Subscription:best international practices with Russian approach
Legitimate video audience in Internet. Challengesand perspecs of the developing market as userssee them.
Russian Internet Growth Dynamics 2005-2011,Web of population 12+ лет. Источник: УИ TNS % Index, Россия 100 000+, 75% 70% Russia 100 000+ +4% Moscow 65% 68% Saint Petersburg 65% 60% Ekaterininburg 65% Novosibirsk 63% 55% 60% +8% 50% 45% 40% Annual growth 35% 30% Dec 05 June 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 June 11Source: TNS User–centric, June 2011, Russia 100 000+, age: 12-54.
Daily share of TV, Internet and video services 39 274 thsnds. Each third 26 955 thsnds. Internet user visits video services 7 459 thsnds.* TV Internet Video Services*TV Index, УИ Web Index, TNS User–centric, June 2011, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.*Video services audience includes the age group between 12 and 54according to user-centric panel
TV and Internet Audience Population of Russia TV audience Internet users Video services visitors 12-17 40% TV audience reflects 30% the structure of the 55+ 20% 18-24 Russian population. Half of the TV 10% audience are people 0% of 45 and older, while video services visitors are generally 45-54 25-34 people under 34 (69% of the audience) 35-44Source: TNS TV Index, Web Index, june 2011, Average Daily Reach, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.
TV and Internet Audience Population of Russia TV audience Internet Users Video services visitors males 12-17 30% 25% female 55+ males 18-34 Females 20% 15% dominate in 10% TV audience. 5% While males females 35-54 0% males 35-54 dominate among video services visitors females 18-34 males 55+ females 12-17TV Index, УИ Web Index, TNS User–centric, June 2011, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.*Audience of video services is based on age group of 12-54 year olds according to user-centric panel
TV and Internet AudienceDifferent age groups 13 769 thsnds. 12 395 thsnds. 9 048 thsnds. 8 183 thsnds. 8 292 thsnds. 7 178 thsnds. 5 932 thsnds. Average daily Internet audience Average daily TV audience 1 432 thsnds. 12-24 25-34 35-54 55+ 369 min. 306 min. 225 min. 250 min. Daily Internet browsing time 90 min. 100 min. 103 min. Daily TV watching time n/aTV Index, УИ Web Index, TNS User–centric, June 2011, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.*Audience of video services is based on age group of 12-54 year olds according to user-centric panel
Challenges of VOD market in Russia 81% of users cannot refuse from using pirate content in the future even if they face computer threats, criminal liability, and poor content quality* 58% of users watch pirate content only because it’s free Some users are ready to pay for new content (71% for TV programs, 45% for feature films) 83% of users do not mind advertisements in content as an alternative to payments*According to the research by PWC «The speed of life»
Piracy on the Russian Internet and its International Impact By the variety of time zones, Russia isRussia is the biggest single source ofcamcords in the European region leading in speed and quantity of “pirated" content from TV broadcasters. • More than 550 big «Pirate» portals in the Russian language 1 • Russian portals are often used as the master to create foreign versions to initiate the piracy 2 supply within other markets (eg. CIS, Korea, Turkey, Japan, China) • The Russian market of illegal content is paid great attention to and under scrutiny from the 3 world’s leading film studios and is treated as a priority in the fight against piracy globally
NOW.RU – the First Portal in Russia operatingwith SVOD Model.Audience, Key Figures
Gazprom-Media Holding and TNT TVChannel launch a paid, Internet video service www.NOW.ru. Any RussianInternet user can watch an unlimited number of feature films, documentaries, TV series, andcartoons by taking a subscription for 499 roubles per month.
NOW.RU IS A BIG RUSSIAN PROJECT, CREATED IN THE BESTWESTERN TRADITIONS, BUT WITH RUSSIAN FEATURES, SUCH AS:• Exclusive content is available on a Subscription basis before TV air• Free of charge movies are placed in a special section to attract users• Pay-Per-View Movies are Premiere Movies• The largest collection of legitimate movies and TV series on the Russian Internet, which is growing every day
DATA• From the launch of NOW.RU more than 17 mln. people have visited the site• Our users have watched more than 52 mln. Pages• Recently the PPV views on NOW.RU are 6 times higher than the FREE views.• As for the territory, at the moment, our primary audience is residents of the Russian millionaire cities• Moscow and St. Petersburg audiences make up 27.7% in total
Audience InterestMore than 45% of the dailyaudience is permanent(returning audience)The number of repeatedpurchases in severalcontent categories is up to79%
Consumer activity! Over the past month (from 27th August) the growth dynamics of subscribers in the category of "30 Days" was 76%. 8% Conversion to purchases 7% 6% 5% 4% 3% 2% 1% 0% Instant Buy In a month In 2 months* Registered users (projection)
The VOD Market Development, New Formats andTime-Window in terms of NOW.RU
How soon will the video content start earning money? ! 70% of the Users are ready to wait no more than 1 month 40% 35% 37% 30% 25% 20% 15% 18% 15% 10% 11% 11% 5% 8% 0% 1 day 1 week 2 weeks 1 month 3 months 6 months! 76% of the Users are ready or partially ready to pay for the content appearing right after its TV or Theatre release.Source: PWC «The speed of life»
Pre-Air content on NOW.RU. Traffic. Opening day Normal day