Competitive Situation and Public Value
There are many facets to sustainability. From a business perspective, operating sustainably means strengthening future viability via the intelligent use of resources — as a media group, our primary resources are our high TV reach and our extensive program repertoire. We are not only innovative, and we do not just promote growth via advertising. We increase the value of our portfolio with digital platforms such as e-commerce and VoD portals with different business models. Our revenue profile thus stands on a solid foundation with diversified earnings potential.
In the wake of digitalization, however, it is not just the diversity of offerings and refinancing models that is increasing. Competition is also becoming more intense, especially with regard to global providers. ProSiebenSat.1 has a positive attitude toward this development and has identified numerous growth opportunities in the dynamic market trend. Equal competitive conditions for all companies assisting the digital economic revolution are an important component for successful and sustainable development in this area. However, the market is currently still imbalanced by the special laws and regulations that ProSiebenSat.1 is subjected to in Germany as a media and broadcasting company. While ProSiebenSat.1 is in direct competition with global providers such as Google and Facebook, the latter are not yet bound by the same legal requirements, e.g. regarding youth protection and copyright. There are also quantitative and qualitative restrictions on broadcasting advertising for TV providers, which make it even more difficult to compete on a level playing field with digital platforms. For example, broadcast time for TV advertising is restricted to a maximum of twelve minutes per hour, and a ban on regional advertising has been established.
Politicians have recognized that changes are needed. Those responsible have taken the first steps to begin leveling the playing field on the digital market with the Federal/State Commission for Media Convergence at national level and the amendment of the Audiovisual Media Services Directive (AVMSD) at European level. Through continuous educational work and regular dialog, ProSiebenSat.1 has positioned itself as an important and reliable partner of the individual committees and working groups. Together with politicians and the industry, the Group intends to clarify and promote the opportunities provided by digitalization and thus also to strengthen Germany as a location for business and innovation in the long term. This is because, for us, sustainability also means shaping our competitive situation and laying the foundations for a modern economic system in Germany and Europe. [G4-16]