RTL Group, the entertainment giant that owns Fremantle Media is to buy the bulk of programmatic video company SpotXchange as it bids to better monetise its digital video content.
The company is to by a 65% stake in SpotXchange, with an option to buy the lot at a later date.
RTL has some $8bn in annual revenues, derived from 53 television channels and 27 radio stations and content production throughout the world. With the SpotXchange acquisision, RTL Group claims that it becomes the first major broadcaster to invest in programmatic online video advertising.
In the sense it has bought one of the platforms, that's true. But most entertainment companies are starting to invest in systems as the programmatic video advertising market continues to grow.
In a joint statement, Anke Schäferkordt and Guillaume de Posch, Co-CEOs of RTL Group, said: “Following our investments in non-linear TV services and in multi-channel networks on Youtube, RTL Group has already become the leading European media company in terms of online video views.
The logical next step in our strategy is a structural move into the area of digital monetisation – improving our skills by adding innovative data- and technology-based competencies. SpotXchange is the perfect fit for RTL Group for such a move: it has a first-class management team that has built a leading, state-of-the-art platform for programmatic selling of online video advertising. With its impressive growth story and strong positioning in the United States, SpotXchange also represents a unique opportunity to enhance RTL Group’s presence in the world’s biggest and most advanced media market.”
Joint statement from the two co-founders of SpotXchange, Michael Shehan (CEO) and Steve Swoboda (COO and CFO): “We are thrilled to be joining the RTL Group, a global leader in media and entertainment, and believe they are the ideal partner to help SpotXchange expand the reach of our comprehensive video ad monetisation services. This investment demonstrates RTL Group’s progressive vision and embrace of programmatic trading, ad serving and yield optimisation in the digital arena.
The companies comprising RTL Group operate in a decentralised fashion which will allow SpotXchange to thrive and grow as the last independent digital video ad monetisation platform while providing significant opportunities through partnership with RTL Group’s leading European broadcast companies and top tier global content producers. Joining RTL Group will present incredible benefits and opportunities for SpotXchange’s publishers, buyers and people.”
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