Russian market opportunities 2011
Upcoming SlideShare
Loading in...5
×
 

Russian market opportunities 2011

on

  • 4,125 views

 

Statistics

Views

Total Views
4,125
Slideshare-icon Views on SlideShare
4,031
Embed Views
94

Actions

Likes
5
Downloads
307
Comments
0

6 Embeds 94

http://www.firebirdinternational.com 65
http://firebirdinternational.com 23
http://app6.websitetonight.com 2
https://www.linkedin.com 2
http://translate.googleusercontent.com 1
http://www.linkedin.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Russian market opportunities 2011 Russian market opportunities 2011 Presentation Transcript

    • IT TV TELECOM 17 mln km² DIGITAL 142.9 mln peopleHI-TECH MEDIA CAPITALIZING ON NEW GROWING DIGITAL MARKETS: PARTNERSHIP AND MARKET OPORTUNITIES IN RUSSIA Moscow – July, 2011
    • Content RUSSIAN ECONOMIC INDICATORS 4 CELLULAR COMMUNICATIONS 9 DIGITAL DEVICES 10 RUSSIAN INTERNET ACCESS 12 ONLINE GAMES 14 SOCIAL NETWORKS 15 INTERNET MEDIA MARKET 17 RUSSIAN PTV & TV MARKET 18 FILM DISTRIBUTION MARKET 21 DVD MARKET 22 PARTNERSHIP & MARKET OPPORTUNITIES IN RUSSIA 24 ANNEX 28 DESIGNED BY J’SON & PARTNERS 2
    • Content Top Ten Russian cities by Population 4 Socio-economic indicators of Russia 51. General information: Russian Telecom Operators Revenue, bn USD 6 Digital Devices in Russian Households 7 Cellular Business 9 Digital Devices Sales, 2010 10 Russian Internet Access vs. World 12 Russian Online Games Market 14 Russian Social Networks 15 Russian Social Networks, Income (%), 2010 162. Market overview: Advertising volume in Russia vs. World 17 Russian TV & video Markets Development Forecast 18 Russian PTV market potential and forecast 19 Russian TV market 20 Movie Theatre Market in Russia 21 DVD market in Russia 22 Content distribution opportunities in Russia 243. Partnership & Market Potential strategy 25 Opportunities In Russia Partnership structure 26 Key Russian market players: Telecom Operators 28 Key Russian market players: Pay TV market, 2010 29 Key Russian TV Channels and niches 30 Key Russian market players: TV holdings and owners 314. Annex: Key Russian market players: Web TV 32 Key Russian market players: Russian TV channels 33 Key Russian market players: Internet Portals 34 Key Russian market players: Russian TOP 4 social networks 35 Our Clients 375. About us: Our Clients About Us 38 DESIGNED BY J’SON & PARTNERS 3
    • GENERAL INFORMATION © Franz Steiner DESIGNED BY J’SON & PARTNERS 4
    • 1. General information: Top Ten Russian cities by Population 1. Moscow - 11,514,300 2. St.Petersburg - 4,848,700 3. Novosibirsk - 1,473,700 4. Yekaterinburg - 1,350,100 5. Nizhny Novgorod - 1,250,600 6. Samara - 1,164,900 St.Petersburg Moscow 17 mln km² Nizhny Novgorod Rostov-On-Don Kazan 142.9 mln people Samara Yekaterinburg Chelyabinsk Omsk Novosibirsk 7. Omsk - 1,154,000 8. Kazan - 1,143,600 9. Chelyabinsk- 1,130,300 10. Rostov-On-Don - 1,089,900 DESIGNED BY J’SON & PARTNERS 5
    • 1. General information: Socio-economic indicators of RussiaRUSSIAN ECONOMIC INDICATORS 2004 2005 2006 2007 2008 2009 2010 2011E 2012EPOPULATION OF RUSSIA (WITHOUT MIGRATION), MLN PEOPLE 144.2 143.5 142.8 142.2 142 141.9 142.9* 141.5 141.1NOMINAL GDP, BN USD 591.1 763.6 990.5 1298.7 1660.4 1218.6 1478.3 1850 2050REAL GDP GROWTH, % 7.2 6.4 8.2 8.5 5.2 -7.8 (-7) 4 (5) 4.8 4GDP PER CAPITA, THOUSAND USD 4.10 5.32 6.94 9.13 11.69 8.59 10.34 13.07 14.53THE GROWTH OF REAL OUTPUT, % 7.3 4 7.1 6.8 0.6 -9.3 8.2 5 4.5PROFICIT Δ / Δ BUDGET DEFICIT, % 4.2 7.7 7.3 5.4 4.1 -5.9 -4 -0.8 -2.1STABILIZATION FUND, BN USD 18.8 43.7 89.1 156.8 225.1 152.1 113.8 98.8 68.8UNEMPLOYMENT,% 8.2 7.6 7.2 6.5 6.2 8.4 7.5 6.8 6.8EXTERNAL PUBLIC DEBT AT END OF PERIOD, BN USD 105.6 82.3 49 46.4 32.7 44.3 46.6 46.8 50EXTERNAL PRIVATE DEBT AT END OF PERIOD, BN USD 108.9 176.1 260.7 419 452 425.4 442.1 470 490TOTAL EXTERNAL DEBT / GDP, % 33.7 30.6 29.2 32.2 30.5 39.2 32.4 27.2 25.8AVERAGE EXCHANGE RATE USD / RUB 28.8 28.3 27.2 25.6 24.9 31.8 30.4 28 27.8 Sources: Federal State Statistics, Central Bank, Troika Dialog * According to the National Population Census 2010 Market Size: > 102 Millions Age Group (years) AGE GROUP The Russian economy is steadily growing. Despite the POPULATION % OF POPULATION crisis of 2009, strong macroeconomic indicators (such as (YEARS) 14% 16% GDP and industrial production growth, an impressive 0-14 22 661 721 15.68 amount of the stabilization fund, low debt, including 15-34 42 346 200 29.30 29% national one, and relatively low unemployment rate) show 41% 35-64 59 718 259 41.32 stability and great development potential of the economy of the country. 65+ 19 800 100 13.70 TOTAL 144 526 280 100.00 0-14 15-34 35-64 65+ DESIGNED BY J’SON & PARTNERS 6
    • 1. General information: Russian Telecom Operators Revenue, bn USD 24,5 22,8 20 2 008 2 009 2 010 7,3 4,8 5,5 4,9 4,5 4,5 2,3 3,0 2,2 0,9 1 1,2 Cellular Handsets Fixed telephony Internet PTV Cellular communication in Russia remains the international "showcase" of the telecommunications market. Revenues from wireless communication in Russia (along with the strong sales growth of cellular phones and digital devices) is 5 times higher than the revenues from the fixed one. DESIGNED BY J’SON & PARTNERS 7
