2013 02-26 pay-tv_mw_en

Copyright © 2013, J’son & Partners Consulting. Copying or distribution in a hard copy or electronic form without written permission of the J’son & Partners Company is prohibited. Media can use any diagrams, data or forecasts contained in this market review only with giving credit to the source of information – J’son & Partners Consulting. ™ J’son & Partners [registered trade mark].

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J'son & Partners Consulting presents the results of PayTV market research, at the end of 2011, forecast until 2017. The current situation of and forecast for PayTV market Russian PayTV market is one of the largest in the world: at the end of 2012 there are 31,9 million of Subscriber homes (SH), connected to the cable technologies, satellite and IPTV.

According to J’son & Partners Consulting, subscribers’ base growth of PayTV will continue and in 2017 the amount of subscribers will increase up to 40.2 mln,SH, and the penetration of the service will reach 74%.

Figure 1. Subscriber base forecast and penetration of PayTV services in Russia, 2011 – 2017

Source: J’son & Partners Consulting


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J'son & Partners Consulting divided the TV subscribers in the following categories (2012): Pay-TV subscriber – are the users of telecommunication services for broadcast television, where the service provider is operator, giving the opportunity to watch a wide range of non-terrestrial (pay) TV channels (more than 30) Subscribers of the social TV (few channels) - are the users of telecommunication services for broadcast television, where the service provider is a local (country) cable operator, providing the ability to view a small number (less than 30) and mostly non-terrestrial TV (free) channels (but not providing the opportunity to watch the multichannel TV). The fee for such free channels is included in the utility bill (if any) and the tariffs are equal to the fee for telecom services (broadcasting of the national Russian TV- and radio programs). (Examples: subscribers of JSC “Dolgoprudnenskie telecom systems”, Dolgoprudny; LLC “City cable network”, Samara; MP “Ozerskoe cable TV”, Ozeri). Subscribers of the social TV (few channels) do not belong to the PayTV according to the J`son & Partners Consulting methodology. Free TV subscribers – are the users of analog TV broadcasting and communication services for television broadcast in which the user gets access to the public TV channels without any monthly fees. (Example: subscribers of the basic package from “Tricolor TV” operator). Subscribers’ base of PayTV, 2010-2012

Subscribers’ base of PayTV at the end of 2012 was 31,9 mln.SH, that making 11%

mare than in 2011. The penetration rate of the PayTV was 58%.

The major subscribers’ growth was in PayTV and IPTV sectors. During 2011 – 2012 subscribers’ base of IPTV increased in 1.6 times. The growth rates of satellite TV was 20% in the same period. Satellite’s TV growth was due to the low service price in comparison with others PayTV technologies, plus the fact that the network is not bind to the fixed network and is available on the whole country territory. The subscribers’ increase of the satellite TV was mostly due to the “Tricolor TV” operator. 1.4 mln. subscribers of total amount of 1.9 mln. subscribers who connected by the satellite TV in 2012, purchased the services of “Tricolor TV”. At the same time the rapid growth of IPTV was due to the broadband access development: according to J’son & Partners Consulting broadband access penetration was 48%. The main advantage of IPTV is the ability to provide the service called “video on demand” and the access to the interactive services. The market leaders are operators “Rostelecom”, “Vimpelcom” and MTS. Cable TV growth rates are decreasing. Nevertheless the cable TV segment is experiencing the active modernization of the network by operators and installing new DVB-C technology, that gives an opportunity to provide the digital TV services and additionally provides the access to such services as “video on demand”, catch-up TV and others.


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Table. 1. Subscriber base of PayTV in Russia by technologies, mln SH, 2010-2012

2010 2011 Growth rate

2011/2010 2012

Growth rate

2012/2011

Total 23,5 28,7 22,1% 31,9 11%

Satellite 6,6 9,2 40,0% 11,1 20%

Cable 16,4 17,9 9,0% 18,3 2%

IPTV 0,5 1,6 214,0% 2,5 62%

PayTV market operators The key market players in Russia at the end of 2012 are «Tricolor TV» (market share 28%), «Rostelecom» (21%), MTS (9%), «ER-Telecom» (7%) и «Akado» (4%). Subscribers’ base of “Tricolor” increased for 19% in 2012, due to the high market activity of the company. In 2012 connected to the standard TV packages foreign brands, and was the first implemented HD-multiplex “Tricolor TV”. “Tricolor TV” has the lowest fee for the extended package (“Optimum”) – 50 RUB/month.

