Profits warning as NENT Group temporarily reduces Viaplay sports package prices | Major Businesses | Business
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Unlike its peers in other countries such as the UK which are not offering compensation to customers, Nordic Entertainment Group (NENT Group) is temporarily reducing the prices of its Sports packages on its Viaplay streaming service in all of its markets.

Anders Jensen NENT Group 5Sep2019The cause of the reduction by the Nordic region's leading streaming company follows the postponement of various Nordic and international sports events due to the global spread of the Coronavirus. The Group has admitted that the spread is having an adverse impact on the Group's performance, which will put at risk NENT Group's previously stated ambition to deliver profitable growth for the full year 2020.

NENT Group had 1.568 million Viaplay customers at the end of December 2019, of which the clear minority are sports customers. The major sports events or competitions that have been postponed or paused, and to which NENT Group holds the media rights, include the English Premier League, UEFA Champions League, Superliga, NHL and Bundesliga as well as Formula 1 motor racing. The spread of the Coronavirus is also negatively impacting advertising demand, which accounted for 26% of Group sales in 2019.

The price for the Viaplay direct to consumer packages including Sports will now be reduced to the same price as the Viaplay TV and Movies package. This is SEK 109 per month in Sweden; DKK 99 per month in Denmark; to NOK 119 per month in Norway; and € 9.99 per month in Finland. The prices will apply for existing customers and are effective immediately.

Viaplay's offering of original productions, international films and series, and premium kids' content is unchanged.

NENT conceded that it had not yet currently been decided for how long these reduced price points will apply. In the event of longer-term postponements or cancellations, NENT Group warned that it would seek compensation from the sports rights owners under the terms of its contracts.

"We are facing an unprecedented situation with widespread postponements of many major sports leagues and events,” remarked Anders Jensen, NENT group president and CEO (pictured). “We understand and respect the decisions made by sports event organisers around the world, who are rightly focused on safeguarding the health and wellbeing of athletes and fans. We are in close contact with the organisers to discuss how things will be handled moving forward.”