    • 1. General information: Digital Media Market in Russia Video Services Market volume in Russia, 2010-2016*, mln USD 8331 Promising segments 7054 3592 3527 30063169 2310 18481940 1658 1646 1916 1249 1300 1167 743 859 775 618 567 544 589 250 305 320 53 18 280 41 1 FTA Advertising PTV Subscribtion PTV Channels PTV Advertising Broadband Internet Advertising Internet Video Paid Internet Video Theaters Licensed DVD Sales Subscribtion Subscribtion Advertising Services 2010 2016 (1) 2016 (2) * - BTV (free-air TV) - 20 current air channels, RPTV (advanced pay-TV) - non-air local and pay TV channels, including social TV networks; 2016 (1) - conservative scenario, 2016 (2) - optimistic scenarioRussia follows general international trends increasing rapidly high-speed Internet Technologies; Smartphones,laptops, tablets and other digital devices sales; consumption of new video, audio, gaming and social services.Russia at nowadays be considered as a newly-formed digital platform with a high market potential for all typesof digital content production and distribution locally and in partnership with strong world`s market leaders. DESIGNED BY J’SON & PARTNERS 8
    • 1. General information: Digital Devices in Russian Households10 households or 27 people in Russia have: 42.5 SIM cards 18.5 cell phones, purchased over the last three years 2.3 smartphones 6.6 apartment phones 3.4 computers with broadband Internet access 0.8 iPads 3.1 TV sets, connected to pay TV 7.2 active users of social networking DESIGNED BY J’SON & PARTNERS 9
    • MARKET OVERVIEW © Franz Steiner DESIGNED BY J’SON & PARTNERS 10
    • 2. Market overview: Cellular Business Cellular penetration & Subscriptions by Counties, 2009 Mobile content market growth by Countries, 20101400 1330 147% 160% Russia 26% 1170 127%1200 140% India 23% 112% 120% Germany 19%1000 92% 93% 95% Canada 16% 747 100% 800 USA 14% World 13% 80% 600 525 60% France 12% 57% Japan 400 286 307 11% 45% 40% 210 China 9% 200 116 127 105 82 142 60 62 51 47 20% South Korea 9% 0 0% Brazil 9% India China Japan USA France Spain Germany Russia Sources: J’son & Partners Consulting Subscribers, mln City population, mln people Cellular penetration, % Russia is the №1 in growth rates among major countries in terms of mobile content market in 2010. Cellular operators revenue by countries, 2009 (bn USD) Mobile content market volume by countries, 2010 4500 3852 4048 4500 185,6 4000 292 4000 3168 878 3500 3500 3000 3000 125,3 944 2500 2500 1720 1722 2965 2000 1432 2000 73,6 1217 869 1500 928 1010 295 1500 188 90 286,3 668 347 31,2 1000 1000 26,5 26,6 252 265 21 20 403 1031 701,5 116 1167 560 500 372 906 500 123 88 85,9 642 0 231 0 180 253 143,2 India China Japan USA France Spain Germany Russia France Germany India Russia South Korea Japan USA China Video and TV Graphic content Audio, RBT, and audiobooks Games DESIGNED BY J’SON & PARTNERS 11
    • 2. Market overview: Digital Devices Sales, 2010 Value of mobile handsets market, bn USD Volume of mobile handsets market, mln units8,0 8,0 6,87,0 6,3 7,0 45,0 40 41 45,0 5,8 38,56,0 6,0 40,0 35,5 40,0 4,9 2,5 4,5 35,0 28,9 35,05,0 2,7 5,0 30,0 30,0 2,8 26,24,0 4,0 25,0 27,6 25,0 28,93,0 3,4 3,0 20,0 31,6 20,0 3,6 27,1 4,3 15,0 15,02,0 3,6 2,0 2,9 10,0 10,01,0 1,0 12,4 14,8 1,5 5,0 9,6 5,0 0,8 1,9 3,90,0 0,0 0,0 0,0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Smartphones Other handsets All handsets Smartphones Other handsets All handsets Smartphones sales in Russia 3G-USB Modems Sales in Russia 16 4,3 4,5 14 3,6 4,0 14 0,33 0,36 0,36 0,35 0,34 0,4 12 0,35 12 2,9 3,5 3,0 10 0,23 0,3 10 0,25 2,5 8 8 0,15 0,2 1,5 2,0 6 0,12 6 0,15 0,8 1,5 4 0,1 4 1,0 2 0,9 3,2 7 11,3 12,7 12,9 12,6 12,4 0,05 2 4 10 12 15 0 0 0,5 2 0 0,0 2008A 2009A 2010E 2011F 2012F 2013F 2014F 2015F 2009 2010 2011 2012 2013 USB-modems, mln units USB-modems, bn USD mln units bn USD DESIGNED BY J’SON & PARTNERS 12
    • 2. Market overview: Digital Devices Sales, 2010 Tablet PC sales in Russia, 2010 The structure of the mobile phone market by producers, 2010 Sales, thousand units Sales, thousand units Units USD 6,8 8,4 2% 7,8 4,2 3,8% 0,5% 6,9% 4,1% 12,5% 7,7% 35,8% 40,2% 8,2% Nokia 12,0% Apple Samsung Samsung 386,1 267,1 LG Other 31,2% SonyEricsson 35,1% Apple Total Total Other НТС NetBooks & Notebooks sales in Russia, 2010 Sales volume and structure of the smartphone market in Russia, 2010 Sales, thousand units Sales, mln USD 0,8% 0,2% 4,5% 4,2% 6% 1358 1197 956 11,4% 1076 26,3% ASUS 1,48 bn USD 8,3% 3.93 mln545 ACER 401 units 1092 732 SAMSUNG 66,7% Symbian 660 71,6% HEWLETT PACKARD 632 Windows Mobile 1046 712 LENOVO Android Other Apple Total Total Other DESIGNED BY J’SON & PARTNERS 13
