11 NovemberNovember 2010

week 45

Fun Factor Vox takes stock of the first season of X Factor

Luxembourg Belgium RTL Group publishes interim Commercial broadcasters management statement confident about TV’s future

France Netherlands M6 publishes promising RTL Nieuws app takes financials I-Pad charts by storm week 45 the RTL Group intranet

11 NovemberNovember 2010

week 45

Cover: Edita, winner of X Factor in

2 Fun Factor Vox takes stock of the first season of X Factor

Luxembourg Belgium RTL Group publishes interim Commercial broadcasters management statement confident about TV’s future

France Netherlands M6 publishes promising RTL Nieuws app takes financials I-Pad charts by storm week 45 the RTL Group intranet

‘A different quality’ Edita Abdieski has won the first season of X Factor on Vox in Germany, and Vox has won new friends among German TV viewers. In conversation with Backstage, Editor-in-chief Kai Sturm takes stock of the first season. Edita, winner of X Factor in Germany Germany - 11 November 2010

The big moment arrived at 22:43 on Cologne, the best candidates were sent to ‘boot 9 November: 74.1 per cent of viewers cast their camp’ and afterwards to the judges’ houses – in- votes for Edita as the first winner of X Factor cluding mentoring by the judges for the individual in Germany. As many as 3.55 million viewers categories: Till Brönner was in charge of the over tuned in to watch Till Brönner’s 25-year-old 25-year-old acts, while Sarah Connor mentored protégé prevail against the four ladies of the 25-and-unders and George Glueck took ‘Big Soul’ from in the grand finale of care of the vocal groups and duos. Each judge the popular musical talent show. Edita has won entered three acts in the live shows. In the end, a recording contract with . one remained: 25-year-old Edita, a singer with a remarkable soul voice. “The first season of X Factor was a huge adventure for us. We weren’t sure exactly how it The X-Factor winner celebrates her debut in the was going to end,” declares Vox’s Editor-in-chief music business with the title I’ve Come To Life. Kai Sturm. “From the beginning, we set out to The music and lyrics were written by Florian do something entirely new – a different qual- Jakob, Chris Buseck and Raph Schillebeeckx. ity of programming. And I am proud to say we The winning song is now available from all succeeded. The panel of judges comprised of online music platforms and can be bought in Sarah Connor, Till Brönner and George Glueck, stores from Friday 12 November. The bonus the show’s fresh new presenter Jochen Schropp, track on the single is Edita’s highlight song from the fantastic quality of our candidates, all backed the show: by Gossip. Till Brönner by a large, experienced and extremely dedicated was delighted about his protégé’s victory: “Edita team – these were the success factors of this worked her way to the top under difficult condi- first season.“ tions. Her likable manner and iron discipline have today earned her what is probably the 19,000 candidates had auditioned for X Factor greatest victory of her life to date. Edita is a role and wowed the judges with numerous excellent model for her generation and gives us hope that performances, in some cases moving them to it is always worth working towards your goals. tears at the auditions stage. Prior to the start I congratulate her with all my heart and wish her of the show, mentor George Glueck had told the best of success for the future.” Backstage: “I think the candidates got detailed information, in advance, about the kind of show Commenting on the show’s viewers and target X Factor is, and applied based on this.” After demographic, Kai Sturm says: “We were focus- auditions in , Munich, Hamburg and ing primarily on Vox’s viewers and their expecta-

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RTL Interactive has also produced an I-Phone app tying in to the show. Apart from the option of watching the entire show as a live stream, the new app provides access to numerous highlight and song clips from the show. In addition, there are informative news and background articles as well as lots of pictures pertaining to the new show highlight. The app also allows users to participate in viewer voting and giveaways. Since its launch in late August, the app has generated more than 4 million Page Impressions and 450,000 video views.

