The manager has to solve problems in the TV business.
(Photo: Bertelsmann SE & Co. KGaA, Gütersloh)
Media professionals look to Hamburg with concern: Bertelsmann has decided to cut the Gruner+ Jahr (G+J) publishing house. 700 out of 1900 jobs will be cut. When he announced this, RTL boss Thomas Rabe is said to have called out to the employees: “Let’s be honest, Gruner is only a small part of Bertelsmann.”
In fact, the closed shops in Raven’s realm are of little consequence. Completely different, however, those of the broadcasting group RTL. They are a large part of Bertelsmann and account for 40 percent of Gütersloh’s profits.
>> Read more: After job cuts at Gruner + Jahr: RTL profits collapse by 15 percent
The problem: RTL is also in crisis, profits fell by six percent, and that of RTL Germany by as much as 15 percent. The more worried looks should be directed to the Cologne RTL headquarters. Rabe also cut 300 jobs there.
Fewer and fewer viewers are tuning in to RTL on traditional TV. The market share is a good seven percent. It wasn’t that long ago that it was twice as high. Viewers may not approve of the fact that RTL, contrary to what was announced, has not said goodbye to trash TV. The range of news may have grown, but as long as Dieter Bohlen still gets broadcasting space, it won’t improve the image.
The streaming market of the future is developing with difficulty
The streaming market of the future is also developing with difficulty. The super app RTL+, which has been announced for a long time but has not yet been fully implemented technically, is growing significantly to four million subscribers. However, most come via the Telekom TV service Magenta, which includes RTL+ for free. RTL earns less from this than from direct customers.
In addition: RTL depends on the drip of advertising, making over 40 percent of sales. In Germany, however, companies spend less on advertising, probably again this year. Rabe therefore expects RTL profits to continue to fall slightly in 2023.
It would be the second decline in a row. In Gütersloh you won’t like that.
More: Breaking up of Gruner + Jahr – Why is a profit of 134 million euros missing after just one year?