German broadcaster ProSiebenSat.1 today announced it is sharpening its focus on its entertainment business, which encompasses its traditional TV business, its streaming efforts, and its production studios Seven.One Studios. And the broadcaster says that Joyn, its hybrid streaming service initially co-founded with Discovery but now wholly owned by ProSieben, is at the heart of this strategic refocus.
Given the current tough advertising market, and the long-term decline in traditional TV ad revenues, it might be tempting for broadcasters to focus their efforts on alternative revenue streams. Content production in particular is seen as one more sustainable avenue. ProSieben also runs a ‘dating and video’ segment which focuses on dating apps and social entertainment, and a ‘commerce and ventures’ segment which includes the media groups investments made through media-for-revenue and media-for-equity deals.
But while production sits within ProSieben’s entertainment business segment, the broadcast’s strategy is specifically targeting growth in its core media distribution and monetisation business.
“We at ProSiebenSat.1 have everything it takes to reach millions of people day by day,” said Bert Habets, group CEO of ProSiebenSat.1 Media SE. “Now we want to translate this even better into growth and become even more attractive, especially digitally.”
Joyn in the spotlight
But while ProSieben is keeping faith with entertainment, it’s not just business as usual for the broadcaster. Joyn, a paid streaming service which also runs ads, “will be the centre of [ProSieben’s] digital entertainment presence,” according to the company.
What does this mean in practice? Firstly, while ProSieben says it is focusing on maximising viewing time across platforms, Joyn will be seen as the primary way in which ProSieben reached audiences.
It will also see ProSieben become more of a content aggregator in the German market. Joyn hosts content from other media companies, and runs streams of other broadcasters’ live linear channels – and ProSieben says it will look to strengthen Joyn’s role as an aggregator going forwards.
On the monetisation front, ProSieben will look to drive up digital revenues through its advanced TV advertising products. The broadcaster says it will grow the digital share of its total advertising revenues, some (but not all) of which will come through Joyn.
And finally, ProSieben says it sees industry cooperation and acquisition opportunities as key parts of its strategy. This relates to ProSieben’s entire entertainment segment, not just Joyn specifically. But nonetheless, since Joyn will be at the centre of the entertainment segment, this suggests ProSieben will be eyeing up partnerships or acquisitions which would strengthen Joyn’s market position.
