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