Talking brands - RTL Groupweek 19 10 May 2012 Luxembourg RTL Group publishes ﬁ rst quarter results France Groupe M6’s Supervisory Board elected Belgium RTL-TVI to launch Belgium’s

week 19

10 May 2012

LuxembourgRTL Group publishesfi rst quarter results

FranceGroupe M6’s SupervisoryBoard elected

BelgiumRTL-TVI to launchBelgium’s Got Talent

AustraliaFremantleMedia Enterprisespresents Backstage Tourof Australia’s Got Talent

Talking brands How brands connect emotionally with audiences

the RTL Group intranetweek 19

Cover:©Ray MickshawThe X Factor jury with Pepsi-branded cups on the judging table

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Lady Gaga wearing Diet Coke cans in her hair in the video for Telephone; Jennifer Lopez singing about throwing on her Louboutins – the famous designer heels with the red soles; or one of the characters of the hit series Friends, shown eating Frosted Flakes and Cocoa Puffs in an episode and even quoting the slogans for the cereal brands; these are all notable examples of branded entertainment. Some savvy viewers will see these as product placement. But for theothers – to the delight of advertisers – the commercial purpose generally goes unnoticed or isn’t considered an interruption.

So what exactly is branded entertainment? Industry experts agree that it is diffi cult to come up with a universal defi nition. Nevertheless, they all agree that it is not simply product advertising or product placement. In branded entertainment a brand is given the opportunity to express itself and tell a story through entertainment. Indeed, the product becomes an integral part of the format as it is added into the plot or the dialogues. This is why branded entertainment is also often referred to as brand integration.

When FremantleMedia CEO Tony Cohen announced in October 2010 that RTL Group’s production arm had acquired a 62.5 per cent share in Radical Media, his words were: “This major investment increases our expertise and capability as a multi-platform branded entertainment business.” This acquisition represented the company’s fi rst large scale move into the branded entertainment market.

After joining the FremantleMedia family, Radical Media redefi ned itself as a global transmedia company and also defi ned storytelling across multiple media platforms. “While it is only an emerging fi eld I think we are quickly being recognised as one of the companies most capable of succeeding in that goal,” says Jon Kamen, Chairman & CEO of Radical Media. “And as we move forward we’ll be able to set an example for the rest of the industry as to what branded entertainment and also great entertainment should look like in the future.”

Earlier, in August 2009, FremantleMedia’s German branch UFA had launched its UFA Brand Communication division. With a core offering of mainly corporate media and brand communication videos, the division also focused on the branded entertainment sector, in which it developed formats in collaboration with UFA production companies.

Contrary to popular belief, the use of branded entertainment in the marketing mix isn’t completely new. Advertisers fi rst started integrating this discipline in their strategies in the 1950s, especially in the United States, with the advent of television. Today’s increase in branded entertainment is one result of the ongoing fragmentation of the media landscape. Viewers can access content on a wide range of platforms and with the use of internet streaming and digital video recording devices that enable time-shifted viewing and ad-skipping on the rise, advertisers are looking for new ways to reach their audiences. In fact, these new media

Great storytellersBranded entertainment is quickly becoming an indispensable part of any advertising campaign.Backstage explains why and gives an overview of the expertise of RTL Group’s production companies in the area.United States of America - 10 May 2012

Screenshot from Lady Gaga’s video Telephone, here featuring Diet Coke cans. In total, ten brands appeared in

the video which was viewed more than 4 million times in its first 24 hours


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consumption patterns are increasingly driving advertisers back to the roots of early TV advertising to help them get their messages across effectively and engage consumers in a way traditional 30 seconds spots cannot.

To make sure the creative partnerships work, FremantleMedia has set up the Brand ResearchGroup. Led by Shailesh Patel, Head of Worldwide Research and Planning, this is FremantleMedia’s market intelligence unit: a one-stop shop for in-depth understanding of advertisers’ brands and market positioning, as well as a depository of all FremantleMedia’s branded-entertainment deals and client dialogue. “Its role is to identify value for advertisers by better understanding their needs; provide improved targeting of branded entertainment through use of consumer data; and better evaluate the effectiveness of branded entertainment using engagement data,” says Shailesh Patel.

