MOSCOW, July 31, 2014 (GLOBE NEWSWIRE) -- Russia's leading independent media company CTC Media Inc. (Nasdaq:CTCM), announced new agreements with Russian Television and Radio Broadcasting Network (RTRS) establishing terms and conditions for participation of CTC and Domashny channels in the second multiplex of Russian digital television broadcasting system.
Yuliana Slashcheva, Chief Executive Officer of CTC Media, commented, "Active stance of CTC Media and coordinated effort of all market players helped to ensure the revision of digitization program schedule, with its full launch now postponed from 2015 to 2019. This change will help the holding to save more than 5 billion rubles on operating costs until 2019. It is a very positive development for CTC Media and the whole TV industry as we now got some time to prepare for transition to digital and money to invest in high-quality content."
Under the new terms CTC Media will pay up to 185 million rubles exclusive of VAT in 2014, compared to the previous estimate of 900 million rubles. This change in distribution costs reflects the adjustments to network development and launch schedule.
The second multiplex will start broadcasting in cities with population over 50 thousand in the second half of 2014.
Between 2015 and 2018, the infrastructure will be expanded to cover cities with population over 10 thousand. In 2018, RTRS will roll out the infrastructure to serve cities with population under 10 thousand.
Starting from 2019, RTRS will put into operation a complete infrastructure required to broadcast in cities with population under 50 thousand.
Sergey Petrov, Chief Broadcasting Officer of CTC Media, commented, "The revised schedules of the digitization program and the payments from the participants of the second multiplex to RTRS will balance the interests of the state and broadcasters, and will contribute to stable development of the industry. The new program implementation schedule will improve the economy of media businesses while enabling a phased roll-out of nationwide digital broadcasting infrastructure."
CTC Media is a leading Russian independent media company, with operations throughout Russia and elsewhere in the CIS. It operates three free-to-air television networks in Russia – CTC, Domashny and Peretz – as well as Channel 31 in Kazakhstan and a TV company in Moldova, with a combined potential audience of over 150 million people. The international pay-TV version of the CTC channel is available in North America, Europe, Central Asia, Armenia, Georgia, Azerbaijan, the Middle East and Kyrgyzstan. Peretz is also available in Belarus and Kyrgyzstan. CTC Media also has a number of digital entertainment media assets: videomore.ru, domashniy.ru, ctc.ru, peretz.ru. The Company's common stock is traded on the NASDAQ Global Select Market under the symbol "CTCM". For more information on CTC Media, please visit www.ctcmedia.ru.
For further information, please visit www.ctcmedia.ru