Changes in Danish households’ media expenses
A new analysis from the Danish Agency for Culture and Palaces shows that in 2016, Danish households spent much more money on audiovisual media than on text media. The amount of money spent on text media – newspapers, magazines and books – has almost halved in ten years.
According to the report Forbrug og priser [Consumption and Prices], the total annual consumption of text media per household has fallen from 4,147 to 2,279 Danish kroner from 2006 to 2016, in fixed prices. At the same time, Danes strongly prioritize the consumption of media that is seen and listened to, such as TV and streaming services. (Danish kroner are hereafter referred to as kr.)
Danish households’ annual media consumption (Danish kr., fixed prices)
Source: Statistics Denmark – Household Budget Survey (in the report Forbrug og priser)
It is especially the single-copy sales of newspapers and magazines that are declining. The annual per household consumption of single copy sales newspapers decreased by a third from 326 kr. in 2006 to 96 kr. in 2016; and the same development can be noted for magazine sales in kiosks and supermarkets, with a reduction from 990 to 312 kr. per household.
Newspaper subscriptions per household saw a more stable development, however, with a decline from 1,247 kr. in 2006 to 917 kr. in 2016, and subscriptions to magazines rose from 110 to 134 kr. per household.
Convergence on the media market
The report also describes a tendency whereby the telecom and TV companies launch various types of combined telecom and media product packages. Thus, a mobile subscription today often also provides access to a number of digital media services, e.g. streaming services such as TV 2 Play and HBO, and digital news/magazine services such as Zetland, Pling or Wype.
The Agency for Culture and Palaces’ mapping of a total of 15 Danish telephony and TV providers shows that the majority of the companies have up to ten internal or external media services included in their total telecom and TV packages.
More conclusions in the report
- In 2016, the annual consumption of media-related items was almost 20,000 kr., of the total average consumption by Danish households of nearly 300,000 kr. Over time, the level of media consumption is relatively constant; though with an increase up to the financial crisis in 2007-2008, followed by a decline through 2015 (and an increase from 2015-2016).
- Over the years, there have been large displacements in how Danish households spend money on media, especially in the post-financial crisis period. For example, previous major consumer items such as CDs, DVDs and landline telephony are largely gone from the household consumption by 2016.
- Today, Danish households spend significantly more money on the telecom and TV companies: in 1994 they spent 5,694 kr., a figure which had risen to 9,393 kr. by 2016.
About the analysis: The report is part of the Danish Agency for Culture and Palaces’ project Reporting on the Media Development in Denmark (read about the English summary here). The analysis is primarily based on Statistics Denmark’s Household Budget Survey and EU harmonized price indices, as well as the Danish Agency for Culture and Palaces’ data on convergence in the media industry. The comparisons above are expressed in fixed prices in Danish kroner (DKK). For calculations into Euro, download Nordicom’s table (Excel): Average exchange rates 1993-2017 (1 Euro in national prices).
Translated by: Eva Harrie
Household media expenses in Sweden: In December 2017, the IRM (Institute for Advertising and Media Statistics) published a study which shows a sharp increase in Swedish households' media expenditure over the past three years. Mobile and Internet subscriptions, i.e. the two largest expense items, together account for 40 per cent of households' media spending budget. The fastest growing expenses are for streaming services for film, TV and music, as well as digital subscriptions for news and books. The IRM report is for sale only, but brief information and a press release are available here (in Swedish). (EH)