Upon closer examination of the examples of branded entertainment mentioned above, it becomes apparent that all of them are from the United States. According to the fourth edition of Global Branded Entertainment Marketing Forecast 2010-2014, published by PQ Media, the worldwide leader in monitoring and forecasting branded entertainment spending, the US remains the world’s largest market, accounting for nearly half (45.1 per cent) of total branded entertainment spending. Wolf Bauer, CEO of UFA Film & TV Produktion, comments: “In the US, they are well advanced in this area. We have a roughly fi ve-year lag. In Europe, we are still at the ‘pioneering stage’.”

There are two main reasons for this, explains Carsten Waitz, Creative Director, UFA Brand Communication: “First, the United States has always been a trailblazer in the advertising industry, with higher marketing spend in general. Second, in Europe advertisers are subject to stricter advertising regulations.”Even though most countries have since relaxed their laws, many have “been slow in adopting the new rules,” adds Shailesh Patel.

There is still hope though, as according to PQ Media predictions, total branded entertainment spend (including traditional product placement) will grow at double-digitrates in each of the leading European marketsin the 2009 to 2014 period. France is and will remain the largest European market for branded entertainment across all media, followed by Italy, the UK, Germany, Spainand Russia, which is the fastest-growing market.

Branded Entertainment works

PepsiThe X Factor US partnership: the campaign signifi cantly outperformed other high-profi le prime-time campaigns, more than doubling IAG* norms with lifts of plus 109 per cent on brand recall, plus 155 per cent on message recall, and plus 121 per cent advantage on likeability

CokeAmerican Idol partnership: when aired on American Idol the ads got 46 per cent more brand lift than when aired on other programmes

* IAG is one of the leading US companies that measures viewer response to ads, TV shows and product placements.


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14.9 17.0 19.422.3

25.0 24.625.9 28.1

30.834.1

38.2

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

US Branded Entertainment Marketing Spending 2004 to 2014 ($ Billion)

8.89.9 11.1

12.513.5 13.1

14.215.3

16.7 18.4

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Europe Branded Entertainment Marketing Spending 2004 to 2014 ($ Billion)

13.5

Source: Global Branded Entertainment Marketing Forecast 2004-2014, PQ Media, 2010 Edition


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The advertising markets in the fi rst quarter of 2012 refl ected the state of the national economies as they navigate through the Euro crisis. While the German TV advertising market grew signifi cantly in the fi rst quarter, the French market was estimated to be slightly up year-on-year. In the Netherlands and Belgium the markets were down, and in Southern and Eastern Europe the markets continued to decline strongly.

Against this overall challenging background, RTL Group increased its consolidated revenue by 6.3 per cent to €1,322 million (Q1/2011: €1,244), driven by higher revenue from Mediengruppe RTL Deutschland, FremantleMedia and Groupe M6.

Group EBITA remained stable at €191 million (Q1/2011: €191 million), as higher profi t contributions from Mediengruppe RTL Deutschland and Groupe M6 were offset by profi t centres operating in decreasingadvertising markets, higher programme costs in some markets and continued margin pressure at FremantleMedia.

The net cash position of RTL Group as of 31 March 2012 was €1,321 million (31 March 2011: €1,647 million). A dividend payment of €789 million was made on 26 April 2012.

RTL Group publishes first quarter resultsIn the fi rst quarter of 2012, RTL Group increased its consolidated revenue by 6.3 per cent despite an overall challenging market environment. Group EBITA remained stable at €191 million.Luxembourg - 9 May 2012

Highlights from RTL Group’s operations

On 27 March 2012, a Groupe M6 project was selected as part of the CSA’s call for tender for six new HD channels on digital terrestrial television (DTT). The new channel, to be launched before the end of 2012, will be a general-entertainment channel targeting the whole family.

On 1 April 2012, Mediengruppe RTL Deutschland launched a new free-TV channel, RTL Nitro, mainly targeted at male viewers.

On 19 April 2012, Cécile Frot-Coutaz was appointed as the new Chief Executive Offi cer (CEO) of FremantleMedia, to be based in London, effective 1 July 2012; Frot-Coutaz, currently CEO of FremantleMedia North America (FMNA), will succeed Tony Cohen who will leave the company to focus on his non-executive work.

RTL Nederland continued its strong audience performance, increasing its combined prime-time audience share in the target group to 34.0 per cent (Q1/2011: 32.7 per cent); the ratings increase was again driven by its fl agship channel, RTL 4.

RTL Group’s cable channels in Hungary, acquired in 2011, achieved a combined audience share of 12.0 per cent among viewers aged 18 to 49 – up 16 per cent from Q1/2011.


