DIGITAL INNOVATORS A strong presence on all devices 2–3 DigitalInnovators “ TELEVISION CONTENTS IS ADAPTING BETTER TO TECHNOLOGICAL 4 ChiefExecutives’statement CHANGE THAN What digitisation means to RTL Group 8 Thetransformationtodigital ANY OTHER Arno Otto, RTL Nederland, discovers what’s in a name 14 Facts&figures MEDIA BUSINESS.” 16 Convergencecomesfullcircle The Economist With Marc Schröder, RTL Interactive 20 Enrichingprogrammeswithanewdimension With Valéry Gerfaud and Christian Bombrun, M6 Web 26 RTLGroup’sdigitalworld 28 On-demand services 34 Second screen services 38 Newworld,newopportunities FremantleMedia in today’s digital landscape RTL Group T: + 352 2486 5201 44 Howradiothrivesinthedigitalrevolution 45, boulevard Pierre Frieden F: + 352 2486 5139 I-Stockphoto With Tristan Jurgensen, RTL Radio (France) / 1543 Luxembourg RTLGroup.com Luxembourg 50 AlsobyRTLGroup Status: 17 January 2013 Photo: Cover A taster of RTL Group’s online portfolio 1 / 10 4–5 DigitalInnovators CHIEFEXECUTIVES’ STATEMENT Anke Schäferkordt and PERMANENT Guillaume de Posch, Co-CEOs of RTL Group INNOVATION “Television is adapting better to technological change than any other media business,” said The Economist in a special The digital transformation of the report on the strength of TV in 2010. Two years later, a report TV industry is hugely important for us at from consulting group Deloitte even called the symbiotic RTL Group – simply because we want relationship between technology and TV “a beautiful friendship,” to be wherever our viewers are. The value with TV being one of the most pervasive of digital products. of our established TV formats and brands is key to building new business Yes, it’s true: TV is already an all-digital business with very strong models with a strong presence across all fundamentals. New technology has improved the TV viewing digital devices and screens. experience. Today’s TV sets are bigger, thinner and – thanks to HD – sharper than ever before. And they continue to take centre This brochure explains how and why. stage in people’s living rooms. People are watching more TV than ever before in Europe. Since 2000, the average viewing time increased by 25 minutes to Photo: Paul Schirnhofer 228 minutes in 2011 – per day and person. And on top of linear 2 / 10 6–7 DigitalInnovators TV, more and more people are watching on new devices and is a long-term aspiration, but we’re confident that technology platforms. RTL Group’s own estimates suggest overall TV con- will increasingly allow it. In parallel, we are already exploring sumption will continue to grow. By 2015 we believe non-linear other sources of revenue from on-demand, such as transaction viewing could represent 10 per cent of total viewing time in and subscription-funded services. Western Europe. To date, RTL Group has launched over 220 mobile apps, with TV is the true social medium: social many of them offering ‘second screen’ features. Using these, networks such as Facebook and Twitter our audience can discover more about the shows, comment on stimulate interest in watching live a current live programme, answer polls, and see what their television, making commercial time friends are watching and liking. All these apps and features potentially more valuable. increase our viewers’ engagement with our programmes – and demonstrate our ability to permanently innovate. Based on these strengths, RTL Group has many growth opportu- nities in the digital media world. Over the past years, we have successfully built and expanded our video-on-demand services. In short: the viewers are the big Driven by our big entertainment shows and strong brands, our winners in the digital revolution. As network of websites and catch-up TV services generated 2.4 variety multiplies they can billion video views in 2012. In addition, the Youtube channels watch whatever they want, wherever from FremantleMedia have registered more than 4.4 billion hits, they want, however they want. making them global entertainment destinations. And RTL Group’s content and brands will be present wherever our audiences The majority of our on-demand services, such as RTL Now look for quality entertainment. and M6 Replay, are free to the consumer, financed through advertising – as with our main TV operations. But the rapid development of new technologies also means we can adapt the way we sell advertising on these new platforms. Undoubtedly, the 30-second commercial will remain indispensable, for it reaches mass audiences. But we will also develop new, comple- Anke Schäferkordt and Guillaume de Posch mentary forms of advertising targeted at individual viewers. This Co-CEOs of RTL Group 2 / 10 8–9 DigitalInnovators audiences and opening up new revenue streams. This has led to a new competitive arena where a growing number of companies, and even consumers, provide online or mobile video, and can reach viewers all over the globe. It is no longer just TV that