Frosty times for Russian pay TV

February 17, 2015  | Subscribers Only

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Pay TV operators and channels operating in Russia are facing changes in regulation which are certain to affect negatively their business over the next two years: an amendment to the media law restricting foreign ownership of Russian media companies which came into effect at the beginning of the year, and a ban on advertising on pay TV channels. The Raduga TV satellite platform owned by Sweden’s Modern Times Group (MTG) is shutting down and two US channel groups—Turner International and NBC Universal—have said they will be closing some of their Russian channels as a consequence of the regulations, which come on top of an already adverse economic climate.

Highlights:

  • Pay TV ban is going to adversely affect all of the pay TV channels, including the Russian channels which are owned by Russian companies
  • The media ownership law amendment and the pay TV ban will boost the revenue of the terrestrial channels and the local content producers
  • Not all of the advertising revenue lost as a result of pay TV ban can be made up by increasing the subscription prices
  • The revenue and the subscriber growth of the Russian pay TV industry will slow down as a result of the adverse economic conditions and new regulation

In this report: A timeline for the recent regulation changes, a closer look at the effects of the change of regulation

List of tables and charts:

  • Russian Channels which are at least partially government owned
  • Top 5 pay TV operators by revenue (IHS estimate for the end of 2014)
  • Timeline for the 20% foreign ownership cap on mass media companies and pay-TV ban
  • Number of subscribers in 2014 (by platform) in 000s
  • Number of subscribers in 2014: Analogue VS Digital
  • Pay TV revenues in 2014 (by platform) in $000s
  • Key economic and pay TV indicators for 2010-2018

Number of pages: 8

Number of charts and tables: 07

Geography
Russia
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