The New Pay-TV Paradigm

• 1. 2010 Capital Markets DayJrgen Madsen, CEO MTG Denmark Martin Lewerth, Chief of Staff Pay-TV The New Pay-TV Paradigm Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 1

2. What makes a Customer buy a pay-TV subscriptionFlexibilityPriceContentCustomer Quality ServiceMarketingAnytime& AnywherePromotion Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 2 3. Content IS King! The willingness to pay for content increases with the exclusivity and quality of the viewer experience Premium Pay-TV Channels what customers generally want andSports / Movies / Erotic what they are specifically preparedHigh Definition to pay for is not the same thing!Basic Pay-TV channels Documentaries / Kids / Sports / Movies / News Free-To-Air TV channelsPublic Service & leading Commercialchannels / Music / News[AVAILABLE ON ALL PLATFORMS] Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 3 4. Your Number 1 in Entertainment Viasat Channels3rd Party ChannelsFree-TV Pay-TV Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 4 5. ...at the right price! Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 5 6. Flexible Packaging Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 6 7. Your Number 1 in SportsExp. 2012Exp. 2013 Exp. 2012 Exp. 2013 Exp. 2011Exp. 2012 Exp. 2012 Exp. 2011Exp. 2012Exp. 2015 (2013)Exp. 2013Exp. 2015 Exp. 2013Exp. 2012Exp. 2012 (Sweden) Exp. 2012Exp. 2011Exp. 2012 Exp. 2012 (Pick: 2,5) Exp. 2011 Exp. 2012 Exp. 2012 (DenmarkExp. 2010and Norway) Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 7 8. Action on premium content & brandsFrom generic sport channels Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 8 9. Dedicated Premium Sports Channels! Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 9 10. Your Number 1 in MoviesStudioDuration DISNEYuntil 2012 SONYuntil 2015 NBC UNIVERSAL 2011-2013 NORDISK FILMuntil 2010 SANDREW METRONOME until 2011 SCANBOX until 2010 SVENSK FILMINDUSTRI (Scandinavian titles) until 2012 Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 10 11. Dedicated Thematic Movie Channels! Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 11 12. Major 2010 new releases securedUS remake Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 12 13. Strategic Overview Studio deals negotiated and monitored centrally in London by experienced team buyingpan-Nordic and into Emerging Markets for both pay and free-TV = unparalelled network &leverage Sports rights acquisition controlled centrally but negotiated locally in-market with multi-yearacquisition of key multi-country rights (e.g. UEFA Champions League held by TEAM inSwitzerland) handled centrally Rights acquired for all media windows (pay / free / online / mobile) wherever possible tomaximise return on investment and deliver maximum impact and profile for rights holder Focus on long term deals with additional cherry picking of specific properties Clear hurdle ROI rates on each and every deal to ensure profitability over life of contract Intregrated free & pay-TV operations enables Viasat to use FTV channel muscle to promotePTV offerings and marketing muscle to X-promote and build powerful channel brands Addition of thematic channels, HDTV and catch-up services to increase stickiness & ARPU Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB13 14. Well-positioned Premium Content Owner & Aggregator Status as preferred partner of many content producers / rights holders Leverage of buying for multiple territories & windows Structure & infrastructure to ensure broad availability, distributoin & promotion of content Tiered genre-focused offering provides pricing flexibility Status as distributor / virtual network operator provides customer contact & sensitivity No change to competitive environment 1 pan-Nordic peer with competition in local marketsfrom channels & operators Unparalelled ability to generate return on investment BUT proven track record of walkingaway from over-priced deals Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB14 15. Scandinavia - a unique and changing market with new opportunities Scandinavia is the first truly digital TV markets in the world,analogue shut down completed One of the most competitive pay TV markets in the world Among the highest broadband penetration globally Among the highest online usage in Europe across all demographics Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 15 16. The strategy is to increase our reach as a virtual network operator as well as making our services available in a network independent environmentPlatform market shares, Scandinavia 2005Platform market shares, Scandinavia 2010 Satellite; 19% Satellite; 19%DTT; 7% DTT; 19%AnalogueTerrestrial; 20% IPTV; 9.0%Cable; 55%IPTV; 0%Cable; 52% 2. Virtual operator in3. Internet 1. MTG DTH/satellite3rd party networksdistribution- Viasat is content and platform - Viasat is content operator - Viasat is content and platform operatoroperator- 3rd party network universes - DTH universe- Global universe- Direct access to broadband customer - End-user relationshipbase - Device agnosticSources: Viasat Broadcasting research Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 16 17. Despite the new opportunities for increasing our reach, DTH/satellite still offers growth opportunitiesPrice comparison of pay TV Despite growth in IPTV, DTH has maintained its500product tiers, Sweden market share45040% 400 350 Room to improve ARPU 300 250 We are the clear price leader in all markets 200 150Viasat Strengthened premium content gives further room for 100Canal Digitalprice increases50Boxer 0 Value adding services