30 June 2011 week 26 Off to new heights Record ratings; record earnings; digitisation and diversification developing fast – Bert Habets explains how RTL Nederland can keep its impressive pace Germany Germany RTL Television presents X Factor is back Commit Awards on Vox Luxembourg Luxembourg RTL Group companies Télévie supports receive several awards in June cancerology research the RTL Group intranet week 26 30 June 2011 week 26 Cover: Bert Habets, CEO of RTL Nederland. Off to new heights Record ratings; record earnings; digitisation and diversification 2 developing fast – Bert Habets explains how RTL Nederland can keep its impressive pace Germany Germany RTL Television presents X Factor is back Commit Awards on Vox Luxembourg Luxembourg RTL Group companies Télévie supports receive several awards in June cancerology research the RTL Group intranet week 26 Coffee dispenser moments Bert Habets explains how RTL Nederland has developed from a single TV channel into an all-round media and entertainment company and will not rest on its laurels. Bert Habets has been CEO of RTL Nederland since January 2008 The Netherlands - 30 June 2011 Can you tell us something about RTL In our digital business we have made some Nederland’s performance during the first few headway over the past year. With the acquisition months of 2011? of the real time weather information platform In terms of audience shares, our TV channels Buienradar and with strong organic growth enjoyed a great season. Sharpening our channel we are now among the top five players in the profiles and our consistent programming strategy DutchREVENUE digital market. RTL Nederland also have paid off. TV is a in million € had a strong first few cyclical business: we “We increased our advertising months.436 From January429 to were hit by the crisis first 408 May, the number of prices by around358 10 per 371 and now we’re the first to 350 unique visitors increased recover. cent in the first half of 2011, from 8.5 million to 17.5 and we will probably do million, largely thanks to With the acquisition so in the second half”. Buienradar. We also saw of Slam FM we have Bert Habets a big increase in video strengthened our radio views from 23.6 million business. The latest audience figures confirmed in May 2010 to 38.6 million video views in May that Radio 538 is the leading Dutch radio station 2011. That is an increase by 64 per cent. once more with more than 3.8 million viewers. 2005 2006 2007 2008 2009 2010 And young listeners come back to the station. REVENUE EBITA in million € in million € 436 429 110 408 358 371 350 85 70 70 72 46 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 EBITA 3 in million € 110 85 70 70 72 46 2005 2006 2007 2008 2009 2010 the RTL Group intranet week 26 What developments do you expect over the Although much has changed, one thing remains next few months? unchanged up: our craft. That is our true strength. We cannot rest on our laurels. Next year will be Over the years, RTL Nederland has developed tough one for TV with the European Football from a single TV channel into an all-round media Championship and the Olympics coming up. We and entertainment company that informs and need to stay focused. In terms of advertising, entertains with dedication and emotion and we increased our prices by around 10 per cent that is our craft and core competence. We are in the first half of 2011, the leader in radio and and we will probably do “Radio, television and digital television, and since so in the second half. I are stronger than ever. this year, among the top don’t think the second Recently, we added two five players in the Dutch half of 2011 will grow digital media market. as strong as it did in the new pillars: Entertainment This means: our three first months, as some and Ventures – two more core businesses radio, big advertisers have ways to increase costumer television and digital difficulties to maintain involvement”. are stronger than their margins, but in Bert Habets ever. And recently, we terms of audiences we added two new pillars: expect continued strong performance for this Entertainment and Ventures – two more ways to year. increase costumer involvement. How is digitisation changing your business? Could you tell us more about how you are Consumers are more than ever in the driver’s increasing involvement with your clients and seat, mainly fuelled by the digital evolution and consumers? all the technological developments that stem We are extending our programmes off screen – from it. This creates many new possibilities and prior to the broadcast as well as afterwards. We that in turn has a major impact on our industry. like to call it ‘the total experience’. That’s what Digitisation and broadband penetration is high we did with the X Factor for example, when we in the Netherlands, leading to rapidly changing organized the X Factor Experience in June, a consumer behaviour in traditional media usage. special concert where fans could directly get in All these changes mean that we as a media touch with the X Factor candidates they know company must constantly move in and adapt from TV. Additionally, we also invite advertisers to the consumers behaviour. At RTL Nederland to connect to our brand – that’s what we did we don’t see that as a threat, but as the way to with Pepsi and X Factor. In a creative approach numerous new business opportunities. they form part of the show, from the promotion Following the success of their movie, the four ‚Gooische Vrouwen‘ – Tjitske Reidinga, Linda de Mol, Lies Visschedijk and Susan Visser (from left to right) – got their star on the RTL Walk of Fame in Hilversum 4 the RTL Group intranet week 26 campaign to the website and in the long tail to concerts and merchandising activities. When we hosted the X Factor Experience in June, we had one show that was open to the public and another one where Pepsi gave away tickets. The impact among viewers is much higher this way than with usual advertising spots, which adds a lot of value for the advertisers. The concert was also a perfect example of what RTL Entertainment does. With RTL Entertainment we actively took the step to the Sizz campaign, targeting female mobile phone users stages of theatres and concert halls. It aims to create events where consumers can enjoy our Do you extend formats to the second screen brands not only on air, but beyond the TV screen. as well? The acquisition of Wentink Events was therefore Yes, that is a crucial element to our ‘total an important step. At Studio 21 we have a stage experience’ approach. Today we watch TV on where we can develop many new initiatives and three different screens: a small, a medium and a offer new experiences to our consumers. This large one. Interactivity used to take place through year we also invested in theatrical productions simple text messages or call in. Today, viewers like the Gooische Vrouwen movie which became can also use My Space, Facebook and of course the number four Box Office hit ever in The Twitter. This allows for new ways of interactivity Netherlands after blockbuster movies like Avator and thus a more intense experience for our and Titanic. Currently in production are Body viewers. Users can talk, chat and exchange their Language, a dancing film featuring the winner of views directly through different new media and our dancing competition So You Think You Can thus create a ‘coffee dispenser moment’ – with Dance and Ushi de film, a mixture of Mister Bean the slight difference that it now happens real and Borat with our popular presenter and actress time. These media are increasingly integrated in Wendy van Dijk. From this angle expanding into our conceptual development of program ideas. film is a logic next step in bringing TV brands and Take for example the ‘Heartbeat’ feature at the characters to the white screen. X Factor, where users could follow the heartbeat of contestants during the show. It was used and shared by some 50,000 users, creating a real buzz. With the ‘Heartbeat’ feature, users could follow the heartbeat of contestants during the X Factor live shows 5 the RTL Group intranet week 26 I see three major advantages in this ‘total expertise, network and marketing power. Besides experience’ approach. First: We intensify the our mobile telephony offer Sizz and the dating viewing experience and our interaction with platform Pepper, we operate Couverts, a real- the consumers. Second, we extend the life time restaurant reservation tool for restaurant cycle of our programmes: the story runs longer owners – something you would not necessarily or is promoted on other media and thus the expect at a media company. But there is a relationship with the logic fit: based on our consumer is maintened “Every strategy depends cooking programmes over a longer period of and our network in the time. And third, we are entirely on the people filling culinary sector, we had drawing the attention of it with life: our employees” good reason to buy it young audiences who Bert Habets from its young founders. are returning to watch TV, It was a small company combined with second and third screen which with a good product, designed by passionate enrich the user experience. In the coming years entrepreneurs. We saw potential for development we will develop this new way of consuming and thought: ‘Let’s turns this into a market TV in a converged media landscape.