Sky Deutschland, the German arm of Comcast-owned pay-TV operator Sky, is pulling out of scripted originals from 2024, Variety can reveal.
Staff were notified of the surprise move by Sky Deutschland boss Devesh Raj on Thursday morning, local time. Variety understands that the entire scripted originals team will eventually be disbanded, though shows that have already been commissioned and are in production, such as post-apocalypse drama “Helgoland 513″ and “Das Boot” Season 4, will finish filming. Any projects in development will be “put into turnaround,” as per another internal note from Sky Studios CEO Cécile Frot-Coutaz, also seen by Variety.
The most high-profile casualty of the strategy shift will undoubtedly be period police thriller “Babylon Berlin,” which is critically acclaimed and aired its fourth season in the fall. Fans have been expecting a fifth season, but Variety understands that the neo-noir — which isn’t currently in production — has been canceled as part of the change. (Netflix streams the show in major markets such as the U.S., Canada and Australia, and could be a logical partner to continue the drama.)
Other big scripted originals to have emerged from Sky Deutschland include U-boat drama “Das Boot,” which ran for three seasons, and the political thriller “Munich Games.” The broadcaster also had a number of shows in development, including a reimagining of Mary Shelley’s “Frankenstein” and the drama “Huntsville AL,” about Nazi engineers recruited post-war for a secret project in Alabama.
The Sky Deutschland decision isn’t expected to affect the pay-TV operator’s other major markets, the U.K./Ireland and Italy, which also produce a number of high-profile originals such as “Gangs of London,” “I Hate Suzie,” “Brassic” and “Gomorrah.” Sky, which was acquired by Comcast for $39 billion in 2018, has invested heavily in talent-led dramas out of markets like the U.K., where shows such as the Eddie Redmayne and Lashana Lynch-led “The Day of the Jackal” and the Julianne Moore-starring “Mary & George” are currently in production.
Sky Deutschland comprises operations in Germany, Austria and Switzerland, also known as the DACH countries. Speculation has been rife about a sale of the business to German media giant ProSiebenSat.1. Sources indicate that the scripted pullback is not related to a potential sale, but trimming the company’s scripted operations could ultimately create a more streamlined business for a potential buyer. ProSiebenSat.1, which is headed by Bert Habets, operates one of the top two broadcast networks in Germany as well as the streaming platform Joyn.
The arrival of streaming giants, including Netflix, Amazon and Apple, in Germany has put pressure on Sky Deutschland. The company has also been hit by competition from DAZN for soccer rights.
Ultimately, Variety understands the scripted decision comes down to the soaring prices for drama in the current economic climate. As detailed by Raj in his memo (see full note below), “the cost of producing scripted content has continued to rise, in part driven by the emergence of myriad new streaming providers, making it harder for drama series to cut through.”
Sky shares originals from one territory across its entire footprint and would have been looking at the traction for German-language originals in markets such as the U.K. and Italy. While “Babylon Berlin” and “Das Boot” have been successful for the division, which has been commissioning originals since 2015, the hit rate may not have been enough to compete in a cut-throat environment for scripted production.
Sky’s pivot also comes a year after Warner Bros. Discovery similarly pulled out of HBO original productions in European markets including the Nordics, Central Europe, the Netherlands and Turkey. Having one less scripted commissioner in the form of Sky Deutschland will be another blow for European drama producers, particularly those out of Germany.
Sources indicate that areas of focus for Sky Deutschland going forward will be acquired premium content as well as sports.
Leo Barraclough contributed to this story.
Read the full memo from Sky Deutschland Devesh Raj below.
Dear all,
In 2015, we embarked on the beginning of an incredible journey to produce high-end, premium scripted original drama from across DACH. Two years later, we launched our first major scripted Sky Original – Babylon Berlin – that set new standards for what global, premium drama from Germany could become.
Since then, we have delivered some incredible Sky Originals from the multiple award-winning Der Pass, which just completed its third season, to juggernaut series Das Boot, with many more such as Die Wespe, Hausen and Souls along the way.
However, since we pushed into this space, the entertainment industry, content landscape and viewer behaviour have rapidly evolved – as has Sky’s business. Also, during this time, the cost of producing scripted content has continued to rise, in part driven by the emergence of myriad new streaming providers, making it harder for drama series to cut through.
As Europe’s leading direct-to-consumer media and entertainment company, we know our customers well. Though we remain incredibly proud of our scripted Sky Originals to date, we are also confident that as the best provider of premium, acquired content, an unmissable range of sports and all the best entertainment apps, aggregated into one industry-leading platform – Sky Q – together with our streaming service WOW we are well positioned.
As we continue to focus on building a sustainable business in DACH, we have to make tough choices on where to spend our investment to ensure we provide value to the business, and our customers. That’s why today we have taken the decision to halt the production of new scripted Sky Originals from 2024 onwards. We are committed to completing projects currently in production.
Of course, this decision is not taken lightly and does not come without an impact to our people and, today, all colleagues in Sky Studios Deutschland who are impacted were informed. I ask that you all be sensitive to this situation, both internally and externally.
Finally, I would like to thank all our colleagues across the business who contributed to the success of our Sky Originals over the past years, and thank you all for your continued commitment, dedication, and passion.
Devesh