    • 2. Market overview: Russian Internet Access vs. WorldFixed Broadband Internet Penetration in Russia and selected countries, 2010 Mobile Broadband Internet Penetration in Russia and selected countries, 2010100% 434,6 86% 88% 500,0 233,0 77% 75% 250,0 90,0%90% 450,0 68% 71% 72% 64% 80,0%80% 400,0 165,4 200,070% 350,0 70,0%60% 300,0 47% 60,0% 36% 38% 150,050% 36% 250,0 37% 50,0%40% 200,0 97,7 54% 40,0% 30% 118,9 100,0 22% 26% 17%30% 150,0 30,0%20% 52,9 40,8 45,5 100,0 29,7 25,8 7,6 50,0 22,5 22,6 20,0%10% 3,4 50,0 21,3 6,3 3,6 31,3 10,0% 0% - 0,0 0,0% Total number of households Penetration, % Subscriptions, mln Penetration (per 100 inhabitants), % Russian Fixed Broadband Internet Penetration Forecast Russian Mobile Internet access Forecast 65% 93,7 40,0 61% 70% 100 88,9 1,8 55% 90 75,4 66% 1,6 35,0 50% 60% 80 63% 1,4 30,0 43% 50% 70 57,6 53% 1,2 25,0 36% 60 41% 1 29% 40% 50 41,1 87% 93% 20,0 24% 31,3 74% 0,8 31,9 34,3 30% 40 24 17% 24,6 29% 15,0 26,2 29,2 30 55% 0,6 22,9 20% 42% 17% 22% 19,3 0,4 32% 10,0 20 15,6 28% 26% 5,0 12,8 10% 10 0,2 0 0 0,0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 Total number of households Penetration*, % Number of users, million Share of Fixed Internet access subs using Mobile Internet Mobile penetration, % *Penetration of fixed broadband, fixed WiMAX and fixed Wi-Fi access in Russia in households DESIGNED BY J’SON & PARTNERS 14
    • 2. Market overview: Russian Internet Access vs. WorldFixed Broadband Internet Penetration in the World Biggest Cities, 2010 Internet Active Users Audience in Russia, 2008-2015 120,0 68,6% 69,7% 80,0% 64,1% 58,4% 70,0% 100,0 53,0% 60,0% 80,0 44,6% 50,0% 37,2% 60,0 30,9% 40,0% 30,0% 40,0 20,0% 20,0 10,0%0,99 0,99 0,97 0,96 0,96 0,92 0,89 0,87 0,76 0,62 44,3 53,3 63,7 75,6 83,2 91,1 97,3 98,6 0,0 0,0% 2008 2009 2010E 2011F 2012F 2013F 2014F 2015F Number of users, million Internet users penetration, % Moscow and St. Petersburg occupy 30% of the internet market in Russia. The level of internet penetration in large cities of Russia is comparable to the world capitals level. Moscow St. Petersburg Internet penetration in Russia is increasing rapidly Russian Government has ambitious plans to increase internet penetration up to 100% within 5 years DESIGNED BY J’SON & PARTNERS 15
    • 2. Market overview: Russian Online Games Market Online Games Market Volume in Russia and Selected Countries, 2010 The number of online games users in Russia and selected countries, 2010140,0 $6,00 124 $5,02120,0 $4,61 $5,00100,0 87 $4,00 81 80,0 66 $3,00 57 60,0 47 $1,26 $1,31 $2,00 40,0 27 30 22 $0,49 14 17 16 9 $1,00 20,0 27,3 73,64 111,9 118,8 3 1 - 17,9 $- Russia South Korea Japan China USA Russia USA China South Korea Japan The number of users million people. Market volume, billion USD MMO games Casual Social network games Russian online games market Forecast, 2008-2015 Popular Russian online games, 2010 $1,32 5% 4% $1,40 60,0 $1,16 Legenda: Nasledie Drakonov $1,20 $1,00 50,0 5% 23% Geroi voini I deneg $0,84 5% Lineage 2 $1,00 48,1 40,0 $0,80 $0,67 43,5 6% Perfect World 38,1 $0,49 30,0 Boitsovskii Club $0,60 31,6 World of Warcraft $0,29 25,1 20,0 14% Troetsarstvie $0,40 $0,15 17,9 23% Wizards World 10,0 $0,20 12,1 $- 2,0 0,0 Territoria 2008 2009 2010 2011 2012 2013 2014 2015 16% TimeZero 17% The number of users, million people. Market volume, billion USD DESIGNED BY J’SON & PARTNERS 16
    • 2. Market overview: Russian Social Networks Social networks penetration in Russia and selected countries, 2010 Social networks market volume in Russia and Selected Countries, 2010 185,3%400,0 353,4 200,0% 153,3% 180,0% bln USD 2,22350,0 136,7% 160,0%300,0 140,0% 1,96250,0 120,0%200,0 175,9 100,0% 58,2% 80,0% 1,07 38,6%150,0 60,0%100,0 37,5 39,7 40,0% 0,32 0,31 50,0 17,6 20,0% 0,0 0,0% China Russia USA Japan South Korea South Korea Russia Japan China USA Number of Internet users, million Penetration, % Number of social network users in Russia, 2009-2015 Russian social networks market volume, 2009-2015 1,51 80,0 90% 77% 69% 73% 80% 67% 70,0 62% 1,23 58% 70% 60,0 55% 50,0 60% 0,97 50% 40,0 0,74 40% 30,0 0,53 30% 20,0 20% 0,31 10,0 0,11 31,0 37,5 49,7 58,3 65,3 72 76 10% 0,0 0% 2009 2010E 2011F 2012F 2013F 2014F 2015F 2009 2010E 2011F 2012F 2013F 2014F 2015F Social networks market volume, bn USD Number of social network users, million Share of Internet users who uses social networks from the total number of Internet users,% DESIGNED BY J’SON & PARTNERS 17
    • 2. Market overview: Russian Social Networks, Income (%), 2010 3% 24% 32% 11% 11% 26% 49%59% 63% 60% 83% 69% 49% 97% 4% 38% 53% 89% 30%17% 20% 25% 20% 47% 10%24% 7% 30% 23% vkontakte.ru my.mail.ru odnoklassniki.ru livejournal.com liveinternet.ru 17% 10%World USA China Southern Korea Japan Russia Games and applications Payment services Advertisement Games and applications Payment services Advertisement Socio-demographic categories of Russian social networks users Age categories, % Gender structure, % 12-17 18-24 25-34 35-44 >45 Women Men 5.0% 32.8% 40.5% 14.1% 7.6% 52.0% 48.0% DESIGNED BY J’SON & PARTNERS 18
