2010 Capital Markets Day
Manfred Aronsson, Head of MTG Sweden The New Game in Town
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Swedish TV viewers
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
English football = True (since 1969)
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Why acquire Premier League ? 4 perspectives: •
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
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Major strategic changes 2008 DTH “channel swap”…
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Major strategic changes 2008 …basic channels became commodity
Premium Sport Key differentiator
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Action on premium content & brands From generic sport channels…
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Action on premium content & brands ...to clear premium channels !
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Viasat Sport ‘make-over’ journey has paid off for the brand… Do you consider Viasat Sport ?
Do you prefer Viasat Sport ?
52% higher than in 2008
125% higher than in 2008 Prefe re nce 2008-2010 'Any Viasat Sports Channel' vs Canal+ Sport
Conside ration 2008-2010 'Any Viasat Sports Channel' vs Canal+ Sport
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
Viasat Sports Channel
Canal+ Sport
8
mar-10
jan-10
nov-09
sep-09
jul-09
maj-09
mar-09
jan-09
nov-08
sep-08
jul-08
mar-08
mar-10
jan-10
nov-09
sep-09
jul-09
maj-09
mar-09
jan-09
nov-08
sep-08
jul-08
maj-08
mar-08
Viasat Sports Channel
maj-08
30% 25% 20% 15% 10% 5% 0%
60% 50% 40% 30% 20% 10% 0%
Canal+ Sport
PL = great opportunity to add weekly premium product…
29 13 Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
match days / season match weeks / season 9
115 38
100 30
PL vs. other national leagues – 3 times as strong as second best… Measuring how strong a single right is to move a subscriber 9
00 ,
8
00 ,
7
00 ,
6
00 ,
5
00 ,
4
00 ,
3
00 ,
2
00 ,
1
00 ,
-
Premier League
Allsvenskan
Superettan
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
Italian League
Spanish League
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•
Survey included 1 500 respondents, statistically representing the Swedish digital TV population
•
DTH, IPTV, DTT hhs
PL shifts the premium football balance to Viasat's favour
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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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 AB Nasdaq OMX Stockholm : MTGA, MTGB
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Offerings per platform - price increase from 1st August IP/Cable Partners
IP/Cable Partners with HD
139 199sek
139 199sek (HD +40sek)
Viasat Fotboll
SD Package
Viasat Sport
250 games
Viasat DTH
+HD Package 300 games
Viasat Sport HD
+ Extra channels 380 games
HD
EXTRA
Viasat Premier League HD
Extra Channels 1-3
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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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 AB Nasdaq OMX Stockholm : MTGA, MTGB
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From “DTH/DTT puddle” to Virtual Operator and Viasat Gold sales access
After analogue shut down 2007…
Jun 2008
Oct 2009
Feb 2010 S-VOD on internet
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Mar 2010
Jun 2010
ComHem deal – extending fishing waters further •
Extended sales access (TM / door to door) – joint vision to drive digital and pay tv
•
Viasat Gold introduced - thus available on all platforms
•
Viasat OnDemand S-VOD introduced on ComHem
Sales access & Viasat Gold to 90% of cable and 75% of broadband hhs in Sweden
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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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 - Up front payment of majority of cash cost in Q2 2010 - 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 AB Nasdaq OMX Stockholm : MTGA, MTGB
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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 AB Nasdaq OMX Stockholm : MTGA, MTGB
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ComHem Deal – TV10 Channel Launch
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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TV10 – using sport rights more effectively
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ATP Masters 1000 tennis
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Champions League (2nd pick Tuesday)
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ATP 500 tennis
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F1 (qualifications Friday, Saturday)
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ATP 250 tennis
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HockeyAllsvenskan - Match of the month
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Swedish Basketball League
•
NHL - Match of the month
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Euroleague Basketball
•
Golf Majors
•
World Championships Basketball 2010
•
Eurobasket 2011
•
NFL
•
Various boxing
•
K-1
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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TV10 – adding male viewing and cross promotes to premium sports
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Champions League (2nd pick Tuesday)
•
F1 (qualifications Friday, Saturday)
•
HockeyAllsvenskan - Match of the month
•
NHL - Match of the month
•
ATP Masters 1000 tennis
•
ATP 500 tennis
•
ATP 250 tennis
•
Swedish Basketball League
•
Euroleague Basketball
•
World Championships Basketball 2010
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Eurobasket 2011
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NFL
•
Various boxing
•
K-1
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TV10 – adding reach and share via male 25-59 FEMALE
TV3 mothership, slight growth, balanced
OLD
YOUNG
TV8 offering qualitative TV for 30+ Significant growth, balanced TV6 grows to become leading in A 15-34 TV 10 – men 25-59 MALE
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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Timing for acquisition of PL rights is perfect !
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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2010 Capital Markets Day
Manfred Aronsson, Head of MTG Sweden The New Game in Town
Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB
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