Mobile TeleSystems, the largest mobile operator in Russia, announced new over-the-top service called MTS TV. MTS teamed up with technology provider SPB TV will offer 130 channels, on-demand movies and series content which will be accessible on smartphones, tablets, laptops and PCs, but is targeted at smart TV owners. Learn more about OTT Solution: https://www.vindicia.com/solutions/ott-monetization-solutions/

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New OTT Service
to Launch in
Russia
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

2. 2
New OTT Service to Launch in Russia
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
In Russia a new OTT service called MTS TV was announced by Mobile TeleSystems.
According to TeleGeography, MTS is supposed to launch later this year. To create
its OTT service, MTS teamed up with technology provider SPB TV. The service will offer
130 channels and on-demand movies and series content. It will be accessible on
smartphones, tablets, laptops and PCs, but is targeted at smart TV owners.
Smart TV manufacturer LG has partnered with MTS TV service and the company
hopes more manufacturers will get on board. A spokesperson for MTS TV told
TeleGography that Samsung and many other connected TV makers should be partners
by the end of the year. MTS has a major focus on smart TVs because the technology is
very popular in Russia. By 2017, around 30 million smart TVs will be in homes in Russia.
According to Digital TV Europe, SPB TV provides MTS TV with content delivery network
services as well as the video platform itself. This will allow for multiscreen access,
Google Chromecast support, user profiles, personal profile recommendations and other
features.

3. 3© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
The point of adding the OTT service to MTS's offerings is to gain new customers,
according to Broadband TV News. MTS is one of the top three mobile operators in
Russia and is the leading provider of pay-TV services. Its push to add OTT to its service
offerings is a move to expand its customer base as new technology and TV services,
such as Netflix, slowly creep towards Russia. While many established OTT services
don't consider Netflix a threat, they would be another competitor in a
increasingly crowded marketplace.
"In Eastern Europe
and Russia, Netflix
is not deemed to be
a threat."
Eventually more OTT services will come to Russia
In Eastern Europe and Russia, Netflix is not deemed to be a
threat. Artem Zassoursky, CEO of the Russian VOD service
Stream.ru, said that his company is not worried about Netflix
coming to Russia.
"We do not consider them a serious threat, because their
brand is irrelevant in Russia. Moreover, we have much
stronger ties with local content owners," Zassoursky told
Digital TV Europe.

4. 4© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
Oleg Tumanov, founder and CEO of VOD service lvi.ru agrees with Zassoursky, listing
the high level of piracy, the language, amount of local content, other OTT service
providers already in Russia and the legal system as factors.
Although Russia may be a challenge for Netflix, it is currently very successful in other
parts of the world and will likely continue its expansion as times goes on.

5. 5© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
About the Author: Bryta Schulz
Bryta joined Vindicia in 2013 and serves as Senior Vice
President of Marketing. She is responsible for building brand
awareness, creating go-to-market strategy and promotion, and
driving growth. With over a decade of executive level marketing,
product management and PR experience, Bryta has led
marketing teams in enterprise technology and SaaS companies.
Her experience includes heading product marketing at GoGrid,
PGP, RSA and Symantec and business development and
product management positions at Xcert, Thales, and
Persistence Software. Bryta holds a MA in Translation from the
Johannes Gutenberg University Mainz and an MBA from the
University of Reutlingen.
Visit our Blog for more information.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.