Germany's RTL Group, Deutsche Telekom to Bundle Streaming Services

Grey's Anatomy - Publicity Still - H 2020
ABC

The deal will see RTL and Telekom jointly offer TV Now Premium and Magenta TV and cooperate on digital ad technology.

German broadcasting giant RTL Group and telecommunications company Deutsche Telekom have struck a deal to deepen their cooperation on streaming TV.

The agreement, unveiled on Tuesday, will see Deutsche Telekom bundle its Magenta TV digital TV service with RTL's streaming service TV Now Premium into one subscription, giving customers access to more than 60,000 hours of programming. TV Now carries original and acquired programming from RTL's family of commercial channels — including such series as Grey's Anatomy and The Good Doctor — as well as digital original content, news, documentaries, and live sport.

Financial terms weren't disclosed.

TV Now is ad-supported and, significantly, the Telekom deal will see the two companies cooperate on the advertising technology and digital ad sales behind the joint service. The focus will be on combining the broad reach of linear TV with the personalized ad targeting possible on digital services. The first tests, starting in 2021, will be based on technology from RTL Group’s Smartclip and Yospace.

Telekom and RTL say they will open up their ad sales platform for other partners within the media and TV industry.

The so-called addressable TV advertising market is expected to grow by more than $594 million (€500 million) in Germany alone over the next five years.