pdf 14 MB - ProSiebenSat.1

Leveraging business opportunities
in TV and distribution
Broadcasting German-speaking – TV Germany
Thomas Ebeling
October 15, 2013
| October 15, 2013
Page 1
We have a strong position in the German TV market
Share of viewing
Share of advertising
[Audience share, in percent]
[Gross values, in percent]
32.1
36%
owned
28.2
25.4
100%
owned
44.0
34.1
50%
owned
100%
owned
H1 2013
H1 2013
Page 2
| October 15, 2013
Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 3-3 h.
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research
Source: Nielsen Media Research
ProSiebenSat.1 continues to lead audience share vs. RTL
Full day – share of viewing
Prime time – share of viewing
[audience share, in percent]
[audience share, in percent]
27.8
27.3
FY 2012
27.5
28.5
26.3
YTD 2013
28.3
25.6
FY 2012
| October 15, 2013
Adults 14-49, 2012 (01/01/2012-12/31/2012), YTD 2013 (01/01/2013-10/02/2013),Mon-Sun, full day 3-3 h, Prime Time 20.15-23.00 h, RTL Mediengruppe w/o RTL II
Base: all TV households in Germany (D+EU) / Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research
25.3
YTD 2013
Page 3
ProSiebenSat.1 ahead of RTL Group since March 2013…
Audience shares in commercially relevant target group 14-49 years
[in percent]
30
29.7
29.3
29.3
29
27.9
28
27.4
27.2
28.3
28.2
28.1
27.4
+ 4.7%pts
27
26.0
26
26.8
27.0
26.9
25
25.5
25.4
25.5
24.5
May 2013
June 2013
July 2013
August 2013
24.6
24.6
24
January 2013 February 2013 March 2013
April 2013
ProSiebenSat.1
| October 15, 2013
Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 3-3 h.; RTL Mediengruppe w/o RTL II
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research
September
2013
RTL Group
Page 4
…with leading prime time position even expanded since May
Audience shares in commercially relevant target group 14-49 years – prime time
[in percent]
31
30
30.5
28.5
29
29.5
29.4
28.3
29.5
28.7
28.2
29.5
28.2
28
27
26.3
+ 6.2%pts
26
25
26.0
25.8
25.5
24
23
24.1
22.6
July 2013
August 2013
23.7
23.3
23.2
22
January 2013 February 2013 March 2013
April 2013
ProSiebenSat.1
May 2013
June 2013
September
2013
RTL Group
| October 15, 2013
Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 20:15-23:00 h; RTL Mediengruppe w/o RTL II
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research
Page 5
ProSieben with smallest gap ever vs. RTL –
SAT.1 with clear leadership vs. VOX
Audience shares ProSieben vs. RTL
Audience shares SAT.1 vs. VOX
Audience shares ad relevant target group 14-49y
[in percent]
Audience shares ad relevant target group 14-49y
[in percent]
18
11
16
10
14
9
12
8
10
0
0
Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13
Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13
| October 15, 2013
Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 3-3 h.
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research
Page 6
Our channels hold strong positions in their relevant
target groups
Channel
Relevant target group
[in years]
Audience share in relevant target groups
[YTD 2013, in percent]
F/M 14-39
15.9
9.5
F/M 14-59
5.6
F/M 14-49
2.1
F 14-39
F 40-64
0.5
M 30-59
0.4
| October 15, 2013
Basis: All German TV households (Germany + EU); YTD: 01/01/2013-09/30/2013; ProSiebenMAXX: 09/03/2013-09/30/2013; Mon-Sun: 3-3h
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research
Page 7
Prime time ratings driven by new blockbuster
entertainment shows…
The Voice
Ø
23.4%
share of viewing
(season 2)
The Voice Kids
Ø
19.8%
share of viewing
(season 1)
| October 15, 2013
Basis: All German TV households (Germany + EU), 14-49 years; Mon-Sun, 3-3h
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Audience Research
Got to Dance
Ø
15.8%
share of viewing
(season 1)
Promi Big Brother
Ø
13.9%
share of viewing
(season 1)
Page 8
…and by Germany’s most successful line-up of US sitcoms
The Big Bang Theory
How I Met Your Mother
Two and a Half Men
up to
up to
up to
21.7%
16.8%
16.4%
share of
viewing
share of
viewing
share of
viewing
| October 15, 2013
Basis: All German TV households (Germany + EU), 14-49 years; Mon-Sun, 20-23 h
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Audience Research
Page 9
Almost stable market shares despite increased
fragmentation in digitalization
Share of viewing bridge: YTD 09/30/13 vs. YTD 09/30/12
[14-49 years; in percent]
ProSiebenSat.1
Group rating
ProSiebenSat.1
Group rating
27.7
09/30/12
27.6
0.1
-0.1
-0.0
-0.1
-0.1
-0.0
ARD/ZDF
(Sport, CL,
Wetten dass...)
RTL II
Sky
Basic Pay
Digital Public
Other
| October 15, 2013
Basis: All German TV households (Germany + EU), 14-49 years; Mon-Sun, 3-3 h
Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Audience Research
09/30/13
Page 10
ProSiebenSat.1 continues to lead commercial
universe share vs. RTL
Commercial universe: full day
[audience share, in percent]
36.9
36.5
36.7
35.5
P7S1
RTL
P7S1
RTL
YTD 2012
YTD 2013
| October 15, 2013
Adults 14-49, YTD 2012 (01/01/2012-09/30/2012), YTD 2013 (01/01/2013-09/30/2013), only stations >0.5% MA in 2013, public channels only in time zones with advertising
Base: all TV households in Germany (GER+EU) / Source: AGF in cooperation with GfK / TV Scope
Page 11
TV remains the central fire place for German households
TV market trends – Germany
Key facts
I
TV and TV-related consumption continues to
dominate total media consumption
II
TV remains the central fire place as the everyday
lean-back medium
78% in company
Teenagers do not
expect a decline in 88%
importance of TV
III
New TV screens/hardware make watching TV more
stirring – and people invest into new TVs
10m
HDTVs sold
in 2012
New screens make TV for
even more special 58%
IV
Growing VoD market with minimal impact on
linear TV – but replacing DVD market
103m EUR VoD market 2012 VoD as percent of
| October 15, 2013
205 TV viewing
min
(+1% growth p.a.)
Prefer watching
(+53% p.a.)
