Rtl Group S.a. · LUXSE:RTLL
Rtl — JPMorgan CEO Conference 2015
23 slides from Rtl's conference presentation, Jun 24, 2015
Slide 1: RTL Group
RTL Group JPMorgan CEO Conference, London, June 24th 2015
Slide 2: Media is in a state of constant evolution
Media is in a state of constant evolution Television Monetisation Remains highly profitable – video Multi-platform distribution leads to consumption increasingly across all converging media sales and platform screens fee opportunities BROADCAST Production & IP Digital Video New global hits are hard
Slide 3: Agenda: Shifts in the TV industry
Agenda Shifts In the TV industry BROADCAST CONTENT DIGITAL 3
Slide 4: Linear TV is still strong, with non-linear likely to accelerate
Consumption Linear TV is still strong, with non-linear likely to accelerate Current video consumption1) Potential 2020 2) scenarios RTL Top 5 (GE/FR/NL/ES/UK), in minutes per day (avg.) RTL Top 5, in minutes per day (avg.) Linear TV Time-shifted TV VOD (incl. online short-form/long-form video) +18mi
Slide 5: Video measurement needs to follow the audience
Consumption Video measurement needs to follow the audience Type of viewing Trend Data DE FR NL Linear TV Linear viewing on TV set Extended TV Panel Measurement Time-shifted Time shifted viewing within 7 days 4 days Starting 2016 Starting Catch-Up TV (7+days) 2015 Incl. IPTV 2015 Online Hybrid online
Slide 6: Video is and will remain the dominant format in the future
Advertising Video is and will remain the dominant format in the future Forecast US ad spend by format ¹) US: TV will see further growth from Online2) Video ad spend, in $ billion 15% 8% Premium VOD Non-premium VOD 3) TV advertising 6% 6% 4% Text 4% CAGR +3% Audio 24% 80 32% 69 9% 4% Image 35% 2% 2%
Slide 7: Re-transmission fees have some growth potential for RTL Group
Distribution Re-transmission fees have some growth potential for RTL Group Re-transmission fees as % of total revenue In 2014 HD US Broadcasters channels 31% Thematic 26% channels 20% 17% VOD on managed platforms 4% CBS FOX ABC NBC RTL Group YoY +33% +26% +23% +33% +19% Growth:1) 7 1) YoY growth of
Slide 8: New thematic channels generate additional reach and exploitation options
Distribution New thematic channels generate additional reach and exploitation options FTA Pay-TV OTT channels Traditional distribution Network operator own VPO offers? project New distribution partners Hardware To come STBs To come Virtual platform operators New Planned players 8
Slide 9: Transforming the Content industry
Agenda BROADCAST Transforming the Content industry CONTENT DIGITAL 9
Slide 10: FremantleMedia: Re-positioning ongoing
FremantleMedia Re-positioning ongoing Our strategic priorities Keep existing shows on air Maintaining core 1 business Roll out formats to new territories Create new entertainment formats Developing the 2 pipeline Strengthen new genres Through organic growth and M&A Develop organically in n
Slide 11: Maintaining the core business
FremantleMedia Maintaining the core business Long-running game shows performing well Talent shows continue to roll out Highest ratings in SCANDINAVIA 6.4 Back over 20 years 5.7 in-house 4.6 5.0 Household ratings FRANCE ASIA 3rd season Pan-regional 3.0 since back 2.4 1.9 1.9 MEXICO As a daily 08/09 0
Slide 12: Developing the pipeline – entertainment shows
FremantleMedia Developing the pipeline – entertainment shows 2014/2015 launches with potential to travel RTL Germany launch, headliner at MIPTV 2015 Sold into 12 markets (incl. Argentina, Turkey, Romania, Croatia, Czech Republic, Indonesia, Ireland, Peru) Beat The Brain – 30 Episodes BBC2 across pri
Slide 13: Developing the pipeline – non-US drama
FremantleMedia Developing the pipeline – non-US drama Dramas with travelling potential Local drama series (non-US) ITV's highest rated sitcom of First German drama to be 2015 with peak audience of aired on major US network. Birds of a Feather 5.6m / 20% Sold to 7+ territories Deutschland 83 No.1 Sho
Slide 14: Developing the pipeline – a portfolio strategy to US scripted
FremantleMedia Developing the pipeline – a portfolio strategy to US scripted Three goals… … to maximize investment returns Formats Novels Adaptation Original IP 1 11 Level of FM investment Production Fee Co-Production FM Production Develop Take strong IP James Ellroy measured First Look Deal risks C
Slide 15: Status of Digital initiatives
Agenda BROADCAST Status of Digital initiatives CONTENT DIGITAL 15
Slide 16: Video views growth fuelled by MCNs
Online Video Video views growth fuelled by MCNs, with revenue getting more diversified RTL Group video views RTL Group online video offers In billion, consolidated1) 11 CATCH UP TV 2 SVOD OFFERS ~75 MULTI- CHANNEL 3 NETWORKS 36 17 ONLINE ORIGINALS 7 4 ON AND OFF YT 2012 2013 2014 2015 16 1) Consolid
Slide 17: Our broadcasters continue to develop their catch-up offers
Catch-Up TV Our broadcasters continue to develop their catch-up offers MG RTL De Groupe M6 RTL Nederland Meta brand in development : +22% video views and +112% SVOD offer launched, providing 1 App for 6 Free TV channels (as mobile views in 2014 YoY year catch-up and 7 day preview pay subscript
Slide 18: Build a global leader in the high growth native online video market
MCN business Build a global leader in the high growth native online video market 1 2 3 Develop depth in key verticals, Strengthen monetisation and Rapidly acquire scale and technology quality of content and production develop strategically important capabilities in “horizontal” MCNs capability value
Slide 19: Acquisition of YoBoHo adds an important new strand to our portfolio
MCN business Acquisition of YoBoHo adds an important new strand to our portfolio Entertainment / Gaming Sport Music Kids Lifestyle Fashion & beauty comedy #1 in fashion #1 in pre-school & beauty #2 gaming #1 in hip-hop kids community Leading MCN in APAC and largest pre-school MCN on YT Focused o
Slide 20: Trends in online video suggest significant growth opportunity
MCN business Trends in online video suggest significant growth opportunity Strong outlook for online video New distribution opportunities emerging advertising and for YouTube following push by leading tech players Global online video ad revenue In $ billion CAGR +23.2% 14.8 12.4 10.3 8.3 Revamp expe
Slide 21: RTL Group – in a leadership position
MCN business RTL Group – in a leadership position 2,4 ComScore ranking, YouTube partners Growing portfolio of vertical brands 2,1 By video views last 30 days (excluding music), February 2015 1,8 1,7 #1 in fashion and beauty on YT 1,4 1,1 0,6 #1 pre-school kids network on YT 0,5 0,5 0,5 0,4 0,4 0,3 0
Slide 22: RTL Group's strategic focus
Summary RTL Group’s strategic focus Strengthen & reinforce Improve & extend Reach and audience performance Sales and monetisation (ad/pay) BROADCAST Develop & innovate Broaden & intensify Broadcaster programming Digital capabilities (e.g. ad-tech) Re-spin & grow CONTENT DIGITAL Scale & expand Freman
Slide 23: Disclaimer
Disclaimer This presentation is not an offer or solicitation of an offer to buy or sell securities. It is furnished to you solely for your information and use at this meeting. It contains summary information only and does not purport to be comprehensive or complete, and it is not intended to be (and