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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Source: www.stern.de
