The Media Group Ukraine sets new rules for distributing its football channels in TV networks in 2016, i.e. the substitution of distributional model for the À La Carte one, reduction in pay-per-view and settlements in national currency.
The subscription fee to sports channels “Football 1” and “Football 2” for satellite, cable and IPTV operators will not be bound to the dollar as of next year. In recent years, the providers distributing a package of two football channels in their networks have payed for it the equivalent of $ 0.25 per subscriber. As of next year the price will be set and fixed in the national currency.
In addition, the subscription fee in the national currency will be 20% lower than the one set in 2015. Previously, the fee for operators was formed in terms of the exchange rate of the National Bank, but at most 20 hryvnas per dollar. It was equal to 5 hryvnas per subscriber. In 2016, the Media Group Ukraine decided to reduce the price for two channels up to 4 hryvnas, thus creating conditions to support this TV market segment.
The third news item of new subscription season refers to the distribution of channels “Football 1” and “Football 2” under a new distributional model À La Carte.
The company decided to introduce a new scheme concurrently with the existing distribution model in the upcoming year. The provider will choose by itself, whether to shift to a new scheme implying individual sales and income distribution between the channels’ owner and the provider, or to keep on the same one when “Football 1” and “Football 2” were bought in bulk.
While commenting on the innovations, Alexey Kurakin, Business Development Director of the Media Group Ukraine, states: “Despite the market complexity, the media group ventured to adopt several important decisions. The company understands what providers and audience expect. On the other hand, it is essential to move forward and grow, so, except for the anticipated steps to maintain the pay-TV market, the company ventured upon an unusual experiment, i.e. to apply distributional schemes CPS and À La Carte simultaneously. As a rule, such schemes are not applied together, but we resolved to try it. The detailed information about new subscription terms and conditions to TV channels “Football 1” and “Football 2” will be available to providers in November”.
Alexander Denisov, Director of TV channels “Football 1” and “Football 2”, shares a success story: “Since 2015, the Media Group Ukraine has been the exclusive right holder of broadcasting the Champions League and Europa League in Ukraine. Many providers and other market players worried about us. They anticipated an increase in subscription fee to the TV channels “Football 1” and “Football 2”. However, our company is a professional in its business, i.e. the exclusive rights and agreements with right holders contributed to the fact that our most demanded fee-based TV products like TV channels “Football 1” and “Football 2” became more available. We have done a huge work, so the football channels can boast of spectacularity and the business model of flexibility”.
