ProSiebenSat.1 launches online battle against Netflix in stages
According to the company, ProSiebenSat.1’s online video platform—which has been touted as a source of hope—will not be fully operational until toward the end of the year. While the ad-supported portion of the service is set to launch in June, the subscription-based portion—which will compete directly with Netflix—will not be ready until later.
Group CEO Max Conze said on Thursday that he expects the subscription function to be launched "in late fall, early winter". Development of the app, intended primarily for smartphones and tablet computers, is still ongoing, he said.
Conze has declared the video platform called Joyn to be its most important project in order to slow the exodus of mainly younger viewers to the video services of Netflix and Amazon. Joyn is intended to expand the Group's existing online presence, including the Maxdome video platform, while bundling it with offerings from partner broadcasters. Conze wants to attract ten million users within two years with the most comprehensive offering possible on a single app.
Already on board are U.S. media group Discovery as co-owner of the platform, which is contributing its Eurosport channel, as well as ZDF, Axel Springer with its Welt channel and Constantin Medien with its Sport1 channel. Conze said he was very hopeful that several ARD channels would also be available on the platform as early as June. "We have very, very productive talks there." However, he said, that only applies to live broadcasts. The media libraries of ARD and ZDF will not be available there for the time being, he said. Rival RTL, which Conze is also courting, has so far relied solely on its own online offering called TV now.
In view of weak advertising business in the first quarter and the investments in the video platform, Conze confirmed his cautious financial targets. He said that annual sales would grow by around five percent. But profits will shrink. In the first quarter, sales climbed four percent to 913 million euros.
Operating profit fell five percent, to 190 million euros. ProSiebenSat.1 thus slightly exceeded low market expectations, explained the analysts at Liberum. The stock was initially among the biggest winners on the MDax, gaining up to 4.9 percent, but later turned negative. (SDA)
