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The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
The New Game in Town
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The New Game in Town

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Manfred Aronsson, Head of MTG Sweden. Capital Markets Day 2010. …

Manfred Aronsson, Head of MTG Sweden. Capital Markets Day 2010.

Published in: Education, Business, Travel
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  • 1. 2010 Capital Markets Day Manfred Aronsson, Head of MTG Sweden The New Game in Town Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 1
  • 2. Swedish TV viewers English football = True (since 1969) Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 2
  • 3. Why acquire Premier League ? 4 perspectives: • Why it makes strategic sense to our platform • Why PL complements Viasat other rights and will be a greater viewing experience • Why pre-requisites to market and sell Viasat with PL are better than ever • Why it makes financial sense Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 3
  • 4. Major strategic changes 2008 DTH “channel swap”… Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 4
  • 5. Major strategic changes 2008 …basic channels became commodity Premium Sport Key differentiator Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 5
  • 6. Action on premium content & brands From generic sport channels… Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 6
  • 7. Action on premium content & brands ...to clear premium channels ! Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 7
  • 8. Viasat Sport ‘make-over’ journey has paid off for the brand… Do you consider Viasat Sport ? Do you prefer Viasat Sport ? 52% higher than in 2008 125% higher than in 2008 Consideration 2008-2010 Preference 2008-2010 'Any Viasat Sports Channel' vs Canal+ Sport 'Any Viasat Sports Channel' vs Canal+ Sport 60% 30% 50% 25% 40% 20% 30% 15% 20% 10% 10% 5% 0% 0% mar-08 maj-08 mar-09 maj-09 mar-10 jul-08 sep-08 nov-08 jan-09 jul-09 sep-09 nov-09 jan-10 mar-08 maj-08 mar-09 maj-09 mar-10 jul-08 sep-08 nov-08 jan-09 jul-09 sep-09 nov-09 jan-10 Viasat Sports Channel Canal+ Sport Viasat Sports Channel Canal+ Sport Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 8
  • 9. PL = great opportunity to add weekly premium product… 29 match days / season 115 100 13 match weeks / season 38 30 Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 9
  • 10. PL vs. other national leagues – 3 times as strong as second best… Measuring how strong a single right is to move a subscriber 9 0 , 0 8 0 , 0 7 0 , 0 6 0 , 0 5 0 , 0 • Survey included 1 500 respondents, statistically 4 0 , 0 representing the Swedish digital TV population 3 0 , 0 • DTH, IPTV, DTT hhs 2 0 , 0 1 0 , 0 - Premier Allsvenskan Superettan Italian Spanish League League League Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 10
  • 11. PL shifts the premium football balance to Viasat's favour Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 11
  • 12. The right...and how we will use it – Total exclusivity on all platforms (traditional broadcast, internet, mobile) – License period 3 years, starting august 2010 – Match productions included in rights fee (including HD feeds of all matches) Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 12
  • 13. Offerings per platform - price increase from 1st August IP/Cable IP/Cable Partners Viasat DTH Partners with HD 139  199sek 139  199sek (HD +40sek) Viasat Fotboll SD Package Viasat Sport 250 games +HD Package 300 games Viasat Sport HD + Extra channels 380 games HD Viasat Premier League HD EXTRA Extra Channels 1-3 Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 13
  • 14. DTH price increases between 11% – 20% • Price increase 1st August communicated to subscribers • Sport packages will increase more than movie packages • Viasat Gold lower price increase EXTRA than smaller packages • 269sek  319sek (+19%) • 349sek  389sek (+11%) Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 14
  • 15. Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 15
  • 16. From “DTH/DTT puddle” to Virtual Operator and Viasat Gold sales access After analogue Jun 2008 Oct 2009 Feb 2010 Mar 2010 shut down 2007… S-VOD on internet Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 16
  • 17. Why the PL acquisition makes financial sense • PL will drive volumes - pull sales - 550,000 C+ Sport subs with 50% hooked on PL - push sales - Viasat sales access to 90% of all cable and 75% of all Swedish broadband homes • PL will drive up ARPU and improve churn levels - Prices up (eg. Viasat Premium Sport package in CATV: 5999139199sek) - Accelerated HD uptake - New PL HD channel and double amount of HD matches • Reasonable acquisition terms secured - P&L amortisation on almost linear basis over 3 year contract period - Short term Q3 and Q4 margin pressure BUT FY 2010 Nordic margin only slightly down as previously indicated Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 17
  • 18. Summary – Why Premier League ? • Great opportunity to further strengthen premium sport differentiation of Viasat and Viasat Fotboll • Rights enable us to offer best ever TV coverage of Premier League - “closer to and more of” concept” • Current sales access & virtual operator status enables maximum sales exploitation and volume growth • Favourable conditions to enhance Viasat business performance with Premier League rights Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 18
  • 19. Timing for acquisition of PL rights is perfect ! Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 19
  • 20. 2010 Capital Markets Day Manfred Aronsson, Head of MTG Sweden The New Game in Town Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 20

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