Sky Deutschland, the German arm of Comcast-owned European pay-TV group Sky, has announced that it will be shutting down its scripted originals division. This decision was conveyed to Sky Deutschland staff by its head, Devesh Raj, on Thursday. The network plans to wrap up its originals department and cease operations entirely in the coming year. While series currently in production will be completed, no new commissions will be made and projects that are still in the development stage will be put on hold.
Sky Deutschland entered the originals business relatively late, with its first high-end series, Babylon Berlin, commissioned in 2015. However, with the news of the closure, it remains uncertain whether the award-winning drama, which is currently airing its fourth season, will continue. Babylon Berlin is mainly commissioned by public broadcaster ARD, and it has also been sold to international markets, including Netflix in the U.S. Sky’s exit from the show leaves a major funding gap if a fifth season is planned.
In a statement, Sky Deutschland acknowledged the rapid evolution of the entertainment industry, content landscape, and viewer behavior since it ventured into original production. Despite shutting down the originals division, the network believes it has a strong position in the market as a provider of high-quality acquired content, boasting an unbeatable sports offering and the best aggregator of entertainment apps through Sky Q.
The arrival of streaming giants such as Netflix, Amazon Prime, Disney+, and AppleTV+ in the German market has intensified competition for Sky Deutschland and driven up the cost of original production. Additionally, the network faces competition from the online streaming platform DAZN for sports rights, adding further pressure. These factors may have influenced Comcast’s decision to potentially sell off Sky Deutschland, with German commercial network ProSiebenSat.1 being rumored as a potential buyer. Shuttering the originals division could be a cost-cutting measure in line with this potential sale.
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However, it is unlikely that Comcast will implement similar cuts in Sky’s originals operations in its other major markets, namely the U.K./Ireland and Italy. Sky’s operations in these regions are larger and more established, with a strong lineup of hit series. Sky Italy has produced successful shows such as Gomorrah, Gangs of London, Riviera, and the HBO co-production Chernobyl. Likewise, Sky U.K. has a strong track record with shows like Gomorrah and Chernobyl.
The decision to shut down Sky Deutschland’s scripted originals division reflects the shifting dynamics of the German entertainment industry. The presence of streaming platforms and the rising costs of production have made it challenging for traditional pay-TV networks like Sky to compete. However, Sky Deutschland remains optimistic about its position in the market, focusing on its acquired content and sports offerings, and leveraging the capabilities of the Sky Q platform.
In conclusion, Sky Deutschland’s closure of its scripted originals division underscores the challenges faced by traditional pay-TV networks in a rapidly evolving industry. While it remains uncertain how this decision will affect ongoing and future productions, Sky Deutschland is confident in its ability to provide high-quality content and maintain a strong position in the market.
