These are eventful times for DTH platform operators in Russia.
Just this week we learned of the resignation of Olga Abramova, the head of Raduga TV, after only two months in the job. Her departure was particularly significant in that it came only a day after it was reported that Russia’s interior ministry had launched an investigation into Raduga TV, following a request from Roskomnadzor, for allegedly distributing satellite TV services without a licence.
Pressure on Raduga TV, which is 50% owned by Modern Times Group (MTG), got under way towards the end of last year but appeared to have subsided a few months ago when it was awarded universal broadcasting licences for the proprietary channels Raduga 24 and Otbornoy 24. This appeared to allow the company to apply for a satellite licence despite a court ruling against it.
In the meantime, rumours of a possible sale began to emerge but these were strongly denied by MTG, which insisted it remained committed to the Russian market.
Furthermore, in February MTG announced that it had decided to write down 100% of the intangible assets, principally goodwill, in Raduga TV due to the “ongoing uncertainty and lack of visibility surrounding the licensing status and requirements” for the company.
MTG is undoubtedly a pioneer in the Russian market and in Raduga TV it has built one of the country’s most successful pay-TV services, with 445,000 subscribers as of the second quarter. While it probably remains committed to Raduga TV, what happens now is hard to predict.
Elsewhere in the DTH sector, we are seeing Orion Express emerge as a real threat to the market leader Tricolor TV, if not in subscriber numbers (the latter is now one of the world’s most popular pay-TV services) than in terms of growth. Just this week it was reported that it had introduced a new offer effectively making one of its main services available free of charge for three years.
What is interesting here is that one analyst was of the view that the company may be seeking to significantly grow its subscriber base ahead of a possible sale.
We are also seeing the long-established NTV-Plus, which celebrates its 20th anniversary in two years time, become a more affordable and mainstream service as it, too, aims to secure more customers in what as an increasingly saturated pay-TV market.
All in all, these are eventful times for DTH platforms in Russia.