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ProSiebenSat1 and Discovery to launch joint German streaming service

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By Jessica Goodfellow, Media Reporter

October 16, 2017 | 4 min read

ProSiebenSat1 and Discovery Communications are launching a joint premium streaming service in Germany under the existing 7TV brand, with a view to bring other German broadcasters on board to create a consolidated streaming service.

The joint streaming service will sit under the existing 7TV brand

The joint streaming service will sit under the existing 7TV brand

7TV is a digital streaming app that already exists in Germany, and is owned and operated by ProSiebenSat1. The app currently provides access to nine terrestrial TV channels in Germany including ProSieben, SAT.1, kabel eins, sixx, ProSieben MAXX, SAT.1 Gold and kabel eins Doku.

The partnership will see Discovery-owned, German language free-to-air channels, DMAX and TLC, join the streaming app with more channels promised to join in 2018. The app is also planning to launch a Eurosport Zone where viewers will be able to watch selected sports highlights and clips.

7TV is a video-on-demand (AVOD) platform - free for consumers and ad supported. Discovery did not share the commercial makeup of the partnership, but it is likely operating a revenue share model with ProSiebenSat1. SevenOne Media, the media sales house of ProSiebenSat1, will be responsible for digital advertising inventory for the joint venture.

A search is currently under way for a chief executive to run the streaming service with an announcement to be made "soon".

Discovery stressed this is the "first step" in a major partnership that will see the two TV players introduce better functionality in the app and expand its technological capabilities. This could mean an addressable TV solution is in the works, although Discovery would provide no comment on specific plans.

Michael Lang, president of international development and digital at Discovery, said: “This announcement is just the start as we work to add more channels and content partners, greater functionality, and enhanced technological capabilities and commercial opportunities in the months ahead.”

Christian Dankl, chief execiutive of AVOD at ProSiebenSat1 Media SE, added: “A new joint technology development for a pioneering streaming service is underway and we look forward to an exciting 2018, when we enter the next phase.”

The ambition is that other German broadcasters will join the service to create one online TV destination for consumers rather than requiring them to go to individual apps, with Discovery believing that broadcasters are "stronger together".

Broadcasters are under mounting pressure to diversify their revenue streams away from traditional linear TV advertising in line with changing consumer habits. By 2021, online and multichannel advertising investment combined are expected to account for nearly a third of all TV spending, according to PwC. But those with an abundance of premium content are beginning to rethink giving their content to streaming giants Netflix and Amazon Prime when a more lucrative option would be owning their own streaming service.

It's why Disney announced it was pulling its content from Netflix in August to launch its own streaming service, as well as a dedicated streaming service for sports channel ESPN. What's more, a number of media companies including Viacom, Discovery, AMC Networks, A+E Networks, and Scripps Interactive are reportedly joining together to create an entertainment-focused, sports-free streaming service in the US.

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