The German Market at a Glance German Economy
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THE GERMAN MARKET AT A GLANCE GERMAN ECONOMY 2 Ongoing positive climate for consumption Basic conditions – consumer confidence, labour market, income development – are favourable GfK consumer climate Unemployment figures Available household income In points In millions Change vs. previous year in % 12 5 5 3,9 4,0 4 4 3,8 3,2 10 3,0 3,0 2,9 2,8 2,9 3 2,7 3 2,6 2,5 2,4 2,4 2,4 2,2 2 2 8 1,3 1 1 6 0 0 12/14 02/15 04/15 06/15 08/15 10/15 12/15 02/16 04/16 06/16 08/16 10/16 12/16 02/17 04/17 06/17 08/17 10/17 12/17 2011 2012 2013 2014 2015 2016 2017 2010 2013 2014 2015 2016 2017 02/18p 2018p 2019p 2018p 2019p p=prognosis, Ifo economic forecast for 2017-2019, 3 Sources: GfK, Destatis, ifo | SevenOne Media, Market Insights German economy continues to grow Expansion is broad-based on private consumption, foreign trade, construction & business investments ifo business climate GDP (real), quarterly development GDP (real), annual development Index (2005=100) Change vs. previous quarter in % Change vs. previous year in % 120 1,5 3,5 3 2,6 115 2,5 2,2 1 0,9 2,1 0,8 1,9 1,9 2 1,7 0,7 110 0,6 0,6 0,6 1,5 0,5 0,5 0,4 0,3 1 2,1 2,0 105 1,7 1,7 1,8 0,5 0,5 1,0 0,6 100 0 0 2013 2014 2015 2016 2017 02/14 05/14 08/14 11/14 02/15 05/15 08/15 11/15 02/16 05/16 08/16 11/16 02/17 05/17 08/17 11/17 02/18 2018p 2019p Q1 ´16Q1 ´16Q2 ´16Q3 ´16Q4 ´17Q1 ´17Q2 ´17Q3 Q4 ´17p Q4 ´18p Q1 GDP Private consumption *seasonally/price-adjusted, p=Prognosis, annual: Ifo economic forecast for 2017-2019 4 quarterly: DIW Economic Barometer 28 February 2018 Sources: ifo, Destatis, DIW | SevenOne Media, Market Insights IMF Forecast: euro area stabilized Global recovery has strengthened, risks appear broadly balanced Development real GDP of European Top 5 economies In %, vs. previous year 4,0 3,3 3,1 3,0 2,5 2,4 2,3 2,4 2,2 2,1 2,0 1,9 2,0 1,9 1,9 1,9 2,0 1,8 1,8 1,6 1,7 1,4 1,5 1,5 1,2 1,1 0,9 1,0 0,0 Euro Area Germany France Italy Spain UK 2016 2017e 2018p 2019p e=estimate, p=projections 5 Source: IMF World Economic Outlook Update January 2018 THE PROSIEBENSAT.1 GROUP 6 Shareholder Structure ProSiebenSat.1 Media SE Status: December 2017 SplitSplit of Capitalof Capital Stock Stock 98.3% 1.7% Free Float ProSiebenSat.1 7 P7S1 Group – leading across TV, Digital and Production Portfolio selection: Content Production Entertainment Commerce & Global Sales 1) 1) Strategic minority investment 8 ProSiebenSat.1 Group – Leader in the German TV market Audience share (A14-49) 1) ∆ Share of advertising 2) ∆ [FY 2017, in %] +1.6 [FY 2017, in %] +7.8 %pts %pts 27.0 25.4 41.7 33.9 1) Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h, full-year; w/o RTL II minority. Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland. 9 2) Period: 01/01-31/12/17; Basis: Above-the-line-Media Source: Nielsen Media Research | SevenOne Media, Market Insights ProSiebenSat.1- international line-up Germany - TV Austria - TV Switzerland - TV 10 International sales network of SevenOne Media Europe exclusive exclusive UK France Benelux Switzerland Italy Spain 11 THE GERMAN TV MARKET 12 Television is still the leading medium across all age groups Daily TV Usage Media usage and TV share by target audience in minutes per day, TV share in %, Q1-Q4 2017 350 331 300 277 97% 250 239 Cinema 204 200 89% DVD/Blu-ray 86% 150 316 Pay VoD 237 100 196 Free online video 50 106 61% TV alternative 0 TV classic A 14+ A 14-29 A 30-49 A 50+ Base: A 14+ yrs, n=7.514 13 Source: ViewTime Report Q1/17-Q4/17, SevenOne Media/forsa. German TV landscape Receive path in households In % and million 4.59 * 11.8% Total Population: 82.42 million 1.30 40.6% 3.4% Persons aged >3 years in TV households: 75.68 million Total TV households: 38.80 million 15.77 each household receives Degree of digitization: 96% Ø 78 channels 17.14 44.2% Cable-households Satellite-households Terrestrial-households