Due to the great success of the talent show, Vox is already planning a second season of X Factor. Kai Sturm says: “We learned so much in the first Kai Sturm, Editor-in-chief season and had so much fun in the process – we tions of an entertainment show that would fit with have to take advantage of this to do a second Vox. I can’t say exactly what an ‘archetypical’ season. Once you’ve got your hands on such Vox viewer looks like, but I can narrow it down a a strong format, you should keep it at all costs. bit: he or she is sophisticated and is not readily And most importantly: the market has shown for pigeonholed. We know that X Factor reached a some years now that once you’ve taken the first lot of viewers who have tended to be reserved hurdle – the first season – with a new format, you about the talent-show genre in the past.” can be really successful with it downstream.“

The first German season of X Factor season Ute Biernat, Managing Director of the Grundy featuring Sarah Connor, Till Brönner and George Light Entertainment production firm, is equally Glueck judges attracted 15.4 per cent of the enthusiastic: “We are very proud of X Factor’s 14 to 49 viewer market and peaked at an average success. We saw a great finale and some 2.91 million viewers aged 3 and older. So over fantastic performers. I very much look forward to the course of its first season on Vox, the music the second season.“ Vocal talents aged 16 and talent show scored an average market share of older, including groups and duos, can apply at 11.8 per cent market share among 14- to 49-year- Vox.de beginning immediately. old viewers since 24 August 2010, and earned peak market shares of 16.9 per cent among young audiences. Each episode was watched by an average 2.22 million viewers over the age of 3. The talent show kick-off was showcased on RTL Television on 20 and 21 August 2010, a TV even that was watched by up to 21 per cent of viewers aged 14 to 49.

Kai Sturm: “The first season came with a huge fun factor for everyone involved. We were especially pleased with the musical quality of the candidates who applied for X Factor. We’re also very happy with the viewer response: X Factor is well above the channel average on Vox.”

And X Factor’s popularity wasn’t limited to linear TV. A glance at the traffic generated by the web- sites of Mediengruppe RTL Deutschland shows: since the show first went on the air in August, the full episodes and highlight clips have been viewed nearly 14 million times on the various websites. On VoxNow.de and RTLNow.de alone, the full episodes have generated more than

2 million views. app 4 week 45 the RTL Group intranet

Q3: RTL Group’s EBITA up 48 per cent year-on-year RTL Group announced its interim management statement to 9 November 2010. Luxembourg - 9 November 2010

In the third quarter of 2010, RTL Group’s EBITA to EUR 670 million (Q1 - 3/2009: EUR 457 million). increased by 47.8 per cent to EUR 133 million The EBITA increase was driven by significantly from EUR 90 million in the same period last improved results from most profit centres. The year. This growth in EBITA was driven by reported EBITA margin for the first nine months Mediengruppe RTL Deutschland, Groupe M6 of the year was 17.5 per cent compared to and RTL Nederland. With TV advertising markets 12.9 per cent for the same period last year. across Western Europe growing significantly year-on-year, RTL Group’s reported revenue The net cash position as of 30 September 2010 was up 8.8 per cent to EUR 1,160 million in amounted to EUR 1,059 million (30 September the third quarter of 2010 (Q3/2009: EUR 1,066 2009: EUR 405 million, 30 June 2010: EUR 894 million). The reported EBITA margin was million). The operating cash conversion was 11.5 per cent, up from 8.4 per cent in the third 114 per cent (Q1 - 3/2009: 88 per cent). quarter of 2009. RTL Group had a good start in the important During the period January to September 2010 fourth quarter. As already announced at the end reported revenue grew by 7.9 per cent to EUR of August 2010, RTL Group will achieve signifi- 3,821 million (Q1 - 3/2009: EUR 3,541 million), cantly better full-year results compared to 2009. while reported EBITA increased by 46.6 per cent

Operational highlights

n Good start into the new programming season 2010/11:

n Among young viewers, RTL Television in Germany achieved an audience share of 18.8 per cent in September and of 19.3 per cent in October, the highest monthly share since January 2004.

n With an audience share of 17.5 per cent in the commercial target group of housewives aged under 50 in September, M6 had the most successful month in the year to date.

