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Linear still at the core for ProSiebenSat.1, no plan to sell off Red Arrow

Linear TV is still a dominant force in the German market and remains “the superior medium for mass reach” across all age groups, according to ProSiebenSat.1 CEO Conrad Albert.

Speaking to analysts after ProSiebenSat.1 posted its quarterly results last week, Albert said that the company’s linear TV offerings had a reach of over 90% among all age groups, while video-on-demand only reached between 30-35%.

Albert said that linear TV’s advantage was even more pronounced when it comes to viewing time. He said that ProSiebenSat.1 was still seeing over 220 minutes of linear TV consumption per day on average, versus “a couple of minutes” or at least single-digit minutes of consumption of VOD.

Albert also said that ProSiebenSat.1 planned to launch netID, its single sign-on platform, this summer. He said that the user identification platform would be “very reach oriented” in terms of the company’s data objectives and would be “very transparent” in terms of privacy.

Albert said that the platform, which is central to the broadcaster’s future data strategy, would be compliant with the forthcoming General Data Protection Regulation.

Separately, Albert said that ProSiebenSat.1 had no plans to sell its Red Arrow studio business, which is currently undergoing a strategic review. He said that the company’s goal was to build “a stronger footprint of [intellectual property] on a global basis”.

ProSiebenSat.1’s content production and global sales business unit saw a decline in revenues in the quarter, hit by competition in the US market and currency effects. The company’s global sales business was boosted by the acquisition of US film distributor Gravitas.

The review of the production business, said Albert, could focus on whether the company has “the right ownership structure” or whether it made sense to bring in partners.

“We’re certainly not looking at a full disposal of Red Arrow Studios, just to make that very clear,” he said.

ProSiebenSat.1 posted revenues of €881 million for the quarter, down 3% due to deconsolidation of its travel business. Adjusted EBITDA was up 7% to €200 million.

ProSieben confirmed its financial targets for the full year, with low- to mid-digit revenue growth and an adjusted EBITDA margin in the mid-20% range.