2. Jørgen
Madsen
EVP of Nordic
Broadcasting
Born 1966
Joined MTG in 1994
What I love: High ratings / challenging the
status quo
What I hate: Losing market share / wasted
talent
Quote: “Ready on the Day.”
1.
3. Established footprint
Free-TV
Norway
TV Households (2011): 2,137,000
Viewing time/day (2011): 166 min
TV Ad Market Size (2011): SEK 3.8 billion
Free-TV
Sweden
TV Households (2011): 4,731,440
Viewing time/day (2011): 162
TV Ad Market Size (2011): SEK 5.7 billion
Free-TV
Denmark
TV Households (2011): 2,502,000
Viewing time/day (2011): 198
TV Ad Market Size (2011): SEK 3.0 billion
3
4. Best in class growth & margin
’000 SEK
4,600,000 30%
4,400,000
28%
4,200,000
4,000,000 25.90%
26%
3,800,000
24.50% 24%
3,600,000
3,400,000 21.90%
22%
3,200,000
21.20%
3,000,000 20%
2008 2009 2010 2011
Tot Revenue Margin
4
7. But massive change in TV
landscape
Scandinavian TV landscape
(2011)
IPTV
9%
DTT
19%
Scandinavian TV landscape
(2005) Norway –
1 Dec 2009
Denmark – Cable
1 Nov 2009 Satellite
Sweden – 52%
Cable 55% 19%
1 Feb 2008
Satellite
19%
DTT 7%
Analogue
Terrestrial
20%
7
8. Which has contributed to
fragmentation
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
SWEDEN DENMARK NORWAY
Competing for 162 Competing for 198 Competing for 166
viewing minutes per day viewing minutes per day viewing minutes per day
8
9. But also increased overall TV
viewing
Average Viewing Time per Day (minutes)
+ 50 minutes
200
190
180
170
+ 21 minutes
+ 5 minutes
160
150
140
130
2007 2011
9
10. But there is still some way to go
Average Viewing Time per Day (minutes)
300
280
260
240
220
200
180
160
140
120
100
10
11. The explosion in online viewing
is creating additional reach
Viewing platform in Sweden Viewing by Device in Sweden
Age 15-74
7% 1% 50%
+16%
45%
40%
35%
92%
30%
25%
Age 15-24 +77%
1% 20%
16%
15%
+54%
10%
+278%
5%
83% 0%
Computer Mobile Phone TV-screen Tablet
Screen
Traditional TV Web-TV Mobile-TV Q1 2011 Q1 2012
11
12. And the camp fire is still burning
People watching TV in Sweden (thousands, 2011) TRPs Generated
in Sweden (2011)
4,000
3,500
3,000
2,500
32%
2,000
68%
1,500
1,000
Prime Time Daytime
500
0
12
13. And the demand is clearly still
there
Market Sold Out Ratios in prime time Market cost per thousand (indexed)
100% 120
110
95%
100
90%
90
85%
80
80%
70
75% 60
2008 2009 2010 2011 2008 2009 2010 2011
13
14. And driving overall TV ad market
growth
160
150
140
130
120
110
100
90
80
2004 2005 2006 2007 2008 2009 2010 2011
14
15. And TV’s share of the advertising
pie
Sweden Denmark Norway
20.0% 17.2% 19.5%
2008
22.1% 19.2% 20.9%
2011
15
16. But there remains some way to
go
Sweden Denmark Norway
22.1% 19.2% 20.9%
US UK Europe
40.2% 30.1% 31.7%
16
17. With a diverse & stable client
base
Top 5 Segments Annual Commitments International Clients
1. Mobile operators Annual 25% International
30%
2. Retail
3. Food 70%
Ad Hoc 75% Domestic
4. Beverages
5. Pharmaceuticals
Sweden Denmark Norway
Top 5 Clients Top 5 Clients Top 5 Clients
1. FMCG 1. Telco 1. FMCG
2. FMCG 2. FMCG 2. FMCG
3. FMCG 3. FMCG 3. FMCG
4. Leisure 4. Telco 4. Leisure
5. Telco 5. FMCG 5. Telco
Media Agency Media Agency Media Agency
93% Direct Buy 93% Direct Buy 90% Direct Buy
17
18. That we are working with in
new ways
Client Segmentation
High
Win/Lose Win/Win
Advertiser
ROI
Lose/Lose Lose/Win
Low High
Broadcaster ROI
18
19. And Seize The Online
Opportunity
Number of Started Streams Top 5 shows by web audience* 2012
140,000
20,000,000
1.
