The purchaser of the stake in CDS is ProSiebenSat.1’s production/distribution group, Red Arrow Entertainment. The move follows Disney’s acquisition of Maker Studios and RTL Group’s partnership with BroadbandTV, as traditional broadcasters are trying to get grip on the makers of popular YouTube channels.
CDS, a subsidiary of LA-based The Collective, oversees one of the leading YouTube multichannel networks with over 600 channels, with more than 100 million subscribers, delivering nearly a billion views a month. It pioneered the distribution of premium online content to television and is best known for producing the hit web series Video Game High School and TV shows for The Annoying Orange, Epic Meal Time and F?ED.
In addition, the company develops formats in a variety of genres such as action, beauty & lifestyle, comedy, kids & family, and music. CDS also delivers branded content initiatives for Fortune 200 brands, including Verizon, Dodge, Estee Lauder, Unilever, Procter & Gamble, Toyota, Sony PlayStation, and many more.
“With the ProSiebenSat.1 investment, CDS has gained a strategic partner that will enable us to monetize the global reach of our content as well as tap into the Red Arrow distribution system to create additional opportunities for our creative talent,” said Michael Green, chairman CDS.
“With a fierce commitment to the most talented creators on the platform, a top tier nationwide sales division and global distribution both on and offline, CDS is now poised to become a leading 21st century media company.”
In August 2013 ProSiebenSat.1 formed its own multichannel network, Studio71, where its current web production activities are bundled, attracting more than 100 million video views per month. The goal of the new partnership is to jointly build one of the world’s leading multichannel networks and exploit synergies between the companies. For example, Studio71 will receive video content from CDS and marketing will be handled in-house by SevenOne Media. Close cooperation in the areas of technology and business intelligence is also a key aspect of the partnership.
Red Arrow Entertainment is the ProSiebenSat.1 subsidiary that oversees a group of 15 international production companies in nine countries, as well as building partnerships with top creative talent and acting as a programming distribution organizsation.
Dr. Christian Wegner, member of the executive board of ProSiebenSat.1 said, “Digital functions globally. Having established a leading multichannel network in the German-speaking region, we are taking the consequent next step with CDS to create a global player in what is a high-growth sector of the entertainment industry.”
Jan Frouman, Group Managing Director, Red Arrow Entertainment Group added, “Our partnership with CDS is a major strategic step forward for Red Arrow. Not only will we be expanding our global digital presence in a real and meaningful way – but we will be doing it with a team who knows the space and shares our creative philosophy. We couldn’t be more pleased.”