IPTV *Source: Mikrozensus 2016, Statistisches Bundesamt 14 Status: 01.01.2018; Basis: TV households with german-speaking main incomer earner Source: AGF in cooperation with GfK, TV Scope Large free TV offer National National Regional Paneuropean Private Stations Public Stations Public Stations Private Stations (exemplary) (exemplary) 15 ProSiebenSat.1 stations reach a wide range of target groups Station Profiles 2017 male in % (bubble size represents audience share in adults 14-49 y.) WELT Sport1 N24 Doku Sky Sport Bundesliga 1 SYFY Eurosport ZDFinfo ProSieben MAXX 0.9 Comedy Central 1.4 0.2 ProSieben 0.4 n-tv 1.7 1.0 1.0 1.3 0.4 0.3 1.3 Phoenix 0.8 0.9 0.3 kabel eins Doku DMAX 0.3 Tele 5 1.9 ZDF 3SAT 0.8 kabel eins RTL Nitro RTL II 9.5 VIVA old 0.8 4.8 young 6.1 1.8 arte 0.3 0.7 5.1 13th Street 5.3 Nickelodeon 6.6 8.4 12.2 2.1 1.2 0,9 7.2 RTL 1.3 ZDFneo 1.5 Super RTL ARD Dritte 0.5 1.2 ARD/ZDF Kinderkanal ARD SAT.1 Gold RTLplus SAT.1 TLC Disney Channel sixx VOX female Source: AGF in collaboration with GfK; TV Scope 6.1, 01.01.2017-31.12.2017 16 A 14 January1st shares Audience Audienceshares,German TV stations - 49 03:00yrs., a.m. 10,0 12,0 14,0 2,0 4,0 6,0 8,0 0,0 8.7 8.4 10.4 9.5 - Source: 14 A Basis: & Nick,MTV VIVA, Not including 03:00 a.m., in % in 03:00 a.m., 5.1 4.8 AGF in in AGF – - 49 December 31st20172016vs.December cooperation yrs 1.3 . 1.2 | All TVAll households 1.4 with 1.5 * GfK GfK kabel / TVScope 1.1 eins Germany 1.3 Doku / : released on 22/09/2016, 22/09/2016, on : released SevenOne 0.0 0.3 * Media, Media, 12.8 RTL 12.2 Media Strategy & & Analytics Strategy Media 7.0 VOX Jan - Dec 2016 ** RTLplus 7.2 : released on 04/06/2016 04/06/2016 : on released 2.1 SUPER RTL 2.1 1.1 N - TV Jan - Dec 2017 1.0 1.5 RTL Nitro 1.9 1.5 N 24 1.4 0.4 RTLplus** 0.9 5.7 RTL II 5.3 7.4 ARD Das Erste 6.6 6.7 ZDF 6.1 1.0 SPORT1 0.9 0.9 Tele 5 0.9 1.9 Disney Channel 1.7 1.2 DMAX 1.2 17 Accumulated audience share by sales houses Accumulated audience share 2017 A 14-49 y., 03:00 a.m.-03:00 a.m., in %, change vs. previous year in %-points * Seven OneMedia -1,0 +2,1 27,0 29,6 IP Deutschland ** EL CARTEL 12,7 Public Stations -1,4 25,4 5,3 +0,5 -0,3 others Source: AGF in collaboration with GfK; TV Scope 6.1, 01.01.2016-31.12.2017 18 *kabel eins Doku: released on 22/09/2016, **RTLplus: released on 04/06/2016 Delayed usage in TV - the basics Non-linear usage in classic TV is also called delayed usage Over 85% of all programmes in 2016 were only watched live This includes the usage of recorded programmes via video In only 0.7% of the programmes did we see a reach of recorders, hard disk recorders, DVD recorders … > 0.05 million added to this through non-linear usage Until the 3rd day after broadcasting non-linear TV programme Max. Reach plus was at 0.69 million: Münster episode of usage is added to linear usage "Tatort" called “Ein Fuß kommt selten allein" on 08/05/2016 Count up of viewership Share of non-linear in TV total Share in %, A 14-49, 2010-2016 DAY OF DAY 1 – 3 AFTER DAY 4 AFTER BROADCAST BROADCAST BROADCAST 03 02 02 01 + = 01 00 00 Preliminary reach and Final reach and audience share audience share 2010 2011 2012 2013 2014 2015 2016 Basis: All TV households in Germany 19 Source: AGF in collaboration with GfK / TV Scope / ProSiebenSat.1 TV Deutschland Business Intelligence THE GERMAN TV ADVERTISING MARKET 20 TV advertising buying in Germany Rates for the following year are published in August. These rates are the basis for the annual bookings (agencies and clients) that start in October/November. Within the year the first bookings are optimized and individually changed – including short term bookings depending on air time availability. Most airtime is sold on basis of annual commitments. Booking principle is normally spot by spot (only few GRP or volume packages are offered or sold). Online booking systems (like e.g. Adonis, Cool or Bookit) enable the agencies to book spots directly.