    • Источник: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates 2. Market overview: Advertising volume in Russia vs. World Advertising market volume in Russia, 1Q 2011, mln USD Internet advertising market volume in Russia and selected countries, bn USD 23,3 120 106 1,7 236,7 2,1 91,5 1,3 2,8 8% 77,2 1,9 24,8 6% 0,9 2,4 5% 63,1 1,5 21,6 243,3 0,6 1,3 18,5 2,1 1,8 0,8 0,7 15,4 46,2 950 1,5 39,9 95% 12,2 33,6 281,7 94% 27,6 92% 22,1 35,8 40,4 44,5 26,6 31,1 73,3 2008 2009 2010 2011 2012 TV Radio Advertising market Print Media Outdoor advertising USA Europe, Middle East and Africa Asia-Pacific Latin America Canada Russia Internet advertising market Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates Internet Others The growth rates of Internet advertising market, 2007-2012 The growth rates of Internet advertising market, 2007-2012 3,53 2,85 0,21 2007 37% 8% 39% 16% 100% 0,22 2,24 0,18 World 2012 40% 14% 28% 17% 100% 1,70 0,15 2,18 1,26 1,75 2007 22% 22% 11% 58% 9% 100% 0,76 0,92 1,34 0,65 Germany 2012 21% 21% 19% 52% 8% 100% 1,00 0,72 0,37 0,35 0,52 0,78 0,91 0,34 0,31 0,41 0,52 0,65 2007 48% 5% 22% 25% 100% 0,24 2008 2009 2010 2011 2012 2013 2014 2015 Russia 2012 54% 16% 13% 17% 100% Others Print media Internet TV Unusual placement and campaigns Video advertising Сontextual advertising Media (banner advertisement) Sources: ZenithOptimedia, J’son & Partners Consulting Sources: market players information, AKAR, ZenithOptimedia, Json & Partners Consulting Russia is № 1 in terms of growth rates of internet advertising Last year, Russia became the fastest-growing online advertising market in the BRICS, overtaking China, India and Brazil. The Russian Internet advertising market grew by 42% in 2010 in comparison to 2009, while China grew by 35% and in India and Brazil by 30% each. Online context advertising increased its share from 53.7% in 2009 to 56.1% in 2010. DESIGNED BY J’SON & PARTNERS 19
    • 2. Market overview: Russian TV & video Markets Development Forecast Changes in Russian TV/Video Watching Time*, % TV, Video, Internet Services Penetration Forecast in Russia, % 1% 3% 82% 83% 9% 6% 9% 12% 80% 11% 15% 17% 79% 19% 21% 74% 76% 63% 24% 61% Web TV 72% 60% 56% 59% 57% 53% 60% DVD 54% 39% 46% 88% 86% 24% 31% 67% 70% 82% 78% 18% 57% 62% 73% 68% PTV 44% 51% 62% 37% 48% 52% 55% 58% 60% FTA 41% 45% 98% 98% 98% 98% 98% 98% 98% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 FTA PTV Broadband Web TV DVD Cinema Web TV Penetration in Russia (% of population) Market Forecast of paid online video 14,6% 85 45 13,2% 16,0%90 76 70% 11,1% 40 14,0%80 66 60% 35 41 5570 12,0% 60% 50% 30 8,7% 4460 10,0% 53% 6% 29 40% 25 3450 46% 4,9% 8,0% 25 4%40 20 30%30 39% 15 6,0%20 31% 20% 10 2,1% 17 4,0%10 18% 24% 10% 4 1,7 2,0% 0,72 5 0 0% 0 9 0,0% 2010 2011 2012 2013 2014 2015 2016 2009 2010 2011 2012 2013 2014 2015 2016 The audience Web TV, mln people Penetration of Web TV, % Internet video advertising Market share on Internet video advertising DESIGNED BY J’SON & PARTNERS 20
    • 2. Market overview: Russian PTV market potential and forecast Russian PTV market volume, mln USD Russian PTV market technology Structure, 2010 129 146 111 93 64 82 46 29 1182 1207 39% Satellite 1089 1143 986 1004 49% 936 Digital Cable 850 Analog Cable 282 318 350 368 382 396 407 411 2009 2010 2011 2012 2013 2014 2015 2016 12% Satellite TV Cable TV IPTV Russian PTV market Forecast, in households, 2010-2016 Russian Paid TV Channels market volume, bn USD (VAT excluded), 2009-2015 40% 42% 43% 0,36 0,3830 45% 0,40 0,35 0,40 37% 0,32 35% 40% 0,35 0,3 0,3525 32% 0,28 30% 1,4 1,6 35% 27% 1,2 0,30 0,25 0,3020 1 30% 0,9 0,25 0,28 0,25 0,7 0,26 0,27 0,5 12,4 12,9 13,3 25%15 0,37 11,7 0,20 0,24 0,25 0,20 10,1 10,6 20% 0,23 9,5 0,15 0,21 0,1510 9 15% 0,10 0,10 10% 5 7,9 8,4 8,9 9,3 9,6 0,1 5,1 6,3 7,2 5% 0,05 0,07 0,09 0,09 0,05 0,04 0,05 0,06 0 0% 0,00 0,00 2009А 2010E 2011F 2012F 2013F 2014F 2015F 2016F 2009А 2010E 2011F 2012F 2013F 2014F 2015F Satellite TV Cable TV IPTV Penetration, % Advertising Subscribtion Total ComScore’s video METRIX report shows that in may 2011, 4 billion online videos were viewed by over 41 million unique viewers in Russia. Since march 2011, the first month under measurement in Russia, the online video audience has grown by 5 percent and 27 percent more videos haven been consumed since march 2011. DESIGNED BY J’SON & PARTNERS 21