Online Video viewing
(+62% p.a.)
total video market
20
min
6%
Page 12
TV continues to dominate media consumption –
Online Video as additional growth opportunity…
Average daily usage in Germany
[in minutes, 14-49 years]
220
200
TV usage
205
+1%
Online (w/o
Online Video)
63
+9%
Online Video
20
+62%
2013
(min)
CAGR
2002-2013
180
160
140
60
40
20
2002
2004
2006
2008
2010
| October 15, 2013
Source: SevenOne Media, forsa, Enigma GfK, mindline media
Note: Online since 2008 without passive usage; Online Video: ProSiebenSat.1 estimate
2011
2012
2013
Page 13
…supported by strong growth in new devices
Average daily TV/video usage in Germany
[in minutes, 14-49 years]
240
Total TV/video
203
221
+1.7%
Traditional TV usage
180
161
-2.2%
23
61
+21.5%
2013
(min)
2018
(min)
200
160
120
Video over OTT
(connected TV/PC/
mobile/tablet)
80
40
0
2013E
2014E
2015E
2016E
2017E
| October 15, 2013
Source: SevenOne Media, forsa, Enigma GfK, mindline media
Note: Online since 2008 without passive usage; Online Video: ProSiebenSat.1 estimate
CAGR
2013-2018
2018E
Page 14
In the young target group TV is still the lead medium with
stable consumption – online growing dynamically
Average daily usage in Germany
[in minutes, 14-29y]
160
140
TV usage
146
-1%
Online (w/o
Online Video)
90
+20%
Online Video
30
+126%
2013
(min)
CAGR
2002-2013
60
40
20
0
2002
2004
2006
2008
2010
2011
| October 15, 2013
Source: SevenOne Media/mindline media 2013; Online since 2008 without passive usage
Online video usage: SevenOne Media/mindline media 2013; before 2012: ProSiebenSat.1 estimate
2012
2013
Page 15
TV is lead medium in reach and usage
Monthly net-reach and usage duration
[total population, excl. mobile usage, in percent]
100
TV
Total
50
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
| October 15, 2013
Source: AGF/GfK, TV Scope 5.0 (vierwers +3y), Comscore (Internet Home + Work, excl. mobile usage; +6y), Jan 2013, own calculations Wirkstoff TV, SevenOne Media /
mindline media 2012 (print +14y)
170
Usage duration
[hrs per month]
Page 16
Global OTT players attack market – but most likely
cannibalizing physical DVD consumption
Key strategies/activities
•
•
Youtube with niche content strategy (<USD 200m invest)
Google Play store as iTunes ‘me-too’
•
•
Focus on seamless user experience & selling hardware
TV set rumor – Potential deals with Disney/ESPN/HBO for TV subscriptions
•
•
Bundling deep library streaming of TV/Video content into Amazon Prime
Additional TVoD/ EST sales (similar to iTunes)
•
•
Early 2013 – old CEO announced plans for web-based Pay TV service
Now – new CEO with focus on mobile, less optimistic about Pay TV service
• Streaming service with largest on-demand library and 29m subscribers
• Exclusive titles like Mad Men and strong original content like ‘House of Cards’
• ‘sky Go‘ – mobile/multi-device access to sky content for existing subscribers
• ‘skyflix‘ rumor – sky to potentially launch streaming service in Germany
| October 15, 2013
•
Access of OTT
players to fresh
exclusive studio
content unlikely
•
Prices for
exclusive content
sometimes 5x
higher than for
non-exlusive
•
Physical DVD
consumption
most likely to be
cannibalized
Page 17
Market fundamentals in USA and Germany are very different
USA
Germany
HH TV spend
Monthly HH spend for TV: USD 951) –
big savings potential through cord-cutting
Monthly HH spend for TV: EUR 302) –
low savings potential through cord-cutting
Ad break intensity
No ad break regulations in USA –
high intensity (15-20 min/h) and frequency,
driving usage of ad skipping
Ad breaks highly regulated in Germany –
lower intensity (max 12 min/h) and frequency
Channel fragmentation
Basic TV package incl. >500 channels –
due to diversity of ethnical groups & interests
Less fragmented/strong lighthouse channels
– due to lower social diversity
Content quality in Free TV High-quality & top-sport content not in
basic TV service – Pay TV a ‘Must Have’
>50 high/good quality channels in FTA w/ top
US & sport content alongside private channels
Illegal viewing
Commonly used – especially streaming
Limited due to German language dubbing –
most illegal content only in English
Power of domestic
content and local hosts
Many creative, local authors and formats
Few local ‘Must See’ hosts – licensing of
international content and formats critical
Language
Native language
Dubbed version
| October 15, 2013
1) Monthly averages 2012; 2) thereof EUR 18 obligatory; Source: Nielsen, ProSiebenSat.1 internal research (SevenOneMedia)
Page 18
Premium Pay TV threat very minor
Key
Sports
Events
• Majority of mass market sports events covered by
public broadcasters and ProSiebenSat.1/RTL
• Sky only covers premium rights for selected events
(e.g., soccer premier league)
• Majority of blockbuster movies and top US series
secured by ProSiebenSat.1/RTL
Top US
Content
• Pay TV monetization of US content not yet proven –
sky with very limited coverage
Value proposition
of Pay TV/Sky
relatively weaker
in Germany –
• Ad-based monetization for studios more important
than Pay TV model in Germany
especially for
• German viewers prefer dubbed version
mass market
Local
• Limited number of local stars
Content
| October 15, 2013
Page 19
Fragmentation of market will continue –
however relevant set will remain stable
Broadcast stations received and in 'Relevant Set'
90
82
73
63
52
41
5
6
6
6
6
6
2004
2006
2008
2010
2012
2015E
Ø number of receivable channels
Ø number of Relevant Set channels (>80% of TV usage time)
| October 15, 2013
Adults 14-49 years 'Relevant Set': channels which draw at least 80% of TV usage time, basis: All TV households Germany [D+EU]
Source: AGF/GfK Fernsehforschung / TV Scope, SPSS / GfK, ProSiebenSAT1 TV Deutschland GmbH / Audience Research [TH], 2015 own estimate
Page 20
Key strategic actions to secure attractive future for our
TV business
1 Launch attractive, well targeted new channels
