Sekret Firmy (Moscow), September 15, 2003

Business TV

RBC Information Systems has launched its TV project, a new television channel, RBC TV. This means the launch of the first TV channel targeting a business audience. According to RBC TV General Director Artyom Inutin, it is a business channel broadcasting for people interested, in the first place, in economic news. The programming of the new channel includes economic and financial news, analytical reviews and programs devoted to topical problems of businesses in Russia. According to data from COMCON-Media, the channel's potential audience is 12m people while founders of RBC TV estimate its targeted audience at 5 to 7m people. "The rbc.ru gateway alone has about 1.5m unique visitors per day, and a television channel is in any event a more mass product," Inutin was quoted as saying.

CNN and CNBC acted as RBC partners in its new project. Some of their programs will be broadcasted on RBC TV. RBC TV officials say that the first of these western TV channels presents interest as a news supplier and the second one as a producer of business analytical programs. In accordance with the RBC TV concept, the new TV channel will be aired only in large cities, mostly in the European part of Russia via satellite channels NTV-plus, Kosmos-TV and decimeter bands. In addition, the company plans broadcasting to selected districts and even separate accommodation buildings. "We prefer to broadcast to one Alye Parusa complex (a prestigious residential complex) than to a whole district consisting of five-storied buildings (economy-class old residential buildings)," Artyom Inutin explained. A total of about $23m will be invested in RBC TV, $18m coming from RBC's own funds and the remaining sum was raised from investments. The new TV channel is expected to break even by the end of 2004 and all investments will pay back in three and a half years. The owners of the new TV channel are planning to achieve these goals by attracting advertisers who offer B2B services and through investor relations. "Our planned advertising volume for the year 2003 is $3.2m and we have already reached contracts for $2.7m," Inutin announced. Despite these volumes, advertising will account for only 6 percent per hour of airtime on RBC TV, and the cost of advertising will range from $600 to $3,500 per minute. However, some participants of the advertising market consider these prices too high. "Taking the present coverage of the channel, $100 per minute should be the upper limit," Kamil Khadzhiakhmetov, the Media Director of the Initiative Media advertising agency, was quoted as saying. At the same time, he admitted that RBC TV has bright prospects. "As the audience of the TV channel increases, the channel will, without a doubt, attract such advertisers as banks, insurance and finance companies," he said. Alexander Kostyuk, the Deputy General Director of the TNSGalIup Media research company, was even more optimistic. "Such TV channels are like glossy magazines, both in terms of 'premium' pricing and advertised products. With efficient management and increasing the coverage area, the plans of RBC TV will become quite realistic," Kostyuk concluded.