Prague Business Breakfast

Prague 11th November 2014

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073

M7 Group - Introduction

European Provider of Satellite Services

Established in October 2009 in the Grand-Duchy of Luxembourg
M7 Group operates the following brands:
CanalDigitaal in the Netherlands,
TV Vlaanderen in Flanders and
TlSAT in French speaking Belgium,
AustriaSat in Austria and Hungary and
Skylink for the Czech and Slovak market.

M7 Group DTH number 4 in Europe

3 million viewers who use a small

dish to receive hundreds of digital
TV and radio channels from Astra
satellites on 23,5E and 19,2E
and Eutelsat 9E.
4. DTH platform in Europe

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073

Skylink number 1 in Czech satellite DTH

The oldest and biggest DTH platform in Czech

Republic and Slovakia

Joined M7 Group in 2011

1,3 million customers in Czech Republic
Access to 120 TV channels, out of it 28 in HD
quality

+ hundreds of international FTA channels on

Astra satellites 23,5E and 19,2E

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073

Czech TV market big challenge for pay TV platforms

Biggest challenge for Czech Pay TV platforms

=
Free distribution of attractive content via DTT

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073

Czech TV market Free to Air & Pay TV

FTA on DTT

11%

89%

FTA channels

High and growing number of thematic channels in all

genres broadcasting FTA via DTT

Key sports events and movies broadcasted on FTAs

FTAs have 89% viewership share

Very strong public FTAs with a cumulated 25% viewership

pay-TV channels

Pay TV

Despite the most developed economy, Czech Republic is

behind other markets in pay TV penetration

Pay TV penetration < 40% and only slowly developing

ARPU decreasing

Competition of business models (FTA against Pay TV)

rather than competition between Pay TV platforms

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073

Czech TV market Free to Air & Pay TV

Commercial Broadcasters
Free to Air DTT offers no competitive advantage to
Broadcasters anymore since all commercial stations are
on DTT (no lift in ad revenue and no shift in market
balance)

44% of Czech homes watch on

their main TV set signal from
DTT
Many other use DTT on their
2nd TV sets
FTA DTT is the strongest TV
platform in Czech Republic

Pay TV platforms cant grow whilst Free to Air

Broadcasters lose money

Broadcasters seem forced to be free, but looking for

some revenues from Pay TV subscription of Operators

Operators
Operators face decline of ARPU when fixed costs
increase, searching way out via:
New services (OTT)
Aggressive campaign discounts
Securing exclusive content (exclusive Pay TV
channels)
Better service and higher quality

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073

Skylink way

More and more homes are equipped by big flat TV screens where broadcasting in SD quality
provides visibly worse picture than other available video signal sources (blu ray)

HD became new broadcasting standard for demanding viewers

Skylink is the leading platform in HDTV since 2010

Strategic decision has been made:

All popular TV stations in HD on Skylink before end of 2016

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073

Thank You for Your Atention

Jaromr Glisnk
Member of the Board of Directors, M7 Group SA

Skylink is trade mark used under licence of M7 Group S.A., Rue Albert Borschette 2, L-1246 Luxembourg; R.C.S. Luxembourg: B 148073