2 Establish leading market position with key channels/have must see TV formats
3 Create outstanding linear content (talk-of-nation, live, quality)
4 Establish strong serial formats
5 Provide top US content at reasonable cost
6 Secure distribution everywhere at lowest cost/maximize distribution income
7 Provide new audiovisual thematic content offerings (e.g., smart channel app project)
8 Lead in TV 3.0 (ping-pong TV-Online)
9 Increase recycling ability & effectiveness (fiction, entertainment, reality)
10 Establish new low-cost content categories (e.g., Bollywood, Asian, Turkish)
| October 15, 2013
Page 21
1
We are well positioned to capture all segments of
German TV viewers
Positioning by age and gender
[structural share]
male
young
old
female
| October 15, 2013
Structural shares M 14+ and A 14-49 on base A 14+, full 2012, 3-3 h
In percent / base: all TV households in Germany (D+EU) / Source: AGF in cooperation with GfK / TV Scope / ProSiebenSAT1 TV Deutschland Audience Research
Page 22
1
We cover a broad range of advertising
customers and segments…
Consumer target
group
Channel
1)
Competition
Customer segments
A 14-39
RTL/VOX/RTL 2
Business services, telecommunication, beverages
A 14-59
RTL/VOX
Food, cosmetics & toiletries, trade & shipment
A 14-49
RTL 2/VOX
Motor vehicles, beverages, business services
F 14-39
FTA/female
magazines
Trade & shipment, cosmetics & toiletries, beverages
F 40-64
Print/public TV
Cosmetics & toiletries, motor vehicles, pharmacy
M 30-59
RTLNitro/DMAX
Motor vehicles, trade & shipment, finance
M 6-13
Male kids TV
Toys, games, education, music, entertainment
| October 15, 2013
1) During day-time we show Yep! on ProSieben MAXX
Page 23
2
…driven by strong positions in key genres, built on
‘must see’ TV formats
• Leading US crime series
• Prime time entertainment
• Emotional reality shows
• Leading entertainment comedy hosts
• Blockbuster prime time entertainment
• US classic movie blockbusters
• US crime fiction on afternoon
• Soccer Europa League
| October 15, 2013
Page 24
2
ProSiebenSat.1’ s six most successful
‘must see’ TV formats
The Voice
The Voice Kids
Germany‘s Next Topmodel
Got to Dance
Promi Big Brother
Schlag den Raab
| October 15, 2013
Page 25
3
Outstanding linear content
The Voice
The Voice Kids
Got to Dance
TV Award 2013
Leading Kids Casting Show
TV Award 2013
Leading Dance Casting Show
Germany‘s Next Top Model
Raab
Joko & Klaas
Leading Model Casting Show
Leading German Entertainer
Next Generation German
Entertainer Talents
| October 15, 2013
Page 26
4
Increase number of serial formats in key slots
Day time/access time
Prime time
Local crime fiction series in line-up
3 US series evenings
US sitcom
3 sitcom/comedy evenings
US crime series
Very stable grid (series/movies)
US female series
Stable grid with US series
| October 15, 2013
Page 27
5
Top US content secured…
| October 15, 2013
Page 28
…to deliver a balanced mix of US and local content
5
ProSiebenSat.1 Group content break-down
News, Magazines & Sports
[in percent of total hrs]
•
•
•
Reality
•
Reality Blockbuster (e.g. Biggest
Loser, Schwer verliebt)
#1 breakfast television (SAT.1 Frühstücksfernsehen)
Leading boulevard & lifestyle shows (taff, red!)
#1 science show (Galileo)
15%
20%
Film International
•
Entertainment
•
•
#1 casting show (The Voice/Voice
Kids)
#1 competition show (Schlag den
Raab)
Film & Series National
•
•
Top series (Der letzte Bulle)
Talk of town formats (e.g., Der
Minister)
Commissioned content
Licensed content
| October 15, 2013
Deals with major studios Warner, 20th Century Fox,
Paramount, Dreamworks, Constantin, Regency
10%
Series International
36%
9%
8%
•
•
•
Top crime series (Navy CIS, Criminal Minds, Elementary)
Award winning series (Homeland)
Leading in sitcoms (Big Bang Theory, Two & a Half Men)
2%
Animation
•
•
Long-running cult series (e.g., Simpsons, Family Guy)
Trick-series (Warner & Yep)
Page 29
6
Growth through new distribution opportunities
ProSiebenSat.1
apps
Mass distribution
partners
• Launch of ProSiebenSat.1 mobile/Smart TV apps
• Free catch-up content
• Live streaming of channels (pay)
• Partnerships with telco and cable networks to integrate ProSiebenSat.1’s
channels in Live-TV streaming offerings
• Bundle packages/offerings
• CPS/revenue share participations
TV app specialists
• Integration of ProSiebenSat.1 channels in universal TV
streaming apps (e.g., zattoo, Magine)
• CPS revenues and ad sales partnerships (SOM)
| October 15, 2013
Page 30
7
Launch app based smart channels
Approach/
business
model
Content/
topic areas
Distribution
platforms
•
•
•
•
App-based channels
Freemium – free ad financed version with in-app upselling
Attractive for special interest print customers
Push through TVD cross-promo/trailer and SEM/Facebook
• Print media relevant content topics
• Low-cost content from, e.g., MCN and TV recycling
• On-demand grid/fresh monthly content
• Low cost distribution (digital platforms)
| October 15, 2013
1) Brands illustrative
Example lifestyle &
luxury app
Female/male, 14-59y
net income >EUR 3,000
In-App eCommerce
‘Get the Look’
Premium coops
with 5 licensing
brands1)
Page 31
8
Further leverage TV 3.0 ping-pong to drive reach
and engagement/loyalty to formats
1
Online first – broadcasting premier on online platform strengthens TV
performance/ratings
2
Promoting an online show through integration of TV moderator in web-show
3
Give semi-professional webstars opportunity to be integrated in TV shows
4
Show promotional trailers for websites on TV
5
Do casting for free-to-air shows supported by online activities
6
Second screen (interactivity)
7
Additional information to shows
| October 15, 2013
Page 32
9
Explore creative ways even better to
leverage existing content
Improve re-run ability
Driving multi-channel usage of formats
Content exchange management in factual & entertainment
New windowing
Leveraging digital channels
| October 15, 2013
Page 33
9
