Advances into distribution rights for drama and first-look agreements ‘revalued’ by parent company RTL Group
Fremantle wrote off almost €100m (£86m) from its production and distribution operations in 2025 and is looking to trim up to 15% of production costs by 2030 through the implementation of AI.
The details were revealed in the super-indie’s annual results today, which showed that the Jennifer Mullin-led group’s revenues fell 9.4% on 2024’s numbers to €2bn (£1.7bn).
That dented parent company RTL Group’s results and the Germany-based outfit outlined a set of “strategic content review measures” that had been implemented last year aimed at putting the Too Hot To Handle and Maxton Hall firm back on track.
They included a “revaluation of advances into distribution rights for high-concept drama series and advances relating to certain first-look agreements”.
The move suggests increased scrutiny over the company’s deficit financing on scripted shows, with Fremantle a frequent distribution partner for producers.
It has also struck numerous first-look pacts over recent years, with talent ranging from Angelina Jolie to Kirsten Stewart’s Nevermind Pictures.
The company has also brought an end to its “fully financed film” business, with the combined measures delivering total savings of €95m (£82m).
Fremantle said it had also saved €27m in cost reduction programmes, which includes restructuring, as it looks to adapt to what RTL Group chief exec Thomas Rabe described as “challenging” conditions.
Around 550 full time roles had been removed from Fremantle since 2023 as a result of integration of acquired companies and overhead reduction.
A further 600 roles had been removed at RTL, the group added, while a cost reduction plan at M6 in France will contribute additional savings that are expected to total around €75m this year.
“It is well-known that the market dynamics of the global content production industry have changed over the past two to three years,” an RTL Group spokesman told Broadcast International.
“Based on this, we – together with the Fremantle management team – have done a strategic content review and had to write down certain assets and revenue assumptions, which impacted RTL Group’s profit in 2025.
“These ‘significant special items’ described in the financial report position us for a stronger profit trajectory in 2026 and beyond.”
RTL, which expects Fremantle’s revenues to grow by around 3% per year going forward, also outlined how it expects AI to reduce production costs across the group by between 10-15% by 2030, with “opportunities” across the value chain.
The company highlighted its recently launched AI studio Imaginae, which will target the development phase, and added that AI and virtual production workflows were being integrated into daily drama productions, highlighting RTL’s Gute Zeiten Schlechte Zeiten.
The results come ahead of chief exec Thomas Rabe stepping down later this year, with Warner Bros Discovery exec Clément Schwebig appointed to replace him in May.
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