On January 28, the satellite signal of four leading Ukrainian media groups (1+1 media, StarLightMedia, «Inter Media Group» and «Media Group Ukraine») was encoded.
For viewers who have been using satellite dishes for many years, this means that access to the main Ukrainian entertainment channels has been closed. To get it back, you just need to contact one of the official satellite operators, there are only two in Ukraine - Viasat and XtraTV. Or choose another way to receive a television signal - terrestrial digital TV (DVB-T2), cable TV (analog or digital), IPTV/OTT-service (television over the internet).
Although only a small percentage of the 4 million satellite dish owners have opted for paid TV / PayTV, we decided to find out which providers viewers preferred and how this distribution took place.
According to various estimates, the main influx of subscribers came to terrestrial digital TV (DVB-T2), there is also an increase in connections from cable providers and IPTV/OTT services. Logically, satellite TV consumption has decreased significantly. However, legal satellite TV providers in Ukraine Viasat and XtraTV have begun to increase their bases. If in the summer of 2019 they shared about 100 thousand paid subscribers, now this number has increased.
The main players in the Ukrainian paid TV market shared their estimates of subscriber base growth in 2020.
Director of Xtra TV Yuriy Cherednyчок:
We have already recruited about 100 thousand subscribers, the increase was almost 4 times. Our plans are to increase the base to 250-300 thousand subscribers by the end of 2020.
Anton Yur'єv, Sales Director Viasat:
The number of connections to the Viasat satellite TV service has increased significantly, especially high demand was in the first days after encoding. Currently, the number of subscribers to our services is already over 200 thousand, however, there is still a large part of those who have not chosen a way to watch channels after encoding. Therefore, we continue to receive requests from subscribers who are interested in various offers, and inform them about the possibilities and advantages of using the services of the official satellite TV operator.
Since a large part of the subscribers is still in the process of choosing a way to watch TV, it is too early to talk about forecasts or results. But, the dynamics of connections after satellite encoding is within our expectations. Our plans are to reach 300-400 thousand subscribers.
Ivan Shestakov, Director of Marketing and Strategy of the media service MEGOGO:
It is still impossible to highlight the data. We have a steady, steady growth without any visible anomalies provoked by external factors. And it's still too early. As we said earlier, the audience will need some time to try out different options and choose the most suitable solution for themselves. The effect of satellite encoding will not be sharp and will stretch for at least six months.
Boris Danilov, Director of Digital Screens (internet TV service OLL.TV):
At the moment, we see a growth of 4-5% above our usual growth. These are the viewers who prepared in advance or chose the OLL.TV service in the first days after encoding. We expect that the positive impact of satellite signal encoding will continue, but it will go more smoothly.
Sergey Sukhoruk, Head of the Fixed Line Department Kyivstar:
Now we see sales growth of 15-20%, month to month. After encoding, we also expect new inclusions, but not so dynamic.
Mykola Andrushchenko, Head of Digital Marketing OTT-service «Lanet.TV»:
We can say about the significant dynamics in the growth of the subscriber base of the OTT-service «Lanet.TV» in connection with the encoding of satellite television. So, if you look at the conversion rate of registrations in the service in the subscription to paid packages (Graph 1), it is clear that in October-November 2019, the conversion was quite uniform. The conversion rate was in the range of 0.5%-1%. But from the beginning of December, there was an increased interest of the audience in packages with paid channels. This interest grew steadily, correlating with the conversion rate, which reached high values at the beginning of January and lasted throughout the month and at the beginning of February. During this period, on some days, the conversion rate reached 5.8%.
Sandra Krauynya, Marketing Director of «VOLYA»:
According to our research, out of 4 million households that used free satellite signal until 28.01.2020, only 10% (about 320 thousand households) will choose a cable provider. Considering the number of cable operators in Ukraine - about 400, this volume will not significantly affect the paid TV market.
We do not expect a global increase in the subscriber base, which would be associated with the process of satellite encoding.
At the same time, according to our estimates, interactive services (OTT/IPTV) will take 7%, and another 12% will switch to paid DTH platforms.
Thus, the total PayTV market in 2020 will grow by 29% (about 1.2 million households).