Slide 1: RTL Group: TV stands for Total Video
RTL GROUP TV stands for Total Video JPM CEO Conference London, 29 June 2016 Guillaume de Posch
Slide 2: Agenda
Agenda 1 STRATEGY Introduction to Total Video Content FINANCIALS Ad Tech Data INVESTMENTS APPENDIX 2
Slide 3: 'Total Video' describes the dynamic expanding TV universe
Overview ‘Total Video’ describes the dynamic expanding TV universe TV as we know it … … evolving to Total TV … … as an integrated eco-system Non-linear Linear Linear Linear Content Ad tech Data Now non-linear offers grow in quantity TV landscape has been fragmenting Digital tech, data and new types
Slide 4: Linear TV universe has expanded for generations and this will continue
Intro TV universe Linear TV universe has expanded for generations and this will continue … 4th programmes Fragmentation expected to Long form 3.5bn Pay TV 3rd FTA Families 8bn accelerate Adv. 2nd TV TV 1st Generation … targeting more niche audiences or business models programmes Short form Niche Cha
Slide 5: Expanding from linear to non-linear – four quadrants
Intro TV universe … expanding from linear to non-linear – illustrated in four ‘Quadrants’ Audiences expect… Families of SVOD / More choice channels Long form pay online …viewing as catch- More video experience better up offer personalized than “just” linear viewing Pay TV FTA TV Less adverti
Slide 6: 'Total Video' is currently not fully measured
Intro Viewing time ‘Total Video’ is currently not fully measured … Total video viewing time Minutes per user per day / estimated Online short-form Germany France USA Online long-form (SVOD/Catch-up TV) Time-shifted (DVR) 328m Online long-form Linear TV 249m 11 232m “Leakage” can +16min 9 25 only be
Slide 7: Total addressable video market is steadily increasing
Intro Market … while the total addressable video market is steadily increasing Estimated ‘Total Video’ market development In € billion Other online short-form Germany France USA YouTube / Facebook SVOD +4% SVOD Catch up TV 85 Catch-up TV 4 Linear /Time shifted TV +4% 6 5.9 CAGR 0.2 69 12 0.5 2 +5% 6
Slide 8: Our strategic priorities across the quadrants
Our strategic priorities across the 4 quadrants Follow the viewers and explore presence in all video segments… Our ambition for … audience 4 1 Long form Explore Continue to Capture growth in total potential expand family of video, regain younger SVOD channels and audiences, prevent offerings catch-u
Slide 9: Investing in key success factors: exclusive content, ad-tech and data
Strategic priorities …while investing in key success factors: exclusive content, ad-tech and data Unique content remains Capture essential in agrowth in ‘Total Video’ Long form Invest in content total video, universe regain 5 younger audience, business prevent unmeasured viewing Digital technology w
Slide 10: Agenda: Strategy
Agenda 1 TV Broadcast Family 1 STRATEGY 2 MCN 3 Originals FINANCIALS 4 Content 5 Ad tech INVESTMENTS 6 Data APPENDIX 10
Slide 11: Expansion of RTL broadcast family – linear and non-linear
1st Quadrant: TV broadcast family 1 Broadcast family Expansion of RTL broadcast family – linear and non-linear 1 Continue to Investing in our family of 4th expand channels remains top-priority broadcasting family – 3rd especially in non-linear Catch-up is now an integral part of our family – and is
Slide 12: We have never launched as many new channels as in the last three years
1st Quadrant: TV broadcast family 1 Broadcast family We have never launched as many new channels as in the last three years +6 FTA 27 FTA channels channels added since 2013 +9 Pay-TV 32 basic pay channels channels added since 2013 +2 radio 31 radio stations South-East-Asia channels added since 2013
Slide 13: Short-form business expanding beyond YouTube
2nd Quadrant: MCNs 2 MCNs Short-form business expanding beyond YouTube TV 2 1st Generation New platforms are gaining Extend leading scale – driving growth and MCN position monetisation opportunities and drive monetization 2nd Our MCNs enjoy high audience growth 3rd New short-form video platforms 4th
