Proving the attractiveness of multichannel networks to established media players, the ProSiebenSat.1 Group is continuing to internationalise its online video business, founding Collective Studio71, a globally-operating multichannel network (MCN) with locations in LA, New York, Berlin, and London.
To do so, the media company is acquiring a majority interest in Collective Digital Studio (CDS), one of the leading MCNs in the US, in which ProSiebenSat.1 has already held a minority stake since 2014. Unlike aggregating MCNs, CDS focuses on producing high-quality digital content for a young target audience and ranges among the top five networks in the US. CDS boasts a successful track record for delivering entertainment content for numerous brands, such as Unilever, Procter & Gamble, Toyota, and Sony PlayStation. The acquisition is subject to approval by the competent antitrust regulators in the US.
As part of the transaction Studio71, the MCN built up by ProSiebenSat.1 under the direction of Sebastian Weil and Ronald Horstman to be market leader in Germany, and CDS will be merged into the new umbrella company, Collective Studio71. ProSiebenSat.1 is investing US$82.8 million for this purpose, and will hold 75 percent of the equity shares in Collective Studio71.
As organisations, CDS will continue to exist for the American market and Studio71 for the European market. Going forward, Collective Studio71 will push to build international talent, produce global Web-only formats, and inorganically expand operations to include additional territories. It will also intensify cooperation with all digital distribution platforms and in the areas of branded entertainment and tool development.