More reach through multi-platform content
exploitation
example ‘Spartacus Vengence (season 3)‘
season 1-3 VoD
connect
community check-in
VoD w/limited time span
VoD current episode
.de
VoD current episode
VoD current episode
Quick repeat
season 1-2 VoD
Free-TV season 3
season 1-2 VoD
Teaser clips
.de
PRE
| October 15, 2013
ON
POST
Page 34
10
Establish new and cheaper categories
Bollywood/Turkey
China/Asia
Webstars shows
New reality production style
Blockbuster documentary
Improve marketing/
sales execution of sports/live events
New cheaper sport live events (e.g., city-runs)
| October 15, 2013
Page 35
Summary
1
TV will remain lead medium – TV everywhere is booming
2
ProSiebenSat.1 with leading full day and prime time
audience shares
3
ProSiebenSat.1 well positioned to capture all segments of TV
viewers – driven by attractive channels and Blockbuster content
4
Key strategies in place to further optimize efficiency of
program investments
| October 15, 2013
Page 36
Leveraging business opportunities
in TV and distribution
Broadcasting German-speaking – Sales Strategy
Thomas Ebeling
October 15, 2013
| October 15, 2013
Page 37
ProSiebenSat.1 with strong performance in 2013
YTD 2013
∆ vs. 20121)
TV share of advertising market (net)1)
27.9%
+0.7%pts
Share of advertising ProSiebenSat.1 (gross)
44.1%
+1.8%pts
Universe share of advertising vs. RTL (gross)
56.6%
+1.9%pts
EUR 10.6
+EUR 0.4
Net CPT
| October 15, 2013
1) 2013 FY est. vs. 2012; Source: ZAW e.V. / SevenOne Media, Market Insights, Revenue Management estimate: TV spendings, excluding direct mail and directories
Source gross: Nielsen Media Research YTD (Jan.-Aug.), Source net CPT: AGF/GfK, TV Scope, SevenOne Media, Pricing & Media Strategy, own calculation
Page 38
Development of net TV advertising market share 2008-2013
TV advertising share of total ad market (net)
[in percent]
30
28
27.9
27.9
27.2
26
24
26.3
24.8
25.0
2008
2009
26.0
22
20
2010
2011
2012
2013E
| October 15, 2013
Source: ZAW Zentralverband der deutschen Werbewirtschaft e.V. / SevenOne Media, Market Insights, Revenue Management estimate: TV spendings, excluding direct mail and directories
Page 39
TV is the most effective medium
TV is the most effective medium (TV advertising recall 2.4x higher than print) – with daily
reach of 49m viewers TV is the dominant medium to reach mass markets
TV is the most efficient medium: Ø-net CPTs for TV advertising are at 50% compared to print
and online pricing
Attractive ROI1) of TV advertising leads to continuous growth of advertising share gains
(Ad shares 2012 vs. 2011 – TV: +0.5ppt. vs. Print: -2.3ppt.)
TV ad intensity in Germany at 39% of US level and significantly lower than in key markets
in Western Europe – substantial growth potential by closing the gap
| October 15, 2013
1) additional sales revenues/TV ad spend
Page 40
TV is the most effective and efficient medium for
advertisers in Germany…
Highest effectiveness
Attractive pricing
Advertising effectiveness
Net CPT ranges
[Aided advertising recall, index 100=without contact]
[EUR]
TV
50
40
442
InStream Video
367
InPage / Display
15
25
15
10
190
5
Print
0.5
166
0
100
200
300
400
500
TV
Newspapers
Magazines
Page 41
| October 15, 2013
Basis: n=200, 14-64 yrs; 4 tested advertising campaigns per medium;
Source: eye square 2012
Online
Source: SevenOne Media estimate; CPT = Cost per thousand
…and generates high long-term ROIs
Based on 110 analyzed FMCG brands
2.1
Average
long-term
ROI
| October 15, 2013
‘Long-term ROI’: ROI after 5 years, ROI = ratio of additional sales revenues / TV ad spend
Source: GfK / SevenOne Media Based on a TV investment net / gross ratio of 43%
62%
of all analyzed brands
long-term-ROI >1
36%
analyzed brands with
long-term-ROI 2.0-9.0
Page 42
High-impact research projects will support proof of
superiority of TV
Research project
1 Proof of long-term ROI of TV advertising for sustainable brand success
2 Proof of TV as the considerably more effective ad medium vs. print
3 Proof of eroding brand effects for below-the-line and promotion activities
4 Proof of TV advertising as driver for online success (e.g., eCommerce)
5 Proof of outstanding effect of TV/Online video media mix on reach & impact
| October 15, 2013
Strategic objective
Strengthening TV
share vs. other media
Gaining advertising
share from print
Regaining promotion
budget for TV
Winning online
customers for TV
Increasing video
share in media mix
Page 43
Large customers shift budgets back to TV and
increase their overall ad spend
Jan-Aug 2013:
Top 20
Top 21-50
Other
| October 15, 2013
Source: Nielsen Media Research
Δ Nielsen gross TV spendings
Δ TV share (in pp)
1.8%
2.3
10.6%
8.0%
3.1
1.5
Page 44
Potential economic recovery in Europe might lead
to catch-up effects of European advertisers by 2014
Nielsen gross TV spendings of Top 50 customers per segment
[in percent, Jan-Aug 2013]
National
9.9%
European -8.0%
Global
| October 15, 2013
Source: Nielsen Media Research, Jan-Aug 2013
9.7%
Page 45
eCommerce companies spend 70% of their advertising
budgets on TV
YTD 2013 media budget split of German eCommerce companies
[in percent]
Others
Print
TV
6%
8%
16%
70%
70% advertising share:
TV is the most effective medium to
grow eCommerce companies
Internet
| October 15, 2013
Source: Nielsen Media Research, Jan-Aug 2013
Page 46
ProSiebenSat.1 with well-balanced and diversified
customer base of more than 500 customers
Customer split 2013 [in % of revenues]
1
Large customer base with more than 500
customers from various industries
Other
customers
<25%
2
Top 100
customers
>75%
Diversified customer base – biggest
customer <3.5% of total revenues
3
Successful acquisition of new customers –
YTD 2013 >20% new customers vs. 2012
∑ Customers: 500+
| October 15, 2013
Page 47
German TV market potential – balanced risks and
opportunities
PRINT
Market potential 2018 vs. 2012 [in EURm]
Market base case
Add. market upside
