SVOD Boosts Revenue, Profit at Germany's Tele Munchen Group
Operating profit at the Munich media giant jumped 20 percent for the latest year.
Germany's Tele Munchen Group (TMG), one of Europe's largest licensers of film and TV rights, had a banner year in 2014, thanks in part to dramatic growth in subscription VOD revenue.
Munich-based TMG posted total revenue for the year of $260 million (€232 million), one of its best-ever performances, and saw recurring operating profit (EBITDA) top $62 million (€55 million), a year-over-year increase of around 20 percent.
The boom in SVOD services in Germany — Netflix launched in the country last year, and Amazon has been pushing its Amazon Prime streaming service hard in the territory — helped TMG, which signed licensing deals with all the the major players. These also include Google; Maxdome, the SVOD service controlled by German broadcasting group ProSiebenSat.1; and pay TV group Sky Deutschland.
Where TMG saw a dip was in theatrical distribution and home video sales, a fall the company attributed to the delay in several theatrical releases. The top film for TMG's theatrical arm, Concorde, was Swedish comedy The 100-Year-Old Man Who Climbed Out the Window and Disappeared, which earned just under $10 million in Germany. YA sci-fi feature Divergent, one of TMG's top U.S. acquisitions, underperformed, with a $5.8 million gross in Germany.
TMG recently signed a multi-year output deal with Ryan Kavanaugh's Relativity Media, taking over rights for its upcoming slate in Germany and Austria. But Kavanaugh is currently fighting for control of his mini-studio, making it unclear which films TMG will receive and when.
TMG is hoping for a cinematic rebound with its upcoming lineup this year, which includes Vin Diesel-starrer The Last Witch Hunter, Cannes acquisition Tale of Tales from Matteo Garrone and the company's in-house production The Trapp Family, a drama based on the real-life Austrian family that inspired The Sound of Music. TMG recently sold North American rights to The Trapp Family to Lionsgate and will bow the film itself in Germany on Nov. 12.
Meanwhile, the release of the Point Break reboot, which TMG has for Germany, has been pushed back to late January 2016.