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RTL Group has agreed to merge its Dutch broadcasting assets with broadcasting assets of Talpa Network, said a joint board statement this week (June 22). Specifically headlined in the release was “to compete with global tech platforms.” Nobody should be surprised. It also creates, if all appropriate approvals are forthcoming, a powerful broadcasting company in the Netherlands. The deal quite clearly follows RTL and Bertelsmann chief executive Thomas Rabe’s mantra of “creating national champions.”
RTL Nederland, the RTL Group subsidiary, will contribute six television channels and subscription video on demand (SVOD) platform Videoland. Talpa Networks, a subsidiary of Talpa Holdings, will contribute four TV channels, three radio channels and multimedia platform Linda, which targets women. Production and creative units of Talpa Holdings, principally owned by legendary TV producer John de Mol, are not included in the transaction but will contribute as a contractor. Talpa Holdings will hold a 30% stake in the expanded RTL Nederland. (See more about media in the Netherlands here) (See more about RTL/Bertelsmann here)
Both the European Commission and the Dutch Consumer and Markets Authority will examine all of this. Most Dutch media watchers expect no objections. Some were a bit surprised. "No one actually expected this, they fought each other quite a bit,” said media critic and researcher Piet Bakker to public radio NOS (June 23). “It has never been a secret that De Mol wanted to compete with SBS RTL.” The deal could close in the first half of 2022 and follows the M6, RTL Group subsidiary, and TF1 “fusion” that upended French media in May. (See more about that story here) (See more about mergers and acquisitions here)
Meanwhile all eyes (and ears) are on Belgium as seeds have been sown for a possible transaction involving RTL Belgium. Publisher DPG Media, publisher Rossel and telecom Ziggo/Vodafone have expressed interest in taking over RTL Belgium, which operates three television channels, three radio channels, media saleshouse IP and several online platforms. DPG Media was formed two years ago on the merger of Medialaan and De Persgroep Publishing. It has significant Dutch holdings and was reportedly quite interested in acquiring RTL Nederland.
German public broadcasting network ARD and public TV channel ZDF are teaming their extensive video libraries. The target project is to create a streaming video network. “The idea,” said ZDF director general Thomas Bellut at a press conference (June 21), “is captivatingly good because it is so easy for users.” In reality, it is more about creating a competitor to YouTube than Netflix or Disney.
“Gradually,” he said, “ARD content will be added” to the ZDF video portal. “The same, of course, with the ARD library.” Livestreams will be included (think: sports) and all available on every digital device. A single platform, however, is not in the plans but user accounts, thus logins, to the separate platforms will eventually merge.
Much of this has been in the works for several years, governments of the 16 German Federal States agreeing two years ago. This was essential as ARD is the network of regional public broadcasters, budgets and certain operational parameters of each determined locally. ZDF is a free-standing national public television channel, under its own management. (See more about media in Germany here)
Not included - so far - are programs from culture channel ARTE, Phoenix or children’s channel Kika. ARTE is a joint venture of ARTE France, ARTE Deutschland and a consortium of public broadcasters and producers. Current affairs and documentary channel Phoenix is an ARD/ZDF joint venture as is Kika. Obviously, there are rights issues. And there are advertising issues as both ARD and ZDF, separately, sell spots.
A bit of howling erupted on a suggestion that a European Union review audiovisual rules might lead to British TV and film exports being choked-off. A leaked internal document obtained UK news outlet The Guardian and subsequently reported (June 21) told of a looming “impact study” undertaken by the European Commission (EC) into removing British productions from “European works” quotas imposed on broadcasters and, notably, video-on-demand services such as Netflix and Amazon Prime. This comes as no surprise as the UK removed itself from the European Union (EU), known far and wide as Brexit, effective January 30, 2020. Trade negotiations have not been pleasant.
“European works” have been prioritized in various revisions of the Audiovisual Media Services Directive (AVMS) as well as the earlier Council of Europe Convention on Transfrontier Television (ECTT). While now out of the EU, the UK remains party to the ECTT, which may let British TV and film producers off the hook in this debate. The European Commission will certainly come up with a report on the “cultural diversity” risk with recommendations to mitigate the “disproportionate” UK productions from the “European works” designation. Turning that into yet another revision of the AVMS Directive could take a couple of years. (See more about AVMS here)
UK creative industries - from production houses and broadcasters to musicians and advertising agencies - have been vocal in their unified disdain for Brexit. For them it’s all about exporting goods and services from a small island to the larger world. Knowing that linkage to Brexit is reviled by singers, dancers, actors, designers and producers, the populist, nativist Conservative Party left out audiovisual services from post-Brexit free trade negotiations. UK TV production sector earned GB£490 million (about €570 million) in rights sales in 2019-2020 from European channels and video platforms. But wounding political enemies is priceless. (See more about media in the UK here)
With questionnaires now distributed to each EU delegation, official responses, considering the imminent summer holidays, will arrive at the Brussels doorsteps in October or later. In January, the rotating Council of the European Union presidency swings to France, always the steadfast culture warrior. Already, the French delegation has informed the Council that all meetings for the six-month term and all communications will be solely in the French language, free lessons provided.
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