tvigle presentation at noah'13 conference - london nov 13
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TRANSCRIPT
13 November
2013
Unique insight into Russia’s explosive online video industry from the market leader
DRUGSROCKROLL
SEX&‘N
2
The market is mature enough already
NOAH Conference // 13 Nov 2013
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The Russian online video market is #1 in
Europe and is growing rapidly…
The largest internet audience in
Europe …
…. and seeing rapid growth year
on year
45
55
68
77
27
39
50
58
0
10
20
30
40
50
60
70
80
90
2010 2011 2012 2013
Internet users, mn Video audience, mn
CAGR 15/10 = 20%
CAGR 15/10 = 29%58
46
4038
28
22
Russia Germany France UK Italy Spain
Total Unique Video Viewers (mn)
Source: comScore,
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An “anytime anywhere” internet audience appreciating the freedom of multiple devices…
2.2
5.3
2.0
4.0
0
1
2
3
4
5
6
2000 2012
Number of devices with Internet access per Internet users in Russia and the
USA (in million devices, 2000-2012)
Russia USA
Source: MagnaGlobal from Yune & IPG Media report
(USA), ACVI from TNS marketing index (Russia)
Russian consumers enjoy getting
on the net with a number of
gadgets
8.112.7
16.419.8
22.2
3.5
8.2
12.7
16.1
1.8
2.4
3.3
0
5
10
15
20
25
30
35
40
45
2011 2012 2013 2014 2015
Smartphones Tablets Smart TVs
Sales of mobile devices and Smart TVs
The third largest Smart TV market
worldwide and multiplatform video
consumption is on the rise
5
Still headroom for explosive growth
NOAH Conference // 13 Nov 2013
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Rapid growth will continue, as nearly half the population is not yet online…
20
48
100
180
270
2011 2012 2013 2014 2015
Ad revenue from online video is
projected to grow at 92% CAGR
over the next 3 years…
And Russian video viewership is
also on the rise at a dizzying rate.
53 5967
7685
95105
166 167
179191
204218
233
0
50
100
150
200
250
0
20
40
60
80
100
120
140
160
180
2012 2013 2014 2015 2016 2017 2018
Average monthly viewers per year, mlnAverage number of videos per viewerSource: EWDN
Online video advertising revenue, $US mln
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349
324
228
195 187 182
157
USA UK Spain France Germany Italy Russia
Videos per viewer per month
Russia lags behind other countries and has considerable growth potential
in terms of videos per viewer
Headroom for growth as users buy more connected devices to consume online media
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Piracy remains a challenge, but we aremaking good progress…
Our main competitor on the
Russian market is piracy…
But laws, mentalities and platforms are changing quickly.
Piracy downloads will transfer into legal video views
Piracy accounts for approximately
in Russia,95%of downloads
amounting to an estimated
5bnpiracy-related
downloads
and billionsof US dollars in lost revenue.
TOP countries by the number of
sites with illegal video content
39%
13%10%
11%
7%
5%
2%
1% 1% 1%
10%Russia
Ukraine
BVI
Great Britain
USA
Netherlands
Latvia
Luxemburg
Kazakhstan
Roumania
Germany
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This is where the money is
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“We may not have
everything, but
everything we have
you will like!”
60-second clip demonstrating how Tvigle’s
programming kicks ass
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Tvigle at a glance…
№1
7,500
10mln
120mln
Market leader with 20%
share of unique monthly
visitors
Number of Tvigle’s
partner websites
Tvigle’s
audience Total videos delivered
across the platform per
month
2x
More unique monthly
visitors than nearest
competitor
>17k
High-quality entertainment videos
available on Tvigle
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Tvigle is the #1 player in the market
Tvigle pioneered professional online video broadcasting in Russia in 2007
Tvigle has >2x more monthly viewers than its nearest competitor in the
professional and high-quality content segment
Tvigle is the №1 distribution platform for Russian media sellers
Market Player# of
audience*(mln)
Content distribution
platform
Partnership network
SaaS platformfor publishers
VoDportal
Connecteddevices
8,0
4,0 X X X
4,0 X X
3,7 X X X
3,3 X X X
0,9 X X X
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Diversified business, unique content distribution
and own publishing platform
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Where we are going
We will be the VoD channel of choice, connecting audiences with
content they love however they want to watch it – online, on their
tablets or connected devices.
Maintain our market-leader position as the market as a whole grows rapidly
Further develop video publishing platform and partnership network
Strengthen Tvigle’s connected devices and mobile business
Expand the content library and its personalization based on unique user preferences
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Tvigle aims to repeat the success story of CTC Media…
Metric
Launched Launched in 1989, IPO - 2006 Founded in 2007
Audience, mn 13 10
Coverage, mn 100 60
% of Ad time per hour 20% 5%
Own content production
Distribution channels
Revenue per 1 advertising min per viewer, USD
2,2 12,6
2006 2013
… which went public 12 years after launch with revenue of
US$ 340 million and market capitalization of US$ 2.1 billion
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Egor Yakovlev
Founder, CEO
Email: [email protected]
Phone: +7 903 136 5836
Maxim Melnikov
CEO, Media3
Email: [email protected]
Phone: +7 985 643 5606