Figure 2. Distribution of shares in the Russian PayTV market among operators, 2011-2012

2011 2012


Structure of PayTV market by technologies PayTV market in 2012 was mostly presented by the cable TV (57%), this rate drop for 5 p.p. in comparison with 2011. The share of satellite TV was 35%, IPTV share increased till 8%.


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Figure 3. Structure of PayTV market by technologies, 2011-2012

2011 2012


PayTV markets in regions Half of the subscriber base are generated by Privolzhsky and Central Federal Disctricts. Central federal district is leading – 35.5 % of the total Russian market share. NCFD

Figure 1. Shares of Federal Districts on the PayTV market by subscriber base, 2012



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The highest penetration rate of PayTV at the end of 2012 was in NWFD – 72,8%, the lowest – NCFD 29,4% and FEDF – 27%. Уровень наибольшего проникновения платного телевидения на конец 2012 года The subscribers’ base diversity by the Federal districts in 2012 did not change significantly.

The main results and trends of PayTV market 2012:

The growth rate of PayTV subscribers was 11% in 2012 in comparison with 2011. J’son & Partners Consulting expecting the decrease to 2,5% in 2017.

The penetration rate of PayTV in 2012 was 58%, the forecast for 2017 – increase up to 74%.

IPTV is the most growing segment: increase of 62% in comparison with 2011. The lowest

increases in Cable TV segment – 2%.

Satellite TV growth was 20%. Market leader in the amount of Subscribers is “Tricolor TV”

operator.

2013-2017:

Digital PayTV market will continue sustainable development

Operators will provide wide range of channels mainly due to HD-packages and digital TV channels.

As viewing video over the Internet is in high demand among the population nowadays, it is expected an increased competition from non-linear TV, due to higher penetration rate of broadband services.

Cable TV growth rate will be decreasing in all regions.


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The full information about Russian PayTV market at the end of 2012 is presented in the Report: “Atlas of PayTV in Russia, 2012 - 2017” (160 pages).

Content 1. Introduction 2. Classification of the PayTV service 2.1. J’son & Partners Consulting methodology for subscribers’ base calculation (until 2012) 2.2. Explanation why the changes in the above mentioned calculation took place 2.3. J’son & Partners Consulting methodology for subscribers’ base calculation (starting from 2012) 3. Russian PayTV market 3.1. Quantitative indicators of the industry, 2011-2012: the subscriber base, market structure by technology, number of channels, federal districts 3.2. Characteristics of the key (largest) operators of PayTV market 3.3. Profiles of the key (largest) operators of PayTV market, 2010-2012 3.3.1. Profiles of the key (largest) operators of cable TV market ,2010-2012 3.3.2. Profiles of the key (largest) operators of satellite TV market ,2010-2012 3.3.3. Profiles of the key (largest) operators of IPTV market ,2010-2012 3.4. List of deals in regions: the biggest M&A deals, 2011-2012 4. Macroeconomic indicators of the Federal Districts: population (urban/rural), unemployment rate, income per capita 4.1. Central Federal Disctrict 4.2. North West Federal District 4.3. Privolzhsky Federal District 4.4. South Federal District 4.5. North-Caucasus Federal District 4.6. Ural Federal District 4.7. Siberian Federal District 4.8. Far East Federal District 5. PayTV markets, 2012: subscriber base, penetration, revenue, ARPU, market structure by operator and technologies 5.1. Central Federal Disctrict 5.2. North West Federal District 5.3. South Federal District 5.4. North-Caucasus Federal District 5.5. Privolzhsky Federal District 5.6. Ural Federal District 5.7. Siberian Federal District 5.8. Far East Federal District 6. Local PayTV markets, 2012: subscriber base, penetration, revenue, ARPU, market structure by operator and technologies 6.1. Moscow 6.2. Saint-Petersburg 6.3. Nizhniy Novgorod 6.4. Samara 6.5. Kazan 6.6. Ufa 6.7. Perm 6.8. Saratov 6.9. Tolyatti 6.10. Voronezh 6.11. Rostov-on-Don 6.12. Volgograd


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6.13. Krasnodar 6.14. Ekaterinburg 6.15. Chelyabinsk 6.16. Novosibirsk 6.17. Omsk 6.18. Krasnoyarsk 7. Production and distribution of the TV-content 7.1. Aggregators and distributors of the television content for PayTV 7.2. Content preferences of the audience 8. Content of the services 8.1. Quantitative characteristics 8.2. Qualitative characteristics 9. Tariff policy of the operators and proposed channels 9.1. Fees charged by the operators for the PayTV services 9.2. List of non-terrestrial TV channels in Russia 9.3. The territorial cover of non-terrestrial TV channels 9.4. Popularity of the channels’ themes 10. Evaluation of the subscriber base HDTV by operators and TV channels 11. The Russian market of TVs sales, 2009-2012: the number of TVs in the family, the structure of the market, by (type, diagonal, format), the average price. 12. Trends and PayTV market Forecasts by technologies, 2011-2017: the structure and volume of the market in volume and value terms, penetration, ARPU 13. Conclusion