decides when and where we watch video content. Consumers are seduced by different screens and we have moved into a phase where it’s all about getting the most ‘eye time’. Any time, anywhere, and on any given device. A RNO OT TO THE TRANSFORMATION TRANSFORMATION The consumer is in the driver’s seat. In this world where techno- TO DIGITAL logy changes every second, and where people watch video on a multitude of devices and platforms, it is our duty to ensure our WHAT’S IN A NAME? content is accessible to all. We need a common understanding to better guide our efforts in transforming our business in this new world, which, in fact, is not so new any more. From the onset of Arno Otto’s point of view on multi-screens, the internet in the nineties, the media industry has been faced grabbing viewers’ attention and how with rapidly changing, sometimes disruptive, business models. new media enhances the TV experience. To me, digital transformation needs a completely new mind-set. Technology is at the centre of our organisation and our society. TV has developed into a relatively uncomplicated process. Programmers are becoming creatives. They allow storytelling Channels broadcast their programmes, interrupted by commer- ideas to translate on to multiple screens. In programming, there’s cial breaks from which they make their living. However, the a growing need for ‘multiscreen thinkers’, not just digital natives. media landscape has changed rapidly in recent years and the People who have technology and multiscreen in their DNA. To- pace of change is getting ever faster. By making the programme gether we can inspire innovative content and the sales proposi- portfolio available on the internet, companies are finding new tions it brings. 3 / 10 10–11 DigitalInnovators E YE TIME New definition: “A mobile phone is no longer a phone. Innovation is key in the race for the viewer’s attention; what I call It’s a handheld ‘eye time’. We need to reach consumers, regardless of which computer that also happens to function screen they view content on. We must continue to innovate in our as a phone.” storytelling abilities, through new platforms and new screens. I believe fundamentally that video’s winning streak will continue. It will surpass text and image in the battle for eye time, thanks to the number of screens and devices that can play video. There will be more ‘time-of-day’ and ‘device-to-play’ opportunities to HORSELESS CARRIAGE view your favourite piece of video. Borders will blur and the media ecosystem will become more dynamic, but traditional ‘ value chains’ will be harder to define. Another interesting aspect of the digital transformation is the definitions we use. We should not define new developments by old definitions. A mobile phone is no longer a phone. It’s a hand- held computer that also happens to function as a phone. This is also known as the ‘horseless carriage syndrome’. When the car was invented, we called it the horseless carriage. What’s in a New mind-set: name, you might ask? But I believe these incorrect definitions “Programmers are can actually slow real innovation down. If we keep seeing new becoming creatives. They allow storytelling technology as something old redefined, we will never be able ideas to translate to put it to full use. In this perspective, we should not isolate dig- on to multiple screens.” ital as a one-off magical phenomenon. Internet technology is, or soon will be, fuelling all content consumption. Digital is becoming part of everything we do. It empowers consumers and allows them to ‘browse’ an infinite supply of content. Consumers don’t need to know about the technology that enables this. They just Photo: I-Stockphoto need to enjoy what it brings them: great content. 3 / 10 12–13 DigitalInnovators “Wecallitdigital, somecallitnew,butin TO CONCLUDE theend,wekeepon doingwhatwe’regoodat: We have to stop trying to position technology as new, we need to ‘keep it simple, stupid’ instead. Consumers and advertisers entertainingpeople.” don’t want new. They want clever solutions to everyday needs. And our mission is to deliver these, regardless of the technology necessary. We call it digital, some call it new, but in the end, we keep on doing what we’re good at: entertaining people, any- where and at any time. But not with just anything. We do it with KEEPING IT SIMPLE, STUPID the best video content on offer. That’s our pride, our craft – and eventually, that’s what is responsible for our success. So, for us, the consumers and other players in the digital video ecosystem, transformation is in full swing. I feel confident that at RTL Nederland we are midway in an interesting phase. I feel less confident about other stakeholders in the video ecosystem. One example is legislation. Legislators don’t seem to have so A R N O O T T O much ability to ‘keep it simple, stupid’ – for example, with the joined RTL Nederland in March 2009 as cookie legislation.