5. irina gofman   expanding horizons
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5. irina gofman   expanding horizons 5. irina gofman expanding horizons Presentation Transcript

  • 1
  • IrinaGofman EVP of Russian & CIS Broadcasting Born 1970 Joined MTG in 2002 & re-joined in 2008 What I love: A good laugh, excellence in whatever people do, everything Italian What I hate: Mediocrity, dishonesty, chilly drafts Quote: “A riddle wrapped in a mystery inside an enigma, but perhaps there is a key.”2
  • Our major themes for this year Protect and nurture basic pay-TV Take advantage of satellite channel growth potential in Russia and Ukraine Develop premium Take part of growing online video service proposition consumption3
  • Eastern EuropeMarket potential for the multisegment industry players Pay-TV penetration Relative TV market size Eastern Europe (%) (USD million)80% Russia60%40% 1,21120% 4,4580% TV advertising market Pay TV market Cable DTH (pay) IPTV Eastern Europe Western Europe• Satellite distribution still in the lead in terms of subscriber growth opportunity in the region 7,296 31,361• Russian pay-TV market still has plenty of 9,414 38,838 space to catch-up with TV ad market size TV advertising market Pay TV market4 Source: Screen Digest 2012
  • Our Footprint and Operations Another year of expansion Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Countries 7 11 15 22 23 24 25 25 29 ? Channels 2 3 5 6 7 8 10 15 19 ? Satellite platforms Baltics Ukraine Russia5 Viaplay Source: MTG Data Russia
  • Pay-TV Emerging MarketsSeizing market potential Mini-pay channel subscriptions Satellite subscribers (million) (thousands)70 60060 50050 40040 30030 2002010 1000 0 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011• Approximately 30% growth in mini-pay channel subscriptions• 24% growth in satellite subscriber base 6 Source: MTG Data
  • Channel business Extensive content offering Factual Factual Sport 8 channels Sport Movie 5 channels Movie 6 channels8
  • Channel business Taking leadership in core market Cable and IPTV households in Eastern Share of viewing – Free TV and Viasat Europe (million) channels (Russia, 25-44*) 13.1 60 16 48.9 49.7 11.3 46.4 47.8 10.7 10.6 50 40.5 42.8 44.7 9.5 40 12 30 5.5 8 3.8 20 11.7 14.4 2.8 2.7 2.4 2.0 1.9 1.9 1.9 4 1.3 10 0 2010 2011 2012 2013 2014 2015 2016 0 Cable and IPTV households Viasat unique subscribers Top 10 pay-TV channels in Russia (monthly reach; (million people)) 21.2 20.6 DISCOVERY CHANNEL 19.4 ANIMAL PLANET 17.9 MOYA PLANETA 15.5 EUROSPORT 14.1 NATIONAL GEOGRAPHIC… 13.2 12.2 SONY ENTERTAINMENT… 11.9 DOM KINO 11.0 0 5 10 15 20 259 * Russia 100,000+, 1/1/2012-30/4/2012, Source: TNS Russia 2012, Screen Digest 2012 05:00:00 - 29:00:00
  • Channel Business Substantial volume increase Mini-pay channel subscriptions Subscriptions by country (million) 2011 70 64.3 2% 2% 2% 4% 60 Russia 50.2 3% 50 4% Romania 40.8 36.5 5% Ukraine 40 26.4 5% Serbia 30 19.0 63% Poland 20 11.5 6.4 10% Bulgaria 10 Czech Republic 0 2004 2005 2006 2007 2008 2009 2010 2011 • 28% growth subscriptions during 2011 driven by Subscriptions by channels Russia, Romania, Ukraine, Serbia & Poland (2011, million) • Viasat Explorer, History, TV1000 East and Explorer Russian Kino are the channels with the highest History number of subscribers TV1000 East • Launching new channels in Africa TV1000 Russian Kino TV1000 Action • Improving factual channels: Nature • Split Viasat Explorer into 3 feeds for TV1000 Balkan better localization Viasat Sport East10 • Increased investment in content 0 3 6 9 12 15 Source: MTG Data