    • 2. Market overview: Russian TV market The number of TV channels in Russia The structures of channels supply and demand for thematic 312 271 content are quite different from each other. 225 143 180 Childrens channels are not so strongly represented in the supply, but they are most popular among the audience. Demand for the music channels is a little higher 2007 2008 2009 2010 2011 than the category’s place in a supply. At the same time the demand for educational, sport channels and channels about Free TV in Russia is a 100% penetration cars is, conversely, somewhat lower than their relative representation in the market. Genre structure of pay TV channels in Russia in the measurements of TNS, units Genre structure of TV watching by time of watching, %C 39 27 Childrens Channels 26,6C 32 Cinema and Series Channels 23 16C 23 Cognitive Channels 20,1 11 19 Music Channels 9,9E 9 Number of channels in a personal interview Entertainment Channels 6,7M 16 7 Cars & Sports Channels 5,8C 15 9 InformationChannels 5,1 Number of channels in theI 15 5 measurement using People Ethnic Channels 1,4 MeterE 9 Other specialized Channels 1 4O 9 Lifestyle & Fashion Channels 0,6 4L 6 3 DESIGNED BY J’SON & PARTNERS 22
    • 2. Market overview: Movie Theatre Market in Russia The number of cinemas and cinema halls in Russia, units Box office and attendance at cinemas, including VAT 1200 6,76 6,5 7 2246 5,24 5,34 6 1976 1000 1878 4,59 1014 801 5 1561 706 800 3,7 1317 3,25 4 600 548 1064 412 3 804 766 832 310 751 400 624 682 224 2 563 156477 118 132 200 69 84 90 105 1 0 0 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 Cinema Attendance, mln visits Cinema Cinema Theater Cash charges, mln USD Average ticket price, USD The number of releases of new movies, units 350 355 363 315 324 286 293 2004 2005 2006 2007 2008 2009 2010 Russian film market experienced a slight drop in 2009. and continues to grow DESIGNED BY J’SON & PARTNERS 23
    • 2. Market overview: DVD market in Russia The number of releases of license DVD in Russia, units The structure of Russian license DVD market by video production countries in 2008 1893 1920 Others; 4% 1600 Russia; 20% North America; 2008 2009 2010 48% Europe; 28% The level of cinema and DVD consumption in Russia 1,09 0,93 0,83 0,73 The structure of Russian license DVD market by types of content in 2008 0,63 Gaming TV 0,59 0,65 0,54 Shows; 7% 0,47 0,29 Animation; 9% 2006 2007 2008 2009 2010 Documentaries Cinema attendance per capita and TV series; Purchase of licensed DVD per capita 11% Movies; 73% The sales of license DVD in Russia, millions of units 83,77 92,64 77,20 67,35 41,74 Due to the struggle with piracy DVD market has experienced a rapid 20,97 growth in 2005 to 2007. After the crisis of 2009 it again came to 5,18 life, but in the long term perspective it is threatened by the active 2004 2005 2006 2007 2008 2009 2010 development of Web TV, which is actively growing in Russia. DESIGNED BY J’SON & PARTNERS 24
    • © Franz SteinerPARTNERSHIP & MARKET OPPORTUNITIES IN RUSSIA DESIGNED BY J’SON & PARTNERS 25
    • 3. Partnership & Market Opportunities In Russia Json & Partners Consulting is a leading consulting company in Telecommunications, Media, High-Tech market segments across Russia and CIS with strong relationships with key market players and decision makers of all types of MEDIA/TELCO companies, with extensive in- depth market intelligence and core competences in investment deals support and strategy advisory services. Marketing Localizationdubbing studios support TV Operators and TV channels Digital marketing agencies (mobile apps, Strong contacts with leading Russian social buzz, direct marketing etc.) media companies J`son & Partners Distribution offers Management Mobile carriers Social Networks support support 360° support DVD distributors Web TVAVODTVODSVOD projects Merchandising agencies Cinema Networks Legal supportJ’son & Partners Consulting can help your company to build a strong media presence in Russia taking advantage of its worldwidecontent and distribution excellence and creating new revenue sources on the growing digital media market in Russia DESIGNED BY J’SON & PARTNERS 26
    • 3. Partnership & Market Opportunities In Russia: Partnership StrategyOPPORTUNITIES Capitalize on the growth of Russias TMT sectors Utilize Russias expertise in Technology and ArtsCOMPETITIVE ADVANTAGES Content excellence and Know How, Worldwide network of media, financial and technological partners Strong expertise of J’son & Partners in Digital Media and direct relations with key players of all types in Russia and CISCONTENT PRODUCTION AND DISTRIBUTION PROJECTS Partnership: With leading TV / Web TV operator, leading social networking companies, leading cellular operator, leading social networking companies Distribution in Russia and CIS: Distribution of content to digital (online & mobile), free-to-air and pay TV channels platforms Content creation: Development of TV, movies and digital content in Russia and CIS (thematic TV channel creation, local movies production, digital content development) Marketing: Promoting content in TV, Web & mobile channelsNEXT STEP: 360° SUPPORT AND BUSINESS LAUNCH IN RUSSIA Brainstorming of projects ideas Selection of priority projects to realize Business and legal operations support (local office, business representation, joint venture, negotiation support) Management support: local team hiring, overall day-to-day activity management, launch of the projects Gradual consecutive steps towards cooperation will bring the both companies high rewards and substantial advancement in the development of their businesses DESIGNED BY J’SON & PARTNERS 27
