2010 capital markets day - modern times group€¦ · • eurobasket 2011 • nfl • various...

Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 1

2010 Capital Markets Day

Manfred Aronsson, Head of MTG Sweden

The New Game in Town


Swedish TV viewers English football = True (since 1969)


Why acquire Premier League ?

• Why it makes strategic sense to our platform

• Why PL complements Viasat other rights and will be a greater viewing experience

• Why pre-requisites to market and sell Viasat with PL are better than ever

• Why it makes financial sense

4 perspectives:


Major strategic changes 2008

DTH “channel swap”…


Major strategic changes 2008

…basic channels became commodity

Premium Sport Key differentiator


Action on premium content & brands

From generic sport channels…


Action on premium content & brands

...to clear premium channels !


Viasat Sport ‘make-over’ journey has paid off for the brand…

Do you consider Viasat Sport ?

52% higher than in 2008

Do you prefer Viasat Sport ?

125% higher than in 2008

Consideration 2008-2010

'Any Viasat Sports Channel' vs Canal+ Sport

0%

10%

20%

30%

40%

50%

60%

mar-

08

maj-08

jul-08

se

p-0

8

no

v-0

8

jan-0

9

mar-

09

maj-09

jul-09

se

p-0

9

no

v-0

9

jan-1

0

mar-

10

Viasat Sports Channel Canal+ Sport

Preference 2008-2010

'Any Viasat Sports Channel' vs Canal+ Sport

0%

5%

10%

15%

20%

25%

30%

ma

r-08

ma

j-08

jul-08

sep

-08

nov

-08

jan

-09

ma

r-09

ma

j-09

jul-09

sep

-09

nov

-09

jan

-10

ma

r-10

V iasat Sports Channel Canal+ Sport


PL = great opportunity to add weekly premium product…

29 match days / season 115 100

13 match weeks / season 38 30


• Survey included 1 500 respondents, statistically

representing the Swedish digital TV population

• DTH, IPTV, DTT hhs

-

1 0 ,0

2 0 ,0

3 0 ,0

4 0 ,0

5 0 ,0

6 0 ,0

7 0 ,0

8 0 ,0

9 0 ,0

Premier

League

Allsvenskan Superettan Italian

League

Spanish

League

Measuring how strong a single right is to move a subscriber

PL vs. other national leagues – 3 times as strong as second best…


PL shifts the premium football balance to Viasat's favour


The right...and how we will use it

– Total exclusivity on all platforms (traditional broadcast, internet, mobile)

– License period 3 years, starting august 2010

– Match productions included in rights fee (including HD feeds of all matches)


Offerings per platform - price increase from 1st August

IP/CablePartners139 � 199sek

Viasat DTH

Viasat Fotboll

Viasat Sport

Viasat Sport HD

Viasat Premier League HD

Extra Channels 1-3

SD Package

250 games+HD Package

300 games

+ Extra channels

380 games

EXTRA

HD

IP/Cable Partnerswith HD 139 � 199sek (HD +40sek)


DTH price increases between 11% – 20%

• Price increase 1st August

communicated to subscribers

• Sport packages will increase more

than movie packages

• Viasat Gold lower price increase

than smaller packages

• 269sek � 319sek (+19%)

• 349sek � 389sek (+11%)

EXTRA


From “DTH/DTT puddle” to Virtual Operator and Viasat Gold sales access

Jun 2008 Oct 2009 Feb 2010 Mar 2010 Jun 2010

S-VOD on internet

After analogue

shut down 2007…


ComHem deal – extending fishing waters further

• Extended sales access (TM / door to door) – joint vision to drive digital and pay tv

• Viasat Gold introduced - thus available on all platforms

• Viasat OnDemand S-VOD introduced on ComHem

Sales access & Viasat Gold to 90% of cable and 75% of broadband hhs in Sweden


Why the PL acquisition makes financial sense

• PL will drive volumes

- pull sales - 550,000 C+ Sport subs with 50% hooked on PL

- push sales - Viasat sales access to 90% of all cable and 75% of all Swedish broadband homes

• PL will drive up ARPU and improve churn levels

- Prices up (eg. Viasat Premium Sport package in CATV: 59�99�139�199sek)

- Accelerated HD uptake - New PL HD channel and double amount of HD matches

• Reasonable acquisition terms secured

- Up front payment of majority of cash cost in Q2 2010

- P&L amortisation on almost linear basis over 3 year contract period

- Short term Q3 and Q4 margin pressure BUT FY 2010 Nordic margin only slightly down as previously indicated


Summary – Why Premier League ?

• Great opportunity to further strengthen premium sport differentiation of Viasat and Viasat Fotboll

• Rights enable us to offer best ever TV coverage of Premier League - “closer to and more of” concept”

• Current sales access & virtual operator status enables maximum sales exploitation and volume growth

• Favourable conditions to enhance Viasat business performance with Premier League rights


ComHem Deal – TV10 Channel Launch


TV10 – using sport rights more effectively

• Champions League (2nd pick Tuesday)

• F1 (qualifications Friday, Saturday)

• HockeyAllsvenskan - Match of the month

• NHL - Match of the month

• Golf Majors

• ATP Masters 1000 tennis

• ATP 500 tennis

• ATP 250 tennis

• Swedish Basketball League

• Euroleague Basketball

• World Championships Basketball 2010

• Eurobasket 2011

• NFL

• Various boxing

• K-1


TV10 – adding male viewing and cross promotes to premium sports

• Champions League (2nd pick Tuesday)

• F1 (qualifications Friday, Saturday)

• HockeyAllsvenskan - Match of the month

• NHL - Match of the month

• ATP Masters 1000 tennis

• ATP 500 tennis

• ATP 250 tennis

• Swedish Basketball League

• Euroleague Basketball

• World Championships Basketball 2010

• Eurobasket 2011

• NFL

• Various boxing

• K-1


YOUNG OLD

FEMALE

MALE

TV3 mothership, slight growth, balanced

TV8 offering qualitative TV for 30+

Significant growth, balanced

TV6 grows to become

leading in A 15-34

TV 10 – men 25-59

TV10 – adding reach and share via male 25-59


Timing for acquisition of PL rights is perfect !


2010 Capital Markets Day

Manfred Aronsson, Head of MTG Sweden

The New Game in Town

2010 capital markets day - modern times group€¦ · • eurobasket 2011 • nfl • various...

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