Viaplay has confirmed that the US side of its streaming business is set to close down. The change is part of a wide range of cost-cutting measures the company is now embarking on.
Viaplay only launched in the US in February of this year, and with the goal of expanding the footprint of the Nordic noir streaming service. Shortly after the US launch, the streaming service also launched in Canada. At present, the cost of a subscription in the US is $5.99 a month, following a 7-day free trial.
In spite of launching less than six months ago, the company has confirmed that it will be shutting down the US version of the streaming service. At present, there’s no word on when the shutdown will happen. In addition to the US, the same shuttering is also now due to take place in the UK and Canada as well.
In terms of why this is happening, it is part of a much larger series of changes. During the company’s latest earnings report, Viaplay explained that the company is embarking on “a new strategy and plan, which includes, but is not limited to, focusing on our core Nordic, Netherlands and Viaplay Select operation.”
As part of that plan, and in addition to shuttering the US streaming service, Viaplay will be pulling out of other international markets and downsizing its workforce by more than 25%.
The same earnings report also confirmed that “subscriber volumes were substantially lower than at the end of Q1.” In total, Viaplay reported 6.6 million subscribers, down from the 7.6 million reported at the end of the first quarter of 2023. Looking forward, the company now expects to end this year with between 7 and 7.2 million subscribers.
In addition to a decline in subscribers, Viaplay also cited the “weakness in the advertising markets and currency exchange rates” as additional factors that have contributed to the current situation and subsequent change in strategy.