Russian DTH migration encouraged

The Russian DTH platform Raduga TV, which ceased operations at the end of last year, has made the migration of its former subscribers to the new MTS TV platform more favourable.

Satkurier reports that they will be offered more channels at a lower price, with the only requirement being to change their receiver and sign a new agreement. The deadline for this new offer is May 31, 2015.

Raduga TV, which was 50%-owned by Modern Times Group (MTG), closed after failing to secure a licence.

It employed the 75 degrees East orbital position, which is also used by MTS TV.

Raduga TV’s former subscribers have the option of paying R4,500 (€68.7) for a HD receiver and an annual subscription to MTS TV or R3,500 for a CAM module and annual subscription to MTS TV.

MTS secures Raduga subscribers

MTS is to take over the subscriber base of Raduga TV, the Modern Times Group (MTG)-backed Russian DTH platform that ceased broadcasting on December 5.

Quoting a source close to Raduga TV and confirmed by MTS spokesman Dmitry Solodovnikov, Tass and Comnews report that the two parties plan to sign an agreement today (December 9).

Further details of the transfer are expected to be announced shortly.

Raduga TV was launched in 2009 and covered over 90% of Russia.

It was the country’s fourth largest DTH platform as of Q2 this year and attracted interest from a number of companies, most recently MTS, before its closure.

MTS has just launched its own DTH platform and aims to become the second leading provider of satellite services in Russia after Tricolor TV within three years.

Russia's Raduga TV to close down

Raduga TV to close down, Viasat Russia to launch 5 new HD channels

The Russian digital satellite TV platform Raduga TV will stop its broadcasting services on 5 December 2014, as it has not been granted the required broadcasting license from the local media regulator. MTG will continue to enhance the content and technology of its Russian pay-TV channel business Viasat, and will launch five new HD channels in 2015.

MTG has owned 50% of Raduga Holdings S. A., the principal owner of LLC DalGeoCom, which operates Raduga TV, since February 2010. Raduga TV launched in February 2009 and has offered a wide range of Russian and international channels all across Russia.

“This has been a very difficult decision taken with the other shareholder, given the impact it will have on employees, customers, suppliers, and all of the other stakeholders of the business. Over the past year Raduga has worked very hard exploring all options for obtaining the right license, which despite their efforts has not been granted. We therefore have no choice but to close down the operations. We are working hard to move our subscribers to another satellite operator and will make an announcement by December 6.”

“The decision does not affect our successful pay-TV channel business Viasat, were we will launch five new HD channels in 2015. Viasat offers 15 channels in Russia, five of which are among the country’s 20 most popular channels.”

Irina Gofman, EVP/CEO of Russia & CIS and Pay-TV Emerging Markets

The value of MTG’s participation in Raduga Holdings S. A. was written down 100% in February 2014, and accordingly MTG’s Q4 2013 results included a SEK 147m non-cash and non-recurring impairment charge in the Group’s operating income. The decision was based on the ongoing uncertainty and lack of visibility surrounding the licensing status and requirements for Raduga TV. The adjustment in satellite subscriber numbers for Pay-TV Emerging Markets will be accounted for in MTG’s 2014 Q4 results.

MTG considering Raduga TV sale

Modern Times Group (MTG) may sell its stake in the DTH platform Raduga TV now that President Putin has signed off controversial legislation limiting foreign ownership in Russian media companies to 20%.

Speaking to Broadband TV News, Per Lorenz, head of group public relations at MTG, said the company is exploring all options available to it.

Meanwhile, Interfax has reported that the Federal Antimonopoly Service (FAS) has given the green light for Digital Broadcasting, which is owned by Sistema Mass Media, to acquire 100% of DalGeoKom (Raduga TV). A source told the agency that Digital Broadcasting is considering the purchase of Raduga TV as part of the satellite broadcasting strategy of the AFK Sistema group of companies but that no decision has yet been made.

Interestingly, another Sistema group member – MTS, a leading mobile company and pay-TV provider – is also eyeing Raduga TV. It was expected to launch its own DTH platform recently but it is has yet to make its debut.

Raduga TV is currently jointly (50%) owned by MTG and Continental Media.

The change in the law will also affect CTC Media, in which MTG owns a 37.9% stake.

In a statement on the company’s website, Jørgen Madsen Lindemann, MTG president and CEO, said: “This is obviously a complex situation and we are working closely with local management and our advisers to review the various options available to us moving forward. It is too early to come with a solution for each of the affected businesses, but we are looking at a range of potential outcomes. We have built up these entertainment businesses over 20 years and the channels are some of the most watched in Russia, so we will do all that we can to preserve the interests of all of our stakeholders.”