Unveiling its third-quarter results, German TV group ProSiebenSat.1 said it was in the process of reviewing its existing output deals with U.S. studios while planning to ramp up local productions and its digital offering.
The company’s results show that profit dropped by 8% and revenue fell by 3% during the first nine months of 2018, compared to the same period last year. ProSiebenSat.1 said it expects full-year revenue to drop slightly to €4 billion. Max Conze, the CEO of ProSiebenSat.1 Media SE, said the company’s goal was to “increase revenues from €4 billion to €6 billion in the midterm – with at least half of this coming from digital,” notably through its banner Studio71.
With regards to its output deals with U.S. studios, Conze said ProSiebenSat.1 “has approached the respective licensors in order to achieve relevant improvements in the scope of rights and/or volume inflow for license volumes both from existing agreements and for future agreements.”
ProSiebenSat.1 has already concluded a new licensing deal with Warner Bros, its long-standing partner. The company also has deals in place with CBS, Disney and Fox.
Meanwhile, the German group is planning to ramp up local programming on its channels through its content production division, Red Arrow Studios. The company’s share of local content commissioned is expected to grow from 13% to more than 30% over the next five years.
Red Arrow Studios will also continue its international expansion, focusing on the U.S. and U.K. markets, where it already operates Left/Right, Kinetic Content and Cove Pictures, and boasts partnerships with banners such as 10Fold.
James Baker was recently appointed to the newly created role of COO at Red Arrow Studios. The company’s TV slate includes Amazon’s crime drama “Bosch” and the cooking reality format “The Taste.”