Friday 21 July 2023

Viaplay Sports UK Crisis - Broadband TV News; Chris Dziadul Reports: Viaplay’s downward spiral

Story from Broadband TV News:

What does the future hold in store for Viaplay’s operations across Central and Eastern Europe?

Thursday, July 20 was a day of important announcements. It began with the Scandinavian group releasing Q2 results that were highly disappointing, to put it mildly. It’s not often you see such a key industry player report losses higher than revenues.

We of course already knew Viaplay was in trouble, but the extent was laid bare by its president and CEO. In a statement accompanying the results, Jørgen Madsen Lindemann outlined a new strategy that besides shedding over 25% of its workforce will involve switching the focus to core Nordic, Netherlands and Viaplay Select operations and sports and international distribution. It will also see Viaplay effectively exit several key markets including the US, UK and – in CEE – Poland and the Baltics.

However, that was not all, with Lindemann going on to say that nothing, including a possible sale, is off the agenda.

Then, out of the blue, came a second announcement. In a short statement, Vivendi’s Canal+ said it had acquired a 12% stake in Viaplay.

Given Canal+’s recent expansion in CEE, where its assets already include M7 Group and SPI International, this is highly significant. Indeed, the French company could ultimately take over Viaplay and strengthen its position in the region still further.

There is already speculation as to what may happen with sports rights. In Poland, for instance, Viaplay holds such key ones as the Premier League, Bundesliga and Formula 1 and these will surely interest other parties. Now that Canal+ in a shareholder in Viaplay, it may begin to work more closely with the latter, while Polsat/Eleven Sports Polska could aim to add some more rights to their portfolio.

Meanwhile in the Baltics, Viaplay’s sports rights portfolio may interest the likes of the regional streamer and pay-TV operator TV3 Group.

Elsewhere in the region, Viaplay has an agreement with Pickbox NOW to make Viaplay Select available in Bosnia, Croatia, Montenegro, North Macedonia and Slovenia. Given the company’s new strategy, this is likely to remain in place for the foreseeable future.

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