Supplier and Customer Relationships
Attractive programming is one of the most important requirements for ProSiebenSat.1’s long-term success with TV viewers, but also with users of our digital offerings and advertising customers. In order to secure a long-term supply of programming for the Group, the Group maintains close dialog with domestic and international film studios, as well as film and TV producers. ProSiebenSat.1 Group has long-term agreements with almost all major Hollywood studios and numerous film companies.
License acquisition across all forms of exploitation — from free TV and video-on-demand to mobile — is becoming ever more strategically significant for ProSiebenSat.1. We exploit program content via all of the Group’s platforms and thus offer our viewers and users a comprehensive and attractive media service. In 2015, ProSiebenSat.1 extended its agreements with Twentieth Century Fox and Warner Bros., concluded new deals with NBCUniversal and Disney, and acquired extensive rights packages.
- Thanks to the extension of the master license agreement with Twentieth Century Fox, this Hollywood studio’s films and series will continue to be shown on ProSiebenSat.1 Group’s stations in the future. For the first time, the agreement also covers animated movies from the DreamWorks studio. In addition to exclusive free TV licenses, the rights package also includes exclusive rights for pay TV.
- The extended license agreement with Warner Bros. secures ProSiebenSat.1 exclusive free TV rights to Hollywood blockbusters and hit TV shows that the US studio will produce in the years to come. In addition, ProSiebenSat.1 gains access to Warner’s extensive library.
- Moreover, ProSiebenSat.1 concluded a long-term content licensing deal with NBCUniversal for the first time in 2015. This secures the Group wide-ranging linear exclusive rights in Germany as well as catch-up rights to new US sitcoms and drama series from the Hollywood studio. In addition to exclusive free TV rights, the agreement also includes selected pay TV licenses.
- Furthermore, the Group concluded a new master license agreement with Disney in 2015. The agreement gives ProSiebenSat.1 access to new Hollywood blockbusters and TV series from the Disney, DisneyPixar, Lucasfilm, Marvel, and ABC Studios production companies. The broadcasting rights apply for ProSiebenSat.1 Group’s free TV stations in Germany. In addition to free TV licenses, the agreement also includes selected pay TV and subscription video-on-demand (SVoD) rights for platforms such as maxdome.
The relationship with advertising customers is also an important success factor for ProSiebenSat.1. The Group generates the biggest share of its revenues from the sale of TV advertising time. In financial year 2015, the share was 60.5 %. As advertising budgets are often granted on a very short-term basis, it is important to form a bond with advertising customers. In the core German market, the regional sales offices of the sales subsidiary SevenOne Media have principal responsibility for this. The focus is on intensive and tailored consultation as well as marketing and market research. In addition to maintaining the existing customer base, new customer business is also of economic importance to ProSiebenSat.1 Group. In 2015, the Group gained 139 new customers.
As well as the advertising industry, the consumers of our offerings, i. e. TV audiences and the users of our digital platforms, are also important stakeholders for us. In order to increase the success of the offerings and raise awareness of the brands, the Group therefore regularly invests in high-reach marketing campaigns. In 2015, marketing expenditure amounted to EUR 129.0 million (previous year: EUR 88.5 million). These include all expenses in relation to program and image communication with the exception of market research and PR activities. Key investment areas were online marketing measures, print advertisements, as well as events and fairs.
Direct interaction with viewers and users is also important. ProSiebenSat.1 runs 109 Facebook pages and 28 Twitter accounts relating to its TV brands. In addition, viewers can e-mail their questions about program content and suggestions or criticisms to the central viewer service department. In 2015, this department processed around 107,000 inquiries (previous year: around 100,000). The use of Facebook to make contact, again, grew significantly this year. Overall, half of the messages received (51 %) came via the heavily frequented pages of the stations (previous year: 33 %).