drive ARPU (HDTV, multi-roomBasicMid tier Mid+sportExt. basic Mid+movieGoldand video on demand) 5 000 Premium DTH ARPU (SEK) DTH also supports and provides economies of scale4 500 for the expansion as a virtual operator and online CAGR: 7.9%4 000 distributor3 5003 000 Sources: Viasat Broadcasting research20052006 20072008 2009 Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB17 18. As a virtual network operator we are reaching new universes and capitalising on the growth within IPTV Our position as a virtual operator IPTV subscribers, Scandinavia 800 000 As a virtual operator we have sales access to subscribers in 3rdparty networks Customer ownership, control of pricing and packaging a key225 000factors that we maintain being a virtual network operator Package and price structure is similar to our satellite businessQ4-2007 Q1 2010 Lower ARPU than DTH but low SAC so similar margin overaverage life of contract IPTV subscribers share ofGrowth opportunitiesall broadband households As we predicted IPTV would grow, over the last 2 years theBroadband HHs,market share has gone from 3% to 9% 6 500 000 IPTV still offers further growth opportunities IPTV HHs, As a virtual operator we are taking part of this growth 800 000 Sources: Viasat Broadcasting researchModern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB18 19. The virtual operator strategy has expanded our reachable universe and is increasing Viasats premium subscribers We have recently closed virtual operators dealsViasats IPTV subscribergrowth, Scandinavia with all major IPTV networks (~66% of all broadband 165 000 HHs in Scandinavia covered): 140 000 CAGR: 77% 115 000 90 000 65 000 40 000 We are now also extending the model Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- into cable TV further increasing our footprint08 08 08 08 09 09 09 09 10Broadband HHscovered by agreements,5 600 000 We have a position with continued growthBroadband HHs opportunities as a virtual network operator not covered byagreements, 1 600 000 Sources: Viasat Broadcasting research Modern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB 19 20. TV goes online - changed consumer behaviour and technical enhancements are the facilitators We see a rapid increase and usage of online video on demandservices consumer focus is now on professional content Time viewed online increase The market is set for an explosion in web-enabled consumer devices On average the streaming cost has decreased 44% per year over the last 5 yearsOnline video views, MTG online SwedenVideo view, HULU (US)10 1 200Video views (mill./month) Video views (mill./month)89506 Growth 1,100% Growth 305%7004 2 450 0 200 Mar. 09 Nov. 09 Jan. 09 Mar. 09 May. 09 Jun. 09 Jul. 09 Nov. 09 Feb. 09 Apr. 09 Aug. 09 Sep. 09 Oct. 09 Dec. 09 Jan. 09 Apr. 09 Jun. 09 Jul. 09 Aug. 09 Feb. 09 Sep. 09 Oct. 09 Dec. 09 Sources: Viasat Broadcasting research. comScore Dec. '09 data for online video usageModern Times Group MTG ABNasdaq OMX Stockholm : MTGA, MTGB20 21. There are many definitions and business models behind various video on demand initiatives Examples of various players in the market ServicesFree PayCatch-upTVoD n/a(transaction) SVoD n/a(subscription) AVoD n/a (advertising) Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 21 22. Our online video services fit perfect with our integrated Free- and Pay business model Example, SwedenAggregatorServices Free PayCatch-up TVoD Rental store n/a - 2000+ titles(transaction)Subscription packages SVoD- 900 live sport events/year n/a (subscription)- More than 200 titles at any time AVoDNo focus, not proven to be a sustainable business modeln/a(advertising)Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB22 23. SVoD is Pay TV online over time we aim to mirror the DTH packagingEntertainmentChildrenDocumentaryMovie SportErotic Total packageSVoDSEK 49/mSEK 49/mSEK 49/m SEK 99/m SEK 159/m SEK 99/mSEK 199/mDTH/3rd partySEK 199/mSEK 159/mSEK 159/mIncl. in movie SEK 349/m 3 months from launch we have gained 12,000 SVoD subscriptions, ScandinaviaSVoD subscribers 12000 10000 The SVoD pricing is similar to DTH and 3rd party8000networks when content is similar (sport)6000 Work in progress to clear more online rights40002000 Over time we expect SVoD pricing to mirror the 0traditional platformsFeb. Mar. Apr.May 2010 2010 20102010 Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 23 24. We are Platform and Device Agnostic Set Top Boxes MobilePC/Mac iPad/ media players Game consoles (Playstation, Xbox)Internet connected TVs (having an Ethernet port) Internet connected media adapters/set-top boxes Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 24 25. We are well positioned to succeed in in the changing landscape Exclusive premium rights for sport and moviesLocal content is key - we control it via our Free TV channelsExclusive SVoD rights on the back of our TV channelsExperienced aggregator geared up to handle everything from acquisition, packaging, salesand customer serviceWe believe subscription services are key to success we have the track record insubscription salesWe have best in class X-promotion opportunities in our territories via our Free TV channelsand radio networks Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB25 26. Extended fishing waters, superior fishing fleet and better bait Yesterday Today & tomorrow Reach:++Content: Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 26 27. 2010 Capital Markets DayJrgen Madsen, CEO MTG Denmark Martin Lewerth, Chief of Staff Pay-TV The New Pay-TV Paradigm Modern Times Group MTG AB Nasdaq OMX Stockholm : MTGA, MTGB 27