18,000,000
130,000
16,000,000
2.
14,000,000 120,000
12,000,000
3.
5. 4.
10,000,000 110,000
8,000,000
100,000
6,000,000
4,000,000
90,000
2,000,000
0 80,000
Week 1-20 2011 Week 1-20 2012
Sweden Norway Denmark
Launched: 2009 2009 2009 2010 2010 2012
19 * MMS
Web audience: Publ. date + 7 days
20. By offering web exclusive shows
Started streams per episode by web audience*
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
20 * MMS
Web audience: Publ. date + 7 days
21. And providing tailor-made
solutions +
Branded player Editorial integration
Campaign click rate: 6% Average click rate: 2% Editorial integration sold per second
• Customer sales up 70%
• And now a recurring customer with TV3Play Sweden
21
22. With growing online sales
Online ad sales growth (index)
250
200
150
100
50
0
2010 2011 2012
22
23. And also creating competition
in existing market segments
Regional share of total advertising Total regional advertising
(NOK / DKK / SEK billion)
15 Print, 63% Direct
advertising,
14%
10
SEK 14 bn
5
Internet,
14%
0 Radio, 4%
TV, 5%
40% 60% 50% Regional TV advertising
• Number of regional TV3 Sweden broadcast zones
increased from 6 to 19 on February 27th 2012
MTG, 7%
• Bundled TV, Radio & Internet Ad sales package with TV4, 87%
dedicated sales force of 120 people as of March 2012 SEK 700 mn
• Local Ad prices as much as 2.13x national prices
Other, 6%
23
27. And the media house is growing
Channel Profiles Average Weekly Reach
80%
Old & Male Old & Female
70%
60%
50%
40%
30%
20%
10%
Young & Male Young & Female
0%
Bonnier MTG SBS
2003 2011
27
28. What we’re doing in Sweden
• Recruited better people & brought in external experts
• Extended planning horizon
• Improved overall scouting, commissioning & scheduling
• Enhanced piloting & feedback
• Focused schedules on local & live entertainment programming
• Broadened & deepened schedules with proven local & international formats
• Reduced risk profile by focusing away from “big bet” new OPs
28
30. And the media house is growing
Channel Profiles Average Weekly Reach
100%
Old & Male Old & Female 90%
80%
70%
60%
50%
40%
30%
20%
10%
Young & Male Young & Female
0%
TV2 MTG SBS
Gruppen
2003 2011
30
31. What we’re doing in Denmark
• More of the same
• Not about challenging TV2 but maintaining distance from SBS
• Extended planning horizon
• Improved overall scouting, commissioning & scheduling
• Enhanced piloting & feedback
• Focused schedules on local & live entertainment programming
• Broadened & deepened schedules with proven local & international formats
31
32. But, ultimately, it is all about
ratings
CSOV 15-49 Perceived penetration (not actual)
70
92%
85%
60
50 2008 2011
40
75%
30 62%
20 2008 2011
10
0
2004 2005 2006 2007 2008 2009 2010 2011
32
33. And the media house is growing
Channel Profiles Average Weekly Reach
90%
Old & Male Old & Female 80%
70%
60%
50%
40%
30%
20%
10%
Young & Male Young & Female
0%
TV2 MTG SBS
Gruppen
2003 2011
33
34. What we’re doing in Norway
• Made management changes
• Extended planning horizon
• Improved overall scouting, commissioning & scheduling
• Enhanced piloting & feedback
• Focused schedules on local & live entertainment programming
• Broadened & deepened schedules with proven local & international formats
• Reduced risk profile by focusing away from “big bet” new OPs
• Continue to seek opportunity to expand differentiated channel offering
34
