“We Have Too Much Scripted,” Says New Viaplay Boss As He Signals Major Content Pivot
“We have too much scripted content,” new Viaplay CEO Jørgen Madsen Lindemann said today as he was pressed by investors on the state of the embattled Nordic outfit’s finances and future sustainability.
A scripted cull is therefore incoming, said Lindemann, with too many shows and movies greenlit over the past couple of years, as Viaplay pivots focus to “local and relevant” unscripted and acquired content. Included in today’s Q2 update and major strategic announcement was a commitment to “write down underperforming shows and accelerate amortisation of scripted content.”
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“A lot of the [scripted originals] we have acquired and produced are not paying off,” Lindemann told investors and press during a results call. “It’s not bad content but commercially it’s not right.”
Lindemann’s predecessor Anders Jensen, who resigned with immediate effect last month, previously set a target of greenlighting one scripted TV series or movie per week, including high-profile projects such as an adaptation of Camilla Läckberg and Henrik Fexeus’ bestselling crime novels, YA show Ronja the Robber’s Daughter, a feature portrayal of Edvard Munch’s life and Lasse Hallström’s Hilma biopic. In the UK, Viaplay greenlit a high-profile Rebus reboot that will no longer go ahead.
By 2024, Viaplay’s content breakdown is targeted to be around three-quarters acquired shows, 16% scripted and 12% scripted. At present, scripted comprises almost one third (29%) and unscripted is at just 9%.
Lindemann added: “We have scripted shows that work well but we have too much so we will use what we have wisely and focus investment on a better mix, not least given that some Hollywood studios are open for business again.”
Going forwards, Viaplay shows will have a “broad commercial angle to reach as many people as possible,” he added.
Viaplay today unveiled a strategic review including more than 25% layoffs and pulling streaming from the likes of the UK and U.S., following a shock announcement last month that saw Jensen depart and financial targets scotched. Viaplay is now focusing its efforts on the Nordics, Netherlands, sports and international distribution.
Lindemann described the layoffs, which will impact around 450 people, as “horrible but necessary.” The situation with redundancies is country dependent and Lindemann said “we are following local rules and regulations.”
Viaplay’s review also floated the potential for a sale of either the entire business or certain parts of the international business that it is no longer focusing on.
“Everything is in play,” added Lindemann. “The content we have in international markets will hopefully lead to interest but it is too premature to give an idea of how advanced this is.”
“Perfect storm”
He blamed a “perfect storm” for the outfit’s woes, adding that some of the issues are “external and others of our own making.” Lindemann flagged the cost-of-living crisis but also currency headwinds that have severly weakened the Swedish Krona against the dollar.
Pushed on whether Viaplay could shutter entirely, Lindemann defended the outfit.
“We are strong storytellers and that is our strong USP,” he added. “With a more focused approach, we feel we will definitely continue to be a relevant and competitive player in the Nordics and for the forseeable future.”
The outfit has already said it will revise financial targets and Viaplay today published a set of new financial goals for 2023 and 2024, which will see an expected circa-$90M EBIT loss this year before potentially returning to profitability next year.
Sales are expected to hit around $1.8B for the full year this year and next, while subscribers are slated to just top 7 million this year but haven’t been predicted for 2024. Q2 sales hit around 4.6BN Swedish Krona ($450M), a like-for-like boost of 16% on the prior year driven by 42% organic sales growth but offset by a 16% decline in advertising revenues.
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