    • Annex © Franz SteinerDESIGNED BY J’SON & PARTNERS 28
    • 4. Annex: Key Russian market players: Telecom Operators COMPANY MTS MEGAFON VIMPELCOM ROSTELECOM SCARTEL (YOTA) Brief info Leader in cellular, broadband and Second largest cellular operator in The major player in cellular, Incumbent telecom operator, The largest operator of WiMAX in cable TV businesses in Russia, CIS Russia. broadband and IPTV businesses in which in the process of Russia. and Eastern Europe. The Russia and CIS. The company is in consolidation of Russia’s regional Plans to provide LTE services in company along with its the process of global expansion in fixed line operators, broadband partnership with MTS, shareholders started and actively the countries of Middle East and IPTV providers, as well as Vimpelcom, Megafon, develops cellular business in India (Orascom Telecom), Western major cable TV and DTH Rostelecom. (Shiym Telecom). Europe (Wind Communications) operators. and other countries.Market Cap (July 17.3 B -* 15.7 B 20.10 B -* 12, 2011) Revenue (TTM) 11.7 B 11.02 B 2.45 B* EBITDA (TTM) 5.2 B 5.3 B 362.30 M*Positions in Russia • Leader in Cellular • The second largest Cellular • Top 3 Cellular • Leader in IPTV • Leader in WiMax • Top 3 Cable TV operator • Top 3 IPTV • Leader in Cable TV • Owner of Licenses and • Top 3 IPTV • Leader Mobile TV • Top 3 Broadband • Leader in Fixed line telephony frequencies for LTE • Top 3 Broadband • Leader in Broadband * - private company * - private company * - before consolidation Russian key market players “TOP-3 Cellular Operators”, mln subscribtions The shares of operators in the total subscriber base, % 69,3 69,1 69,4 69,7 71,4 71,5 51,6 52,0 53,0 MTS 51,3 50,9 19% 50,9 MTS VimpelCom 32% MegaFon VimpelCom 51,6 53,5 55,9 56,6 56,5 50,2 Другие MegaFon 25% 39,7 40,6 40,9 41,4 37,9 38,4 Other 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 24% DESIGNED BY J’SON & PARTNERS 29
    • 4. Annex: Key Russian market players: Pay TV market, 2010 Cable TV Satellite TV IPTV Subscriber base 9,6 mln HH Subscriber base 6,3 mln HH Subscriber base 0,49 mln HH Penetration – 18% Penetration – 12% Penetration – 1% Market size – 26,5 bn RUR. Market size – 9 bn RUR. Market size – 1,3 bn RUR. ARPU – 230 RUR. ARPU – 118 RUR. ARPU – 220 RUR.The cable TV market structure by The satellite TV market structure by The IPTV market structure by subscriber base subscriber base subscriber base Orion- Express; 5% NTV+; 10% Raduga TV; 2% Other; 11% Platforma HD; MTS; 28% 1% MTS; 25% Other; 48% ER-Telecom; 12% Trikolor; 82% Rostelecom; Beeline TV; 44% 20% Akado; 5% NKS; 2% Rostelecom; 3% Ufanet; 2% Source: J’son & Partners Consulting Source: J’son & Partners Consulting Source: J’son & Partners Consulting DESIGNED BY J’SON & PARTNERS 30
    • 4. Annex: Key Russian TV Channels and niches NICHE Number of TVC in 2010г. TOP-3 TVC IN THE NICHE1 CHANNELS IN TOTAL 275 Educational/science-fiction 70 Discovery Channel, Animal Planet, Moya Planeta Entertainment 36 TDK, Humor box, Park razvlecheniy Cars 5 Avto Plus TV, Drive Music 31 RU.TV, A-ONE, Bridge TV Fiction (movies+series) 35 TV 1000, TV 1000 Russkoe kino, Dom kino Children 18 Karusel, Disney Channel, Detskiy mir Information 14 RBK-TV, Mir, BBC World Religion 4 Spas, Soyuz, CNL, TBN Sport 23 Eurosport, Eurosport 2, NTV+ Sport+ Fashion 3 Fashion TV, World Fashion Channel, Fashion HD Erotic 13 No statistic data in TNS Gallup Tele shop 6 Top Shop TV, TV club, TV sale Ethnic 17 Tatarstan, Belarus’ TV, BST1 By audience The majority of TV channels is represented in educational, entertainment and movies-and-series niches, the minority is in the niches of fashion and religion. DESIGNED BY J’SON & PARTNERS 31
    • 4. Annex: Key Russian market players: TV holdings and owners THE SHARE OF BROADCASTING STOCKHOLDERS / CHANNELS AUDIENCE IN TV MANAGEMENT BROADCASTING TV CHANNELS WEB TV ASSETS WATCHING ON THE RESULTS OF 5 ASSETS OF NON-BROADCASTING TV CHANNELS COMPANIES MONTHS OF 2011,% Ren TV, 5 channel, Perviy kanal Digital telefamily of the “Perviy kanal” (4 videomore.ruNMG (25%), STS Media (25% - STS, 34,7 (including 11,4 STS Media) channels) (via STS Media) Domashniy, DTV) 38,2% STS Media (STS, Domashniy, The group of channels Viasat and TV 1000 (7 videomore.ru (via STSMTG 11,4 DTV) channels) Media) rutube.ru, now.ru, tnt-Gazprom Media NTV, TNT 21,0 Thematic channels NTV+ (20 channels) online.ru Rossiya 1, Rossiya 2, Rossiya 24, Karusel’, Moya Planeta, Nauka 2.0, Strana,VGTRK 20,0 zoomby.ru Rossiya K Sarafan, Sport 1, Sport 2Prof Media TV3, MTV, 2х2 3,3 - ivi.ruUTV 7TV, MuzTV 2,7 - -SFC «Sistema» - - TV channel Strim оmlet.ruOneksim - - RBK TV, Zhivi smotri.com TV-groups: ArtMediaGrupp, Noviy Vibor, Klub 100Rostelekom - - - (14 channels)Trikolor TV - - The group of TV channels 1TVCh (14 channels) - The group of channels Discovery, TLC, AnimalDiscovery Communications - - - Planet (6 channels)TF1 Group - - The group of channels Eurosport (3 channels) -Others TVC, Zvezda, Euronews 4,6 - -Three major players (NMG, GAZPROM MEDIA, VGTRK) control 76% of TV watching in the market only due to broadcasting TV channels,while they are also active in the markets of non-broadcasting channels and Web TV.Other players significantly lag behind the leaders in the market of broadcasting TV channels, while some of them (SFC “SISTEMA” andONEKSIM GROUP) are active in the market of non-broadcasting and Web TV. DESIGNED BY J’SON & PARTNERS 32
