Television: RTL Group is Europe’s largest broadcaster. Each day, millions of viewers all over Europe watch RTL Group’s television channels, which include the families of channels clustered around the flagships RTL Television in Germany, M6 in France, RTL 4 in the Netherlands and RTL-TVI in Belgium. The company also has broadcasting operations in Hungary (RTL Klub, RTL II plus seven cable channels), Croatia (RTL Televizija, RTL 2) and has interests in Atresmedia in Spain and National Media Group in Russia. In November 2012, RTL Group launched its first TV channel outside of Europe, Big RTL Thrill.

Content: RTL Group’s content production arm, FremantleMedia, is one of the largest international producers outside the US. Each year it produces more than 9,100 hours of award-winning prime time programming across 62 countries. RTL Group is also one of the world’s leading independent distributors outside the US, selling rights to more than 20,000 hours of programming in 150 countries worldwide.

Radio: RTL Group’s radio stations reach millions of listeners each day. The company’s flagship radio station is RTL in France, and it also owns or has interests in stations in Germany (104.6 RTL, Antenne Bayern), Belgium (Bel RTL, Radio Contact), Spain (Onda Cero, Europa FM) and Luxembourg (RTL Radio Lëtzebuerg).

RTL Group’s strategy focuses on three main investment areas: broadcast, content, and digital.

Broadcast

In the years ahead, high audience shares will continue to form the basis of RTL Group’s success. So the building and extension of families of channels remains an important task in responding to increasing audience fragmentation in a digital, multi-channel world. The Group has already built up strong families of channels in Western Europe, all of which are either number one or two in their respective markets. These activities were enhanced with the addition of a number of digital channels with clearly defined profiles. They include RTL Nitro, Passion, RTL Crime and RTL Living in Germany; W9 and 6ter in France; RTL Lounge, RTL Crime and RTL Telekids in the Netherlands; and RTL 2 in Croatia. In 2011, RTL Group acquired a portfolio of seven Hungarian cable channels – an ideal platform on which to build a complementary family of channels, and to safeguard market leadership in Hungary. Another step into this direction was made with the launch of RTL II in October 2012.

Optimising the core business also includes measures to keep spot prices in the TV advertising markets stable, an even closer and more flexible cooperation with advertising clients, and the development of innovative forms of advertising in addition to the classic 30-second commercial.

One focus of the growth strategy is a significant increase in non-advertising revenue by establishing a second revenue stream, expanding in content production and diversification businesses.

RTL Group’s aim is to receive a fair revenue share for its brands and programmes from the major distribution platforms – cable network operators, satellite companies and Internet TV providers – in the future, for new services such as high-definition TV channels, on-demand platforms and digital pay channels, and eventually the signal of the major free-TV channels, which form the basis of the platform operators’ business.

Geographical expansion in high-growth regions also remains on RTL Group’s agenda. In November 2012, RTL Group launched its first TV channel outside of Europe – Big RTL Thrill. The action entertainment channel targeted at male audiences is part of a 50/50 joint venture with Reliance Broadcast Network.

With participations in ten countries, RTL Group already has a well-balanced portfolio. Not least against the backdrop of this strong presence on the European TV markets, the company is careful with its investment decisions. If, however, the company identifies a target that will help implement its strategy and create value for the Group, then the management team will pursue it.

 

Content

Content production arm FremantleMedia produces some of the highest-rated entertainment shows in the biggest TV markets worldwide – including the US, the UK, Germany, Australia, the Netherlands, France – along with a strong stable of top-rated and long-running drama series. In the future, these strong content brands, in connection with FremantleMedia’s worldwide networks in production, distribution and digital, will create reliable and strong performances.

FremantleMedia also plays a key role in strengthening RTL Group’s non-advertising revenue streams, and the company wants to grow the business significantly across all markets through a combination of organic growth and acquisition. FremantleMedia will further develop and acquire intellectual property and exploitation capabilities in areas such as general entertainment, US drama, kids entertainment, gaming and online video networks.

Content is vital for today’s broadcasting industry, and growth prospects are promising as ‘can’t afford to miss’ content becomes ever more valuable in the digital age. New distribution platforms – online, mobile, linear and on-demand – need exciting content to gain viewers, subscribers and advertising clients.

 

Digital

RTL Group will build sustainable new business models with strong cross-platform presence on all devices and screens, with internet properties and new on-demand services – our brands will be present wherever our audiences look for quality content.

One focus reflects the strong growth in non-linear TV viewing. RTL Group channels have quickly succeeded in establishing their own on-demand platforms with catch-up TV services. Examples include the ‘Now’ family in Germany, Groupe M6’s Replay service in France and RTL XL in the Netherlands. Steep growth rates show that audiences appreciate the service: whenever they miss an episode or show, they can watch it for free on the Internet.

The usage data to date makes another point clear: broadcasters’ established format brands such as Deutschland sucht den Superstar (Idols), X Factor or Un dîner presque parfait (Come Dine With Me) are driving the on-demand experience. In the on-demand world, providers with the strongest content and shows benefit the most – and these are and will remain the major TV channels.

Developing a profitable business model from this growing viewer demand will be one of the most important tasks for RTL Group in the years ahead. A recent McKinsey study estimated that non-linear viewing can account for 10 per cent of total TV viewing time by 2015/16 in Western Europe.