13 march 2015, 13:23

«Tricolor TV» took part in the Fifth International Forum «CONNECTED TV & DIGITAL MEDIA»

On March 11, 2015, content director of the largest Russian digital TV operator «Tricolor TV» Mikhail Goryachev has introduced his report «Acceptable Scope of Free Services for TV Viewers» to the Forum «CONNECTED TV & DIGITAL MEDIA».

The main theses made public by Mikhail at the round table within the framework of the Forum — «Who determines the content value for a TV viewer?» — were the statements that the business models of ten years’ prescription do not work any more. According to him, the main drivers of commercial TV development in all developed countries are content and high quality of servicing of subscribers.

Mikhail Goryachev
Chief Content Officer, Tricolor TV
In 2005 penetration of commercial TV in Russia was 5% according to some assessments. After 10 years, the penetration reached 68%. At the stage of the active market growth, development by the pay TV operator of its subscribers’ base, the main task was maximum increase of the market share. But when the market has already formed, this business model stops working, other development methods and other methods of efficiency assessment are needed.
In 2005 penetration of commercial TV in Russia was 5% according to some assessments. After 10 years, the penetration reached 68%. At the stage of the active market growth, development by the pay TV operator of its subscribers’ base, the main task was maximum increase of the market share. But when the market has already formed, this business model stops working, other development methods and other methods of efficiency assessment are needed.

The new accounting policy of the operator justifies these theses. Since 2015 only the individuals or legal entities who have current paid subscription for the main service are recognized as subscribers of «Tricolor TV». This policy allows to provide data transparency and corresponds to the international standards.

Mikhail Goryachev
Chief Content Officer, Tricolor TV
Since February 2014, following multiple wishes of subscribers, «Tricolor TV», jointly with its technological partners, has been supporting the constant action on exchange of receivers for the modern format supporting HDTV at the price not exceeding 50% of the market one.
Since February 2014, following multiple wishes of subscribers, «Tricolor TV», jointly with its technological partners, has been supporting the constant action on exchange of receivers for the modern format supporting HDTV at the price not exceeding 50% of the market one.

According to Mikhail, in the current market conditions, focus on provision of the basic service including maximum number of packages will be the most successful. When making decision what the content in this package must be like, the operator concentrated on the thematic TV channels which are in the highest demand of subscribers. According to research, first of all, film/serial channels attract the viewers. That is why recently «Tricolor TV» strengthened the «Edinyi» package with the premium film content. According to Mikhail, the operator’s slogan now is «We have all that you need, and all — in one package! Connect and watch!»

Mikhail Goryachev
Chief Content Officer, Tricolor TV
The statement of Konstantin Chumachenko, NGENX Director stuck to my memory. We do not offer operators to carry our joint business by the principle of income sharing because everybody in the market must do his own business. If integrators provide solutions and operators sell content, there will be more order in the telecommunication industry, and competition will become more mature.
The statement of Konstantin Chumachenko, NGENX Director stuck to my memory. We do not offer operators to carry our joint business by the principle of income sharing because everybody in the market must do his own business. If integrators provide solutions and operators sell content, there will be more order in the telecommunication industry, and competition will become more mature.

The key topics for discussion at the Forum were also forecasts of the telecom industry market development, new approaches to monetization and work with subscribers, import content substitution, its personalization and legalization, etc.

«CONNECTED TV & DIGITAL MEDIA» is the largestlargest annual event thanks to which representatives of leading internet operators and providers, manufacturers and aggregators of TV and video content, TV channels, distributors/rightholders of content, as well as manufacturers and suppliers of equipment and many others gather together. In 2015 the Forum was held on 11 March in Moscow in Holiday Inn Suschevsky Hotel for the fifth time already, having gathered participants from Russia, CIS and West-European countries.

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