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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.

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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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