Thomas Rabe, the CEO of pan-European broadcast giant RTL Group and chairman and CEO of its parent company, Bertelsmann, has big plans for the company’s production division, Fremantle. In an announcement at an RTL shareholders’ meeting in August 2021, Rabe revealed that Fremantle would aim to increase its revenue by $1.1 billion (€1 billion) over the next four years, setting a target of $3.3 billion (€3 billion) by 2025.
To support this ambitious growth plan, RTL Group has provided Fremantle with the necessary funds to fuel its M&A expansion. Over the past three years, Fremantle has spent more than a quarter of a billion dollars acquiring independent production companies. These acquisitions include Element Pictures, the producers of acclaimed shows like “Normal People” and Oscar-winner “The Favourite” from Ireland; Lux Vide, the producers of Netflix’s “Medici” from Italy; and Abot Hameiri, the Israeli group that created the hit series “Shtisel.” These acquisitions have expanded Fremantle’s reach beyond non-scripted entertainment and into the riskier world of drama and scripted production, including independent films. Fremantle has backed projects from renowned filmmakers such as Pablo Sorrentino, Luca Guadangino, and Yorgos Lanthimos. The company has also made strategic investments in documentary production companies like 72 Films and Wildstar Films.
Fremantle’s expansion into drama and scripted content has solidified its position as a global powerhouse in the industry. In recognition of its achievements, Fremantle was named “The Hollywood Reporter’s” International Producer of the Year for 2023.
In an email interview with “The Hollywood Reporter,” Thomas Rabe explains why RTL Group continues to invest heavily in Fremantle and how drama fits into the company’s global strategy. Rabe emphasizes the importance of premium content and storytelling, which are at the core of Fremantle’s operations.
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Rabe also highlights Fremantle’s aggressive acquisition strategy, which has played a significant role in the company’s growth. In the past year alone, Fremantle completed eight acquisitions, including renowned production companies like Lux Vide and Element Pictures. In addition to acquisitions, Fremantle has formed partnerships with world-class storytellers and international talent, including Angelina Jolie, Michael Winterbottom, Richard Brown, and Edward Berger.
The investments and acquisitions have paid off for Fremantle, with its revenue growing by 22% to over $2.5 billion (€2.3 billion) in the last year. This growth brings Fremantle closer to its revenue target of $3.24 billion (€3 billion) by 2025.
When discussing Fremantle’s role in relation to RTL’s streaming and broadcast businesses, Rabe emphasizes the importance of global content expansion. Fremantle’s expansion into scripted content has allowed the company to establish partnerships with streaming platforms worldwide. In 2022, streaming revenue accounted for over 15% of Fremantle’s total revenue. To replicate this success in the documentary genre, Fremantle has established a new global documentary division and acquired documentary production companies. The company has also launched its premium documentary label, Undeniable.
Despite the expansion into drama, film, and documentaries, Fremantle’s flagship entertainment formats, such as “America’s Got Talent” and “American Idol,” continue to be successful. These formats have outperformed prime-time averages on television networks in the US and the UK. Fremantle produces the leading entertainment shows in the UK, including “The Apprentice” and “Britain’s Got Talent.” In Germany, Fremantle’s production company UFA produces successful formats for RTL Deutschland’s linear TV channels.
Rabe acknowledges the higher risks associated with drama and film production compared to non-scripted television. However, he believes that premium content and storytelling are crucial for Fremantle’s success. Fremantle’s drama and film productions have already received recognition and awards, including Oscar nominations and wins at prestigious film festivals like Venice and Cannes. In the documentary genre, Fremantle has produced award-winning documentaries that have been acquired by major platforms like Netflix and aired on prestigious networks like the BBC.
Overall, Rabe’s expansion strategy and ambitious revenue targets showcase the significant growth potential for Fremantle. The company’s investments in drama, film, and documentaries align with its focus on premium content and storytelling, helping Fremantle solidify its position as a global content powerhouse.
