German broadcast group RTL Deutschland launched a new all-in-one streaming service under its RTL+ platform. This service aims to revolutionize the streaming market by offering a bundled package that includes video, live sports, music, podcasts, audiobooks, and digital magazines in a single monthly subscription.
The RTL+ streaming service offers RTL’s extensive video content, featuring over 55,000 hours of drama, reality TV, and sports programming. This includes highly popular sports events such as the UEFA Europa League championships and NFL games. In addition to video content, the service boasts a vast library of over 100,000 audiobook titles from Penguin Random House, a subsidiary of RTL’s parent company, Bertelsmann. Subscribers can also enjoy a staggering collection of 120 million songs through a partnership with French-owned music streamer Deezer, as well as access thousands of on-demand podcasts. In the near future, RTL plans to expand the package even further by including digital magazine subscriptions from Gruner + Jahr, another subsidiary of Bertelsmann. This will encompass titles like women’s magazine Brigitte and entertainment magazine Gala.
While announced in 2021, the actual launch of RTL’s all-in-one service was delayed by close to a year. However, this delay allowed RTL to gauge the shifting dynamics of the streaming market. In Germany, the subscription video-on-demand (SVOD) business is less saturated compared to the United States. Research group Kantar estimates that only about 55 percent of German households have at least one SVOD subscription, significantly lower than the approximately 85 percent of U.S. households. This suggests there is considerable untapped potential in the German market. Moreover, a recent survey conducted by Cologne-based marketing consultancy Simon-Kucher revealed that 30 percent of German subscribers are considering canceling their SVOD subscriptions, primarily due to cost-cutting factors.
Recognizing the current economic climate, RTL saw an opportunity to launch an all-in-one discount bundle that caters to cost-conscious consumers. The “all-inclusive” package provided by RTL+ starts at €12.99 ($14.24) per month, the same price as a standard Netflix subscription in Germany. RTL CEO Thomas Rabe emphasized that users prioritize the variety of content and attractive pricing when selecting a streaming service, making their multimedia app an ideal offering at the right time.
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RTL Deutschland’s co-CEO Matthias Dang expressed confidence in the all-inclusive offering’s ability to secure a prominent position among Germany’s top three streaming services. However, in the first quarter of this year, RTL+ accounted for just 3.4 percent of new monthly SVOD sign-ups in Germany, ranking at seventh place. By contrast, Amazon Prime dominated the market with a 37.7 percent share, followed by Disney+ at 14.6 percent and Netflix at 12.8 percent. This highlights the importance of RTL’s streaming strategy, as its core business of advertising-supported television is facing a slump. Parent company RTL Group reported a decline of over 56 percent in profits to €132 million ($145 million) for the first half of the year, with revenues also dropping by more than 5 percent to €3.1 billion ($3.4 billion). SVOD remains one of the few areas of growth for the company, with a 34 percent jump in first-half subscription numbers to 6 million for RTL+ and its Dutch streamer Videoland.
In conclusion, RTL Deutschland’s launch of an all-in-one streaming service under the RTL+ platform signifies a significant step in the German streaming market. By offering a comprehensive package that combines video, live sports, music, podcasts, audiobooks, and digital magazines, RTL aims to cater to the diverse entertainment preferences of consumers. The discounted price and the potential for growth in the German SVOD market present an opportunity for RTL to establish itself as a formidable player in the streaming sector. As the company navigates these dynamics, a successful streaming strategy becomes crucial for countering the decline in its advertising-supported television business and driving overall growth.
