Special Report | TV Markets | Europe By Artem Vakalyuk

MRM: Russia, Ukraine and Poland, the leading TV markets in Eastern Europe Poland: audience share (July 15-21, 2013 % all 4+)

Russia satellite communications complexes owned by rate reach 27%. after the analogue terrestrial switch off that is The Russian Federation is by far the largest the Russian Satellite Communications Company In 1H 013, 24% of the 53 million TV homes in planned for summer 2015. The number of digital country in the world, with an area of 17,075,400 at teleports which ensure the transmission of Russia were equipped for Direct-to-Home satellite terrestrial TV nets that will have national-wide km². With nearly 142 million people, it is ranked channels to all five time zones in Russia via the reception, making satellite the country’s leading coverage will increase to 32. the ninth largest in terms of population. The total space vehicles of RTRN. platform for digital television. The number of Private TV broadcasters owned by Ukrainian number of television households is 53 million The digitalization process in Russia can be satellite homes across Russia maintains a strong tycoons play the lead role on the local market. while it is estimated that there are 100 million broken down into two stages: the introduction dynamic, increasing by 25% between 2011 and There are four dominant TV Groups in Ukraine: television sets in use. of DVB-T and the transition to the DVB-T2 2013 from 8 million to 12.6 million. 10% of these StarLight Media (belongs to Viktor Pinchuk, Television is the most popular operates STB, ICTV, Novy Channel, M1, Russia: audience share (August 19-25, 2013 % - all 4+) M2 and QTV channels), Inter Media Group medium in Russia, with 74% of Source: AGB Nielsen Media Research the population watching national (belongs to Dmitry Firtash, runs Inter, NTN, K1, K2, Mega, Enter-film, MTV Ukraine, television channels routinely and Russia. The total volume of its TV ad market jointly holding near 55% audience share in the Pixel channels), 1+1 Media (owned by Igor 59% routinely watching regional amounted $483 million in 2012 and is forecasted commercial group. In 2012-2013, in connection Kolomoiskiy, operates 1+1, 2+2, TET, PlusPlus channels. There are more than to grow 14.5% in 2013 up to $555 million (data with the roll-out of digital terrestrial television channels), and Media Group Ukraine (belongs to 350 television channels in total provided by All-Ukrainian Advertising Coalition). (DTT), there was significant increase in the Rinat Akhmetov, runs TRK Ukraine, Football, (according to Committee on fragmentation of the TV market. Smaller TV Football+, Donbas, Sigma TV, Sphere TV and Communication, Information Poland stations available on the multiplexes gained in NLO TV channels). Government-owned TV Policy and Freedom of the Press). Poland is a country in Central Europe (the importance, mainly at the expense of the above- channel First National is not so popular, as Local TV market is represented member of the European Union) with the mentioned four largest TV channels, previously private broadcasters. Nevertheless it belongs to both by state-owned and public TV total area of 312,679 square kilometers and a available in the analogue terrestrial TV system. TOP-10 most popular TV channels in Ukraine. channels. Currently there are several population of over 38.5 million people. There are In Poland, pay TV services are offered by There is no public broadcasting company in the local TV groups and holdings, Source: TNS Media Research a total of 13.4 million television households and DTH operators, cable TV operators and IPTV country yet, although the process of its launch operating popular TV networks. approximately 20.5 million television sets in use. providers. Currently Polish operators provide standard. The introduction of the DVB-T2 homes receive signals from more than one satellite on the basis of state-owned First National TV They are: All-Russia State Television and Radio Poland’s broadcasting market is the largest in pay TV services to approximately 11 million standard meant that all DVB-T equipment position, taking the total number of antennas to channel is currently underway. Totally there are Company, Gazprom Media, National Media subscribers. DTH is the most popular TV platform suddenly became obsolete, while TVs with built- 13.8 million 16 national-wide broadcasters, more than 200 Group, CTC Media, Prof-Media, UTV Russia Advertising expenditure, in Poland – its penetration is about 52% of local in DVB-T2 tuners and compatible STBs became Over half (55%) of all Russian homes now local and regional TV stations (both private and Holding, Moscow Media, RBC, Bridge Media per countries (2012) TV market. The second largest platform is cable widely available only in 2Q2012. receive some form of pay-TV service. The report government owned) and more than 100 satellite Group and some others. Some international TV TV that covers near 24% of Polish households. A total of 22 mln households are regarded of iKS Consulting shows cable to be the most private broadcasters. groups are also operating in Russia. They are: IPTV penetration is near 4% of the market while as potential DTTV users. According to J’son popular way of watching pay-TV (16.8 million Cable is the most widespread television Russia 4,280 Modern Times Group, Discovery Networks