It was Jan Frouman who played a key role in driving the expansion into the international production business for ProSiebenSat.1 since 2010, establishing Red Arrow Studios. But priorities changed a long time ago, on ProSiebenSat.1 the signals point to the exploitation of synergy effects – therefore manufacturing activities are now focused on the domestic market, while foreign productions are no longer part of the core business.
Jan Frouman’s departure from ProSiebenSat.1 in the fall of 2018 was associated with a revised strategy – his international ambitions did not go hand in hand with a production activity focused on Germany. But the planned sale of Red Arrow Studios’ overseas operations took a long time – and then the crown pandemic intervened. But now they have come to an agreement – with Peter Chernin. And that closes the circle, because it was not until spring that Czernin brought Jan Frouman to his side, who in the meantime worked for Westbrook, the production house of Will and Jada Pinkett Smith.
Chernin will introduce US-based Red Arrow Studios – Kinetic Content, Left / Right, 44 Blue, Half Yard Productions and Dorsey Pictures – to the newly formed The North Road Company, a global multi-genre film and television content studio. The North Road Company also includes the television and film companies Chernin Entertainment, founded in 2010, and the non-fiction production company Words + Pictures.
Jan Frouman will take over as President of North Road and with Kristin Jones, who hails from AMC Networks and now takes the position of President International, will drive the planned further international expansion out of London – in other words, actually Continue what was once his job at Red Arrow Studios. Sam Peter Chernin will be the CEO of North Road, Jenno Topping will remain in charge of Chernin Entertainment and will be overall responsible for the fiction of the entire group, while Connor Schell will take responsibility for the non-fiction business in addition to managing Words + Photos. The individual Red Arrow manufacturing companies retain their own management.
With the sale of the US business Red Arrow Studios, ProSiebenSat.1 will now receive approximately $ 200 million, the equivalent of approximately EUR 189 million. US subsidiaries collectively achieved sales of EUR 218 million in 2021 and adjusted EBITDA of EUR 7 million. The antitrust authorities have already approved the sale, so the deal can be finalized.
In addition to the German-speaking production activities that have just been expanded to include the newly formed subsidiaries Cheerio Entertainment and Flat White Productions, along with RedSeven Entertainment and shares in Pajama Pictures and Studio 71, the group also retains the European production companies Red Arrow Studios, i.e. CPL Productions, Endor Productions , Snowman Productions and July-August. Red Arrow Studios International also continues to belong to ProSiebenSat.1 as the international sales arm.
Rainer Beaujean, CEO of ProSiebenSat.1 Media SE, explains the exit from the US manufacturing market: “We are constantly checking that our companies are fully committed to our strategy and financial goals. In the entertainment sector, this means that we need production companies who understand the cultural specificity and preferences of our viewers. Because local content sets us apart from the competition. In addition to our German companies, such production companies are our investments in countries such as Denmark and Great Britain. It is therefore logical that we continue to have these companies in the group Our top priority is to link them even more closely to our entertainment platforms. Our US production companies have created successful and popular TV brands in the Americas, but do not strengthen our strategy in the DACH region, the term North Road will see a significant make an important contribution. We wish you all the best and thank you very much for the time spent together. “
Peter Chernin says: “Our goal is to build a leading global independent content studio by combining the best manufacturing companies in the industry with senior executives who are proven experts in their fields. both in the US and around the world, and we want to meet the needs of streamers, broadcasters and other platforms to create unique content. ”