Diversityof opinion remains unthreatened according to The KEK
In a significant move for the German media landscape, the RTL Group has completed the full takeover of Sky Germany, marking the merger of Sky Deutschland Fernsehen GmbH & Co. KG and NBC Universal Global Networks Deutschland GmbH. This consolidation extends RTL Deutschland GmbH's portfolio, which already includes RTL Television GmbH, VOX Television GmbH, n-tv Nachrichtenfernsehen GmbH, RTL DISNEY Fernsehen GmbH & Co. KG, and RTL 2 Fernsehen GmbH.
The combined entity, now including channels like 13th Street, SYFY, and Universal TV, aims to create the leading pay-TV and streaming platform in Germany. This move further strengthens RTL's and Sky's combined market presence, which, according to the Media State Treaty, currently stands at a viewer market share of 18.2%.
However, the examination of the impact of this takeover on the advertising market is not the responsibility of the KEK (Commission for the Investigation of Concentration in the Media). Instead, the EU Commission will be dealing with the consequences of this merger on the advertising market.
The EU Commission's review of the RTL takeover of Sky is ongoing, with the result of its competition law review expected to be available next year. The KEK, meanwhile, points out that this takeover further strengthens the advertising market duopoly of the RTL sales house Ad Alliance and Seven.One Media (ProSiebenSat.1).
It is expected that the RTL takeover of Sky will have an impact on the advertising market, given the consolidation of a broad entertainment and media offering under one roof. However, the viewer market share of RTL, Sky, and NBCUniversal Germany is considered harmless in terms of safeguarding diversity of opinion, as a dominant opinion-making power is assumed only from a viewer share of 30% in linear programming.
The initial purchase price for Sky Germany was 150 million euros, and further payments of up to 377 million euros may be due to the current Sky owner, US media giant Comcast, depending on the development of the RTL Group's share price.
Stephan Schmitter, CEO of RTL Germany, aims to create a European media giant through this deal, positioning the combined entity as a formidable competitor in the ever-evolving media landscape. The result of this strategic move will undoubtedly shape the future of media consumption in Germany and beyond.
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