the new game in town
DESCRIPTION
Manfred Aronsson, Head of MTG Sweden. Capital Markets Day 2010.TRANSCRIPT
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
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 2
Swedish TV viewers English football = True (since 1969)
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 3
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:
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 4
Major strategic changes 2008
DTH “channel swap”…
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 5
Major strategic changes 2008
…basic channels became commodity
Premium Sport Key differentiator
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 6
Action on premium content & brands
From generic sport channels…
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 7
Action on premium content & brands
...to clear premium channels !
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 8
Viasat Sport ‘make-over’ journey has paid off for the brand…
Do you consider Viasat Sport ?
52% higher than in 2008Do 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-0
8
sep-
08
nov-
08
jan-
09
mar
-09
maj
-09
jul-0
9
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Viasat Sports Channel Canal+ Sport
Preference 2008-2010'Any Viasat Sports Channel' vs Canal+ Sport
0%5%
10%15%20%25%30%
mar
-08
maj
-08
jul-0
8
sep-
08
nov-
08
jan-
09
mar
-09
maj
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Viasat Sports Channel Canal+ Sport
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 9
PL = great opportunity to add weekly premium product…
29 match days / season 115 10013 match weeks / season 38 30
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 10
• 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
PremierLeague
Allsvenskan Superettan ItalianLeague
SpanishLeague
Measuring how strong a single right is to move a subscriber
PL vs. other national leagues – 3 times as strong as second best…
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 11
PL shifts the premium football balance to Viasat's favour
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 12
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)
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 13
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)
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 14
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
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 15
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 16
From “DTH/DTT puddle” to Virtual Operator and Viasat Gold sales access
Jun 2008 Oct 2009 Feb 2010 Mar 2010
S-VOD on internet
After analogueshut down 2007…
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 17
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: 5999139199sek)
- Accelerated HD uptake - New PL HD channel and double amount of HD matches
• Reasonable acquisition terms secured
- 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
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 18
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
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 19
Timing for acquisition of PL rights is perfect !
Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 20
2010 Capital Markets Day
Manfred Aronsson, Head of MTG Sweden
The New Game in Town