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European Media Giants Team Up To Tackle Interactive TV And Broadband Challenges

European Media Giants Team Up To Tackle Interactive TV And Broadband Challenges

European media groups DirectGroup Bertelsmann and RTL have struck a deal which will see them working together to develop interactive television and broadband activities for what they hope will be a “clear competitive advantage” in this area over other European competition. The arrangement will see RTL take over Bertelsmann Broadband Group, which is currently part of Bertelsmann eCommerce Group (BeCG), a DirectGroup Bertelsmann subsidiary, for E12.8m (£8.1m).

Klaus Eierhoff, head of DirectGroup Bertelsmann and board member of Bertelsmann AG, said, “With this re-organisation and collaboration, we are giving an impetus to the joint development of interactive TV and the next generation of media-driven e-commerce. By dividing our tasks, we can optimise our core competencies in our media-related direct-to-customer business.”

Bertelsmann Broadband Group is to be integrated into RTL NewMedia, itself a subsidiary of RTL Television in Cologne. Meanwhile BeCG will found a new unit- BeBroadband, which will develop e-commerce activities in the broadband area and enjoy preferred partner status, gaining access to the interactive TV platform and customers of RTL Group in Europe.

Chief operating officer of RTL group, Ewald Walgenbach, added, “Through this new arrangement, RTL Group and Bertelsmann intend to gain a clear competitive advantage over other providers of interactive broadband programming in Europe.”

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