1. SEXDRUGS
&ROCK
‘NROLL
Unique insight into Russia’s explosive online
video industry from the market leader
13 November
2013

2. 2
The market is mature enough already

3. 3
The Russian online video market is #1 in
Europe and is growing rapidly…
The largest internet audience in
Europe …
…. and seeing rapid growth year
on year
90
Total Unique Video Viewers (mn)
80
70
46
40
CAGR 15/10 = 20%
60
58
55
50
38
22
30
68
58
50
45
39
40
28
77
CAGR 15/10 = 29%
27
20
10
0
2010
Russia Germany France
UK
Italy
Spain
2011
Internet users, mn
2012
2013
Video audience, mn
Source: comScore,
NOAH Conference // 13 Nov 2013

4. 4
An “anytime anywhere” internet audience
appreciating the freedom of multiple devices…
Russian consumers enjoy getting
on the net with a number of
gadgets
The third largest Smart TV market
worldwide and multiplatform video
consumption is on the rise
Number of devices with Internet access per
Internet users in Russia and the
USA (in million devices, 2000-2012)
Sales of mobile devices and Smart TVs
45
6
5.3
40
3.3
5
35
4.0
4
2.4
16.1
30
25
1.8
20
8.2
3
2.2
2.0
2
12.7
15
3.5
10
1
5
12.7
16.4
19.8
22.2
8.1
0
0
2000
2012
Russia
USA
Source: MagnaGlobal from Yune & IPG Media report
(USA), ACVI from TNS marketing index (Russia)
2011
2012
2013
Smartphones Tablets
2014
Smart TVs
2015
NOAH Conference // 13 Nov 2013

5. 5
Still headroom for explosive growth

6. 6
Rapid growth will continue, as nearly half
the population is not yet online…
Ad revenue from online video is
projected to grow at 92% CAGR
over the next 3 years…
And Russian video viewership is
also on the rise at a dizzying rate.
180
270
233
218
160
204
140
120
250
179
166
200
191
167
180
150
100
95
80
105
85
100
76
100
60
40
48
53
67
59
50
20
20
0
2011
2012
2013
2014
2015
Online video advertising revenue, $US mln
Source: EWDN
0
2012
2013
2014
2015
2016
2017
2018
Average monthly viewers per year, mln
Average number of videos per viewer
NOAH Conference // 13 Nov 2013

7. 7
Headroom for growth as users buy more
connected devices to consume online media
Russia lags behind other countries and has considerable growth potential
in terms of videos per viewer
Videos per viewer per month
349
324
228
195
187
182
157
USA
UK
Spain
France
Germany
Italy
Russia
NOAH Conference // 13 Nov 2013

8. 8
Piracy remains a challenge, but we are
making good progress…
Our main competitor on the
Russian market is piracy…
TOP countries by the number of
sites with illegal video content
Piracy accounts for approximately
95%
5bn
of downloads
in Russia,
amounting to an estimated
piracy-related
downloads
and
billions
of US dollars in lost revenue.
1% 1%
1%
10%
2%
5%
39%
7%
11%
10%
13%
Russia
Ukraine
BVI
Great Britain
USA
Netherlands
Latvia
Luxemburg
Kazakhstan
Roumania
Germany
But laws, mentalities and platforms are changing quickly.
Piracy downloads will transfer into legal video views
NOAH Conference // 13 Nov 2013

9. 9
This is where the money is

10. 10
60-second clip demonstrating how Tvigle’s
programming kicks ass
“We may not have
everything, but
everything we have
you will like!”
NOAH Conference // 13 Nov 2013

11. 11
Tvigle at a glance…
10
mln
120
mln
Market leader with 20%
share of unique monthly
visitors
Tvigle’s
audience
Total videos delivered
across the platform per
month
2x
7,500
>17k
More unique monthly
visitors than nearest
competitor
Number of Tvigle’s
partner websites
High-quality entertainment videos
available on Tvigle
№1
NOAH Conference // 13 Nov 2013

12. 12
Tvigle is the #1 player in the market
Market Player
# of
audience*
(mln)
Content
Partnership
distribution
network
platform
SaaS platform
for publishers
VoD
portal
Connected
devices
8,0





4,0
X
X
X


4,0
X

X


3,7
X
X
X


3,3
X
X
X


0,9
X
X
X


 Tvigle pioneered professional online video broadcasting in Russia in 2007
 Tvigle has >2x more monthly viewers than its nearest competitor in the
professional and high-quality content segment
 Tvigle is the №1 distribution platform for Russian media sellers
NOAH Conference // 13 Nov 2013

13. 13
Diversified business, unique content distribution
and own publishing platform
NOAH Conference // 13 Nov 2013

14. 14
Where we are going
We will be the VoD channel of choice, connecting audiences with
content they love however they want to watch it – online, on their
tablets or connected devices.
Maintain our market-leader position as the market as a whole grows rapidly
Further develop video publishing platform and partnership network
Strengthen Tvigle’s connected devices and mobile business
Expand the content library and its personalization based on unique user
preferences
NOAH Conference // 13 Nov 2013

15. 15
Tvigle aims to repeat the success story of
CTC Media…
… which went public 12 years after launch with revenue of
US$ 340 million and market capitalization of US$ 2.1 billion
Metric
Launched
2013
2006
Launched in 1989, IPO - 2006
Founded in 2007
Audience, mn
13
10
Coverage, mn
100
60
% of Ad time per hour
20%
5%
Own content production


Distribution channels


Revenue per 1 advertising min
per viewer, USD
2,2
12,6
NOAH Conference // 13 Nov 2013

16. 16
Egor Yakovlev
Founder, CEO
Email: egor.yakovlev@tvigle.ru
Phone: +7 903 136 5836
Maxim Melnikov
CEO, Media3
Email: maxim.melnikov@media3.ru
Phone: +7 985 643 5606
NOAH Conference // 13 Nov 2013