n In the target group of viewers aged 20 to 49, RTL Nederland’s channels scored a combined audience share of 35.7 per cent in September and of 37.4 per cent in October, the best monthly share in 13 years.

n In October, FremantleMedia acquired a 60 per cent share in Radical Media, the company’s first large scale move into the branded entertainment market.

n Also in October, FremantleMedia announced the acquisition of a further 51 per cent stake in Ludia, a leading developer and publisher of interactive games; the transaction will bring FremantleMedia’s stake in Ludia to 80 per cent.

n In September, the Croatian Electronic Media Council granted RTL Televizija a concession for a new specialised channel, named RTL 2; the new channel will go on air in January 2011.

n On 23 July, the disposal of the 100 per cent shareholding in Five was completed.

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M6 publishes promising financials Groupe M6 has announced third-quarter consolidated revenue of EUR 317.7 million, up by 7.3 per cent year on year, as well as an increase in consolidated revenue for the first three quarters, to EUR 1,059.8 million (plus 8.8 per cent). Chris O’Donnell and LL Cool J, actors in NCIS Los Angeles France - 5 November 2010

Groupe M6’s advertising revenue for the third quarter (M6 channel, digital channels, Internet) was up 19.7 per cent at EUR 163.0 million, of which EUR 133.0 million was advertising revenue generated by the channel M6 (plus 19.3 per cent), confirming the channel’s attractiveness for the key advertising sectors. Non-advertising revenue (except Football Club des Girondins de Bordeaux) was up 1.7 per cent over the period.

Channel M6 emerged as the most resilient The cast of Bones major channel over the period, with a 10.7 per cent average audience share among the Advertising and non-advertising revenue from viewers aged 4 years and older. In September, diversification and audiovisual rights (except M6 ranked as the number 3 nationwide channel FCGB) rose by 2.2 per cent in the third quarter for the second month in a row, thanks to of 2010. the Bosnia-Herzegovina versus France football match, which attracted 8.1 million viewers Revenue from the Girondins de Bordeaux foot- on 7 September (for example the channel’s ball club is down, as the team did not qualify for fifth-highest audience ratings ever since its the Champion’s League. Nevertheless Groupe launch in March 1987), and also thanks to the M6 is committed to safeguarding the club’s continuing success of its cult US series such as financial stability. NCIS and Bones. On 30 September 2010, the group’s equity In the third quarter of 2010, revenue from amounted to EUR 639.6 million with a net cash the digital channels (channel advertising position of EUR 296.9 million. The group, through revenue and distribution revenue) increased its subsidiary MisterGooddeal, acquired the by 14.1 per cent. W9 posted its best ratings Internet site monAlbumPhoto.fr, thus following ever for a month of September, reaching a its strategy of cornering lucrative e-commerce national audience share (4 years and older) of niches. 3.1 percent in September, and thus reinforcing its position. Since the beginning of the year, The quarter just ended marked renewed growth W9 has been consistently ranked as the DTT in the Group’s activities, but it must be borne in channel most invested in by advertisers. mind that the fourth quarter will have the tough- est base of comparison in the year to date, as conditions in the advertising market improved from October 2009 on. 6 week 45 the RTL Group intranet

Commercial broadcasters confident about future of TV Commercial broadcasters issued a vote of confidence in the future at the 3rd Annual ACT Conference on 9 November, where CEOs from all over Europe gathered to discuss the latest media developments with policy-makers. Philippe Delusinne, ACT President and CEO of RTL Belgium Belgium - 10 November 2010

