The international entertainment broadcasting Group MTG (Modern Times Group) of Sweden has acquired 50% of DTH satellite pay-TV platform Raduga TV operated by DaoGeoCom in Russia from Continental Media S.A., a company representing Raduga TV founders and management. The Russian startup Raduga TV was acquired in a year from its launch. According to newspaper Kommersant, the deal could be valued at $10 million. In September 2009, Gazprom Media agreed to acquire leading Russian pay-TV operator Tricolor TV.
Raduga TV will be folded into MTG-owned DTH satellite pay-TV platform Viasat Broadcasting that has 1 million subscribers in Sweden, Norway, Denmark, Finland, Estonia, Latvia, Lithuania, and Ukraine.
Launched in February 2009, Raduga TV reported 70,000 subscribers at the end of 2009. Raduga TV offers a package of more than 50 TV channels including Viasat channels for RUB 300 ($10) per month on a 3 or 6-month pre-paid contract basis. The run-rate annual revenues of Raduga TV can be estimaired at $10 million.
The Raduga TV channels, which are encrypted with the Irdeto conditional access system, are made available through the Asian Broadcasting Satellite ABS-1 (75° East) Northern beam. It covers more than 90% of the Russian territory and is operated by Russian satellite operator Geotelecommunications.
In Russia, MTG owns 39.4% of CTC Media, which broadcasts free-to-air TV channels CTC, Domashny and DTV. MTG entered the Russian market in 2001 when it acquired 75% of Darial TV (now DTV).