RTL raises targets for streaming expansion, eyes 10 mln paid subscribers by 2026

Nieuws Video Europa 4 NOV 2021
RTL raises targets for streaming expansion, eyes 10 mln paid subscribers by 2026

European broadcaster RTL has announced new targets to grow in the streaming market alongside its third-quarter results. The number of paid streaming subscribers is expected to reach over 10 million by the end of 2026, compared to 3.4 million in September this year, leading to more than EUR 1 billion in annual revenues from streaming by the same date.

RTL maintained its forecast for group revenues to grow to EUR 6.5 billion in 2021 and adjusted EBITA of EUR 1.05 billion this year. That includes an estimated EUR 150 million in start-up losses for the streaming business. 

In the first nine months of the year, RTL's revenue rose 10.3 percent to EUR 4.47 billion, while third-quarter revenue increased 3.9 percent to EUR 1.46 billion. RTL said strong growth from TV advertising (+15.7%), Fremantle (+15.4%) and streaming revenue (+25.0%) more than compensated the deconsolidation effects in Q3 from the disposals of SpotX in 2021 and BBTV in 2020. On an organic basis, quarterly revenue rose 9.0 percent.

Streaming to turn profit by 2026

Streaming revenue reached EUR 162 million in the nine months, up 30.6 percent from year earlier. RTL+, recently rebranded from TV Now, reached 2.389 million paid subscribers, more than double the year-earlier total, helped by a bundling deal with Deutsche Telekom. Paying subscribers for Videoland in the Netherlands grew 24.8 percent year-on-year to 1.013 million, supported by the original series Mocro Maffia and the reality format Temptation Island.

RTL said further growth in the streaming platform will be supported by a tripling of content investments over the next five years, to around EUR 600 million per year by 2026. This is much more than its previous target for EUR 350 million in investments by 2025.

In addition, it plans to turn its German streaming services into a cross-media platform, incorporating podcasts, audio books, music, e-commerce and magazines as new sources of revenue. Altogether the increased scale should mean the two streaming services turn profitable by 2026, compared to a previous estimate of breakeven adjusted EBITA by 2025.  

Categories:

Video

Companies:

RTL,  Deutsche Telekom,  Videoland

Regions:

Europa

Tags:

Financial figures, Advertising services

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