TV4

TV4 is the largest commercial Nordic television company with 2005 revenue totalling SEK 2,594 million. The company is the Swedish market leader currently operating five channels including the most viewed one, TV4, which had 23.6 per cent share of viewing in 2005. The Swedish television market is facing rapid changes in consumer preferences brought about by shifts in technology and regulation that threaten TV4’s position. In January 2005, Proventus became one of the largest owners in TV4 and has since taken an active role in the change of TV4 with the aim to defend and strengthen its market leadership. In March 2007 Proventus ceased to be a shareholder but continues its active role as a financial partner by extending a subordinated loan to bolster the group's long-term competitiveness in the future media arena.

Between them, new technology and political change have transformed the television world. New technology has already made possible the proliferation of satellite and cable channels, and is now responsible for the impending digitalization of terrestrial broadcasting. Regulatory change means that the marketplace is shifting equally radically. The fragmentation caused by these changes forms one part of the picture. In European markets, state broadcasters no longer share their monopoly with a single commercial channel. Entire countries no longer watch the same programme at the same time. The other part of the picture is the increasing interactivity and mobility of content. The result is not just a much wider assortment of viewing options, but also a fundamental change to the nature of the product as both the viewer and the potential advertiser experience it.

Licensed by the state in exchange for strict controls about content, including the provision of regional programming and news, and restraint on the quantity of advertising, TV4 is already under pressure from the unregulated satellite stations. The situation can only become more competitive with the arrival of more channels over the next few years, as digitalization gives room for more channels when the analogue signal is switched off in Sweden in 2008.

Television is traditionally a passive medium. But it is also increasingly taking on another form, and is creating a more active consumer. The remote control has the potential of becoming the key to a two-way process. And television content is already being delivered to laptops and cellphones. New technology allows the audience to skip the ads – and it has become more difficult to keep an audience for long periods. But it also means that advertising can become much more specific, and target individuals more efficiently.

For Proventus, the only way to differentiate the TV4 from the pure entertainment channels distributed by satellite is to emphasise quality, and continue to develop an approach to programming that has a broader appeal. It will also be necessary to exploit the strength of the TV4 brand and its audience base to develop additional sources of income.

In order to be competitive in the long run, it will be necessary to become more efficient and to make better use of resources to allow TV4 to invest in stronger programming. So far, the company has launched new factual and film channels, is exploring the pay-TV business, and is putting its content to work in a variety of different formats.

In the long-term we believe that TV4, which represents a quality position in a small language market, will need to further increase cross-Nordic cooperation to prosper and grow.