Viaplay Axes 25% Staff, Halts UK and US Streaming Services
Viaplay, the streaming company that made a name for itself in the Nordic region, is letting go of more than 25% of its staff and is halting its streaming services in the U.S. and UK, according to a report released today alongside its Q2 results. New CEO Jørgen Madsen Lindemann, who replaced Anders Jensen last month, commented that the company made a hard decision to “regrettably let go of more than 25% of our people.” The layoffs are said to result in around 450 job losses, at a restructuring cost of approximately $4M.
Coming just after Germany's ProSiebenSat.1 announced similar staff reductions - around 400 roles - the anticipated layoffs include a few senior executives, namely Nordics EVP and Chief Commercial Officer Fillipa Wallestam, Head Of International Scripted Thomas Axelsson, and Exec Producer Isabelle Hultén.
The company, which underwent a rebranding from NENT last year, has been making waves in the UK, U.S., and other markets like Germany. As streaming service offerings in these locations dry up, Viaplay’s future strategic plans include focusing on the Nordic and Dutch markets and the sale of content internationally via Viaplay Select.
Viaplay intends to maintain its commitment to Nordic originals, continuing its sports rights strategy. Anticipated upcoming series include Ronja the Robber’s Daughter, Lasse Hallström’s Hilma biopic, and an incoming English-language TV series adaptation of Camilla Läckberg and Henrik Fexeus’ bestselling crime novels.
The result of Lindemann’s strategic review of the entire business is an immediate restructure of the operating model. According to him, the redundancy decision was made “for the sake of the future of our business.” However, Viaplay’s second quarter hasn’t been all bad news - their Q2 sales hit around $450M, a boost of 16% compared to last year, albeit with a 16% decline in advertising revenues.
In Q2, Viaplay lost approximately 1 million total subscribers, dropping down to around 6.6 million - a similar figure to that of Q3 2022. However, projections for 2023 and 2024 reveal promises for potential recovery, including a possible return to profitability.
Now for my take:
This, my dear readers, feels a bit like watching a shaky magician pull off an audacious escape act. Just when Viaplay appeared to be playing with the big boys, they decided to let go of their U.S. and UK ambitions like hot potatoes, resulting in a significant workforce reduction. A brave but distressing move, like ripping off a band-aid on a wound that never quite healed in the first place.
CEO Lindemann seems to be painting a picture that can't exactly be framed as a "picnic", swinging the scissor-shaped sword of Damocles under the guise of "regrettable" decisions, leaving employees in an unforeseen limbo. Viking blood won't be enough to weather this kind of storm - they’ll need the cunning of a chessmaster and the tenacity of a marathon runner.
Regardless, we shouldn’t be too quick to consign Viaplay to the circuit of has-beens. After all, they’ve carved out a niche in Nordic originals and sporting events, which gives them a certain home court advantage in the cutthroat streaming game. But the question remains, is it enough for them to swim against the currents of Netflix, Disney+, and Amazon Prime?
In this era of "bingeable" content, maybe the strategy is to keep things regional, to be the champions of their own turf rather than a B-list player on someone else's field. The path ahead may not be as flashy or global, but with a return to their roots and a straightening of their Viking helmet, Viaplay could yet wield their sword with a renewed vigor that keeps their going. It may not be the same tale we anticipated at the outset, but hey, plot twists are half the fun right? It's all about the comeback story; after all, this is Hollywood.
