2. Legitimate video audience in Internet. Challenges
and perspecs of the developing market as users
see them.
3. Russian Internet Growth Dynamics
2005-2011,Web of population 12+ лет.
Источник: УИ TNS
% Index, Россия 100 000+,
75%
70%
Russia 100 000+ +4%
Moscow
65% 68%
Saint Petersburg 65%
60% Ekaterininburg 65%
Novosibirsk 63%
55% 60%
+8%
50%
45%
40%
Annual growth
35%
30%
Dec '05 June '06 Dec '06 Jun '07 Dec '07 Jun '08 Dec '08 Jun '09 Dec '09 Jun '10 Dec '10 June '11
Source: TNS User–centric, June 2011, Russia 100 000+, age: 12-54.
4. Daily share of TV, Internet and video
services
39 274 thsnds.
Each third
26 955 thsnds.
Internet user
visits video
services
7 459 thsnds.*
TV Internet Video Services*
TV Index, УИ Web Index, TNS User–centric, June 2011, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.
*Video services audience includes the age group between 12 and 54according to user-centric panel
5. TV and Internet Audience
Population of Russia TV audience Internet users Video services visitors
12-17
40%
TV audience reflects
30%
the structure of the
55+ 20% 18-24 Russian population.
Half of the TV
10%
audience are people
0% of 45 and older,
while video services
visitors are generally
45-54 25-34 people under 34
(69% of the
audience)
35-44
Source: TNS TV Index, Web Index, june 2011, Average Daily Reach, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.
6. TV and Internet Audience
Population of Russia TV audience Internet Users Video services visitors
males 12-17
30%
25%
female 55+ males 18-34 Females
20%
15% dominate in
10% TV audience.
5% While males
females 35-54 0% males 35-54 dominate
among video
services
visitors
females 18-34 males 55+
females 12-17
TV Index, УИ Web Index, TNS User–centric, June 2011, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.
*Audience of video services is based on age group of 12-54 year olds according to user-centric panel
7. TV and Internet Audience
Different age groups
13 769 thsnds.
12 395 thsnds.
9 048 thsnds.
8 183 thsnds. 8 292 thsnds.
7 178 thsnds.
5 932 thsnds. Average daily Internet audience
Average daily TV audience
1 432 thsnds.
12-24 25-34 35-54 55+
369 min.
306 min.
225 min.
250 min. Daily Internet browsing time
90 min. 100 min. 103 min. Daily TV watching time
n/a
TV Index, УИ Web Index, TNS User–centric, June 2011, Average Daily Reach, thousands of people, Russia 100 000+, age:12+.
*Audience of video services is based on age group of 12-54 year olds according to user-centric panel
8. Challenges of VOD market in Russia
81% of users cannot refuse from using pirate content in the future
even if they face computer threats, criminal liability, and poor content
quality*
58% of users watch pirate content only because it’s free
Some users are ready to pay for new content (71% for TV programs, 45%
for feature films)
83% of users do not mind advertisements in content as an alternative
to payments
*According to the research by PWC «The speed of life»
9. Piracy on the Russian Internet and its International Impact
By the variety of time zones, Russia is
Russia is the biggest single source of
camcords in the European region leading in speed and quantity of
“pirated" content from TV broadcasters.
• More than 550 big «Pirate» portals in the Russian language
1
• Russian portals are often used as the master to create foreign versions to initiate the piracy
2 supply within other markets (eg. CIS, Korea, Turkey, Japan, China)
• The Russian market of illegal content is paid great attention to and under scrutiny from the
3 world’s leading film studios and is treated as a priority in the fight against piracy globally
10. NOW.RU – the First Portal in Russia operating
with SVOD Model.
Audience, Key Figures
11. Gazprom-Media Holding and TNT TV
Channel launch a paid, Internet video
service www.NOW.ru. Any Russian
Internet user can watch an unlimited
number of feature films,
documentaries, TV series, and
cartoons by taking a subscription for
499 roubles per month.
12. NOW.RU IS A BIG RUSSIAN PROJECT, CREATED IN THE BEST
WESTERN TRADITIONS, BUT WITH RUSSIAN FEATURES, SUCH AS:
• Exclusive content is available on a Subscription basis
before TV air
• Free of charge movies are placed in a special section to
attract users
• Pay-Per-View Movies are Premiere Movies
• The largest collection of legitimate movies and TV series
on the Russian Internet, which is growing every day
13. DATA
• From the launch of NOW.RU more than 17 mln. people have
visited the site
• Our users have watched more than 52 mln. Pages
• Recently the PPV views on NOW.RU are 6 times higher than
the FREE views.
• As for the territory, at the moment, our primary audience is
residents of the Russian millionaire cities
• Moscow and St. Petersburg audiences make up 27.7% in total
14. Audience Interest
More than 45% of the daily
audience is permanent
(returning audience)
The number of repeated
purchases in several
content categories is up to
79%
15. Consumer activity
! Over the past month (from 27th August) the growth dynamics of subscribers
in the category of "30 Days" was 76%.
8%
Conversion to purchases 7%
6%
5%
4%
3%
2%
1%
0%
Instant Buy In a month In 2 months
* Registered users (projection)
16. The VOD Market Development, New Formats and
Time-Window in terms of NOW.RU
17. How soon will the video content start earning money?
! 70% of the Users are ready to wait no more than 1 month
40%
35% 37%
30%
25%
20%
15% 18%
15%
10%
11% 11%
5% 8%
0%
1 day 1 week 2 weeks 1 month 3 months 6 months
! 76% of the Users are ready or partially ready to pay for the content appearing
right after its TV or Theatre release.
Source: PWC «The speed of life»
20. Maximum Monetization
Income distribution depending on the model
12
$
10
8
6
TVOD
4
/ SVOD/
2
DTO DTO AVOD
0 30
PRE-AIR
1st release days 2nd release 1 year
Model