT Play function young adults Distribution-TV SVT Play position convergence News position on Further mergers and SVT Play acquisitions Broadcast on SVT Always a challenge International Play streamers Reasons of this challenge

Local streamers Addressing this challenge Pressure on SVT’s Content on SVT financing model More subscriptions Play per household SVT Play exclusives Fiction and drama Personalization on Competition Content publishing SVT Play and promotion Content Acquisition

Seasonal curve and content publishing Entertainment Current Situation Content discovery Rights limitations Formats Better knowledge Cross-platform about audiences experience Open archive

Figure 4.1: %ematic network from data analysis

Appendix: C Details of the main studies used in the background chapter of this paper

Digital Media Trends The 12th edition[25] The 12th edition of Digital Media Trends survey is conducted by Deloitte’s Technology, Media & Telecommunications, ‘Deloitte Insights publishes original articles, reports, and periodicals that provide insights for businesses, the public sector and NGOs’. This study had a panel of 2088 respondents. The survey provides insight into how five generations of US consumers are interacting with media, products and services, mobile technologies, and the Internet. • Generation Z: ages14–20 born1997–2003 • Millennials: ages21–34 born1983–1996 • Generation X: ages35–51 born1966–1982 • Baby boomers: ages52–70 born1947–1965 • Matures: ages71+ born1946 or earlier Data were collected in November 2017 and were weighted back to the US census to give a representative view of the average US consumer[25,p.3].

Digital Media Trends The 13th edition[26] The 13th edition of Digital Media Trends report is conducted by Deloitte’s Technology, Media & Telecommunications. The panel consisted of 2003 US consumers that was weighted back to the US census to give a representative view of the average US consumer. • Generation Z: ages 14–21 Born 1997–2004 • Millennials: ages 22–35 Born 1983–1996 • Generation X: ages 36–52 Born 1966–1982 • Baby boomers: ages 53–71 Born 1947–1965 • Matures: ages 72+ Born 1946 or earlier. Data were collected by an independent research company from December 2018 to February 2019[26,p.4].

It is good to note that findings from Deloitte Insights are used as the main source of insights among many institutes and organizations, and–not the least–are referred to in reports by other research institutes, e.g. [23]

Mediebarometern 2019[16] The Swedish Media Barometer (Mediebarometern) is a yearly survey that has been carried out by the Nordic Information Centre for Media and Communication, (Nordicom) at Gothenburg University since 1979, ‘which makes the survey the oldest of its kind in the world’. It highlights daily access and media consumption patterns among Swedes. The Mediebarometern 2019 survey measures the daily reach of different media among a random ratio selection sample of 6011 participants of the population in Sweden between 9 and 79 years old. The sample is drawn from the Swedish Population Register SPAR and includes both Swedish citizens and persons with foreign citizenship living in Sweden. The survey took place in February-June and August-December 2019[16. pp.1-5].

We want to highlight that it was mentioned in the report that for the education level variable, respondents with a university degree were over represented in the study. Moreover, since the study is conducted in Swedish, the part of the population that does not speak Swedish was ‘severely under represented’[16. p.9].

Svenskarna och internet 2019[18] The Swedes and the Internet are the Swedish part of the World Internet Project, an international research project that follows the spread and use of the Internet around the world. The Swedes and the internet are designed according to a revolving panel design, with recurring participants as the base while new participants function as a control group to control for panel effects. The samples are drawn from the Swedish Population Register SPAR and Marknadsinformation in Sweden, aiming to include a representative sample of the population. Participants in this study were divided into age groups starting from 12+ years with

Appendix: C Continued no upwards age limit. In this study (2019) 1,701 people (57%) participated in the survey via an online survey and 1,302 (43%) via telephone. The 2019 survey was conducted in February and March 2019 [18, pp.164-65].

It is good to mark that the 16-25 age group was over-represented (16.4% in the study, versus 13.5% as per SCB) which stood out among other slightly over or under-represented segments.

MMS TVÅret-2019[1] MMS measures the consumption of moving image and delivers daily viewing figures for TV and online. The panel consists of 3000 households with TV meter (people meters) installed on every working TV set in every household. In addition to the whole household getting a certain weight, each member of the household is weighted to reflects how many in the population this individual's TV viewing represents. The period for this annual report is 2018-12-31 - 2019-12-29. MMS annual reports are based on whole weeks (Mon-Sun), to minimize calendar effects. The MMS year always starts on Monday and ends on a Sunday. The data reported monthly in the report was also produced in whole weeks.

It is noteworthy that using people meter provides accurate time spent and reach numbers, compared to numbers derived by other methods, e.g. surveys or interviews. It is also important to mark that this report gauges consumption and access of media based on data derived throughout the whole year and not for a limited period, which allows for more detailed insights on–for example– daily, weekly, quarterly patterns, or growth.

Ungdomsbarometern [21] Ungdomsbarometern (The Youth Parameter) is a leading research institute that studies the youth in Sweden and tracks their habits and changing behaviors. The institute has a long core experience in market research for 15-30 years age groups and provides insights for various sectors, e.g. government agencies, interest groups, media houses, consumer goods companies. The expertise of the institute spans education, work-life, society and lifestyle, digitalization and communication, brands and consumption, reports, and surveys.

The Ungdomsbarometern – Rörligt Innehåll 2020 study was conducted among 4.261 individuals, ages 15-49, nationally representative sample, online, between 18 Nov – 2 Dec of 2019.

TRITA-EECS-EX-2021:88

www.kth.se