Market Environment of the Production Business

The international program production and distribution network Red Arrow Entertainment Group generates more than two-thirds of its revenues in the US. With production revenues averaging USD 35 billion over the last five years, the US is the world’s largest and most important TV market. The greatest demand is currently the one for English-language fiction programs. Around 400 TV series were broadcast in the US in 2015 alone. Four years earlier, in 2011, the number still was 211. This is partially due to the sharp increase in the number of free and pay TV channels. Thus, according to the association Privater Rundfunk und Telemedien e.V., an American household, receives an average of 189 programs. In 2008 it was 129. At the same time, the group of commissioners for high-quality productions has increased to include the operators of multinational streaming platforms such as Amazon and Netflix. In total, there were over 60 program buyers of fiction programs in the fields of free TV, pay TV and video-on-demand in 2015. As a result, Red Arrow Entertainment Group’s potential customer group in the US has become considerably larger. The ProSiebenSat.1 subsidiary is therefore continuing to direct its strategic focus — including when it comes to acquisitions — at the US market.

The high quality of Red Arrow productions is underscored by important industry awards: