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Case Study on Digital Strategies


Digital Transforma/on Case Study Professor: J. Rubén G. Cárdenas

Case Study Digital Transforma/on Strategies


ProSiebenSat.1 Media SE (referred to as “P7S1”), a large TV broadcaster with a

turnover of €2.6 billion ($2.95 billion)10 and more than 3,500 employees. It is one of the

leading TV enterprises in Europe. Munich-based P7S1 operates in 12 countries and owns 15

TV sta/ons, which reach more than 42 million households. P7S1 was founded in 2000 and

originated from the former Kirch Group, which established itself as one of two large TV

companies in Germany aZer regulators opened up the market to private TV sta/ons.

Business Drivers for Digital Transforma6on

P7S1’s roots lie in the TV business. When the company’s managers first considered the

opportuni/es and threats arising from new digital technologies, the core business was

thriving and highly profitable. Thus, the need for immediate ac/on was not as strong as in

other branches of the media industry. Nevertheless, managers recognized the poten/al of

digital technologies—both for P7S1’s current ac/vi/es and for new business opportuni/es.

This led to the decision to pursue a two-pronged approach to exploring and exploi/ng new

technologies. One was to digitally enrich the company’s TV pordolio. The other was to

ac/vely seek out new digitally enabled business models to diversify its business.

Digital Transforma6on Outcome: Developing New Business Areas

Ten years ago, digital technologies primarily had a suppor/ng func/on at P7S1 and

were mainly used to op/mize business processes and provide an efficient infrastructure.

Now, however, P7S1 perceives digital technologies as enablers of innova/ve products and

services. To foster the transforma/on of ideas into new products and services, a dedicated

innova/on lab was established in 2012. Thus far, though, P7S1 has not sought to be a

technology leader but has focused its digital ac/vi/es on branding and customer interac/on

via established technologies.