TV4 was the largest commercial Nordic television company in 2005, with revenue totaling SEK 2.5 billion. The company was the Swedish market leader and operated five channels including the most viewed one, TV4, which had a 23.6% share of viewership in 2005. The Swedish television market was facing rapid changes in consumer preferences brought about by shifts in technology and regulation that threatened TV4’s position. In January 2005, Proventus became one of the largest owners in TV4 and took an active role in adapting TV4 to defend and strengthen its market position. In March 2007, Proventus ceased to be a shareholder but continued its active role as a financial partner, extending a subordinated loan to bolster the group’s long-term competition in the future media arena.

When Proventus first took an interest in the broadcasting market in 2004, new technology and political changes had already started transforming and fragmenting the television landscape. Technological advancements made the proliferation of satellite and cable channels possible, and were responsible for the digitalization of terrestrial broadcasting. Regulatory change caused equally radical shifts in the marketplace. In European markets, state broadcasters no longer shared monopolies on single commercial channels. Entire countries no longer watched the same programme at the same time. Simultaneously, the increasing interactivity and mobility of content was changing the way viewers watched television. There was not only 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 experienced it.

Licensed by the state in exchange for strict content control (including regional programming and news) and restrictions on the volume of commercial advertising, TV4 was facing serious market challenges compared to unregulated satellite stations. Their position became even more competitive when the analogue signal was switched off in both Sweden and Finland in 2008; the digitization of television meant the arrival of more channels.

While television was once been a passive medium, it has grown and evolved to create a more active consumer. The remote control first introduced the potential for television to be a two-way process allowing for personal agency. By the time Proventus arrived on the scene, television content was already being delivered to laptops and cellphones. Audiences were being given tools to skip the ads – and it was becoming increasingly difficult to hold an audience’s attention over long periods. However, all of these changes also meant that advertising could become much more specific, targeting individual consumers more efficiently.

For Proventus, the only way to differentiate TV4 and MTV3 from satellite entertainment channels was to emphasize quality and continue to develop a broad consumer approach to programming. It would also be necessary to exploit the strengths of the channels’ respective brands (and their audiences) to develop additional sources of income.

To be competitive in the long run, the networks would need to operate and allocate resources more efficiently to allow for investments in stronger programming. During the first years of Proventus’ involvement, a number of new niche channels (documentary, film, etc.) were launched to explore the viability of a pay-on-demand business model, and also to put content to work in a variety of formats.

In the long-term, Proventus’ believed that TV4 and MTV3–which represented quality positions in two small language markets–would need to foster cross-Nordic relations in order to remain competitive, prosper, and grow.