With viewing time for linear TV increasing Also, it is important for Member States and the for the tenth year in a row and reaching a Commission’s DG Competition to keep under European average of 222 minutes of TV review the extent and regulation of state inter- viewing per person, per day, it is clear that vention in broadcasting and related markets. television as a mass medium remains As businesses, it is vital for commercial broad- successful in an increasingly converged casters to protect their assets in content rights, media landscape. Commenting on the market including effective anti-piracy measures. The situation of the sector, Philippe Delusinne, ACT said that it does not accept that there is a ACT Presidentand CEO of RTL Belgium, said: problem of “access to content”. Rather, where “In the difficult year 2009 our sector showed demand exists, commercial broadcasters offer flexibility in responding to the crisis, and in linear and non-linear services also on a cross- 2010 our sector is once again in good shape. border basis. Last not least, recent decisions on Advertising revenues are going up and pay-TV taxes to be imposed on commercial broadcast- operators proved to be resilient to the crisis with ers in France and Spain are not only question- growing subscriber numbers.” able when it comes to their compatibility with European law but also with regard to a possible Today, the broadcasting market is in a strong discrimination between different media. These position, contributing actively to EU employ- points require particular attention by EU regula- ment and the competitiveness of the European tors in the future, the ACT underlined. economy as set out in the EU´s Digital Agenda. In order for commercial broadcast- In light of the continued success of the broad- ers to remain competitive on a global scale, casting sector, Ross Biggam, ACT Director the ACT concluded that it is crucial to allow General, concluded with a call for dialogue commercial channels to launch innovative with EU legislators allowing greater flexibility in services on the same footing as their new the regulation of creative content in the future: competitors in the market. Delusinne said: “Rather than argue about the micro-details of a “Ultimately, we will need to rethink all regulation broadcaster’s operation, why not engage in a for the world of connected TV. This is the ultimate wider debate, asking which regulatory structures convergence: a single screen which can show are necessary to ensure the diversity of ideas either TV content, or the internet, or even both and opinions in the media, without stifling the at the same time in split-screen (…) And if the rights of freedom of expression enshrined in the viewer doesn’t know or care, for how long must European Convention on Human Rights? This, we persist with a regulatory regime where one I believe, is the only way in which we will end half of the screen is subject to rules on advertis- up with a meaningful, future-proof regulation of ing, content, sports rights and scheduling, while content.” these rules are not imposed on the other half of the screen?” 7 week 45 the RTL Group intranet

Toggo Magazin on newsstands Super RTL and Medienfabrik Gütersloh have joined forces to extend the major broadcasting brand for children aged 6 to 12 into print: Toggo Magazin makes its debut on newsstands. The new Toggo Magazin Germany - 11 November 2010

Toggo Magazin will be published in a print run of 100,000 copies every two months, with the first issue out on 11 November 2010. In each issue, its young readers will be treated to 52 pages of fun reading on all the topics they’re familiar with from Super RTL’s TV programming. Cool reports, funny comics and the latest children’s news tell them more about their TV stars. The magazine’s content rounded out with compelling popular-science items and lots of activities for readers to participate in.

“The cross-media positioning of the Toggo umbrella brand, combined with its strong broadcasting content, lends itself superbly to a magazine concept,” says Christoph Ahmadi, Director Marketing & Sales at Super RTL. “With Medienfabrik as our partner we have created a modern children’s magazine that corresponds precisely to our ideas, so we are confident that Toggo, as a leading children’s entertain- ment brand, will soon become a fixture on newsstands.“

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Changing mentalities “Let’s sweep away the stereotypes and take action”: with special programming and the broadcast of a message in sign language, W9 wants to change views on handicap. Screenshot from the video teaser France - 9 November 2010

To mark the Week for the Employment of the Handicapped (“Semaine pour l’emploi des personnes handicapées”) from 15 to 20 Novem- ber, W9 is rallying to bring out change. The first plan of action: all of the channel’s hosts have recorded a message in sign language encour- aging viewers to change the way they view the handicapped. Next, W9 will broadcast video clips every day, Florent Pagny’s Savoir aimer and Calogero’s Nathan, which deal with the topic of handicaps.

Finally, W9 will offer viewers special program- ming. From 15 to 19 November the humour magazine show Azap presented by Camille Combal will be broadcast in sign language. On Saturday 20 November at 11:00 on Fast Club, Stéphane Rotenberg will host special guest Gilbert Montagné. This famous singer, blind since birth, proves on a daily basis that all challenges can be met, in spite of his handicap, even driving an Audi RS6 at 160km/h.

