Investing in streaming comes with start-up losses, while strong competition in linear TV can drive the production of high-quality content, said Elmar Heggen, Deputy CEO and Chief Operating Officer of RTL Group, in a recent conversation with independent Hungarian news site Telex.

In the interview, Elmar looked back on the past year which was characterised by significant investments in the Hungarian business and looked forward, emphasising the importance of partnerships, the rising trend of streaming revenues and the Group’s long-term goal to be a leader in Hungary.

A year of investments

“2024 has truly been a year of investments for RTL Hungary”, stated Elmar referring to the investments in the streaming service RTL+ in Hungary, the new headquarters in Budapest and the exclusive broadcasting rights for the UEFA Champions League. “We have medium- and long-term goals here. (…) We are investing heavily in content, including entertainment, news, and sports rights, because these are all alternative ways to increase our scale”, he added.

Elmar noted that while building a streaming service entails start-up losses, RTL+ is progressing as expected. “Years ago, we made similar investments in the Netherlands, where the service is now profitable. We have also invested in our streaming services in Germany and France. In 2024, we significantly increased our streaming investments in Hungary.  Building a streaming service comes with start-up losses. As a result, RTL Hungary was not profitable in 2024. This is in line with our plans—it typically takes about four years for an investment like this to start yielding profits. (…) Broadcast rights for events like the Champions League can significantly extend the time customers spend on our platforms. Our long-term goal is to be a leader not just in linear TV but also in streaming.”

Strong competition drives high-quality content

Elmar underscored the positive aspect that strong competition can bring about. “Our goal is to have all the necessary tools to reach our audience, whether with our TV channels or with our streaming service. The best outcome for viewers is strong competition that drives all players to produce high-quality content”, he concluded.

Regarding competition in the streaming business, Elmar highlighted that entering the market at the right time is crucial. He believes that launching RTL+ in November 2022, ahead of SkyShowtime, was the right decision. “It’s a bit like we’re starting a new business again, more than 25 years after we launched in Hungary”, he summarised, alluding to the initial streaming start-up losses that will eventually turn into profits.

Working with the best partners

Alliances and partnership hold strategic importance for RTL Group and its businesses around the world. In Hungary, since January 2025, integrated service provider 4iG Group distributes all linear TV channels of RTL Hungary and exclusively distributes the streaming service RTL+.

“We started this collaboration because we believe it is the best way to increase the reach of the RTL+ Premium package and to generate appropriate distribution revenue”, commented Elmar on the partnership.

He added that RTL Hungary currently has a distribution agreement with Magyar Telekom – the Hungarian subsidiary of Deutsche Telekom with which RTL Deutschland recently renewed its agreement for another five years.

Balanced revenue streams 

With the expansion of RTL+ in Hungary, the company is building a hybrid business model based on three revenue streams: advertising, distribution revenue and subscriptions. Out of the three, Elmar believes that streaming revenue will continue to grow strongly. “As a result, the share of advertising revenue in the mix might decrease, which will make us more balanced and less vulnerable, because advertising is cyclical”, he added.

In addition, Elmar emphasised the importance of Fremantle within the Group, which produces and sells about 90 per cent of its content to external clients around the world, further decreasing RTL Group’s dependency on the advertising markets.

Read the full interview here (in Hungarian)!