Among the numerous European TV networks navigating the transition to digital streaming, Germany’s ProSiebenSat.1 Media has experienced quite a tumultuous journey.
Struggling with a global decline in TV advertising revenue and internal conflicts among shareholders, the company has been shifting towards a digital-centric approach, primarily through its streaming platform Joyn. Concurrently, it aims to maintain its traditional TV ratings and develop internationally appealing formats. The future direction of ProSieben was recently determined when MediaForEurope, an Italian investor, acquired over 75% of the voting shares, effectively gaining control of the company, which has sparked further uncertainties.
Following this acquisition, government officials in Germany expressed their concerns about potential major changes at the Unterföhring-based broadcaster. Although reassurances were given by MFE’s leadership, the new Italian owners made a significant move last week by overhauling the executive team, including the CEO Bert Habets, and appointing Nicola Lussana to head the advertising sales division, Seven.One Media, indicating a tighter control over the company.
Despite these executive shake-ups, ProSieben continues its regular operations, which include managing TV channels like Sat.1, which broadcasts popular Joko and Klaas game shows; Joyn, which will soon feature the much-anticipated reality show Die Abrechnung – Der Promi-Showdown (The Reckoning – Celebrity Showdown); several European production companies like Red Seven Entertainment and CPL Productions in the UK; and international program sales through Seven.One Studios International, presenting formats like Match My Ex, The Race, and the enduringly popular Married at First Sight at industry events like MIPCOM.
At the Cannes market event, we spoke with ProSieben’s Henrik Pabst, CEO of Seven.One Studios and Chief Content Officer for Seven.One Entertainment. He discussed the company’s evolution towards becoming a digital-first entertainment powerhouse and its adaptation under new ownership.
Our conversation occurred before MFE appointed its own CFO, Marco Giordani, as the new CEO of ProSieben, but Pabst’s insights still offer a glimpse into the company’s future direction. Known for his dynamic and insightful approach to international television, his perspectives on the global market and the creator economy are particularly noteworthy.
Pabst also shared his thoughts on the all-encompassing streaming service Joyn, and discussed significant industry deals, such as the partnership between Netflix and TF1 in France. He emphasized the importance of scrutinizing every partnership with great care in today’s media landscape.
Below is a Q&A, which has been edited for clarity and length.
DEADLINE: In recent years, the narrative around ProSiebenSat.1 Media has been heavily focused on its corporate structure. Could you share what has been happening at the network level as these changes unfolded?
Henrik Pabst: This year, our channels have gained market share. It’s not a year with major sports events, but we’ve managed some successful strategies. Sat.1 has made a significant comeback with a new reality show, Villa der Versuchung, where contestants’ expenses are deducted from the prize money. This show not only performed well on traditional TV but also on Joyn, with nearly equal viewership on both platforms—a rare feat for a show that performs well both linearly and on streaming. However, the advertising market remains challenging, with Germany facing its third consecutive year of economic recession. On a positive note, Joyn has seen a 30% growth in both user base and engagement, outperforming other market players. The overarching corporate changes have significantly influenced our operations, but with MFE now involved, there’s a sense of optimism.
DEADLINE: Why does this new development make you optimistic?
HP: In challenging market conditions, having scale is crucial. We are now positioned in three major German-speaking European markets and five markets overall through this European broadcasting and streaming giant. We’re looking forward to refining our strategies to navigate the ongoing changes effectively.
DEADLINE: Are you currently in discussions with MFE’s leadership?
HP: Not at the moment, but discussions are expected to start soon. MFE is currently strategizing the best approaches for data management, intellectual property, advertising, and content acquisition across Europe. Collaborating on these fronts could be beneficial if done collectively.
DEADLINE: Some German journalism unions have expressed concerns about MFE’s approach to managing ProSieben. Can you provide any insights on this?
HP: It’s natural for there to be concerns. However, I can assure you there has been no undue influence from MFE—this I can guarantee 100%. MFE’s interest lies in boosting local content production, and I am confident that there will be no meddling with the content itself. They may inquire about financial expenditures, which is to be expected after such a significant acquisition, but ultimately, our discussions with the shareholders have been fruitful, and I am eager to see what we can achieve together.
DEADLINE: What does the future hold then? You mentioned a shift towards focusing more on content.
HP: Indeed. We are contemplating whether a European studio approach could be viable, and we’re considering more investments in launching new intellectual properties, though market trends will need to be considered. We recognize that owning intellectual property is the path forward, and with three significant commercial platforms at our disposal, we have the resources to explore this avenue. MFE’s intentions are sound, so we’re committed to working through these strategies together.
New ProSiebenSat.1 Media CEO Marco Giordani
MFE
Daniel Hayes is a business journalist with a focus on market trends, startups, and corporate strategies.
His sharp analysis and investigative reports make complex financial topics accessible to all readers.
