More than television

ProSiebenSat.1 is much more than just television. We are a powerhouse for broadcasting, digital entertainment and commerce, bringing together dynamic brands in a wide spectrum of media. We use the millions-strong reach of our TV stations to move into digital business areas. In this way, we have consistently diversified our Company in recent years and created additional sources of revenue.

Clear strategy

Today, our growth is based on four segments: German-speaking TV business, our digital units with a large entertainment and e-commerce portfolio, and our international program production and sales house. We have been so successful with this strategy that we raised our medium-term growth targets once again in October 2016.

 

1. Pillar: Broadcasting German-speaking

In the core business of TV, we are benefiting from the fact that we have expanded our complementary station family in Germany, Austria and Switzerland in a targeted way and have established a new business model with the distribution of our free TV stations in HD quality.

With a population of over 80 million, Germany is Europe’s largest television market and we are a market leader here. Our success is based on a multi-station strategy: The individual stations serve different core target groups and thus complement each other. While SAT.1 offers TV programs for the whole family, ProSieben is primarily aimed at young viewers aged between 14 and 39. The core target group of kabel eins includes viewers aged between 14 and 49. sixx focuses on young women between the ages of 14 and 39. SAT.1 Gold is also aimed mainly at women between 40 and 64 and therefore a particularly attractive target group for the advertising industry. ProSieben MAXX complements the TV family with its programming that is mainly focused on male viewers aged between 14 and 39. The new free TV station kabel eins Doku, which focuses on documentaries and reports, started broadcasting in September 2016. kabel eins Doku is aimed at men aged between 40 and 64.

A second and increasingly important source of revenues in the TV segment is distribution. For example, ProSiebenSat.1 has for many years taken a share in the technical activation fees that cable network, satellite and IPTV operators generate from the distribution of ProSiebenSat.1 HD stations. With SAT.1 emotions, ProSieben FUN and kabel eins CLASSICS, the Group also operates three basic pay TV channels. ProSiebenSat.1 Group has thus established a business area with long-term recurring revenues. ProSiebenSat.1 Group is growing highly profitably in its core business with a recurring EBITDA margin of around 30 %.

 

2. PILLAR: DIGITAL ENTERTAINMENT

The Digital Entertainment segment bundles the online video business with the pay video-on-demand portal maxdome, the multi-channel network Studio71, and the fields of ad video-on-demand, ad tech and data. ProSiebenSat.1 plans to rise into the ranks of the leading players in the area of digital entertainment in the German-speaking region and, in the medium term, internationally.

With its offerings, ProSiebenSat.1 Group has all modern forms of media use covered. By extending TV formats to digital platforms, the Group increases viewer loyalty while creating new, cross-media advertising space. This is why the Group is also the market leader for the marketing of online video content in Germany. In addition, the Company is increasingly offering more exclusive content via its digital platforms and meeting the increase in viewer demand for media consumption regardless of the time and place. ProSiebenSat.1 is diversifying its revenue modules, e.g. with the pay video-on-demand portal maxdome. maxdome generates its revenues via subscription and pay-per-view income. In addition, viewers can watch the TV programs of the Group’s free TV stations live on their smartphones or tablets using the stations’ TV apps – at any time and at no cost.

 

3. PILLAR: DIGITAL VENTURES & COMMERCE

The e-commerce business is the largest growth driver of ProSiebenSat.1 Group and is thus making a material contribution to the expansion of digital revenue sources. In recent years, the Group has built up a successful e-commerce portfolio, whose growth it promotes through the strategic link-up with the TV business.

Digitalization is changing both media use habits and consumer behavior as a whole as products are more frequently ordered online. E-commerce platforms, which address a broad audience and are suited to TV advertising, offer new growth prospects for ProSiebenSat.1. We are establishing e-commerce verticals via conventional acquisitions. The Digital Ventures & Commerce segment also includes successful verticals from the areas of travel (weg.de, etraveli), online comparison portals (Verivox) and online dating (Parship Elite). By exchanging advertising time for a share in revenues and/or an equity interest as a media investor, ProSiebenSat.1 has created an attractive e-commerce portfolio. This e-commerce portfolio is bundled in the Digital Ventures & Commerce segment.

4. PILLAR: CONTENT PRODUCTION & GLOBAL SALES

The Content Production & Global Sales segment includes ProSiebenSat.1 Group’s international program production and distribution business.

The Content Production & Global Sales segment comprises the international program production and distribution business of ProSiebenSat.1 Group. These two areas are bundled under the umbrella of Red Arrow Entertainment Group. In addition to the global program distributor Red Arrow International, Red Arrow comprises 19 international television production companies in seven countries and numerous creative partnerships. Red Arrow sells TV formats in over 200 countries. The program catalog currently includes more than 800 titles. The strategic focus lies on the expansion of the Anglo-American region and the expansion of the English-speaking fiction portfolio as international demand is particularly high here. In addition to TV groups, customers also include digital platforms with a multinational presence. As a result, Red Arrow has gained access to a dynamically growing commission market.

ROOTS IN GERMANY–REPRESENTED THROUGHOUT EUROPE

ProSiebenSat.1 Group is one of the largest independent media corporations in Europe and represented across the world with successful brands. The company headquarters is located in Unterföhring near Munich in Germany. Our subsidiaries have satellite offices in such cities as Berlin, Hamburg, Frankfurt, Düsseldorf and Vienna.

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