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What is the TAM (total addressable market for online news in Norway, Finland, and Sweden?
The Total Addressable Market (TAM) for online news in Norway, Finland and Sweden was extrapolated using sources from 2016, resulting in an estimated TAM of 18.97 Million people. Sources yielded statistics for both total amount of people in each country who currently access the internet, and total in each country who currently access their news by internet. For purposes of this research, TAM was extrapolated from total population who access the internet.
Below, this information is provided per country, with additional calculations included for how many people within the potential addressable market will pay for online news, and an estimate of how much these consumers will likely pay on an annual basis. All sources and complete explanations of all math used is included per country.
NORWAY
According to a Digital News Report Article from 2016, 86% of Norway's population of 5,000,000 access their news online.
To calculate the TAM, multiply Total Population x Percentage of Online News Readers. Thus,
5,000,000 x 0.86 = 4,300,000 Total Addressable Market.
Multiple sources confirm that approximately 27% of Norwegians paid for online news in 2016, which rates the country as a global leader. To calculate total paid market for online news in Norway we multiply Population x Percentage who Pay for Online News. Thus,
5,000,000 x 0.27 = 1,350,000 paid for online news in Norway for 2016.
On average, Norwegians paid 41 pounds annually for online news subscriptions in 2016. To calculate the annual market share for paid online news, multiply Annual Cost x Total Paid Market. Thus,
41 x 1,350,000 = 55,350,000 pounds were spent on digital news in Norway for 2016.
FINLAND
The 2016 population of Finland was 5,500,000 with an internet penetration of 94%. To calculate TAM for online news in Finland, multiply Population by Percentage of Internet Penetration. Thus,
5,500,000 x 0.94 = 5,170,000 Total Addressable Market for online news in Finland.
15% of Finland's population paid for online news in 2016. However, it is important to note that this study includes a statistic that 74% of Finnish people surveyed stated that they are not willing to pay for online news.
To calculate 2016 market share for paid internet news, multiply Population x Percentage of Paid Internet News Subscribers. Thus,
5,500,00 * .015 = 825,000 paid for online news in Finland.
Average annual payment for digital news in Finland for 2016 was 40 pounds. To calculate total revenue spent on paid internet news, multiply Paid News Subscribers x Price. Thus,
825,000 * 40 = 33,000,000 pounds average per year for digital news payments.
SWEDEN
A 2016 Digital News Report provides that 95% of Sweden's population of 10,000,000 access the internet. To estimate TAM for internet news, multiply Population x Percentage who access the internet. Thus,
10,000,000 x 0.95 = 9,500,000 Total Addressable Market for online news in Sweden.
To estimate potential market share for paid news subscribers in Sweden, multiply Population x Percentage of Paid 10,000,000 * 0.20 = 2,000,000 individuals paid for online news in Sweden for 2016.
News subscribers in Sweden who paid for online news subscriptions in 2016 paid on average of 43 pounds annually. To estimate total market for paid online news, multiply Population Paying for Online News x Price. Thus,
2,000,000 * 43 = 86,000,000 pounds spent annually for news subscriptions in Sweden in 2016.
CONCLUSION
In conclusion, total addressable market for Norway, Finland and Sweden were calculated using data that reveals total populations in these countries with current internet penetration rates. Statistics for revenue generated by paid online news subscriptions, as well as potential growth as more people gain access to the internet, may also impress investors.