Market Environment of the Production Business

The international program production and distribution network Red Arrow Entertainment Group generates more than 70 % of its revenues in the US. Thanks to program investments of EUR 33 billion in 2015, the US is the most important and largest TV market in the world. The greatest demand is currently the one for English-language fiction programs. In 2016, 455 TV series were broadcast in the US compared to 216 TV series in 2010. This is partially due to the sharp increase in the number of free and pay TV channels. Thus, according to Nielsen figures an American household receives an average of 206 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. According to the World TV Production Study by IHS Technology, these two streaming platforms more than doubled their program output between 2013 and 2015, investing USD 7.5 billion altogether. 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.