The Entertainment segment focuses with the Seven.One Entertainment Group on the core markets of Germany, Austria and Switzerland. By combining our station brands with the content, distribution and sales business, this platform-independent segment represents the complete entertainment business value chain.
We concentrate on producing relevant, local, live content and distributing it digitally, which is the key to even better monetization. When creating our own content, we benefit from significant synergies with the production houses Red Arrow Studios and Studio71, which are now also integrated into this segment. At the same time, the digital expansion of our TV content, for example via advertising-financed video-on-demand offers, plays an essential strategic role. This is because additional distribution channels allow our content to achieve a greater total reach, which in turn translates into more opportunities for monetization.
In this way, we are building a profitable entertainment business and laying the groundwork for diversification and growth in our other business areas.
Our third segment, Commerce & Ventures, bundles ProSiebenSat.1 Group’s growth businesses, which we grow and promote using media power, and hence our entire investment options. At the beginning of our value chain in this context is the SevenVentures investment arm, which also includes the ProSiebenSat.1 Accelerator. Here, we support young companies by offering media-for-revenue or media-for-equity deals through our TV reach. In addition to the minority participations that are formed in this way, the segment also includes, for instance, our majority participations of NuCom Group. Here, we build up digital consumer brands from the fields of consumer advise, experiences and beauty & lifestyle into market leaders. This allows us to make use of all forms of participation for potential investments.
Once the initial growth steps completed, we review whether ProSiebenSat.1 is still the best owner of the respective company for the next development phase. If a business no longer has a strong link to TV advertising, we can sell these well-developed commerce brands to a more suitable owner and make the value created visible.
By combining the Parship Group and the US-based The Meet Group, we have created a leading global player in the dating field forming the new ParshipMeet Group and our Dating segment. Its offerings range from online matchmaking services through dating to social entertainment. Operating in an attractive and fast-growing market environment, the ParshipMeet Group has diversified revenues spanning subscription models to advertising and addresses a broad target group across a large geographical area. In particular, The Meet Group’s USP, its video streaming expertise, strengthens our position in the dating business and opens up new growth potential.
This way, the segment is to substantially drive our diversification and significantly support the Group’s future growth. ProSiebenSat.1 will therefore retain the majority stake in the company following the ParshipMeet Group’s partial IPO, which is planned for 2022.
The entertainment business is able to build leading consumer brands by harnessing the reach and advertising space of our platforms. Through advertising on our channels, we are supporting the commerce companies in raising their brand awareness and consequently increasing their revenues and company value.
In return, the data we generate through our commerce companies helps us to create addressable advertising offerings that are both optimally and efficiently tailored to the relevant viewers.
With its reach and the advertising space on its platforms, the entertainment business has the power to further raise awareness of the ParshipMeet brands in the German-speaking markets. This has already significantly boosted the market leading positions of the Parship and ElitePartner services in the past.
We also intend to strengthen ties between both segments Entertainment and Dating in order to unlock exciting new synergy potential by combining the ParshipMeet Group’s live video streaming expertise with our entertainment know-how.