ProSiebenSat.1 Media Shifts Focus to Local Programming, Ditching U.S. Licensed Content
- Wednesday, October 16, 2024
ProSiebenSat.1 Media has announced its plans to significantly increase investment in local programming while reducing its reliance on U.S. licensed content, putting an end to long-term output deals with Hollywood studios.
Taking into account recent viewership trends on its streaming platform Joyn and traditional TV, the German media company has seen considerable success with its local programming offensive. "Our viewers are watching more local content on all our channels and especially on Joyn," stated ProSiebenSat.1 Chief Executive Bert Habets.
Despite increased investment in programming, ProSiebenSat.1 projects that adjusted earnings before interest, taxes, depreciation, and amortization for the coming year will remain stable compared to 2023. It expects a slight recovery in advertising revenue by 2024.
Operating within its 2023 outlook, ProSiebenSat.1 has guided for an adjusted EBITDA at the lower end of its range of approximately €600 million ($658.8 million), with revenue slightly below its target range of about €4.10 billion.
To accommodate increased programming expenses, ProSiebenSat.1 plans to allocate approximately €80 million towards programming investment next year, bringing the total to around €1.05 billion.
As part of its strategic shift, ProSiebenSat.1 anticipates incurring a write-down of up to €250 million on its existing programming assets in the fourth quarter. It will also set aside a provision of up to an additional €90 million for future content acquisition. Going forward, the company will be more selective in obtaining U.S. licensed content.
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