Media - ProSiebenSat.1 shows more local programming
ProSiebenSat.1 will show fewer series and films from the USA and will instead focus on locally produced content. The proportion of US licensed content will be reduced in favor of local formats, the media group announced in Unterföhring near Munich. This marks the end of a long-standing practice of long-term license agreements with Hollywood studios. At the same time, the company will continue to buy selected US licensed content.
"Our viewers really enjoy watching our local formats, but of course there will always be US productions that strike a chord with our viewers - just not to the same extent as in the past," Bert Habets, CEO of ProSiebenSat.1 Media SE, told dpa on Wednesday. "That's why we will continue to buy them - albeit much more selectively than before and with more extensive rights, including for digital exploitation." The popular long-running hits "The Simpsons", "The Big Bang Theory" and "How I Met Your Mother" will continue to be shown on ProSieben.
Focus on exclusive local content
Habets continues: "Many of the US series and films are very much tailored to the American market and try to cater to the tastes of the whole world, and that's exactly what no longer works so well in German-speaking countries. German viewers want to see their reality reflected in the films and series." The high proportion of local content sets his group's programs apart from US streaming platforms. A lot of US content is now not suitable for linear television anyway, but rather for streaming.
According to the information provided, the value of the program assets will be reduced by up to 250 million euros. The Group assured that there would be no change in net financial debt. ProSiebenSat.1 intends to focus even more strongly on exclusive local content next year. Accordingly, programming expenses will increase by around EUR 80 million to around EUR 1.05 billion. This will benefit both the streaming platform Joyn and the prime time TV programs of Sat.1 and ProSieben.
In recent decades, US content with series or films has often been a core component of the programming of private broadcasters in Germany. The USA is still regarded as a place where program trends emerge. In Germany, it has recently been observed that public and private television and streaming providers as well as global streaming providers are increasingly focusing on local content in their respective markets.
Hope for recovery in the advertising markets
According to the Group, the additional programming investments will lead to a decline in adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) in the Entertainment segment in 2024. However, the Group emphasized that the segment's growth will be strengthened in the long term and digitization will be accelerated.
ProSiebenSat.1 expects advertising revenues to recover slightly in 2024. Overall, the company anticipates an increase in total consolidated revenues and stable EBITDA development (adjusted) compared to 2023.
This year, according to the company, adjusted EBITDA will be at the lower end of the range of EUR 600 million plus/minus EUR 50 million and Group revenues slightly below the target range of EUR 4.1 billion plus/minus EUR 150 million.
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- ProSiebenSat.1 Media SE, based in Munich, Bavaria, Germany, has announced a shift towards showing fewer series and films from the USA.
- The media group, which includes Pro7 and Sat.1, will focus on locally produced content, reducing the proportion of US licensed content in favor of local formats.
- Bert Habets, CEO of ProSiebenSat.1 Media SE, mentioned that while viewers still enjoy US productions, they prefer local content that reflects their reality.
- Habets also mentioned that while popular US series like "The Simpsons" and "The Big Bang Theory" will continue to be shown on ProSieben, the company will purchase such content more selectively and with extended rights for digital exploitation.
- Focus will be placed on exclusive local content, as many US series and films are tailored to the American market and may not be well-received in German-speaking countries.
- ProSiebenSat.1 Media SE anticipates that this shift towards local content will result in additional programming investments of around EUR 80 million, benefiting Joyn and the prime-time TV programs on Sat.1 and ProSieben.
- In recent decades, US content with series or films has been a core component of the programming for private broadcasters in Germany. However, private and public television, streaming providers, and global streaming platforms are all focusing more on local content in their respective markets.
- ProSiebenSat.1 Media SE expects advertising revenues to recover slightly in 2024, leading to an increase in total consolidated revenues and stable EBITDA development compared to 2023.
- The value of the program assets is estimated to be reduced by up to 250 million euros, and there will be no change in net financial debt, as ProSiebenSat.1 Media SE focuses more strongly on exclusive local content.
Source: www.stern.de