Market risks
1
Print cannibalization – structural effect
170
30
-
2
New channels – expand target groups
30
-
(15)
3
App channels/2nd Screen/HbbTV
10
10
-
4
Regional/local advertising
50
-
(50)
5
Individualized targeting
10
40
-
6
TV/Online combos
15
55
-
7
Pricing opportunities
80
-
-
8
New markets (e.g., betting)
70
-
(20)
9
Product placement/new ad concepts
50
-
-
10
Ban public sponsoring/advertising1)
10
50
-
11
Shift to online/video display
(65)
-
(100)
12
Shift to emerging markets
(30)
-
-
∑ 400 (CAGR +1.7%)
∑ 185
∑ (185)
| October 15, 2013
1) Impact only on private TV market
Page 48
TV share of total ad market will increase – as relation
between usage and ad spend continues to normalize
1
Usage vs. net media mix Germany 2013
Net media mix Germany, 2000, 2012 and 2018E
[in percent]
[in percent]
TV
5%
Print
54%
66%
54%
44%
35%
27%
24%
27%
30%
Usage
Net media
mix share
2000
2012
2018E
1ppt increase in media mix equals ~EUR 60m for P7S1
| October 15, 2013
Source net media mix: ZAW, since 2007 SevenOne Media estimate, excluding direct mail and directories, Online including display (banner and video), excluding Search and affiliate
Source: Media usage 2013 (n=1,010) | mindline media, SevenOne Media
Page 49
Print with significant loss in reach and circulation
1
Trend of reach and circulation [in percent and in K]
Magazines
Newspapers
70
-23.9% circulation
104.4
110
98.5
65
100
178.7
-13.4% reach
96.7
100
-10.2% circulation
180
172.4
90.5
60
-2.8% reach
164.7
95
161.5
170
160.6
90
90
160
55
80
85
150
50
70
80
140
60
75
79.4
62.8
60.7
59.0
56.9
54.4
45
2009
reach
2010
2011
2012
2013
93.7
93.8
93.2
92.8
91.1
130
2009
2010
2011
2012
2013
circulation
| October 15, 2013
Page 50
Newspapers – Basis: A 14-49 (pot. 35.20m) – 2009, A 14-49 (pot. 38.93m) – 2010, A 14-49 (pot. 38.39m) – 2011, A 14-49 (pot. 37.88m) – 2012, A 14-49 (pot. 37.47m) – 2013 Source: ma 2009 Presse II + ma 2010 Presse II + ma 2011 Presse II + ma 2012 Presse II + ma 2013 Presse II;
www.ivw.de / SevenOne Media GmbH, Media Strategy & Analytics Magazines – Basis: A 14-49 (pot. 35.20m) – 2009, A 14-49 (pot. 38.93m) – 2010, A 14-49 (pot. 38.39m) – 2011, A 14-49 (pot. 37.88m) – 2012, A 14-49 (pot. 37.47m) – 2013
Source: ma 2009 Presse II + ma 2010 Presse II + ma 2011 Presse II + ma 2012 Presse II + ma 2013 Presse II; www.ivw.de / SevenOne Media GmbH, Media Strategy & Analytics
1
~EUR 3.4bn German gross print spendings directly
addressable as core TV advertising market
Print & direct mail gross advertising market 2012 (in EURbn)
Professional/
magazine
Direct mail
12.4
3%
5.6
Direct mail (partly)
addressed
-22%
Media
27%
Classified
advertising
Magazines
-15%
29%
-2%
2.4
-7%
-12%
-7%
Other*
Daily
newspapers
Direct mail
not addressed
0.4
-3%
Commercial adv**
(daily newspaper)
0.6
-5%
3.4
41%
Total (gross)
not directly
addressable
Potential from
ad allowances
Regional potential
Local potential
| October 15, 2013
*Other: B2B, total spendings <200kEUR, Tobacco, partly commercial advertising in daily newspapers; **Commercial advertising: commerce, mail order selling, building trade
Source: Nielsen Media Research (2012) / SOM Market Insights: own calculation
Core TV market
potential
Page 51
1
TV and Online expected to gain share from
print within total media mix
Total media budgets (net) EURm, media mix SoA in %
18,531
14,120
14,062
14,043
14,051
14,119
14,203
4.0%
4.0%
5.3%
6.4%
5.4%
6.5%
5.5%
6.7%
5.7%
6.8%
5.7%
5.8%
6.9%
7.0%
9.6%
8.3%
9.0%
9.9%
10.6%
11.5%
12.4%
13.9%
13.7%
13.4%
13.1%
12.8%
12.5%
Trade Journals
6.0%
5.9%
5.9%
5.8%
Magazines
8.4%
8.0%
7.7%
7.3%
5.7%
7.1%
5.6%
6.8%
23.1%
22.1%
21.0%
20.2%
19.5%
18.8%
24.4%
27.9%
28.6%
29.3%
29.7%
30.1%
30.3%
2000
2013
2014E
2015E
2016E
2017E
2018E
Cinema
Radio
Outdoor
Online
6.8%
Freesheets
12.1%
Dailies
TV
37.2%
37.5%
| October 15, 2013
Excl. direct mail/directories
Source: ZAW Zentralverband der deutschen Werbewirtschaft e.V. / SevenOne Media, Market Intelligence, Revenue Management own estimate (Status: 25.05.2013)
2013–18
31.6% -5.9%pts
+2.4%pts
Page 52
2
New channels help to increase TV ad market by winning
new customers (typically at the expense of print)
SAT.1 Gold
sixx
Fashion
Sports
equipment
Food/
beverages
Luxury
Cosmetics
Others
Others
| October 15, 2013
Source: ProFil, 07/13/2013; Selection of clients; New Business, Sales International
Page 53
3
Building a new digital TV response portfolio
Digital
Real-time interaction with TV shows =
revenues from real-time ads and sponsors
TV app connection
Retail and POS product push, retail coupons
(e.g., connected to retailer)
TV retail extension
Optimized search advertising in real-time with
TV spots (max. conversions)
TV triggered search
Brand engagement, lead generation,
sample distribution, brand coupons
TV brand extension
by
Extension
| October 15, 2013
Page 54
3
TV SMILES is unique response channel for TV spots
TV SMILES
• Allows interactivity for TV spots
• Extends TV spots for brand engagement,
detailed product info, lead generation & couponing
•
Uses state-of-the-art audio recognition
technology (spot detection works on all channels)
•
Makes TV ad windows more attractive and
reduces zapping
•
Rewards users with Smiles - which can be
redeemed for attractive prices
•
Underlines P7S1 innovation leadership
| October 15, 2013
Page 55
4
Regional advertising: expanding into
new client segments
Rationale
• Highly attractive market with EUR 416m gross ad potential
• EUR 100m gross ad spend directly addressable with
regional TV advertising
• Strengthening of television in regional media mix
Concept of
Implementation
•
•
•
•
5 regions via cable distribution on 3 stations (test markets)
National airing of regional spots
Evaluating targeted advertising via IP address
Examinating advertising in regional windows
| October 15, 2013
Page 56
7
Net CPT success story since 2009: 30% increase…
Net CPT development
[Index: 2007=100]