On Wednesday 17 November at 11:00, W9 will broadcast the film Une question de courage (Door to Door), which tells the story of Bill Porter’s professional career in the 1950s. Bill Porter, who has cerebral palsy, applies to be a door-to-door salesman for a soap company called Watkins. Not only does he succeed in convincing his employers to keep him on, he also steadily increases his sales figures and becomes an indispensable figure in local life. In 1991, he is voted top salesman of the year, a crowning achievement in his career. Une question de courage will be followed by a new documentary, Les plus petits enfants de Grande-Bretagne (Britain’s Tiniest Toddlers), which deals with dwarfism, a condition that affects Alex, Finn and Liam. It is a moving film about the journey of three families who teach their children to be great men of small stature.

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RTL Nieuws takes the I-Pad charts by storm Within a single day of its release on 3 November the RTL Nieuws I-Pad app became the number one bestselling app in the Dutch App Store. RTL Nieuws app Netherlands - 5 November 2010

RTL Nederland’s new app gives users a quick overview of all national and international news. Users not only get access to all reports from the news shows, but also live-stream access to the DVB-H channel RTL 24 including the news programmes RTL Nieuws, RTL Z, Editie NL and RTL Boulevard. In addition, the app delivers all the latest from the world of entertainment, along with weather and traffic reports. Announcements tweeted by the RTL Nieuws news team on Twitter are also shown.

In one day, the app shot to number one in the Dutch App Store for I-Pad apps, and has scored excellent user ratings: an average four-and- a-half of five possible stars. “A good app. Inexpensive, uncluttered and easy to use. Hat’s off,” writes one user in his comments. RTL Nieuws on I-Pad The app has been available from the Dutch app Store for EUR 0.79 since 3 November.

10 From screen to stage

Produced by M6 Evénéments, the musical comedy ‘Le Manège Enchanté’ (The Magic Roundabout) is a dazzling spectacle that faithfully reproduces the magical world of Serge Danot, who invented back in 1964 this animated series for children, broadcast in 90 countries. Everyone will remember Dougal, the grumpy dog who always feels hungry and lives on a diet of sugar. The musical is playing in Paris at the Théâtre Comédia until 2 January 2011 and is touring France until the end of 2011.

© Play Production, M6, Disney Channel France, Nickelodeon UK Credit: Ellipseanime, Les films actions week 45 the RTL Group intranet

‘Children Helping Children’ Super RTL is once again running its “Kinder helfen Kindern” (Children Helping Children) toy- and fund-raising campaign. As last year, the logistics companies GLS Deutschland and GLS Austria are sponsoring the campaign. Germany - 5 November 2010

Pékin Express Season 6 is off and running With the launch of France’s best known adventure race, M6 scored its best audience figures on a Saturday since April 2008: 27.3 per cent of the housewives under 50 tuned in to watch. This year, the teams are formed of celebrities – but they won’t be receiving any special treatment. France - 8 November 2010

Football: a guaranteed audience With 1.6 million viewers for the Europa League game Paris-Saint Germain against Borussia Dortmund, W9 achieved a new audience record. France - 8 November 2010

Lady Gaga’s radio station is Fun Radio Lady Gaga and Fun Radio offer the impossible – tickets to her sold-out Lyon and Paris-Bercy concerts. A promotional spot featuring Lady Gaga speaking French is on air on M6 France - 9 November 2010

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The power is in the hands of the Internet users M6 mobile by Orange launches its new publicity campaign today and Internet users will choose which spot will be aired on TV. France - 10 November 2010

An excellent prime time After attracting an average audience share of 29.4 per cent in prime time in September, RTL Televizija increased this figure again in October: 31.1 per cent of the viewers watched the channel in the evening last month. Croatia - 10 November 2010

Win a bit part on Gute Zeiten, schlechte Zeiten From now on, GZSZ fans explore the exclusive GZSZ collection at the Nuremberg fashion label Mister Lady and enter to win a role as an extra on the German daily soap. Germany - 11 November 2010

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