List of Pictures Pic. 1. Shares of Federal Districts in the PayTV market by subscriber base, 2011, 2012 Pic. 2. The reorganization of OJSC "Rostelecom" in April 2011 Pic. 3. Population figures in the federal districts, mln Pic. 4. Population figures, broken divided by urban and rural population in the federal districts, Pic. 5. The unemployment rate in the federal districts Pic. 6. Indicators of income per capita in federal districts Pic. 7. Subscriber base and penetration of the PayTV services in Central Federal District Pic. 8. Structure of PayTV market in the Central Federal District by technologies, 2011, 2012 Pic. 9. Structure of PayTV market in the Central Federal District by operators, 2011, 2012 Pic. 10. Subscriber base and penetration of the PayTV services in North Wes Federal District by technologies, 2012 Pic. 11. Structure of PayTV market in the North West Federal District by technologies, 2011, 2012 Pic. 12. Structure of PayTV market in the North West Federal District by operators, 2011, 2012 Pic. 13. Subscriber base and penetration of the PayTV services in South Federal District by technologies, 2012 Pic. 14. Structure of PayTV market in the South Federal District by technologies, 2011, 2012 Pic. 15. Structure of PayTV market in the South Federal District by operators, 2011, 2012 Pic. 16. Subscriber base and penetration of the PayTV services in North-Caucasus Federal District by technologies, 2012 Pic. 17. Structure of PayTV market in the North-Caucasus Federal District by technologies, 2011, 2012 Pic. 18. Structure of PayTV market in the North-Caucasus Federal District by operators, 2011, 2012 Pic. 19. Subscriber base and penetration of the PayTV services in Privolzhsky Federal District by technologies, 2012 Pic. 20. Structure of PayTV market in the Privolzhsky Federal District by technologies, 2011, 2012 Pic. 21. Structure of PayTV market in the Privolzhsky Federal District by operators, 2011, 2012 Pic. 22. Subscriber base and penetration of the PayTV services in Ural Federal District by technologies, 2012 Pic. 23. Structure of PayTV market in the Ural Federal District by technologies, 2011, 2012 Pic. 24. Structure of PayTV market in the Ural Federal District by operators, 2011, 2012 Pic. 25. Subscriber base and penetration of the PayTV services in Siberian Federal District by technologies, 2012 Pic. 26. Structure of PayTV market in the Siberian Federal District by technologies, 2011, 2012 Pic. 27. Structure of PayTV market in the Siberian Federal District by operators, 2011, 2012 Pic. 28. Subscriber base and penetration of the PayTV services in Far East Federal District by technologies, 2012 Pic. 29. Structure of PayTV market by technologies in the Far East Federal District, 2011, 2012 Pic. 30. Structure of PayTV market in the Far East District by technologies, 2011, 2012 Pic. 31. Subscriber base and penetration of the PayTV services in Moscow, 2012 Pic. 32. Structure of PayTV market in Moscow by technologies, 2012 Pic. 33. Structure of PayTV market in Moscow by operators, 2012 Pic. 34. Subscriber base and penetration of the PayTV services in Saint-Petersburg, 2012


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Pic. 35. Structure of PayTV market in Saint-Petersburg by operators, 2012 Pic. 36. Structure of PayTV market in Saint-Petersburg by technologies, 2012 Pic. 37. Subscriber base and penetration of PayTV services in Nizhniy Novgorod, 2012 Pic. 38. Structure of PayTV market in Nizhniy Novgorod by operators, 2012 Pic. 39. Structure of PayTV market in Nizhniy Novgorod by technologies, 2012 Pic. 40. Subscriber base and penetration of the PayTV services in Samara, 2012 Pic. 41. Structure of PayTV market in Samara by operators, 2012 Pic. 42. Structure of PayTV market in Samara by technologies, 2012 Pic. 43. Subscriber base and penetration of the PayTV services in Kazan, 2012 Pic. 44. Structure of PayTV market in Kazan by operators, 2012 Pic. 45. Structure of PayTV market in Kazan by technologies, 2012 Pic. 46. Subscriber base and penetration of the PayTV services in Ufa, 2012 Pic. 47. Structure of PayTV market in Ufa by operators, 2012 Pic. 48. Structure of PayTV market in Ufa by technologies, 2012 Pic. 49. Subscriber base and penetration of the PayTV services in Perm, 2012 Pic. 50. Structure of PayTV market in Perm by operators, 2012 Pic. 51. Structure of PayTV market in Perm by technologies, 2012 Pic. 52. Subscriber base and penetration of the PayTV services in Saratov, 2012 Pic. 53. Structure of PayTV market in Saratov by operators, 2012 Pic. 54. Structure of PayTV market in Saratov by technologies, 2012 Pic. 55. Subscriber base and penetration of the PayTV services in Tolyatti, 2012 Pic. 56. Structure of PayTV market in Tolyatti by operators, 2012

