ProSiebenSat.1 Group Strategy

The ProSiebenSat.1 Group is one of the largest media companies in Europe. In order to sustainably strengthen its leading market position, ProSiebenSat.1 has defined three strategic action areas:

1. Strong Free TV core business.

Television fascinates people – moving images inform, entertain and provoke feelings. Therefore, outstanding programs and familiar TV brands are critical to the success of the ProSiebenSat.1 Group. Also required for growth in the core business of advertising-financed free TV are high-performing marketing structures and innovative sales concepts.

SevenOne Media is the leading sales company for audiovisual media in Germany. The wholly-owned subsidiary of ProSiebenSat.1 Group achieves around 3.2 billion gross rating points per month among viewers 14 and over via TV and online. In June 2009 SevenOne AdFactory, specializing in creative and networked concepts, began to offer 360-degree communications solutions covering TV, online, mobile and licensing for the German core market.

2. Substantially more diversified revenue sources.

The goal of the ProSiebenSat.1 Group is to reduce the dependency on economic fluctuations in the TV advertising market and to respond to future trends in media utilization. The company summarizes these strategic goals under the term diversification, namely the broadening of the portfolio through cross-media commercialization of content and geographic expansion. ProSiebenSat.1 also uses diversification in adjacent areas like music or games to reach additional target groups, thereby fully exploiting these groups' growth potential.

We take a further step toward greater revenue diversification with innovative business models such as "Media for Revenue Share." Under this model, companies that had not advertised on television before will be given air time for spots; in exchange, ProSiebenSat.1 will receive a share of the company's revenue. Entry into the business of artist and event management is another example of a potential income stream. The Group laid the foundation in early March 2010 by forming the "talent management agency" (tma), an artists' marketing platform for musicians, actors and presenters. In the spring of 2010, moreover, the ProSiebenSat.1 Group combined its production, program distribution and format development under the roof of the newly formed Red Arrow Entertainment Group. Red Arrow develops, produces and distributes formats to ProSiebenSat.1 Group TV stations and the external market, thus creating an additional revenue model alongside advertising-financed television.

3. High-efficiency, best-practice organization.

By relocating SAT.1 and combining the TV and holding company functions at the Unterföhring location, the ProSiebenSat.1 Group is able to realize its creative potential and do business more efficiently. Along with transparent structures, highly motivated and dedicated employees are critical to a "best practice organization." At ProSiebenSat.1 top performance is rewarded: the "Performance Development" program launched in early 2010 links performance evaluation with a systematic process of staff development. The goal is to boost performance throughout the company and foster key talents.

Search
V 14-49 : 30.6%
07/28/2010