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Mouna Sepehri is a member of the Renault Group Executive Committee and is also Executive Vice President, while Catherine Lenoble, a former member of the Groupe M6 Management Board, in charge of advertising, becomes the permanent representative ofImmobilière Bayard d’Antin, a position held until now by Christopher Baldelli, Chairman of the Board of RTL Group’s French radio stations. Guillaume de Posch, Co-CEO and member of the RTL Group Executive Committee, is the third new member of the Supervisory Board.

These personalities bring their skills to the Supervisory Board chaired by Albert Frère,and whose other members are Gérard Worms,Vice-Chairman, Delphine Arnault, Guy de Panafi eu, Gilles Samyn, Rémy Sautter, Philippe Delusinne, Christopher Baldelli, Vincent de Dorlodot and Elmar Heggen.

Supervisory Board electedAt the Shareholders General Meeting, ten of the 13 Supervisory Board members were re-elected and three new members were elected: Mouna Sepehri, Catherine Lenoble and Guillaume de Posch.France - 7 May 2012

Mouna Sepheri, Catherine Lenoble and Guillaume de Posch


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“Australia’s Got Talent format owner Syco has never before approved any consumer experience like this, giving Australian fans this rare opportunity,” says Dustin Lockett, Vice President Live Experiences FremantleMedia Enterprises. “This is another great example of FME harnessing unique opportunities to turn television into engaging live experiences for fans, and this world-fi rst for the Got Talent franchise is an excellent win for us and for fans of the show.”

The exclusive Backstage Tour tickets will include a VIP tour of the studio, access to rehearsals and sound checks, a chance to rub shoulders with the contestants, an opportunity to ‘be a star’ on stage at warm-up and sit in the judges’ chair for photos, lunch on set, and VIP seats for the recording. Ticketholders will also go home with a crew-branded hoodie.

This is the fi rst of a number of FME Live Experiences set to launch in 2012, bringing television and other entertainment properties to life for fans while mining a lucrative revenue stream for FME.

A public relations campaign will raise awareness for the Backstage Tours and point fans to a dedicated website for ticket sales and event information.Tickets are priced from AUD195 for the fi rst week, increasing incrementally as the show progresses.

A new consumer experience for Australia’s Got TalentFremantleMedia Enterprises (FME), the brand extension arm of FremantleMedia, presents a world-fi rst consumer experience for the Got Talent franchise with the launch of an Australia’s Got Talent Backstage Tour.Germany - 10 May 2012

The jury of Australia’s Got Talent:Kyle Sandilands, Dannii Minogue and Brian McFadden (from left to right)


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The casting call for its premiere season opened several days ago on the RTL-TVI website. Talented individuals across all genres – from dancers, magicians and acrobats to aspiring singers – are invited to submit their application to take part in this internationally successful entertainment format, which discovered the Echos Liés dance group in France and launched the career of Susan Boyle in the UK.

Philippe Delusinne, CEO of RTL Belgium, comments: “By acquiring a programme like Belgium’s Got Talent, RTL Belgium is followingthe evolution of the market and continuing the progressive entertainment policy RTL-TVI has been pursuing for years.” For Stéphane Rosenblatt, Director Television at RTL Belgium, “the cohesion and motivation of all our teams will turn the new programme into a success story. This is a big challenge for the various areas of television, radio and new media, whose synergy and dedication will help Belgium’s Got Talent become a success.”

Got Talent is produced by FremantleMedia and broadcast in 47 countries. The 100 per cent Belgian version, a collaboration with the Flemish channel VTM, is the highlight of the Autumn 2012 season, with eleven broadcasts scheduled.

Belgium’s got talent, tooAfter the summer holidays, a great surprise awaits RTL-TVI viewers on their living-room screens: a 100 per cent Belgian version of Got Talent called Belgium’s Got Talent.Belgium - 9 May 2012


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UFA Sports has exclusively marketed the media rights of the Spanish national football team, the reigning World and European Champion, in Asia since October 2011. This covers all of the team’s home games in qualifying for the Fifa World Cup 2014 and all of its friendlies during the qualifi cation process.

Its responsibilities have now been considerably expanded so that UFA Sports will handle the marketing for the team’s matches in another 22 countries in the Middle East, North Africa and parts of Central and Eastern Europe. The marketing package covers all TV, internet and mobile broadcasting rights. Spain is facing Finland, France, Georgia and Belarus in Group I of the qualifi cations for the Fifa World Cup 2014. The championship will be held in Brazil from 12 June to 13 July 2014.