  • Channel BusinessRevenue growth potential Revenue growth Revenue by country (MSEK, 2004-2011) (2011) 12%600 3% Russia500 3% Ukraine400 Serbia 5% Romania300 6% 51% Poland200 Bulgaria Czech Republic100 6% Lithuania 0 6% Other 2004 2005 2006 2007 2008 2009 2010 2011 8% * Revenue includes sales of advertisng in Russia Russian revenue split• 23% year on year revenue growth in 2011 at (2011) constant FX• More than 50% of revenues generated from Russia & CIS 18%• Development of the advertising revenue stream to take advantage of high 82% penetration of our Russian channels 11 Channel sales Advertising Source: MTG data
  • Channel Business New Challenge in Premium Pay Digital pay-TV development in Russia* 9 (million households) 8.0 Average basic package price for 8 6.7 subscribers 7 5.5 6 5 4.3 • RUB 200 (USD 6.6) 4 3.3 2.6 3 2 1.3 1.7 0.6 1.0 1 0.1 0.3 0 Premium package price (add-on to basic) *Cable, IPTV and DTT (pay) only • RUB 400 (USD 13.3) Share of premium segment of Success factors pay-TV total (% of revenues) 35% 29% 29% 30% • Extensive knowledge of pay-TV market 25% 21% 20% • Wide presence with 5-6 channels in the 15% basic packages of major cable operators 10% 5% 5% 5% 3% 2% 5% 1% 0% • Most relevant cross-promotion universe on 0% basic movie channels Russia Ukraine Poland Sweden Western Europe • Best known movie consumer brand12 On-demand revenue Premium pay revenue Source: MTG data, Screen Digest 2012
  • DTH Market in Eastern EuropeMultidimensional growthopportunities Satellite pay-TV households in Total non-cable households Eastern Europe (million) (2011, million)40 120 96.0 10030 8020 60 40 33.210 15.4 20 1.7 0 0 Baltics Ukraine Russia Eastern Europe• Satellite is the main growth vehicle for the Pay-TV market and is forecast to increase from 25 million households in 2011 to 35 million in 2016• Room to grow with 96 million non-cable households in Eastern Europe• DTT switchover provides opportunities• New services such as premium and HD14 Source: Screen Digest 2012
  • Our own satellite platforms An overviewBaltics Ukraine RussiaTV households 2,7 million TV households 18,8 million TV households 48,8 millionMarket potential 1,7 million Market potential 15,4 million Market potential 33,2 millionCompetition Moderate Competition Moderate Competition HighMTG ownership 100% MTG ownership 85% MTG ownership 50%Offering tier Premium Offering tier Middle/Premium Offering tier MiddleBusiness model Full Box subsidy Business model Partial box Business model No box subsidy subsidyMonthly ARPU 18,5 USD (Premium) Monthly ARPU 13 USD Monthly ARPU 8 USDNumber of ~ 50 Number of ~ 90 Number of ~ 80channels channels channels 15 Source: Screen Digest 2012, MTG data
  • BalticsDeveloped pay-TV Market Pay-TV market penetration TV market structure (%) 201180%70%60% Cable50% 20%40% Satellite30% 12% DTT (pay)20% 56%10% 12% IPTV 0% Cable DTH DTT (pay) IPTV• Pay-TV penetration in 2011: 68% of TV households• Strong growth of DTH segment of the market: CAGR of 89% in 2003-2011• Still addressable market for DTH: 1.7 million non-cable households• IPTV will be the main driver for the pay-TV market in the Baltics in the next 5 years 16 Source: Screen Digest 2012
  • Satellite business Maintain premium content and service positioning• Viasat’s traditional Scandinavian satellite Subscriber base pay-TV model replicated (000)• Maintaining premium position in the market by offering the best content experience• Highest ARPU in Pay TV in the region• Stabilised subscriber base; 4% increase in 2011 Premium Packaging Gold Silver Start # of pay-TV 38 26 5 Major channels Major IPTV Cable # of free-TV PRICE 6-11 6-11 6-10 channels Monthly Fee € 22 ($ 31) € 11 ($ 16) € 8 ($ 11) Low Entry Fee + € 38 ($ 54) € 38 ($ 54) € 59 ($ 84) Low-Tier PRODUCT/SERVICE Premium Decoder Free STB Free STB No free STB Source: MTG Data
