RTL Group Invests in YouTube Channels Business

LUXEMBOURG/VANCOUVER: Expanding its reach in the online video market, RTL Group has purchased a 51-percent shareholding in BroadbandTV, which is YouTube’s fifth largest multi-channel network.

RTL Group has made an initial investment of 27 million euros ($36 million) as part of a planned series of investments in the company. BroadbandTV currently works with more than 7,800 independent channel partners through its network brands VISO and TGN. It generates around 800 million video views per month.

The transaction gives RTL Group a 51-percent stake in BroadbandTV. RTL Group will be appointing three members to the board of BroadbandTV. Together they will explore joint business opportunities to develop original content and further advertising sales.

Guillaume de Posch, co-CEO of RTL Group, said: “As the leading European entertainment network, RTL Group is committed to becoming a major player in all segments of the rapidly growing online video market, and is ideally positioned to do so. Our major broadcasters have built leading catch-up TV services, while RTL Group’s global content arm, FremantleMedia, has become the highest-rated TV producer on YouTube, with 135 channels currently generating 400 million video views per month. Today, we are delighted to announce a partnership with BroadbandTV and Shahrzad Rafati that will further our development. Broandband TV is one of the most innovative companies in the YouTube ecosystem. RTL Group’s track record of allowing our businesses to be run autonomously by entrepreneurs means that BroadbandTV can maintain its culture and flexibility, while benefitting from our strong investment and partnership to drive continued growth.”

Shahrzad Rafati, founder and CEO of BroadbandTV, added: “BroadbandTV has been on a rapid growth trajectory since we began, and that pace will only accelerate with our partnership with RTL Group. We are thrilled to have the powerful resources of RTL Group behind us. In addition to the competitive advantage for BroadbandTV, our customers and partners will benefit greatly from RTL Group’s global reach, advertising sales and expertise in producing amazing content. Our skill sets are complementary and we share mutual goals. Together, we have defined an ambitious growth plan fuelled by investments in technology, advertising sales, content, international expansion and talent. We have a shared vision to achieve market leadership in the digital space. Above all, what inspires me about this new partnership is that, even more than ever, it will enable content owners and creators across the globe to achieve their ambitious goals, which is one of the key reasons for BroadbandTV’s existence.”