Digital Media Holding (DMH)

History

2020: Acquisition of a share by MegaFon

MegaFon purchases a share in Digital Media Holding (DMH) LLC, the head company of video service Start. On October 28, 2020 TAdviser was reported about it by representatives of MegaFon. Occurrence of the strategic investor will allow Start – one of fast-growing video services in Russia – to continue to strengthen the positions in the market. It is planned that the transaction will be implemented in two stages, as a result the share of Megafon in Digital Media Holding LLC will make 33.8%.

MegaFon becomes the co-owner of video service of Start. Photo source: vladtime.ru

DMH – the head company of Start holding which includes the video service of the same name and studio and also the distributor of All Media. The main share and control will remain for the current shareholders and founders of holding. For October, 2020 DMH possesses 74% in video service of Start and studio - producer of content, the remained share belongs to Gazprom Media Holding^[1].

Start– the fast-growing player of the market of OTT video services in Russia, the representative of production of bonus content for the digital environment. MegaFon as the shareholder will support further strengthening of positions of Start in the market – in the next three years we are ready to invest in development of the company to 5 billion rubles. MegaFon of TV and Start– two complementary assets with different business models – a marketplace and a monosubscription with special content, audiences of services are not crossed. The transaction does not assume structural changes for Start or exclusive conditions of cooperation. noted the CEO of Megafon Gevork Vermishyan.

Audience of video service of Start for October, 2020 - more than one million paying users, service it is available to Russian-speaking audience worldwide. Start occupies 6% of the market in a paid segment, for the first half of the year 2020 growth of revenue of Start was 362.9% in comparison with the same period of 2019.

It is the first transaction on involvement of the external investor in Start. In three years the holding proved the viability of the business model, having become the fast-growing player in the market, and it was important to us to attract strategic investor at this stage. Appearance of the strategic partner on behalf of MegaFon company – the important event opening opportunities for business growth. The platform already came to operating profit and self-sufficiency therefore investments of Megafon will be directed first of all to increase in production volumes of original content and development of the adjacent directions of business. speaks the CEO of video service of Start Yulia Mindubayeva.

Start has producer examination on production of bonus series and movies. For last three years video service started more than 30 original projects created by own studio including Kept women, Former, "257 reasons to live", Storm, "Is better, than People", "Off Side", Text, Belgrade Hotel and also prime ministers of fall of 2020 are series "Good Person", "Sherlock in Russia" and others. For October, 2020 in development of Start more than 50 projects, including focused on family and children's audience.

Start actively develops outside the CIS, including made several large deals on the original projects which became an important step of recognition of the Russian content in the world: the film series "It Is Better, than People" became the first project from Eastern Europe sold for Netflix Original, Kept woman - the Russian series which came to Amazon Prime under the Originals and Exclusives brand.

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