Sex, Drugs & Rock'n'Roll: A Unique Insight into Russia's Explosive Online Video Industry from the Market Leader - Presentation by Egor Yakovlev, Founder & CEO of Tvigle and Maxim Melnikov, Founder & CEO of Media3 at the NOAH 2013 Conference in London, Old Billingsgate on the 13th of November 2013.
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
58
Total Unique Video Viewers (mn)
80
CAGR 2010-15 = 29%
77
CAGR 2010-15 = 20%
68
70
46
40
60
38
50
50
45
39
40
28
22
30
58
55
27
20
10
0
Russia Germany France
UK
Italy
Spain
2010
2011
Internet users, mn
Source: comScore
2012
2013
Video audience, mn
NOAH Conference // 13 Nov 2013
4. 4
An “anytime anywhere” internet audience
appreciating the freedom of multiple devices…
The third largest Smart TV market
worldwide and multiplatform
video consumption is on the rise
Russian consumers enjoy getting on
the net with a number of devices
Number of devices with Internet access per
Internet users in Russia and the USA
Sales of mobile devices and Smart TVs
(in million devices, 2000-2012)
6
45
5.3
40
5
4
4
3.3
35
2.4
16.1
30
25
20
3
2.2
2
2
1.8
8.2
15
3.5
10
1
5
0
12.7
12.7
16.4
19.8
22.2
8.1
0
2000
2012
Russia
USA
Source: MagnaGlobal from Yune & IPG Media report (USA), ACVI
from TNS marketing index (Russia)
2011
2012
Smartphones
2013
Tablets
2014
Smart TVs
2015
NOAH Conference // 13 Nov 2013
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
179
166
200
191
167
180
150
100
95
80
105
85
100
76
60
100
40
48
53
67
59
50
20
20
2011
0
2012
2013
2014
2015
Online video advertising revenue, $US mln
Source: EWDN
250
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…
Piracy accounts for approximately
95%
of downloads
Top countries by the number of
sites with illegal video content
1% 1%
1%
2%
in Russia
10%
5%
39%
7%
amounting to an estimated
5bn
of piracy-related
downloads
and billions of US dollars in lost revenue.
11%
10%
13%
Russia
Ukraine
BVI
Great Britain
USA
Netherlands
Latvia
Luxemburg
Kazakhstan
Roumania
Germany
But laws, mentalities and platforms are changing quickly
…and piracy downloads are transferring into legal video views
NOAH Conference // 13 Nov 2013
10. 10
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
>22k
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
11. 11
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
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
14. 14
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
15. 15
Egor Yakovlev
Founder, CEO
EMAIL: egor.yakovlev@tvigle.ru
PHONE: +7 903 136 5836
Maxim Melnikov
CEO
EMAIL: maxim.melnikov@media3.ru
PHONE: +7 985 643 5606
NOAH Conference // 13 Nov 2013