Media giant RTL is bringing its digital businesses together and said it expects the combined entity to more than double revenues to €100 million ($112.7 million) by 2022.
The pan-European broadcast and media group is bringing together its digital video business in the Nordics, United Screens; its German-based counterpart, Divimove; and Dutch online channels business RTL MCN.
The move comes as RTL looks to aggressively grow its digital businesses, adding to the income from third-party platforms such as YouTube. Divimove will be the overarching brand for the digital operation, with the other units continuing to use their brands locally for the time being.
RTL said the ambitious revenue target will be driven by planned investment in the newly combined unit. The company’s top brass has approved a growth plan to significantly expand digital, notably in the areas of talent management, production of short-form video, and ad sales and data.
RTL tool full control of Divimove in 2018. Last year it folded the UFA X digital storytelling business into Divimove and upped Tobias Schiwek to CEO of the combined entity.
Schiwek will continue at the helm of Divimove and will lead the integration process with United Screens and RTL MCN. Natalie Tideström Heidmark will continue as CEO of United Screens, reporting to Schiwek.
“We have now defined a new structure and strategy to convert the rapid growth in short-form video consumption into a profitable business,” said RTL Group CEO Thomas Rabe. “We are bundling our strengths into one company with a hands-on management team; we are investing in talent, creativity and technology; and we are bringing the cooperation within our group to the next level.”
Rabe added that Divimove will work closely with the BMG music business, which is owned by RTL parent group Bertelsmann.