120
SevenOne Media (ProSiebenSat.1 Group)
Market
IP (RTL Group)
110
100
90
80
2007
2008
2009
| October 15, 2013
Basis: all TV-hh (GER+EU), TA 1-30, Jan-Aug 2013
Source: AGF/GfK, TV Scope, SevenOne Media, Pricing & Media Strategy, own calculation
2010
2011
2012
2013*
Page 57
…but still relatively cheap
7
TV Germany vs. other media
Net CPT ranges
[EUR]
TV Germany vs. other markets
Ø Net CPT 20“ A 14+, normed (2012)
[EUR]
50
5.40
40
4.10
15
25
15
3.80
3.80
10
5
TV
2.30
0.5
Newspapers Magazines
Online
| October 15, 2013
Source: Nielsen/Auditel (I), Infoadex/Sofres (E), DDS (UK), ZAW/AGF GfK (GER), IREP/Mediametrie (F)
UK
France
Italy
Germany
Spain
Page 58
7
US market role model for price increase – despite
increase of fragmentation and loss of reach
Revenues, CPT, viewing share prime time‚ network channels
[in USDm, index: 1995=100]
16
13.38
14
11.65
12
10
400
300
350
280
14.05
12.65
CPT development Germany vs. US
[index: 1995=100]
260
300
240
9.58
250
220
8
200
200
6
150
180
4
100
2
50
0
0
160
140
1995
Revenues
2000
2005
CPT
2010
120
100
2012
Viewing share prime time
| October 15, 2013
Basis: Germany (SAT.1, ProSieben, RTL, kabel eins, Vox, RTLII, S-RTL, ARD, ZDF), USA (ABC, CBS, NBC)
Source: TV Dimensions 2013, AGF in cooperation with GfK
Germany
USA
Page 59
8
Betting/gambling: unique opportunities to tap
into new business segments
• Highly attractive market with EUR 140m gross ad
Rationale
spends and sales revenues of EUR 10bn
• TV ads legally not allowed until alteration of
Interstate Gambling Treaty
• Despite change in treaty, ad permissions only
Prerequisites
granted for lottery clients to date
• For betting, moderate sponsoring is tolerated
• Licenses for betting expected for H1 2014
| October 15, 2013
Page 60
Innovative ad and sales concepts drive TV ad growth
by delivering superior ad impact for customers
9
Products
1
Product placement/
branded entertainment
 Integration in editorial
contents on all platforms
 Premium pricing/on-topinvestments
2
3
360° concepts
 Customized concept
(TV & Online)
 High brand fit between
content and brand
4
Thematic ad breaks
 Special packaging
 Exclusive positioning
as short break
 Premium pricing
Theme weeks/days
 Tailor made program
 Program sponsoring,
special ads and
licenses
 Tailored advertising formats/concepts drive stronger customer relationships
 On-top customer budgets through innovative sales concepts/special ads, combining TV & digital
| October 15, 2013
Page 61
9
Branded entertainment with ‘Fashion Hero Show’:
product placement of Asos, Karstadt and S.Oliver
| October 15, 2013
Page 62
9
Digital placement technology starts in Q3 with
‘The Voice of Germany’ and fiction program
Physical placement
Digital placement
Wider
capitalization &
expansion of target
customer through
short-term product
placement
 Different levels of integration
during production
 Subsequent integration in
postproduction
 On-Set, In-Use or In-story
 Technology: MirriAd
| October 15, 2013
Increase of
existing activities,
especially in
fiction programs
Page 63
Expand 360° concepts
9
Sponsoring
Product Placement
Sweepstakes
On-the-Ground
TV-Spot
Testimonial
Social Media
Point of Sale
Online
License
Connect
Print
| October 15, 2013
Mobile
Page 64
9
Sales innovations: new ad forms for better
ad impact – special thematic ad breaks
Green break
Beauty stars
Focus on environmental
protection and
sustainability
For customers from the
beauty, luxury, fashion or
lifestyle segment
| October 15, 2013
Men's finest
For ‘men specialized
products’ such as cars,
technology products
Perfect balance
For health products,
health food, sports goods
Page 65
9
Theme days with high audience and advertiser
relevance
GreenSeven
Red Nose Day
Documentaries, movies
and magazines raise the
awareness for
environmental topics
When kids suffer, it's up to
all of us to help donations go directly to
youth assistance projects
| October 15, 2013
Wedding Day
sixx celebrates the first
wedding anniversary of
Prince William and
Princess Catherine with
romantic movies for the
whole day
Tolerance Day
Stars brought together in a
TV and social media
campaign to encourage
mutual respect
Page 66
Summary
1
P7S1 with strong performance in 2009-2013 – outperforming TV ad market
2
TV ad market with further growth potential – mainly driven by gains from
print and pricing opportunities
3
Innovative ad sales concepts drive share growth – new digital TV response
portfolio in development
| October 15, 2013
Page 67
Leveraging business opportunities
in TV and distribution
Broadcasting German-speaking – Success story Austria
Markus Breitenecker
October 15, 2013
| October 15, 2013
Page 68
9
Austrian
TV advertising market with positive development
from 2007 to 2013
TV advertising share of total ad market (gross)
[in percent]
30
28
26.3
26
25.8
24
24.2
23.9
24.2
24.8
23.6
22
20
2007
2008
| October 15, 2013
Source: Media Focus 2007–2013, ProSiebenSat.1 Austria
2009
2010
2011
2012
2013
Page 69
Our key strategies
1
Local focus
• Austrian ad and program windows
• Exclusively Austrian channel PULS 4
2
PULS 4 success factors: local content
• UEFA Champions League
• Top casting shows: Austria’s next Topmodel, Kiddy Contest, Herz von Österreich
3
Distribution USP due to preferred position on all platforms
• Pre-positioning on remote controls, sat receivers, digital TV sets and cable networks
• Austrian program windows secure advantages vs. RTL group
4
Local strong sales organization
• SevenOne Media Austria No. 1 sales house
• New: Digital and SevenVentures Austria
| October 15, 2013
Page 70
15 years of growth – our major milestones towards rating
leadership
Share of viewing ProSiebenSat.1 Austria
[in percent]
25
Outlook
20
15
launch
ad
windows
Start
10
1st season
5
launch
program windows
0
1998
2000
2001
2004
2007
2008
| October 15, 2013
Source: AGTT/GfK TELETEST; Evogenius Reporting 03/16/1998-08/31/2013, person-weighted.