DTT is used by 10% of homes. & Partners Consulting, the majority of the households, or 5% more than a year ago), platform in Ukraine accounting for over 38% EMEA, Voxell Baltic, TF1 Group, NBC Universal The process of digitization of Polish TV, newcomers to DTTV will come from among though DTH gained 1.9 million subscribers of all television households. The penetration of International, Turner Broadcasting System that had been started on September 7th, 2012, subscribers to analogue terrestrial TV and low totaling 10.7 million homes. IPTV penetration cable TV has risen more than 10% over the past Poland 2,070 etc. There are 22 federal TV channels in Russia was finished on July 23rd, 2013, when the last channel social TV, as well as urban subscribers exceeds 3 million homes. Remaining 10 million several years (for instance its penetration in 2007 in total (i.e. channels with the national-wide terrestrial analog transmitter was switched off. to pay TV who wish to connect their second of households are receiving analogue terrestrial was 27%). The analogue terrestrial platform yet coverage). The distribution of the terrestrial Digital terrestrial TV currently comprises three and subsequent TV set to free terrestrial TV. signal. ASO in Russia is planned for 2015. remains the second most widespread television Ukraine 483 channels is the task of the Unitary Enterprise multiplexes, offering 21 free-to-air TV channels. Therefore, the proliferation of DTTV will largely Russian TV advertising market totaled platform in Ukraine and is used by 33% of Russian Satellite Communications Company, Furthermore, a tender has been announced with be happening at the expense of analogue terrestrial (according to the Russian Association of television households. However, the constant which has 11 satellites, and the Federal Unitary 0 1000 2000 3000 4000 5000 a view to allocating another four channels. The and low channel TV, and not at the expense of Communication Agencies) $4.28 billion in 2012. growth of the cable and satellite platforms has Enterprise Russian TV and Radio Broadcasting Sources: Russian Association of Communication Agen- digital TV service is currently offered on three pay TV. An optimistic forecast by J’son & Partners In 2013 its volume is predicted to increase by 10 eroded the terrestrial platform’s market share, Network serving 14,478 transmitter sites in cies, ZenithOptimedia, All-Ukrainian Advertising Coalition multiplexes on a free-to-air basis and on one Consulting sees DTTV audience climb to 15 percent, to 4.7 billion. It is also predicted that which has decreased from 75% in 2007 to 63% Russia (90.9% of the total number). TV and radio multiplex offering pay-TV access on mobile million households in 2015 and penetration television’s share of advertising will decline from in 2009 and to 33% in early 2013. All services on Eastern and Central Europe and has attracted channels are broadcast through the terrestrial devices. It is estimated that the number of 48 percent to 46.4 percent this year. the terrestrial platform are currently free-to-air foreign investment. There are more than 300 TV multiplexes will ultimately increase to six. Ukraine: audience share (August 2013 % - all 18+) including DTT service from Zeonbud, private and radio channels competing for the attention According to estimates by ZenithOptimedia, Ukraine operator of 4 out of 5 DTT multiplexes in Ukraine. of listeners and viewers. Currently, on the Polish in 2012 Polish advertising spending was the third Ukraine is the second largest TV market in the Satellite TV is the third popular TV platform in market there are seven broadcasters transmitting largest in Central and Eastern Europe (after Russia CIS region after Russia. The territory of the state the country with more than 20% penetration (the 21 channels in a Digital Terrestrial Television and Turkey), having exceeded $2,07 billion, down is 603,628 km² and its population amounts 45.6 majority of satellite households prefer to receive system, several regional broadcasters operating by 5.5% year on year. Poland’s TV advertising million people. There are a total of 16. 2 million FTA channels and not to pay DTH operators for through cable and satellite networks, as well as market was worth nearly $1,08 billion (6.3% less television households and approximately 24 the service). The rest 8-9% of the households use several broadcasters offering Polish editions of than in 2011). The agency forecasts that in 2013 million television sets in use. Ukraine is a kind of DTT or IPTV platforms (currently there is no international channels and channels in original the TV advertising market will shrink by about unique country in Europe from the point of view update statistics of these two platforms users) language versions. 5.7%. However, the decreases in the market’s value of the national-wide analogue terrestrial TV nets to watch TV. The Polish TV market is dominated by the will be lower in the years to come: 1.7% in 2014 quantity: there are 16 channels of that kind in the From the advertising point of view Ukraine four largest broadcasters transmitting terrestrial and 0.6% in 2015. Source: GfK Ukraine country. The situation is to change dramatically is the second largest market in the region after signals, namely TVP1, TVP2, TVN, and POLSAT,

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