ProSieben sees pressure down with Netflix price hike

MUNICH (Reuters) – ProSiebenSat.1 Media says price hikes by US giant Netflix could ease the competitive pressure on the German television sector and is optimistic about the growth of its e-commerce branch. President Max Conze.

Conze took the reins of the Munich broadcaster last June, but was welcomed by investors who have sent their shares to record levels for seven years on doubts about whether he could restore his free television business suffering.

The former CEO of the British home appliance company Dyson told Reuters that his intention to revive a German streaming company in cooperation with Discovery Inc., the public broadcaster ZDF, the publisher Axel Springer and can others were on the right track for the end of the summer.

"We think that there is a very significant space next to Amazon and Netflix to create a German Hulu that gathers all the German content that people love," he said, referring to the American platform supported by Disney.

Asked about the recent increase in Netflix prices and the use of liquidity mentioned in his latest results, Conze said he hoped the US streaming giants would move towards a model aimed at both profit and growth. [nL3N1ZH4VU]

"Part of the challenge, of course, has been that direct-to-consumer delivery models – Netflix and Amazon – are fundamentally subsidized. They are not really models that bring in money, "Conze said.

"They are interesting for you and me as consumers, but difficult to compete with. If these companies focus a little more in the future on how to turn this model into a profitable business model, it actually creates an environment that allows us to compete a little more easily. "

Conze also announced Sunday that ProSieben's e-commerce branch, NuCom, would generate revenue growth this year, including acquisitions, in excess of 20%.

"This business is growing, growing fast and is very synergistic with entertainment," he said.

NuCom's subsidiary, Parship Elite, purchased the eharmony US dating site late last year and has recently secured direct control of the Aroundhome Home Services Company. [nL8N1X91SY][nL8N1ZE23R]

The e-commerce unit, which owns 10 properties, has "two more things cooking," said Conze, refusing to elaborate.