Pic. 57. Structure of PayTV market in Tolyatti by technologies, 2012 Pic. 58. Subscriber base and penetration of the PayTV services in Voronezh, 2012 Pic. 59. Structure of PayTV market in Voronezh by operators, 20122 Pic. 60. Structure of PayTV market in Voronezh by technologies, 2012 Pic. 61. Subscriber base and penetration of the PayTV services in Rostov-on-Don, 2011-1Н2012 Pic. 62. Structure of PayTV market in Rostov-on-Don by operators, 2012 Pic. 63. Structure of PayTV market in Rostov-on-Don by technologies, 2012 Pic. 64. Subscriber base and penetration of the PayTV services in Volgograd, 2012 Pic. 65. Structure of PayTV market in Volgograd by operators, 2012 Pic. 66. Structure of PayTV market in Volgograd by technologies, 2012 Pic. 67. Subscriber base and penetration of the PayTV services in Krasnodar, 2012 Pic. 68. Structure of PayTV market in Krasnodar by operators, 2012 Pic. 69. Structure of PayTV market in Krasnodar by technologies,2012 Pic. 70. Subscriber base and penetration of the PayTV services in Ekaterinburg, 2012 Pic. 71. Structure of PayTV market in Ekaterinburg by operators, 20122 Pic. 72. Structure of PayTV market in Ekaterinburg by technologies, 2012 Pic. 73. Subscriber base and penetration of the PayTV services in Chelyabinsk, 2012 Pic. 74. Structure of PayTV market in Chelyabinks by operators, 20122 Pic. 75. Structure of PayTV market in Chelyabinsk by technologies, 2012 Pic. 76. Subscriber base and penetration of the PayTV services in Novosibirsk, 2012 Pic. 77. Structure of PayTV market in Novosibirsk by operators, 2012 Pic. 78. Structure of PayTV market in Novosibirsk by technologies, 2012 Pic. 79. Subscriber base and penetration of the PayTV services in Omsk, 2012 Pic. 80. Structure of PayTV market in Omsk by operators, 2012 Pic. 81. Structure of PayTV market in Omsk by technologies, 2012 Pic. 82. Subscribers base and penetration of PayTV in Krasnoyarsk, 2012 Pic. 83. Structure of PayTV market in Krasnoyarsk by operators, 2012 Pic. 84. Structure of PayTV market in Krasnoyarsk by technologies, 2012 Pic. 85. Value chain and market participants of the TV-content Pic. 86. Distribution of channels in packages PTV operators by topics in 2012 Pic. 87. The structure of non-terrestrial TV channels by locations presented in the Russian Federation, 2012 Pic. 88. The average monthly audience of non-terrestrial TV channels in 2012 Pic. 89. The popularity of television themes among the audience of the on-air and non-air television,% response, Russia, 2012 Pic. 90. The amount of TV per house, 2012 Pic. 91. PayTV Russian market structure in the money value,mln.RUB, 1Н2009-1Н2012 Pic. 92. Type of TV that (family) has, 2012 Pic. 93. TV formats (in the family), 2012 Pic. 94. The TV by the diagonally size, 2012 Pic. 95. The average price for traditional TVs from different manufacturers, thousand, 1N2009 - 1N2012 Pic. 96. Subscribers base forecast and penetration of PayTV in Russia , 2011-2017 Pic. 97. Subscribers base forecast and penetration of satellite TV in Russia , 2011-2017 Pic. 98. Subscribers base forecast and penetration of cable TV in Russia , 2011-2017 Pic. 99. Subscribers base forecast and penetration of IPTV in Russia , 2011-2017 Pic. 100. Revenue forecast and ARPU of the PayTV in Russia, 2011-2017 Pic. 101. Revenue forecast and ARPU of the satellite TV in Russia, 2011-2017


