RTL bundles services to fight streaming giants in Europe

RTL, the European broadcasting and production group, is pursuing a country-by-country strategy as it attempts to create national leaders capable of taking on the major American streamers, starting in Germany. 

Why it matters

While the streamers may be difficult to beat in video-on-demand, RTL’s bet is that cross-media bundles – taking in TV, audiobooks, podcasts, and online magazines – and greater consolidation across the continent will help outgun the giants in a smaller theatre, the FT reports.

What’s happening

• RTL Deutschland is rebranding TV Now to include an expanded slate of digital content all under one subscription under the name RTL+.
• Versus this year, the company aims to triple its content investments to €600m by 2026, CEO of both parent company Bertelsmann and RTL Group, Thomas Rabe, told investors. 
• “We will create Germany’s first cross-media champion, offering our audiences the most diverse spectrum of high-quality entertainment and independent information.”

The bigger picture

• Profitability, however, is an estimated five years away, should it reach 10m subscribers across Germany and the Netherlands. 
• One big problem the company is facing is that streaming platforms aren’t differentiated, meaning that to many customers they are interchangeable. And yet the ‘… +’ streaming services keep on coming.
• “We hope users will see and feel they can stay longer on our platform because of the individualised content across various media genres,” Matthias Dang, co-CEO of RTL Deutschland said. 

Sourced from the Financial Times