MFE to launch single streaming platform across European markets, CEO Berlusconi says

By Elvira Pollina and Giancarlo Navach

COLOGNO MONZESE, Italy, July 9 (Reuters) - MFE-MediaForEurope plans to launch a single streaming platform across its European markets by combining technologies developed by its Italian and German businesses as the broadcaster steps up efforts to compete with global digital and advertising giants.

MFE, which has run television broadcasters in Italy and Spain for decades, last year took control of German rival ProSiebenSat.1 as part of a push to gain European scale.

Speaking at a press conference at the company's  headquarters near Milan late on Wednesday, Chief Executive Pier Silvio Berlusconi said MFE had selected the best-performing elements from its existing streaming operations to build a single platform for the countries where it operates.

"The front end will be the Italian one, while the supporting technology will be the German one," Berlusconi said, adding the rollout will start in January.

ProSiebenSat.1 runs ad-funded streaming platform Joyn, while MFE has developed the Infinity service in its Italian and Spanish markets. 

MFE will continue to produce content and programmes tailored to the needs of individual national audiences, rather than pursuing a one-size-fits-all approach, said the executive.

"We are not an international fast-food chain," he said.

"We cook up live programmes designed for individual countries. We have to do that with products that are born on television and then move on to digital platforms," added Berlusconi, the son of late Italian Prime Minister Silvio Berlusconi. 

BENEFITS FROM INTEGRATION ARE COMING THROUGH

The ProSiebenSat.1 acquisition gave MFE exposure to the Austrian and Swiss markets. MFE also broadened its reach in Portugal, where it acquired a stake in media company Impresa.

Berlusconi said MFE had already achieved €160 million in benefits this year from its integration with ProSiebenSat.1, compared with a four-year target of €261 million to €315 million it projected in 2025.

However, he struck a cautious tone on advertising revenue for the current year, saying advertising sales in Italy, its most resilient market so far, fell in the first six months, with a recovery in sight for the rest of the year.

The  MFE CEO said ProSiebenSat.1 would continue to pare back its portfolio of digital investments, mainly in e-commerce, after selling six businesses, while retaining perfume retailer Flaconi, which is profitable and cash-generative.

He added that the streamlining would weigh on revenue this year but help improve margins. He also ruled out further acquisitions in the coming quarters, saying the main focus would be on executing the strategy and integration.

(Reporting by Elvira Pollina and Giancarlo NavachEditing by Keith Weir)