    • 4. Annex: Key Russian market players: Web TV TVIGLE.RU IVI.RU ZOOMBY NOW.RU • Started in 2007 • Started in 2010 • Started in 2010 • Started in 2011 • Professional video content • Professional video content • Professional video content • Professional video content • Advertising business model • Advertising business model • Advertising business model • Pay business model • Own production and licensing • Own advertising agency and content • State TV holding VGTRK is one of the • Affiliated with a large Russian TV (internet-series, music videos, flash seller B2B (Digital Access) stockholders of the company group (Gazprom-Media)Profile: cartoons; programs about movies, • Free movies, series, TV programs and • Gives the user a possibility to watch fashion, music, sport etc.) cartoons (watching online). favorite movies, series, shows and • Socialization of content other TV programs free and online • Significant partnership network of showing the content at the third- party resource • Leader in the market Various: Focused on movie content: Focused on TV content: Focused on movie content: Russian: from TV channels (Perviy Russian: from independent producers Russian: from VGTRK and other TV Russian: from TNT and independentContent Kanal, STS etc.) and independent Foreign: from various producers channels producers producers Foreign: from various producers Foreign: from various producers Foreign: Disney etc. Own: mini-seriesThere are other players in the market (including Video.ru, Omlet.ru, Tnt-online.ru, Tvzavr.ru, Etc.), But now they don’t show significantresults of development.The market is new and perspectives of its development are not finally clear: big perspectives are expected with the output of service to theTV screen (now the big part of audience watch the content via computer), with the development of pay model and the entry of newplayers to the market. DESIGNED BY J’SON & PARTNERS 33
    • 4. Annex: Key Russian market players: Russian TV channels The share of channels audience over the last 5 months of 2011, % 16,4 15,5  The greater part of TV watching in Russia is 14,0 13,7 occupied by broadcasting channels  The significant share of market is occupied by 7,7 7,0 non-broadcasting channels and other types of TV watching as a whole, and its share is 4,3 2,9 2,5 2,1 constantly growing 1,9 1,9 1,7 1,7 1,6 1,6 1,1 0,9 0,7 0,6 0,2  The market of non-broadcasting TV wacthing is fragmented between many players * - others: non-broadcasting channels (local and pay thematic channels) and other The share of non-broadcasting TV wacthing, % The share of separate segments of non-broadcasting TV watching over the last 5 months of 2011, % 14,1 7,3 13,3 4,1 13 13,1 2,3 2008 2009 2010 2011 Measured local TV Measuring case-TV Other* * - others: immeasurable TV, DVD player and otherThe market of pay thematic channels as a whole has a great growth perspectives, but its high fragmentation shows high competition and potential consolidation of a market between major players. DESIGNED BY J’SON & PARTNERS 34
    • 4. Annex: Key Russian market players: Internet Portals The largest segments of Russian Internet market and key players Searchers and universal E-commerce and specialized Social networks and Niche thematic portals WEB TV portals services (games etc.) communication servicesPlayers: Yandex, Google, Mail.ru, Players: ozon.ru, molotok.ru, Players: Kleo.ru, Eva.ru, rbc.ru, Players: Vkontakte.ru, Facebook, Players: UGC (Youtube, Rutube, Rambler bolero.ru afisha.ru etc. mamba, odnoklassniki, moymir Smotri.com) and prof. content etc. (Tvigle, ivi.ru, Zoomby, Now.ruMarket characteristics: Market characteristics: Market characteristics: etc.)• Several large Russian players - Many players of e-commerce - Many players in the market work in the market - Market leaders are Russian - Leaders are Russian players Market characteristics: Market characteristics:• Yandex is the leader, Google players - Several Russian and one foreign - Many players in various actively works in the market, players (Facebook) work in the segments of the market but significantly lags behind market - Youtube is a leader in the Yandex - Leaders are Russian players market of UGC, but Rutube.ru and Smotri.com show a successful competition - Tvigle is a leader in the market of prof. content , there are other strong Russian players in the market. DESIGNED BY J’SON & PARTNERS 35
