1. Pay TV in Russia:
Today and Tomorrow
October 5, 2011
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2. Key trends in Russian TV market
 Substantial growth of pay TV penetration
 Gradual growth of the number of thematic
TV channels
 Increase of demand and watching of
thematic TV
 Increase in variety, quality and
competitiveness of thematic TV content
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3. Pay TV markets, 2011, mln subscribers
UK Germany
USA 15 mln 23 mln
subs subs
Russia
102 mln subs
24 mln
subs
Russia is one of the world largest pay TV markets
Sources: Informa, J’son & Partners Consulting
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4. Russian pay TV market, mln subs
40 100%
35 32 34
28 30 80%
30
24 26
25 20 22 60%
20 17 60% 63%
15 52% 56% 40%
45% 49%
10 38% 41%
32% 20%
5
0 0%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Pay TV subscribers Penetration, %
Russia’s pay TV market will grow by up to 50% until 2016
Source: J’son & Partners Consulting
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5. Technology structure of Russia’s pay TV market, 2011-2016
2016
2011
12%
5% Analogue cable TV 27%
34 mln
30% 24 mln Digital cable TV 29% subs
subs 56%
Satellite TV
10% 32%
IPTV
The share of digital pay TV will grow from 44% to 73% within 5 years
Source: J’son & Partners Consulting
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6. Regional distribution of pay TV subscribers, 2011
8%
3%
15% 8%
North-
West Far
40% Central East
Volga Ural
Region Siberia
South
North
Caucasus
6% Distribution of pay TV in Russia reflects
17% distribution of population and income levels
2% across the country
Source: J’son & Partners Consulting
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7. Number of TV channels in Russia
320
271
180 225
143
August August August August August
2007 2008 2009 2010 2011
High growth of TV channels corresponds to the growth of pay TV penetration and
growing demand for thematic content in Russia
Source: J’son & Partners Consulting
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8. Structure of TV watching and TV advertising market in Russia
80%
65%
22% 19% 13%
1%
Top5 FTA TV channels Other 15 FTA TV Non-FTA TV (thematic
channels and local)
TV watching share TV advertising share
Share of Non-FTA TV (thematic and local TV) in the structure of TV advertising
market is substantlly lower than its share in the total TV watching
Source: J’son & Partners Consulting
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9. Growth of Non-FTA TV watching in Russia,
% of total TV watching
29 32
22 26
16 19
13
2010 2011 2012 2013 2014 2015 2016
The share of Non-FTA TV in the total TV watching will grow
substantially within 5 years
Source: J’son & Partners Consulting
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10. Thematic TV channels market size, mln US$
880
283
560
53
230 320
2010 2016
Subscription revenues Advertising revenues
Russia’s thematic TV channels market will grow more than 3
times within 6 years
Source: J’son & Partners Consulting
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11. J’son and Partners Consulting is the leading consulting company in
Telecommunications, High-Tech, TV and Media markets across Russia and CIS.
Industry expertise: Consulting services:
 Broadcasting TV & Pay TV  Market research and analysis
 Internet Media & Services  Strategy and business planning
 Digital Content  Investment advisory
 Hardware, Software & IT services  Marketing & PR
 Fixed-line & Wireless telecom services
Svetlana Vodianova Mikhail Shekhovtsov
CEO Managing Director, Media Projects
Svodianova@json.ru Mshekhovtsov@json.ru
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