Open Letter Denmark
OPEN LETTER TO CREATE DENMARK AND THE DANISH PRODUCERS’ ASSOCIATION
Dear Kasper Banlusak Halkier and Jørgen Ramskov,
I write to you in my capacity as Chief Content Officer at Viaplay Group to highlight our concerns about the agreement between Create Denmark’s and the Danish Producer’s Association (the “Agreement”). We have been entertaining audiences in Denmark for over 30 years and today we are investing more in high-quality local content than ever before - by choice and in response to consumer demand.
Our substantial investments in Danish content offer a unique mix of premium sports productions, non-scripted content, documentaries, and very ambitious scripted shows. Our Danish content entertains millions of our customers not only in Denmark, but also across our full base of over 4 million subscribers, mainly in the Nordics, but increasingly in our new markets including the Netherlands, Poland and the Baltics. Outside of Europe, we are making Danish content available on Viaplay globally, including in the US and soon the United Kingdom. We believe that doing so will attract further inward investment in the Danish content market.
With our ambition to be the leading provider of scripted content in the Nordics, we are on track to premiere an outstanding selection of 7 original Danish-scripted series in 2022 as well as an increased number of documentaries. We have a substantial pipeline of developments to fulfil our ambition of launching a minimum of 10 Danish scripted series and films a year. This places us among the leading providers of premium Danish scripted content and one of the top providers of job opportunities for your members.
However, the suggested Agreement makes it challenging for us to fulfil that ambition which will not only impact us negatively but also have significant consequences for your members. Therefore, I ask you to consider our concerns and the rational for them set out below.
- Proposed Fees
The fees currently proposed under the Agreement are at a level which impedes the commercial viability of producing local scripted content in Denmark.
- The Agreement’s “Success-Based Model”
The Agreement is being describes as built on a “success-based model”. However, after closer examination it is evident that rather than being based on a series’ individual success, it is based on the streaming service’s overall success. We submit that it should be the other way around, aligning with the approach broadly accepted internationally. If a series performs well, it is rewarded accordingly and vice versa.
We believe that basing clearances on the overall success of a streaming service is flawed. Subscriber numbers are driven by different factors including pricing, bundling and variety of content on offer. For example, Viaplay’s sports offering is an important driver for our subscribers across our markets and should not be included when determining clearance fees for our Danish scripted originals. It is illogical to treat the Viaplay service in the same way under the Agreement as other international streamers, who don’t have a sports offering. This has been clearly communicated to Create Denmark and the Danish Producers’ Association, but so far, we have not received any reassurances or adequate explanation regarding this.
- Complexity and sharing of Viaplay Data
The Agreement is based on new requirements to share certain sensitive data relating to both company performance and the performance of individual shows over their lifetime in order to calculate the annual fee due to Create Denmark. We have agreements with unions across the Nordics that do not require the disclosure of such data, therefore we do not understand why this is necessary or proportionate under Create Denmark’s Agreement. This new mechanisms for calculating the fees will not only result in significantly higher fees but is also overly complex resulting in an unforeseeable administrative burden.
Current Danish Productions
Notwithstanding the above important points, we do not want individual members of the unions that Create Denmark represent nor the producers that are represented by the Danish Producers’ Association to suffer due to the standstill in this current climate. Therefore, we will review the productions that have already started and invite Create Denmark and the Danish Producers’ Association to work together with Viaplay Group on a short-term solution for a small selection of productions within the next two to four weeks. When this is closed, we wish to continue our cooperation and proceed with an open and pragmatic approach to securing a long-term solution.
Future Danish Productions
However, until we have an Agreement that can be implemented, we see no other option but to halt our large pipeline of Danish scripted projects completely. In the longer term we hope to be able to find a way forward to remain in Denmark and deliver on our ambitious strategy to become the leading provider of Danish quality scripted content.
Viaplay Group is committed to treating your members fairly and equitably and concluding an Agreement that ensures security, fair remuneration and longevity for the Danish creative industry. When the Danish film and TV community thrives, so do our Danish originals. Therefore, we are extremely disappointed by this development and fear that coupled with the proposed 6% “cultural contribution” fee being levied on streaming service providers, Denmark will become a low priority market when it comes to investment in high quality local content. It is our strong hope that we can find a solution to ensure a long-term plan for a flourishing creative Danish industry.
We remain at your disposal and are hopeful that you will want to discuss a sustainable long-term solution.
Yours sincerely,
Filippa Wallestam
EVP and Chief Content Officer
Viaplay Group AB