ProSiebenSat.1 Ups Stake in Collective Digital Studio

MUNICH/LOS ANGELES: ProSiebenSat.1 Group has taken majority control of Collective Digital Studio (CDS) and is combining it with its Studio71 business to create a global multichannel network (MCN).

The German media group picked up a stake in the U.S. MCN in 2014. Collective Studio71 will combine the CDS operation with ProSiebenSat.1's German MCN Studio71. ProSiebenSat.1 will own 75 percent of the combined group. The company says it spent $82.8 million to up its ownership of CDS.

Collective Studio71 houses more than 1,000 channels, with 2 billion video requests per month. It will be overseen by ProSiebenSat.1's Christof Wahl, Sebastian Weil and Ronald Horstman and CDS founders Reza Izad and Michael Green. While CDS will continue to serve the U.S. market and Studio71 will cater to Europe, Collective Studio71 will work on developing international talent, producing global formats and expanding into new markets.

Dr. Christian Wegner, member of the executive board at ProSiebenSat.1, said, "ProSiebenSat.1 created and built up its own MCN with Studio71, and it has established itself as the largest and most successful network in the German-speaking world. By founding Collective Studio71 we will now instantly be a global player in this attractive growth market."

Wahl, the managing director of ProSiebenSat.1 Digital, noted, "Studio71 and CDS are joined by the same digital DNA: a strong focus on developing innovative web-only productions and branded entertainment formats, and intensive cultivation for our creators. The added value for our partners has top priority here. By the merger of Studio71 and CDS we will reach a global audience and can thereby offer additional marketing opportunities to advertising customers worldwide. At the same time, we will invest in international talent development so we can also be a preferred partner for the Web stars of tomorrow."

Green, the CEO and founder of CDS, added, "Through our existing ProSiebenSat.1 partnership, we have been able to greatly increase monetization for our creators in Germany. The combination of our two MCNS, backed by a strong financial foundation, will enable us to leverage opportunities throughout Europe, the Americas and other territories to establish the first truly global MCN. There will also be a strong focus on bringing in broadcast partners for all these territories worldwide."