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Pic. 102. Revenue forecast and ARPU of the cable TV in Russia, 2011-2017 Pic. 103. Revenue forecast and ARPU of the IPTV market in Russia, 2011-2017 Pic. 104. Subscribers base structure of PayTV market by technology, 2012, 201 Pic. 105. Income structure of PayTV market by technology, 2012, 2017

List of Tables Table 1. Current trend of subscribers growth of PayTV in Russia by Technologies, SH mill., 2010-2012 Table 2. Current trend of subscribers growth of PayTV in Russia by Federal District, SH mill., 2011-2012 Table 3. Name of shareholders and its trade marks – operators of PayTV in Russia Table 4. Key market players on the PayTV market in Russia, 2010-2012 Table 5. The most important M&A closed deals on the PayTV market in Russia in 2011-2012 Table 6. Macroeconomic indicators CFD Table 7. Macroeconomic indicators NWFD Table 8. Macroeconomic indicators PFD Table 9. Macroeconomic indicators SFD Table 10. Macroeconomic indicators SFD Table 11. Macroeconomic indicators UFD Table 12. Macroeconomic indicators CFD Table 13. Macroeconomic indicators FED Table 14. Characteristics of PayTV market of the Central Federal District, 2011-2012 Table 15. Local PayTV operators of the Central Federal District, 2012 Table 16. Characteristics of PayTV market of the North West Federal District, 2011-2012 Table 17. Local PayTV operators of the North West Federal District, 2012 Table 18. Characteristics of PayTV market of the South Federal District, 2011-2012 Table 19. Local PayTV operators of the South Federal District, 2012 Table 20. Characteristics of PayTV market of the North-Caucasus Federal District, 2011-2012 Table 21. Local PayTV operators of the North-Caucasus Federal District, 2012 Table 22. Characteristics of PayTV market of the Privolzhsky Federal District, 2011-2012 Table 23. Local PayTV operators of the Privolzhsky Federal District, 2012 Table 24. Characteristics of PayTV market of the Ural, 2011-2012 Table 25. Local PayTV operators of the Ural Federal District, 2012 Table 26. Characteristics of PayTV market of the Siberian Federal District, 2011-2012 Table 27. Local PayTV operators of the Siberian Federal District, 2012 Table 28. Characteristics of PayTV market of the Far Eastern Federal District, 2011-2012 Table 29. Local PayTV operators of the Far Eastern Federal District, 2012 Table 30. Features of PayTV market of Moscow, 2011-2012 Table 31. Features of PayTV market of Saint-Petersburg, 2011-2012 Table 32. Features of PayTV market of Nizhny Novgorod, 2011-2012 Table 33. Features of PayTV market of Samara, 2011-2012 Table 34. Features of PayTV market of Kazan, 2011-2012 Table 35. Features of PayTV market of Ufa, 2011-2012 Table 36. Features of PayTV market of Perm, 2011-2012 Table 37. Features of PayTV market of Saratov, 2011-2012 Table 38. Features of PayTV market of Tolyatti, 2011-2012 Table 39. Features of PayTV market of Voronezh, 2011-2012 Table 40. Features of PayTV market of Rostov-on-Don-na-Dony, 2011-2012 Table 41. Features of PayTV market of Volgograd, 2011-2012 Table 42. Features of PayTV market of Krasnodar, 2011-2012 Table 43. Features of PayTV market of Ekaterinburg, 2011-2012 Table 44. Features of PayTV market of Chelyabinsk, 2011-2012 Table 45. Features of PayTV market of Novosibirsk, 2011-2012 Table 46. Features of PayTV market of Novosibirsk, 2011-2012 Table 47. Features of PayTV market of Krasnoyarsk, 2011-2012 Table 48. Market players that manufacture video content Table 49. Aggregators (distributors) of TV content for PayTV Table 50. Top 3 most popular subjects in different age groups Table 51. The number of channels in the basic and extended basic packages of the largest operators of PayTV, 2012 Table 52. TV stations began broadcasting in the territory of the Russian Federation in 2010-2012 Table 53. Monthly fee charged by the operators per month Table 54. The list of non-terrestrial TV channels that are presented in the Russian Federation, 2012 Table 55. List of Russian providers (manufactures) of HDTV-channels, 2012 Table 56. Number of HDTV-channels in packages of basic operators Table 57. The subscriber base of the top operators of HDTV-channels, 2012 Table 58. The subscriber base of open (free) HDTV-channels, 2012


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The newsletter was prepared by the J'son & Partners Consulting Company. We exert every effort to provide actual

and forecasting data representing the situation in full and available at the time of the publication of the material. J'son & Partners Consulting reserves the right of revising the data after publication of some new official information

by individual players.

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2013 02-26 pay-tv_mw_en

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