Slide 14: Multi-platform presence likely to become more relevant to distribution
2nd Quadrant: MCNs 2 Growth Multi-platform presence likely to become more & more relevant to distribution Platforms expanding to videos The rise of new social video platforms Snapchat Facebook Initial / anchor Very popular among younger audiences 10bn daily video views (April 2016) Serious abo
Slide 15: Invest into digital first brands and web-original content
3rd Quadrant: Originals 3 Digital first brands Invest into digital first brands and web-original content 3 TV Invest in 1st Generation digital first brands, expand web First steps made to create new original content digital brands 2nd 3rd But more investment needed to gain relevance and brand value
Slide 16: We are building digital brands in key verticals
3rd Quadrant: Originals 3 Digital first brands We are building digital brands in key verticals… #1 IN #1 IN #1 IN HIP-HOP PRE-SCHOOL KIDS FASHION/BEAUTY Gaming Music Sport News Entertainment Kids Lifestyle Fashion & Comedy & beauty Examples: non-exhaustive Partners 16
Slide 17: Ramping-up our web original content
3rd Quadrant: Originals 3 Digital first brands … as well as ramping-up our web original content Illustrative examples only RTL Group web original content Purely commissioned for web, excl. branded content Estimate ~2400hrs BBTV incl. YB & 1,764 Stylehaul 1h15 movie on YouTube #1 Pre-school Kids
Slide 18: Strategic priorities in content
Content 4 Strategic priorities in content Fremantle is positioning itself in all ‘Total Video’ quadrants B A Keep existing hits on Maintain the air A Long form Develop the core business Roll out formats to pipeline and maximize new territories the network Create new formats Content B Acceler
Slide 19: Our scripted strategy is showing growth potential
Content 4 BDevelop pipeline Our scripted strategy is showing growth potential Major series American Gods Continued success in non- Wide range of new 1 and Young Pope progressing 2 English language 3 commissions / developments American Gods (Starz) First subtitled drama Hard Sun (BBC/Hulu) ever to
Slide 20: Bolt-on talent and M&A deals over the past year
Content 4 B Develop pipeline Helped by a range of bolt-on talent and M&A deals over the past year DATE HOLDING These deals are already contributing IP to the pipeline # of IP Sep 2015 51% 3 Shows in production or funded development SCRIPTED Jan 2015 25% 2 Shows in funded development SCRIPTED Sep 201
Slide 21: Technology connects content, publishers and advertisers online
Ad tech 5 Ad tech Technology connects content, publishers and advertisers in the online world ILLUSTRATIVE Ad tech Targeting Media tech becoming relevant – Long form Example: Trend to create Broadcaster publishers selecting ad-tech full ad-stack Platform services Operations Ad serving SpotX capturin
Slide 22: Accelerating our position to build a holistic ad-stack
Ad tech 5 Ad tech strategy We are accelerating our position to build a holistic ad-stack for RTL Group We are here 5 4 Potential for global 3 network / alliances ? Integrate ad tech 2 family and foster Strengthen group wide tech- 1 Extend European presence projects Grow assets capabilities Ad-server
Slide 23: Data will be key facilitator to drive media sales and user experience
Data 6 Data Data will be key facilitator to drive media sales and user experience Data Data is a new battleground Pay Broadcasters Platforms First moves to develop data Total Video strategies Enablers Digital aggregators / platforms We will increase efforts and potentially acquire additional compete
Slide 24: Digital data and traditional TV are moving closer together
Data 6 Data 1.0 Digital data and traditional TV are moving closer together TV data as we know … currently … with big goals it… transforming .. ahead TV only panel data Inclusion of online video data Total video measurement TV Audience (e.g., catch-up) (cross-platform, linear / non-linear) meas
Slide 25: RTL Group: TV stands for Total Video
RTL GROUP TV stands for Total Video JPM CEO Conference London, 29 June 2016 Guillaume de Posch