CTC Media - Operations in The CIS

Operations in The CIS

“CTC Media” has recently entered other CIS markets outside Russia: it acquired a majority economic interest in Channel 31 Group in Kazakhstan and registered a new broadcasting company in Uzbekistan — reaching potential audience of over 40 million. “CTC Media” continues to view the countries of the former Soviet Union as attractive strategic opportunities. It plans to continue to execute on its expansion strategy by extending the reach of its brands to other markets in the CIS.

KAZAKHSTAN

Channel 31 is based in Almaty, Kazakhstan, and has been broadcasting since 1992. The channel is currently the fourth largest in Kazakhstan in terms of audience share, which averaged 7.1% in the second half of 2007, and targets primarily young audiences aged 6–54.

Kazakhstan has significant potential for further growth in the television advertising market and is the third largest among the countries of the former Soviet Union behind Russia and Ukraine. Television viewership is remarkably high among young audiences, with viewers younger than 35 years old comprising nearly half of the total television audience in the country. Thus, “CTC”'s focus on younger demographics provides it with an opportunity to gain audience share. Together with its local partners “CTC Media” aims to create a new high quality entertainment television in Kazakhstan while maintaining the channels' distinct local appeal.

Broadcasting in the “CTC” format on “Channel 31” began in March 2008. The current programming mix consists of “CTC” shows and series (60%), as well as local Kazakhstan programming and foreign content acquired specifically for “Channel 31” (40%).

“CTC” series. “Channel 31” shows most popular “CTC” sitcoms, such as “The Nanny” and “Daddy’s Girls”, as well as its original hit series “Cadets”, all of which underpin strong “CTC” brand and proved to be successful with Russian speaking viewers.

“CTC” shows. A number of well-established and newly launched “CTC” shows aired on “Channel 31” include “The Brainiest”, “Good Jokes”, and “Just Kidding Me”.

Foreign movies. Just like on the flagship channel “CTC”, “Channel 31” shows European and Hollywood films.

Local programs. Locally produced content includes general news (Informbureau) and a number of thematic programs in Kazakh language, including Muzzone (musical program which is among the channel’s top-rated shows).

Other programming includes sports events, such as UEFA matches, and children animated cartoons.

UZBEKISTAN

“CTC” has established a new TV company in Uzbekistan in cooperation with “Terra” group, a leading independent Uzbek media holding, which is to commence commercial broadcasting in April 2008 on “Channel 31”. The channel’s programming schedule will include a mix of “CTC” and “Domashny” content.