Russia’s Mobile TeleServices (MTS) plans to sign a marketing agreement with now defunct local digital satellite TV platform Raduga TV to attract its subscribers.
The agreement will enable the telco, Russia’s largest mobile operator, to advertise its…
The agreement will enable the telco, Russia’s largest mobile operator, to advertise its soon-to-be-launched satellite TV services to Raduga subscribers, an MTS spokesman said.
The agreement is set to be signed today and further details are expected shortly.
In mid-November, MTS announced that it had partnered with Sistema Mass Media (SMM), one of Russia’s largest media holdings, to launch a nationwide satellite TV service this year. Sistema JSFC is the parent company of both SMM and MTS.
At the time, the MTS spokesman told SatelliteFinance that the company would invest Rbs5bn-Rbs6bn (US$110m-US$130m) in the satellite project between 2014 and 2016 and was considering an acquisition of Raduga. However, he pointed to certain legal risks connected with the potential purchase.
In late November, MTS said it had decided against buying Raduga and would focus on developing satellite TV services under its own brand instead.
Shortly afterward, on 5 December, Ratuga, backed by Sweden-based media company Modern Times Group (MTG), ceased broadcasting. MTG explained that this was because it had failed to secure the relevant licence from the local media regulator.
MTG owns 50% of Raduga Holdings, the principal owner of DalGeoCom, which operated Raduga. The Swedish firm said the value of its investment in Raduga Holdings was written down 100% in February, resulting in a SKr147m (US$19.6m) impairment charge in its operating income for Q4 2013.
Russia’s Continental Media owns the other 50% of Raduga Holdings.
Irina Gofman, MTG’s head of Russia, CIS and pay-TV emerging markets, said Raduga had explored all options over the past year to obtain the right licence.
She noted that the company was working hard to move subscribers to another operator and pointed out that Raduga’s closure does not affect MTG’s pay-TV channel business Viasat, which currently offers 15 channels in Russia and plans to launch five new channels in 2015.
According to data produced by iKS Consulting, Moscow-based Raduga was the fourth largest DTH platform in Russia as of Q2 this year, local media reported. Launched in 2009, Raduga offered multiple Russian and international channels nationwide.
