RTL+ streaming subs up by over half as Telekom partnership pays off

European broadcast outfit RTL Group has seen the paid subscribers to its German streaming service RTL+ jump by 53.8% in the year to September, landing at 3.675 million, thanks in large part to the bundling of the RTL+ Premium offering with Deutsche Telekom’s Magenta TV offering.

Growth in RTL+’s base and increased revenues from production outfit Fremantle contributed significantly to RTL Group’s top line for the third quarter, offsetting a decline in TV advertising sales.

Streaming revenue from RTL+ and Dutch streamer Videoland was up 20.4% for the year to date to €195 million.

Group revenue in the third quarter of 2022 was up 18.9% to €1,730 million, while year-to-date revenue was up 12% to €5.006 billion, boosted by Fremantle and RTL Nederland, offsetting a more challenging environment in Germany.

At the end of September 2022, RTL Group registered 4.784 million paying subscribers for its streaming services RTL+ in Germany and Videoland in the Netherlands, up 40.6 per cent year on year

Paying subscribers for Videoland grew 9.5% year on year to 1.109 million, driven by the Dutch kickboxing live events of the Glory series, Videoland Original series Mocro Maffia and the fifth season of international drama series The Handmaid’s Tale,

Expansion of streaming strategy

RTL has meanwhile moved forwards with the expansion of its streaming strategy to take in additional non-video content – a major rationale for the group’s purchase of German publishing outfit Grüner + Jahr.

In August the group launched the RTL+ Musik app, giving the streamer’s subs access to more than 90 million songs as well as more than 100 radio streams. RTL+ entered into an exclusive partnership with Deezer to deliver the music streaming service. The starting price of the bundle offers comprising video and music is €9.99 per month in the RTL+ Max tariff, rising to €12.99 after six months.

Success in streaming is tempered by challenges in the traditional advertising business.

RTL now expects revenue for the full year to land at €7.2 billion, a step down from the previous guidance of €7.3-€7.5 billion, while adjusted EBITA is still expected to be between €1.05 billion and €1.15 billion.

However, given “weaker than expected” TV advertising markets, RTL said it expected EBITA to be at the lower end of this range.

Noting the “challenging macroeconomic environment” that the company faced, CEO Thomas Rabe said: “Looking at the fourth quarter, we expect the challenging advertising market environment to continue, especially in Germany. Despite this and numerous external factors, in particular the war in Ukraine, inflation, energy supply and supply chain issues, RTL Group expects to perform in line with the Adjusted EBITA guidance provided in August.”