Robert Müller von Vultejus, Managing Director of UFA Sports, commented: “We are delighted to have the opportunity to market Spain’s exceptional team to such an extent. There is a great deal of interest in this top team, especially in Asia, the Middle East and Eastern Europe, and stars like Xavi, Andrés Iniesta and Iker Casillas are familiar names to the football fans there.”

In addition, in 2013 and 2014, UFA Sports will market the media rights to the Copa del Rey fi nal and the Spanish Supercopa in select countries in Asia and Central and Eastern Europe.

The Copa del Rey is the cup competition for the majority of Spain’s club teams, while the Supercopa is a championship contested each year in two matches by the winners of Spain’s top football division and the winners of the Copa del Rey. Under the new agreement, UFA Sports will market Spanish football’s media rights on three continents.

Marketing Spanish footballUFA Sports will now market Spain’s national football team in even more countries under an agreement now signed between the sports rights marketer and Santa Monica Sports, the exclusive media rights agency for the Royal Spanish Football Federation.Germany - 4 May 2012Robert Müller von Vultejus

The Spanish national football team


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Together, they will provide live coverage of all the Uefa Euro action and the German national team’s path in Poland and Ukraine on German radio. Radio Hamburg and Hit-Radio Antenne are on the team in northern Germany, Antenne Bayern and Radio Regenbogen in the south, Hit Radio FFH in central Germany, Radio NRW in the west and Antenne Thüringen, Hitradio RTL Sachsen and Radio Brocken in the east, with 104.6 RTL and 105‘5 Spreeradio rounding things out in Berlin. This will enable more than 48 million listeners a day – over fi ve million per hour – to experience all the emotions that football has to offer – up close, on their favourite station.

The stations’ reporters will be on the ground in the two Euro countries and travel with the German national team. Detailed live broadcastswill keep football fans abreast of every exciting development in the stadia. They will also be treated to backgrounders on the country and its people, and interviews with experts and celebrity footballers.

The Radio NRW team will handle the complex production of the coverage, lead-managed by Udo Kreuer. RTL Radio Center Berlin and its Managing Director Stephan Schmitter are responsible for coordinating and negotiations with Uefa. Says Schmitter: “I’m very pleased that we were able to acquire the license from Uefa. This puts us in a position to once again treat our listeners to special listening experiences during one of the world’s biggest football events – and offer our customers an attractive advertising environment.”

Commercial radio stations to provide live coverageTen large German commercial radio stations have pooled their resources to become the offi cially licensed radio stations of the Euro 2012.Germany - 4 May 2012

Stephan Schmitter


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The study from the E-media Institute, commissionned by the Association of Commercial Television in Europe (ACT) and a group of its member companies, aims tobring some factual analysis to the debateabout the audiovisual content sector’s contribution to Europe’s digital economy. Specifi cally, for the fi rst time ever, the study quantifi es the aggregate programming spend of Europe’s commercial broadcasters.

Philippe Delusinne, CEO of RTL Belgium and President of the ACT, says: “We know that European television is an €84 billion sector – but we did not know until today how much of that revenue is reinvested in sport, news, entertainment or movies. Our study concludes that the largest commercial broadcasting groups in Europe invested a total of €15.1 billion in programme content in 2010. When the contributions of public broadcasters, and of smaller operators, are also taken into account, we conclude that overall around 40 per cent of broadcasters’ revenues are reinvested in the next season’s schedule. Quite simply, great programme content isn’t cheap. The media business will continue to invest and to innovate so as to ensure that the strengths of our sector are also refl ected in the online world.”

The report also shows the strong consumer take-up of the hundreds of new services launched by commercial broadcasters online, part of the legal content offer that is widely seen as a vital tool against piracy. The report concludes by looking at the many different ways in which content can cross frontiers today, and tomorrow – provided there is monetisable consumer demand.

The ACT will be seeking to discuss this report with EU policymakers in the weeks ahead. ACT Director-General Ross Biggam notes that “this study is part of our response to a number of very pertinent questions posed by the European Commission, in its Green Paper on Audiovisual Content, in the Digital Agenda, and in other policy documents. Television has never been stronger, with the average European citizen watching linear TV for 228 minutes per day. Our member companies aim to build on their existing strengths to tap into new revenue streams and better serve consumer demand. If all players – broadcasters, producers,distributors and regulators – can rise to the challenge of the new era, then we are confi dent we can deliver a strong presence for European content online.”

