1. How will theappearance of Smart TV/OTT platformsinfluencethe VOD market Andrey Kolodyuk Founder ofDivan.TV September 15, 2011 «Television as abusiness» WithinKiev Media Week

2. Definitions According toWikipedia: Smart TV (rus. Умное телевидение), or Connected TV - is a newtrendinintegration of Internet intoup-to-date TV sets and settopboxes, as well asintechnologicalsymbiosisbetweencomputers andTV sets / set topboxes, earlier named as "Connected TV", (do not confuse with Internet TV and Web TV). Newdevicessupporting Smart TV are primarytargeted tosupport ofentertainingmediainInternet, Internet-television, over the top content - OTT (by means ofsuchtechnology the content isdelivered toanyuser ofInternetdirectlythrough HTTP protocol), data-flowmedia-contentby request (engl. on-demand streaming media) andin a less degree - tosupporttraditionalmedia devices such as TV setsandreceivers ofgeneration before us. The concept Smart TV has appearedsimilarly to the concept Smart Phone, which, in its turn, has appeareddue tointegration of Internet, widgets andprogramapplicationsinup-to-datemobiletelephones.

3. Companies and operators GoogleTV SonyInternet TV Apple TV Roku BBC Iplayer Netflix Skitter Daily Media YouViewи т.п. Copyright © 2011 DIVAN.TV. Allrightsreserved.

4. Mutualinterestof market 9 mlninUkraine (35mlninRussia.) have anaccess tocableandsatellitechannels. ExistingIPTVproductsare limited bysmallnumber ofservicesandusers (total 1% of users in Ukraineand 2% - in Russia). Average annualincrease offee television subscriber baseinworldin 2009-2014 is evaluatedwithin 4,7%. researchesfromMultimediaResearchGroupconsider thatcontent sales volume inworldby means of OTT will count more than 11 billiondollarsin 2012. InRussia,the sales volume ofSmart TV in 2014 will exceed 7 million, in Ukraine – 1 mln

5. Abroad: More that 5 mlnof Ukrainians (to 8-10 mlnof Russians) liveorareonlong-term earnings abroad. Theirbasicneeds: 1) Possibilityto obtaininformationin theirnativelanguageand watchdomestic, includingurban, localTV. 2) To havepermanentconnection withrelatives, to hear and see them more frequently ideally; 3) To transferfundswithoutlosses of5% andmorefortransferring; Copyright © 2011 DIVAN.TV. Allrightsreserved.

6. Forecast In 2016 video services ОТТ (over-the-top) will generate $16.4 billion. VOD servicesfromoperators offee TVwill bring $14.7 billion. In 20165.9 billion of views are forecasted on VOD service. http://www.adsmarket.com.ua/articles/research/1981/

10. Copyright © 2011 DIVAN.TV. Allrights arereserved.

11. Menu consisting of 10 main services is presented to users in their TV sets Copyright © 2011 DIVAN.TV. Allrights arereserved. Collection offilmsandmusic, radioandkaraoke, VoD. TVandinternetchannels, programsandadvertisementsinelectronicprogramguide. Gamesandeducationalprograms. Telephony, video communication, SMS, chatandcomments. Electroniccommerce (order ofproducts, toures, books, discs, ticketsand so on). Interactivepaymentsystems. Socialnetworks, sitesandcommunity. Youtube, Picasa, Twitter, Vkontakte. OTT information (newsline, weather, work and so on). Targetadvertisement(individualized, interactive).

12. Mainservices ofDivan.TV – ТВ channels, VoD andothercontent Presenting ofnichechannelsand special interests channels onTV VoD – receiving ofexclusiverightstolocalcontent Co-branding ofcontent production Revenue sharing withcontentproviders Increasing ofARPU from userat the expanse ofapplication ofallDivan.TV services Forming ofinternalcommunity – TV users’ environment. Copyright © 2011 DIVAN.TV. Allrightsreserved. Strategy of 1 mln. TV users in 2014

14. revenue sharing.

15. controlin contentrealtime.