cti vod for russia & cis
TRANSCRIPT
CTIVOD Services for Russia & CIS
November 25th 2014
1.Pay TV and VOD landscape in Russia
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Russian VOD Market
Divided into 2 diverse categories• Operator-based (Pay TV)• Online VOD (B2C, OTT)
• Predominantly AVOD• Fierce competition among a few venture start-ups
• IVI.RU• PLAY (OKKO TV)• ZOOMBY.RU• AYYO etc.
• All of them constantly raising new capital to finance and still in the red, some (like NOW.RU) virtually defunct
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Pay TV market in Russia 2014
Pay-TV providers Subs (HH) Share, % Type
Tricolor TV 10 560 000 29 DVB-S
Rostelecom 7 705 000 22IPTV, DVB-C, Analogue Cable
MTS 2 595 000 7IPTV, DVB-C, Analogue Cable
ER-Telecom 2 650 000 7DVB-C+IP, DVB-C, Analogue Cable
Orion-Express 2 320 000 6 DVB-S
Akado 1 129 000 3 DVB-C
Beeline 1 061 000 3 IPTV
Other 8 500 000 23
TOTAL 36 520 000
29%
21%7%
7%
6%
3%3%
23%
Tricolor TV Rostelecom MTSER-Telecom Orion-Express AkadoBeeline Other
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Operator VOD platforms in Russia Pay TV VODPlatforms Sep 2014
Comment:(current) + immediate potential
Rostelecom 2 500 000 (IPTV)
Beeline-TV* 1 000 000 (IPTV)
Bashinformsvyaz‘* 250 000 (IPTV)
Stream-TV (MTS)** 150 000 (IPTV) + 2 000 000 for the coming hybrid platform
Tattelecom* 100 000 (IPTV)
ER-Telecom* 80 000 (DVB-C+IP) + 2 000 000 DVB-C subs
NetByNet* 15 000 (IPTV) + all the Megafon owned platforms
*Current CTI content service clients** Prospective – content service deal being finalized
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Operator VOD Market Estimate
• Operator Yearly VOD ARPU = 0.3* – 1.5** USD• Total operator VOD market = 1.5M – 4M USD• Real figures are unavailable as operators decline to
reveal them (especially Rostelecom and Beeline*, possibly because of the heavy losses in the investment and return)
*Rostelecom insider data**CTI managed VOD services***at the moment CTI is only providing technical (encoding, meta data and promo) VOD services for Beeline-TV
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VOD Market Growth Drivers
• Natural Extensive Growth• Natural growth of VOD subs of existing platforms
4M hhs (2014) 7M hhs (2017)• Convergence of existing linear Pay TV platforms
30M hhs (2014) of linear subs (DVB-S, DVB-C platforms)• Intensive Growth
• Driving up the sales and VOD ARPU 1.5 USD +
• Operator VOD market estimate (2017) = 60M USD
825%Growth
CTI IPTV and VOD experience & practice
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CTI@ Interactive TV services
• CTI is a pioneer of IPTV in Russia• We designed and installed the first IPTV solution for
Stream (MTS) in 2005• Besides technology we are providing full content
management services (VOD) for 3rd party platforms (operator based IPTV/ hybrid)
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A brief history of content services
• CTI went into content aggregation business in 2009• Initially on the request of existing technology clients• Initially content services were available only when coupled with
technology (MW) platform• From the beginning CTI adopted the policy of providing full-
range service (studio deals + file management & encoding + meta data & promo management + reporting & royalty)
• In 2013 we changed the “platform + content” only policy, bringing ER-Telecom as the first platform with 3rd party technology solution as content client
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Content services matrix
Negotiating dealsProgramming the Libraries and Packages TVOD + SVODTechnical provision ( source files, editing and encoding, encryption)Delivery and Storage
On-air promotionTrailers and promo spotsBarker channelsMeta data
Storefront managementAnalysis of sales and sales stimulationReporting and Royalty Processing
Product(Technical)
Provision and Delivery
Promotion PricingReporting, Analysis,
Storefront Management
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CTI@VOD Market
• CTI is the #1 VOD aggregator in Russia & CIS• Direct Major Studio contracts besides CTI
• Only at the “Big 3” – Rostelecom, MTS (in negotiations with CTI) and Beeline (CTI technology management client)
• CTI client platforms = #1 in VOD ARPU• 1.5 USD vs 0.3 (at Rostelecom)
• CTI has better deals with studios at the market(in terms of MGLF ratios, license windows etc.)
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Current content clients
Full VOD clients = appx 500 000 subs
Full technical management of VOD platform
30% of Pay TV VOD Universe in Russia
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Pending deals…