    • 4. Annex: Key Russian market players: Russian TOP 4 social networks DATE OF COMMERCIAL OCTOBER 10, 2006 MARCH 4, 2006 MAY 17, 2007 FEBRUARY 4, 2004 LAUNCH Indicators of On July 13, 2011 there were 141 million users In February 2011 more than 45 million users On June 27, 2011 the amount of active users attendance registered on Vkontakte In 2011 more than 40 mln profiles are are registered, site attendance – 17,4 mln per was 750 mln. In July 2011 attendance was In July 2011 daily attendance was 34 million registered, attendance is 19,5 mln per month. month. 160,9 mln per month. people Business model Mixed Mixed Advertising Mixed Advertisements on Vkontakte The fee for additional services: a place Targeted advertisements are in application. Creation of group or brand page and its for additional photos, ratings removal and high promotion. The voting to raise the rating of other users ratings of the photos, switching Banner and video advertising off reports that the user is online, providing a Paid services: Virtual gifts Virtual gifts wide choice of "emoticons.« Inner system of payment for virtual Removal of the guests from the list view, the Methods of goods of the social network page closing from all but friends. The monetization service "Game" it is offered to improve gaming Group video-calls opportunities for electronic money and paid SMS-message. Group text chats Internet advertising that allows precise targeting by geographic region, sex, age and frequency of displaying of advertising messages to the user. Virtual gifts In 2010 revenue from advertising was 1,36 bn N/A Revenue 2010 - 1,8 bn USD 2009 - 1 541 mln RUR Revenue RUR (44,7 mln USD) It is expected that by 2011 it will be doubled In 2011 revenue should increase three-fold. 48.5 mln USD primarily due to advertising (3,5 bn USD). Segmentation of social network market participants in Russia, march 2011 3,5% 3,4% 2,3%The Russian market size in 2010 - 403.2 mln USD 8,2% 4,1% vkontakte.ru Odnoklassniki.ru(Including Russian-speaking audience in CIS countries) 9,0% Mail.ru - Мой Мир facebook.com 72,8% twitter.comData in table is data around the world that 32,9% fotostrana.ru privet.rucomplicated construction of income shares. vkrugugruzei.ru moikrug.ru 38,2% DESIGNED BY J’SON & PARTNERS 36
    • ABOUT US: J’SON & PARTNERS CONSULTING DESIGNED BY J’SON & PARTNERS 37
    • 5. About us: Our ClientsJson & Partners Consulting Clients are Industry Leaders, Start-ups, Investors And Government Institutions DESIGNED BY J’SON & PARTNERS 38
    • 5. About us: Our Clients About Us Investor and Founder This is probably the best consultancy I worked with in Russia and Europe. Financial models and Business plans were “CTC Media” (NASDAQ listed TV amazingly accurate, comprehensive and convenient in usage. We`ve done a great job together. company) and other media projects Peter Gerwe Chairman of BoD J`son & Partners Consulting has made an inestimable contribution to our Strategy development. We were happy to “FONEX Invest” (large Central take a fresh and clear look on existing investment opportunities, to evaluate them precisely, and to choose the best Asian Telecom Holding) scenario for our multinational strategy. Erbol Keldibaev CEO It has always been a great pleasure to work with J’son & Partners Consultingson & Partners Consulting. Rigorous “Mail.ru Group” (TOP Internet research, clear analysis, proactive solutions, personified approach… and a lot of satisfaction of astonishing results! Dmitry Grishin Portal in Russia and EurAsia) J`son & Partners Consulting is known for discovering new prospective segments and pioneering unconventional President “ENFORTA” (largest business solutions. A thorough comprehensive research on WiMAX had made long time before this has become a “hot Russian WiMAX network) topic”. Lee Sparkman Associate Product Marketing “A big thank you for your help in making sense of the Russian Internet services market. A series of successful joint Manager projects completed against tight deadlines illustrate the level of the J`son & Partners Consulting team’s professionalism”Alexey Shelestenko “Google” Vice-president, Marketing, “We have been cooperating with J`son & Partners Consulting for a number of years. Our team is thankful for the “Comstar” high-quality research and client-driven service” At the moment is CEO, “MGTS” Sergey Nazarov “For several years now our company has been relying on J`son & Partners Consulting for data on the Moscow Strategic Marketing Director broadband market. Regular research, rigorous methodology with profound detail help our company to understand the “Akado-Stolica” market situation as it develops and succeed in the market” Artur Alekperov DESIGNED BY J’SON & PARTNERS 39
    • 5. About us: ContactsTHANKS JSON & PARTNERS CONSULTING 11a/2, Armyansky Pereulok 101000 Moscow Russia 8(495) 625-72-45 www.json.ru www.json.ru Facebook LinkedIn Twitter DESIGNED BY J’SON & PARTNERS 40