European Broadcasters Hook Up in Web Push

European Broadcasters Hook Up in Web Push

Three European broadcasting giants are joining forces to accelerate a push into online video, seeking scale as global internet services such as YouTube pull audiences and advertisers to the web, according to Bloomberg news report.

Italy’s Mediaset and France’s Television Francaise 1 are buying small stakes in ProSieben Sat 1’s multi-channel network Studio71, which racks up about 6 billion video views a month on YouTube and other platforms in markets including Germany, the U.S. and Canada. They’ll jointly expand Studio71’s business in France and Italy and try to benefit from combined content creation, marketing and negotiating power.

It’s the first major cooperation for the broadcasters, who are eager to find fresh revenue streams beyond traditional television. Online rivals including Netflix and Amazon are expanding in the broadcasters’ home markets, putting pressure on viewer numbers and advertising sales.

"If we want to generate growth, we need to think how to scale our business, and on the digital side, scaling becomes an opportunity for us as soon as we partner,“ TF1 Chief Digital Officer Olivier Abecassis said in an interview. By working with the European peers, Studio 71 can tap into more content in more markets and better compete for advertising deals, he said.

Mediaset and TF1 are buying stakes of 5.5 percent and 6.1 percent, respectively, via a capital increase valuing Studio71 at about 400 million euros. As part of the deal, ProSieben Sat 1 agreed to acquire a minority stake in Finder Studios, a multi-channel network co-founded by TF1, and will set up a Studio71 unit with Mediaset in Italy. Executives from all three companies said they’re open to further partnerships and joint investments.