Broadcasters’ Investment plays key role in digital economyEuropean commercial broadcasters have released a new study entitled Audiovisual Content and Online Growth. It highlights the vital role played by the commercial sector’s €15 billion annual investment in programme content in the digital economy.Belgium - 7 May 2012

Philippe Delusinne

“It’s essential and

only natural not to

be like the others”So says Karl Lagerfeld, who was the guest on

a special edition of ‘Paris Première Style’, airing on

5 and 6 May on Paris Première, presented by

Alexandra Golovanoff (left).


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Grupo Antena 3 and Dea Planeta launch “Nubeox”The new digital platform “Nubeox” by Grupo Antena 3 and Dea Planeta offers users domestic and international movies and series, to rent or buy.Spain - 7 May 2012

New season, new channelSoda, a comedy series launched on M6 in July 2011, returned for a second season on W9.France - 4 May 2012

Best Sales House of the YearAt the end of April 2012, IP Belgium was named Best Sales House of the Year 2011 for having stood out from its peers and presenting its offers to the market in an exemplary and professional manner over the past year.Belgium - 8 May 2012

The Dutch TV market in AprilIn April, RTL Nederland’s channels collectively attracted 33.2 per cent of the 20- to 49-year-old target demographic, signifi cantly outscoring the public-service broadcasters (28.5 per cent) and the SBS group (20.0 per cent).The Netherlands - 7 May 2012

Market positions strengthened in AprilRTL Group’s Hungarian cable channels (Kábeltelevizió) further improved their audience shares. In April, the audience share in the 18 to 49 demographic rose 12.9 per cent in prime time and 12.7 per cent for the entire day, representing an increase of 0.6 percentage points.Hungary - 9 May 2012


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RTL Nederland’s websites show strong traffic growthWith 6.4 million users aged 13 and older in March 2012, RTL Nederland’s websites have grown their traffi c by 27 per cent since March 2011 and came fi fth in the country’s rankings by Stir.The Netherlands - 8 May 2012

Super RTL supports Stuttgart Festival of Animated FilmFrom 8 to 13 May, the 2012 edition of Stuttgart’s ‘International Festival of Animated Film’ (ITFS) gives visitors a comprehensive overview of highlights from various genres of animated fi lm. Super RTL is supporting the festival and will show the German premiere one of last year’s contestants.Germany - 8 May 2012

Luca Hänni tops the chartsThe winner of season nine of Deutschland sucht den Superstar (Idols) had already stormed to the top of the I-Tunes and Musicload charts immediately after the fi nal show – now Luca Hänni’s Don’t Think About Me has also taken up residence at number one in the Media Control Charts.Germany - 10 May 2012

Video content on the up and upIn April, the Web sites produced by Mediengruppe RTL Deutschland generated 116.8 million video views of professionally produced content, their second-best monthly score ever. Mobile video views hit a new high at 15.9 million.Germany - 10 May 2012


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People

Katharina KrebsGermany - 9 May 2012

As of May 2012, Katharina Krebs is the new Marketing Manager, Digital Distribution at Universum Film, where she will support the digital team led by Danny Humphreys from now on.

As Marketing Manager, Digital Distribution, Krebs’s duties will include building and cultivating relations to platforms for the digital marketing of fi lms (Electronic Sell Through, Video On Demand, Pay Per View) in Germany, Austria and Switzerland. She will also be in charge of developing, coordinating and implementing marketing promotions for optimally placing the portfolios of Universum Film and its digital distribution partners. She will co-ordinate closely with the various marketing divisions to ensure a comprehensive marketing approach.

Katharina Krebs has worked at Universum Film as Product Manager, Home Entertainment since November 2010, handling the marketing of the latest movie releases on DVD and Blu-ray. Previously, she had worked as Digital Marketing Coordinator for Sony Pictures Releasing, and helped to market box-offi ce fi lms as a marketing coordinator at Senator Film.

Katharina Krebs

PublisherRTL Group

45, Bd Pierre Frieden

L-1543 Luxembourg

Editor, Design, Production

RTL Group

Corporate Communications and Marketing

http://backstage.rtlgroup.frhttp://backstage.rtlgroup.comhttp://backstage.rtlgroup.de

Documents

Talking brands - RTL Groupweek 19 10 May 2012 Luxembourg RTL Group publishes ﬁ rst quarter results France Groupe M6’s Supervisory Board elected Belgium RTL-TVI to launch Belgium’s