RTL Expands Free Streaming Partnership with Deutsche Telekom

RTL launches 8 free ad-supported TV channels as digital ad sales surge 27.7%. The move aims to offset linear TV declines ahead of key Sky deal decision and dividend vote.

RTL Deutschland is significantly increasing its presence in the advertising-supported streaming sector. The media group is launching eight new free ad-supported television (FAST) channels on Deutsche Telekom's MagentaTV platform. This strategic move, featuring popular content such as "Bauer sucht Frau" and "Alarm für Cobra 11," aligns with the company's broader plan to bolster its digital advertising business.

Strategic Shift Amid Changing Advertising Landscape

This expansion is a direct response to shifting market dynamics. In 2025, RTL's traditional TV advertising revenue contracted by seven percent to 2.19 billion euros. In stark contrast, its digital advertising segment saw robust growth, surging 27.7 percent to 517 million euros. FAST channels—which are free for viewers, funded by advertising, and require no subscription—are central to RTL's strategy for recapturing audience share lost from linear broadcasting in the digital domain.

The company's subscription streaming service, RTL+, now reports eight million subscribers. Revenue from streaming operations climbed 26 percent in 2025, reaching 509 million euros. Management has set a clear target for the streaming division to reach breakeven in 2026. To achieve the necessary cost structure for this goal, RTL eliminated approximately 600 positions starting in December 2025.

A Pivotal Month for Shareholders

The FAST channel launch precedes a crucial April for RTL investors, marked by two significant events. On April 22, the European Commission is scheduled to release its preliminary assessment regarding RTL's proposed acquisition of Sky Deutschland. The company anticipates that this combination will generate annual synergies of around 250 million euros, expected to materialize within three years after the deal's closure.

Subsequently, on April 29, shareholders will gather for the Annual General Meeting to vote on a dividend proposal of 5.50 euros per share. If approved, the payment will be distributed on May 5. Based on the average share price of 33.42 euros in 2025, this dividend represents a yield of 16.5 percent.

Financial Targets and Market Position

Looking ahead, RTL has set a medium-term goal of achieving one billion euros in adjusted EBITA. For 2026, the group initially forecasts approximately 725 million euros, driven by improved streaming profitability and the initial positive effects from the Sky transaction. Currently, with a Relative Strength Index (RSI) reading of 75, the company's shares are trading in what technical analysts consider overbought territory.