The ProSiebenSat.1 Group is bolstering its digital and production business by acquiring a 20 per cent stake in Collective Digital Studios (CDS), a leading multichannel network (MCN) in the United States. CDS produces, distributes, and markets video content via digital platforms, currently achieving nearly a billion video views per month with 600 channels and more than 100 million subscribers. CDS markets some of the best-known American online talent and formats, including “The Annoying Orange,” “Epic Meal Time” and “FreddieWong / Video Game High School.” In addition, the company develops formats in a variety of genres such as action, beauty & lifestyle, comedy, kids & family, and music.

With this investment, ProSiebenSat.1 joins forces with a strong partner in CDS, which has pioneered the development and marketing of online content across all platforms. The deal provides ProSiebenSat.1 with access to the rapidly growing global online video market and an impressive roster of internationally recognized talent.

In August 2013 ProSiebenSat.1 formed its own multichannel network,  Studio71, where its current web production activities are bundled. With more 
than 100 million video views per month, Studio71 has very quickly established 
itself as a leading provider of online video content in Germany.  

The goal of the new partnership is to jointly build one of the world´s leading 
multichannel networks and exploit synergies between the companies. For 
example, Studio71 will receive video content from CDS and marketing will be 
handled in-house by SevenOne Media. Close cooperation in the areas of 
technology and business intelligence is also a key aspect of the partnership.

Dr. Christian Wegner, Member of the Executive Board of ProSiebenSat.1: 
“Digital functions globally. Having established a leading multichannel network in the German-speaking region, we are taking the consequent next step with CDS to create a global player in what is a high-growth sector of the entertainment industry.”

The purchaser of the stake in CDS is ProSiebenSat.1´s production/distribution 
group, Red Arrow Entertainment. The ProSiebenSat.1 subsidiary oversees a 
group of 15 international production companies in nine countries, as well as 
building partnerships with top creative talent and acting as a leading  programming distribution organization. Red Arrow is significantly expanding its presence in the digital market and, together with CDS, will back online talent and develop new content verticals. At the same time, Red Arrow will provide support for global programming distribution for content from the venture.

Jan Frouman, Group Managing Director at Red Arrow Entertainment Group: “Our partnership with CDS is a major strategic step forward for Red Arrow. Not only will we be expanding our global digital presence in a real and meaningful way – but we will be doing it with a team who knows the space and shares our creative philosophy. We couldn´t be more pleased.”

Michael Green, Chairman CDS: “With the ProSiebenSat.1 investment, CDS has gained a strategic partner that will enable us to monetize the global reach of our content as well as tap into the Red Arrow distribution system to create additional opportunities for our creative talent. With a fierce commitment to the most talented creators on the platform, a top tier nationwide sales division and global distribution both on and offline, CDS is now poised to become a leading 21st century media company”.