2010
2011
2012
2013
2014
Page 71
Market development: we are the only Group with
considerable and continuing SoV growth
Audience share, 12-49 years
[in percent]
35.4
32.9
29.2
28.0
20.1
17.3
12.2
13.5
WITH Austria
content strategy
21.2
NO Austria
content strategy
14.2
11.7
11.1
3.7
5.0
5.0
5.3
0
0
0.7
2007
2009
2011
| October 15, 2013
1.3
YTD 2013
Page 72
Basis: Whole Austria Timeframe: 01/01/2007 -09/30/2013; Mo.-Su.; 03:00-03:00h; P7S1P4 Group: PULS 4 (since 01/28/2008), sixx Austria (since 07/03/2012)// ORF: ORF 1, ORF 2, ORF III, ORF Sport+
(since 2012)// Servus TV (since 2010)// RTL-Group // ATV-Group: ATV 2 (since 2012). Source: AGTT / GfK: Fernsehforschung/ Evogenius Reporting
ProSiebenSat.1 PULS 4: We have the highest SoV gains 2013
Audience share YTD 2013 vs. YTD 2012, 12-49 years
[in percent]
30.0
21.0
28.0
21.2
13.6
11.7
4.8
YTD 2012 YTD 2013
| October 15, 2013
YTD 2012 YTD 2013
YTD 2012 YTD 2013
5.3
YTD 2012 YTD 2013
Page 73
Basis: Whole Austria, Timeframe: YTD: 01/01/2012-09/30/2013 vs. 01/01/2012-09/30/2012; Mo.-Su.; 03:00-03:00h; P7S1P4 : ProSieben Austria, SAT.1 Austria, kabel eins Austria, PULS 4 ; sixx Austria // ORF:
ORF 1, ORF 2, ORF III; ORF Sport +// ATV-Gruppe: ATV, ATV 2 // RTL-Gruppe: RTL Austria, RTL II Austria, VOX Austria, SRTL Austria. Source: AGTT / GfK: Fernsehforschung/ Evogenius Reporting (MM)
PULS 4: On the way to becoming Austria’s No. 1 private TV
channel
Audience shares 12 years+
[in percent]
Audience shares 12-49 years
[in percent]
3.7
4.0
3.3
3.5
PULS 4 already ahead
of RTLII, SuperRTL
and VOX Austria
3.3
2.8
2.2
1.5
1.4
0.5
2008
2009
2010
2011
2012
2013
| October 15, 2013
Basis: left graphic: Whole Austria, Timeframe:28.01.2008-30.09.2013 Mo.-Su.; 03:00-03:00h; right graphic: Whole Austria, Timeframe: 01.01.-30.09.2013, Mo.-Su.; 03:00-03:00h;
Source: AGTT / GfK: Fernsehforschung/Evogenius Reporting (CG)
Page 74
Sales: ProSiebenSat.1 PULS 4 SoA market leader
Share of advertising
[in percent]
58.9
51.4
42
16
40.6
32.9
22.1
18.5
20.4
34.1
34
35.3
35.3
25.4
30.3
32.2
33.9
22.4
23.5
21.6
19.8
19.8
14.1
2007
2008
2009
| October 15, 2013
Source: Mediafocus 2007–2012; *YTD 2013: 01/01/2013–08/31/2013
2010
2011
2012
33.9
YTD 2013*
Page 75
PULS 4: current program highlights and promising
upcoming projects
751,500
viewers
more than
1,000
applications
351,000
viewers
more than
500
| October 15, 2013
applications
Page 76
Summary Austria
1
TV ad market with further growth potential – mainly driven by gains from
print and pricing opportunities
2
ProSiebenSat.1 PULS 4 is the only Group with continuing SoV growth and
highest SoA gains: market leader way ahead of RTL Group
3
Key strategies: ProSiebenSat1 Austria with focus on local content, PULS 4 to
remain No.1 TV and Video Network Sales House
4
PULS 4 growth driver, new digital business with SevenVentures Austria
| October 15, 2013
Page 77
Leveraging business opportunities
in TV and distribution
Broadcasting German-speaking – Distribution
Conrad Albert
October 15, 2013
| October 15, 2013
Page 78
Making profit in 2013 – set for continuous growth
• Core distribution business with continued strong revenue
and profit contribution
• Growth from break-even to double-digit recurring EBITDA (EURm)
• Delivery of recurring EBITDA margin at double-digit level
• Strong subscriber growth in HD, both in Free and Basic Pay TV
• New business opportunities identified, e.g., mobile distribution
| October 15, 2013
Page 79
Leveraging 6 major trends for future profits
Key trends
Platform trends
1
Platform landscape impacted by digitization,
yields opportunities regarding distribution revenues
and cost reduction
Customer trends
4
Willingness to pay for TV
2
Encryption allows ProSiebenSat.1 to capitalize
content and quality
5
Digital distribution players emerge (existing
partners, new players) with new revenue
opportunities via mobile distribution
3
Bundling digital entertainment & TV products
jointly with distribution platforms to increase ARPU
6
Non-linear consumption of content increases with
upsides for monetization
| October 15, 2013
Page 80
Distribution market historically driven by monopolistic
1 structures…
Satellite
• 2010 HH: 16.7 m
• 2013 HH: 17.8 m
Cable operators
Market share 2013
• 2010 HH: 18.2 m
• 2013 HH: 16.7m
IPTV
• 2010 HH: 1.4 m
• 2013 HH: 2.0 m
Uplink
IPTV DVB-T
5%
5%
Cable
43%
Terrestrial
• 2010 HH: 2.0 m
• 2013 HH: 1.9 m
Satellite
46%
Playout
Emerging technologies
| October 15, 2013
Note: Data based on Statistisches Bundesamt, SES/ASTRA, PwC, Wilkofsky Gruen Associates, published by PWC 2012 – adjustments to recent market development by P7S1
Page 81
…with digitization offering opportunities to leverage
1 platform churn risks

•
•
•
•
Distribution platforms
Customer base
as of today
Satellite
Cable
IPTV
Digital/mobile
platforms
| October 15, 2013
Note: HH=households
Churn factors

Price
Features
Number of channels
Mobile usage
Churn potential
Infrastructure
• ~65% of HH locked in cable/satellite
via housing association deals
• ~25% of HH with no cable access
• ~40% of HH with no sufficient broadband
Competition
regarding
subscribers
and price
Page 82
Strong demand for encrypted quality TV leads to
2 additional revenue streams
Encryption
•
Further grow HD business
•
Implement mobile TV
streaming
Pay distribution
•
Diversify Pay TV portfolio
Mobile distribution
•
Monetize next technology step
(Ultra HD)
| October 15, 2013
Page 83
Our digital product portfolio perfectly serves
3 platform’s bundling needs
• Win-win opportunities for platforms and
ProSiebenSat.1
• Syndication of multi-media bundles to platforms
• Access to full customer base of platforms
• Added value leads into attractive products –
combining linear and non-linear content, technology
and features
• Offers marketed with distribution partners
• Platforms act as content aggregator and distributor
towards end customer
| October 15, 2013
Page 84
Viewers willing to pay for features, quality and content –
