RTL quarterly figures 2023: Streaming is booming, TV advertising is falling - financial expert analyzes

RTL quarterly figures 2023: Streaming is booming, TV advertising is falling - financial expert analyzes

According to a report by www.heise.de,

The quarterly figures presented by the RTL broadcasting group show impressive growth in the area of ​​paid streaming services. The two streaming services “RTL+” and “Videoland” recorded a 30.3 percent increase in paying subscribers compared to the previous year, bringing them to a total of 6.2 million customers. Sales in this area rose by 21 percent to 236 million euros in the period from January to September 2023.

However, this is offset by “significant” falling TV advertising revenues in Germany, France and the Netherlands. Germany in particular recorded massive declines, with the net TV advertising market declining by 11 to 12 percent in the first nine months of 2023.

Despite market share gains in Germany and cost-cutting measures, RTL Group now only expects sales of around 6.9 billion euros for the full year 2023, instead of the previously forecast 7.0 billion euros. The adjusted operating result should now ultimately be around 900 million euros, instead of 950 million euros from the last forecast.

The group's driving force is the German branch of RTL+, which had 4.665 million paying subscribers at the end of September alone. RTL Group plans to increase its annual content spending to around 600 million euros for its streaming services and increase the number of paying subscribers for RTL+ and Videoland to 10 million, increase streaming revenue to 1 billion euros and reach profitability in 2026.

Given these numbers, it's clear that the trend toward paid streaming and away from traditional TV advertising is here to stay. This could have a long-term impact on the traditional TV market and the advertising industry, forcing companies to adapt their business models and invest more in streaming.