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Netflix is the world’s leading provider of subscription-based over the top (OTT) streaming video, television, and movies delivered over the internet to over 30 million subscribers in 40 countries generating USD$2.5 billion in video streaming revenue annually.1 When Netflix launched in the Nordic countries in Q4 2012, the Nordic press called it a major threat to incumbent pay TV provided. They suggested that consumers would give up their current pay TV subscriptions for linear or flow TV and switch to Netflix. A number of stories appeared about Netflix in a tete-a-tete with DSL providers, as the OTT service is growing to account for the majority of traffic on copper networks and the company’s public relations practices. As we watch the situation unfold in Denmark, Norway and Sweden, we can see that the reality of television is not changing overnight, but that it’s evolving. Netflix and its OTT video competitors such as HBO Nordic have a number of challenges. Established players such as Danish YouSee, Telenor Norway and Sweden’s Viasat and Com Hem are making competitive responses. YouSee has suggested it will offer its cable channels in an a la carte fashion in 2014. Consumers, while intrigued by the growing possibilities, don’t necessarily switch to new services instantly, but free trials are certainly popular. In any

Netflix Comes to the Nordics: Lessons in OTT Video