  • UkraineSatellite set to grow Pay-TV market penetration TV market structure (%) (2011)35%30%25% Cable20% 39% DTH (pay)15%10% 58% IPTV5% DTH (freeview)0% 1% 2% Cable DTH IPTV• Substantial market opportunity – Europe’s 6th largest country by population• Pay-TV penetration in 2011 is still low : close to 19.5% of TV HHs• Addressable market for DTH– 15.4 million non-cable HHs• DTT development represents a great growth opportunity for satellite as well 18 Source: Screen Digest 2012
  • Ukraine Building a market leader 140 Subscriber base development • Clear market leader with over 60% market 120 (000) share 100 • Added 52,000 active subscribers in 2011 80 60 • Next upselling opportunities: HD, Premium and also low tier to benefit from DTT 40 introduction 20 0 Top Basic Extended Premium Packaging (‘Prestige (‘Family’) (‘Prestige’) HD’) premium offer # of pay-TV 17 37 42 channels PRICE # of FTA 50 50 50 channels prepaid Monthly 69 UAH 99 UAH 149 UAH Low offer Fee ($ 9) ($12) ($19) Low-Tier PRODUCT/SERVICE Premium Equipment 199 UAH ($ 25) without satellite dish, 749 Cost UAH ($ 94) with satellite dish19 Source: MTG Data
  • Russia - update Satellite drives the pay-TV market Pay-TV market penetration Structure of pay-TV market (%) (2011)80% 4%70%60%50% Cable40% 28%30% DTH (other pay) 63%20% Trikolor (Social)*10% 6% 0% IPTV * Tricolor’s business model is driven by STB sales with low ARPU Cable DTH IPTV• Pay-TV penetration in 2011 represented 54% of TV HHs• Low ARPU DTH has been the primary growth driver for the sector and accounts for 28% of total pay-TV subscribers in Russia• Still large addressable market for DTH (approximately more than 30 million non-cable households) 20 Source: Screen Digest 2012
  • Russia: Raduga TV Growth through mid-tier development Subscriber Base Development • Mid-tier satellite pay-TV operator (000) reaching out to subscribers on the whole territory of Russia • Variety of channels at affordable price • Added 41,500 active subscribers in 2011 • Potential move to Premium and HD in 2013 with the launch of ABS-2 satellite Premium Packaging Basic Affordable # of pay-TV channels 77 56 premium PRICE offer # of FTA channels 14 14 Monthly Fee 208 RUR ($7) 190 RUR ($6,3) Low Equipment Cost 3,999 RUR ($133) No proprietary21 Low-Tier PRODUCT/SERVICE Premium boxes Source: MTG Data
  • Pay-TV Emerging Markets Steady growth ahead Revenue split Total segment revenue & EBIT 2011 (SEK million) 1000 800 44% 600 56% 400 200 0 Satellite Channels 2007 2008 2009 2010 2011 Revenue EBIT Revenue split 2007 • Adding more than 100,000 new DTH subscribers in 2011 • Revenue affected by an accounting 52% change for Ukraine 48% • Revenue growth of 13% at constant exchange rates22 Satellite Channels Source: MTG Data
  • Russian online opportunity Too promising to be ignored Internet monthly reach 100% 80% 60% 40% 20% 0% Moscow Russia Audience of video sites (million people) 60 • Viaplay online streaming service extended to 47.8 Russia in April 2012 50 40 35.6 • Featuring foreign and Russian movies, 30 16.5 series and TV programmers on an “all you 20 can eat” basis 10 0 • Subscription business model & bundling Monthly Weekly Daily with existing Viasat and 3’ party services23 Russia 12-54, December 2011 Source: Federal agency for press and mass communications 2011, TNS Russia, Dec 2011
  • SummaryChannel Business  Russia is the main driver of growth  Entering Premium market in Russia and Ukraine as a 3’rd party business as well as to support own platformsSatellite  Taking advantage of the market penetration growth  Product offering tailored to capture the widest subscriber base for future up-selling opportunitiesOnline  Build up online streaming subscription VOD service in order to a take advantage of growing Russian Internet market and Viasat’s current offline presenceNext steps  Continue expanding pay-TV channels into new territories and proving 2012 business concepts
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