4 proof of concept for future technology jumps (e.g., Ultra HD)
Willingness
to pay
Satellite customers paying for TV – 1st time ever
HD+ with 1.2m paying satellite customers 2013
Sky with increased ARPU
Premium customers willing to pay EUR 10 for HD per month
Mobile TV
Market research shows willingness to pay for mobile TV
Ultra HD/future technologies
Secured revenues from technical evolution of distribution
| October 15, 2013
Page 85
Technology and willingness to pay deliver stable
4 revenue growth
FTA in HD
HD FTA paying subscribers
CAGR 2013-2018E
P7S1 figures, average of December, in million
15.2
19.6
17.0
17%
12.8
8.8
4.4
10.6
6.9
5.8
7.8
8.6
9.2
16%
Cable
2014E
2015E
Satellite
| October 15, 2013
2016E
IPTV
2017E
• Steadiness of revenues granted
by low churn frequency
• Sustainable subscriber growth
16%
14%
2013E
• Infrastructural business model
2018E
P7S1 HD enabled HH in Germany
• Viewers pay for quality
• Additional upside potential by
increased technical reach of HD
HH in Germany
Page 86
Screen Digest 2010.2013-2017 based on own assumption that no. of TV-HH continues to grow by the same factor as the number of private households as defined by the German Federal statistical office
'"HD-enabled households" =households with HD-display,HD STB, connected to platform. No. of movers by federal statistics office. Number of Changers by ANGA
Technical reach for HD to double by 2018 with
4 additional growth potential identified
Technical HD potential (HH in m)1
Specific measures to make viewers
aware of HD and turn them into
customers
Growth
initiatives to further boost
HD penetration
20
9
2013E
11
growth
• Increase HD awareness
(e.g., promotional free HD day)
• Enhance product attractiveness
(e.g., push fast-forward functionality)
2018E
23% of
50% of
all HH
all HH
| October 15, 2013
HD subscription boost in focus
• Churn reduction measures through
additional product features
(e.g., catch-up TV)
Page 87
Note: 1) Source: Based on TNS Infratest market research April 2013. Total HH target group as defined by TNS Infratest: TV households in Germany with persons over 18 years of age: HD enabled HH for
P7S1
Pay TV serves market need for quality Pay TV channels
4 in HD
Pay TV
HD penetration of ProSiebenSat.1
Basic Pay TV subscribers
• ProSiebenFun launches on
Sky Satellite in January 2014
+22%
35%
• Better monetization of HD
channels (higher CPS than SD)
13%
2013E
| October 15, 2013
2018E
• High quality special interest Pay
TV products (e.g., event based
offerings) in response to market
Page 88
Watch where you want: we will launch mobile streaming
5 app in 2014
• Development of mobile live streaming app to
offer one-click access to all P7S1 channels
• Live streaming and catch-up for full TV
everywhere and anytime experience
• Further push 360° distribution
• Launch in 2014
• Huge market, already 65m smartphones in
2014, with growth to 77m in 2018
| October 15, 2013
Page 89
Watch whenever you want: VoD market with significant
6 market growth
VoD
VoD market volume Germany
(EURm)
CAGR
+20%
480
438
407
356
• White label monetization of VoD
content (e.g., Kabel Deutschland
Select Video, UnityMedia,
KabelBW, HD+ Replay)
• Full-fledged integration of
maxdome1) within partner
platforms leveraging existing
customer bases
276
194
• Further growth through VoDcontent on new screens
2013E
2014E
2015E
2016E 2017E
| October 15, 2013
Source: Bundesverband Audiovisuelle Medien e.V.; P7S1 analysis; Revenues for Tentertain in D&A
1) maxdome reported in Digital & Adjacent segment
2018E
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Financials 2012-2018 – distribution revenue growth
Free To Air HD
• Subscriber growth (CAGR 30%)
Distribution revenues
External revenues
[in EURm]
• Blended CPS increase, e.g., through
inclusion of ProSieben MAXX in
HD+ channel line-up
~150
~50
Distribution
2012
Revenue
growth
Distribution
2018E
• Free-to-air HD
• Pay HD
• Mobile
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Δ ~EUR 100m
Pay HD
• HD Pay channel subscriber growth
Mobile
• Monetization of mobile distribution
of linear signal
Revenue insurance
• Implementation of staggered
contract duration to secure solid
revenue structure
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Summary
• Revenues to triple from ~EUR 50m in 2012 to ~EUR 150m in 2018
• Solid and non-volatile growth: double-digit revenue CAGR by 2018
• Delivering significant recurring EBITDA margin
• Meaningful contribution to shareholder value creation
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Disclaimer
This presentation contains "forward looking statements" regarding ProSiebenSat.1 Media AG ("ProSiebenSat.1")
or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1's or
ProSiebenSat.1 Group's financial position, business strategy, plans and objectives of management and future
operations. Such forward looking statements involve known and unknown risks, uncertainties and other important
factors that could cause the actual results, performance or achievements of ProSiebenSat.1 or ProSiebenSat.1
Group to be materially different from future results, performance or achievements expressed or implied by such
forward looking statements. These forward looking statements speak only as of the date of this presentation and
are based on numerous assumptions which may or may not prove to be correct.
No representation or warranty, expressed or implied, is made by ProSiebenSat.1 with respect to the fairness,
completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The
information in this presentation is subject to change without notice, it may be incomplete or condensed, and it
may not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1
undertakes no obligation to publicly update or revise any forward looking statements or other information stated
herein, whether as a result of new information, future events or otherwise.
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