Distribution fees help ProSiebenSat.1

Building-ProSiebenSat.1The ProSiebenSat.1 Group is diversifying its revenue sources, not only by expanding its digital operations but also within its core business, “free-TV”.

This includes launching new channels as well as increasing fees paid by the platforms, especially for the HD channels, thus strengthening its independence from TV advertising markets.

In 2012, the group considerably increased its revenues from distribution, mainly driven by the HD stations, and reached breakeven in Germany earlier than expected in the fourth quarter. This meant that the Group’s revenues from distribution in Germany exceeded its distribution costs for the first time.

The ProSiebenSat.1 Group’s TV stations are included in the HD packages of all major cable, satellite, and IPTV operators. The number of HD households in Germany is likely to double from around 5 million at present to around 10 million in 2015.

The launch of new TV stations gives the ProSiebenSat.1 Group opportunities to grow further in its core business. Sat.1 Gold was launched in Germany in early 2013. Over the course of 2013, ProSiebenSat.1 will begin airing another free TV channel, ProSieben Maxx.

Thomas Ebeling, CEO of the ProSiebenSat.1 Group commented in a statement: “2012 was another record year for the ProSiebenSat.1 Group. We successfully continued our expansion into the digital world and increased revenues in our ‘Digital & Adjacent’ segment by almost 40%. We also achieved important targets in our core business Free TV: We significantly increased our distribution revenues and successfully established new Free TV stations in Germany and Austria.

“This puts us in an excellent position for the future. We will continue to intensify the integration of our core TV business and digital operations and develop ProSiebenSat.1 from a traditional television provider into a digital entertainment & e-commerce powerhouse. The Group is therefore on track for sustainable and long-term growth.”

The ProSiebenSat.1 Group is also Germany’s leading seller of video content on the internet and reaches more than 25 million unique users per month with its online network.

Moreover, the Group operates maxdome, Germany’s largest video-on-demand portal, and offers users more than 50,000 titles on demand.

To strengthen its online video business, in 2012 the ProSiebenSat.1 Group developed the internet platform MyVideo into an online TV station with live shows and exclusive series premieres. In 2012, the number of video views rose to 490 million (up from 340 million in the previous year).