ProSiebenSat.1 Group and IBM to Set Up First Pan-European Digital Platform

IBM and ProSiebenSat.1 Group Sign EUR 200 Million Outsourcing Contract; ProSiebenSat.1 Group Sets Up New European Playout Center in Munich



MUNICH, GERMANY .-The ProSiebenSat.1 Group is setting up a pan-European digital platform in partnership with IBM (NYSE: IBM). The aim is to build an all-digital, tapeless technology infrastructure that enables the delivery of TV programming to multiple platforms across Europe.

The two companies have signed a ten-year outsourcing agreement with a value of over EUR 200 million. IBM will take over and improve all of ProSiebenSat.1 Produktion’s IT business applications, IT and media systems. Under these arrangements 170 ProSiebenSat.1 Produktion employees will transfer to IBM in the first quarter of 2009. In the coming years IBM will set up a broadcast integration center and take forward standardization of processes and business applications for media enterprises.

ProSiebenSat.1 Group will establish a new playout center in Munich. This together with the existing playout center in Chiswick/London will transmit all the Group’s TV channels throughout Europe. In the course of the cooperation with IBM and the increased efficiency of a digital platform the ProSiebenSat.1 Group is expecting savings of approximately EUR 50 m over the next ten years.

“Innovative technology that enables us to utilize our content in all media and all countries is crucial for our strategy. In IBM we have a world-class partner for our new platform and our staff. With this step we provide the basis for future growth and reduce our IT costs at the same time,” said ProSiebenSat.1 Media AG’s CEO Guillaume de Posch.

“We are working with our long-time client to transform the way ProSiebenSat.1 manages and delivers its TV content throughout Europe in the future,” said Martin Jetter, General Manager IBM Germany and head of IBM Germany’s Board. “To achieve this we are applying our technology, services and media expertise to drive efficiencies and long-term business agility for ProSiebenSat.1 jointly and sustainably.”

From the start of service IBM will assume responsibility for planning and technical support and delivery of applications, Internet technology and IT infrastructures for the station brands Sat.1, ProSieben, kabel eins and N24.

IBM will modernize core business applications such as advertising sales, scheduling and rights management at ProSiebenSat.1, integrating and dovetailing them across all distribution channels. It will reduce the large number of in-house applications and switch to uniform open standards to facilitate integration of international partners. The aim of the transformation is to make the company faster and more flexible in the European media and entertainment market -- and to do so while reducing costs at the same time.

The contract was approved by ProSiebenSat.1’s Supervisory Board in early April 2008.