MTS LAUNCHES CONTENT STORE

Thursday, September 17, 2009


Last week, we launched Omlet.ru – an online and mobile content portal that offers the largest selection of licensed videos, music and games. The goal behind this is to further stimulate our content revenues, which already contribute significantly to our performance. For example, content revenues for the full year 2008 were around 9 billion rubles with the second quarter 2009 revenues growing 31% year-on-year.

The new content portal is unique to our markets as it offers a high degree of interoperability between mobile devices and PCs / laptops as well as the necessary flexibility in terms of access network (e.g. EDGE vs. 3G) and phone model. Omlet.ru also offers a “dual delivery” system, whereby purchased music tracks can be downloaded to both a mobile device and a computer.

Given the nature of our business, MTS is best positioned to offer paid content as we already have the necessary financial arrangements with our subscribers and can utilize their pre-paid accounts for content purchases. This differs from the Western markets where the vast majority of content stores rely on credit card payments whereas the Russian credit market is still its early development stages.

By the virtue of our customer base and brand recognition, our content portal has already become a major force in the Russian Internet space. In test mode since April 2009, the portal attracted around 1.5 million users. It must be noted that there is a lack of legal content providers in Russia at the moment, and piracy is widespread. MTS is one of a few companies able to sign partnerships with the entertainment industry’s major players. Recently, we signed an agreement with Paramount Pictures that allows our customers to watch streaming videos for free and download them for a price lower than they would pay for a pirated copy on the streets.

Tags: , , ,

blog comments powered by Disqus

Recent Tweets

Follow me, Josh Tulgan, MTS Director for Corporate Finance and Investor Relations, on twitter

Twitter January 18, 22:16
Russian Telecom Giant MTS Acquires Gambit Esports #MTSS $MBT #eSport https://t.co/qU52ISHdlm

Twitter January 18, 22:13
Russian service provider #MTSS has entered the rapidly growing #eSports market by a... https://t.co/AJqwHMl1Z4

Twitter January 17, 10:45
#AI, #VR, #AR, healthcare poised to be next #digital #disruptors via @forbes https://t.co/72zRptDX3m

Twitter January 17, 07:55
#Internet penetration in #Russia reached 72.8% in 2017 with 87mn total #internet users https://t.co/jug4E6cAuM

Twitter January 17, 06:49
#MTSS opened telecom lab for students in Tambov $MBT https://t.co/F4JSErTcbG

Note: For Customization and Configuration, CheckOut Recent Tweets Documentation