June 10 2010

Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international entertainment broadcasting group, today announced that it has signed a long-term agreement with leading Swedish cable-TV operator Com Hem. The agreement until the end of 2013 enables Viasat to market and sell its premium pay-TV channel packages to almost 1.65 million Com Hem TV households in Sweden, of which 600,000 are digital TV households.

Viasat will now be able to market and sell its packages directly to all of Com Hem’s cable TV customers. The agreement follows previous similar virtual operator agreements with Telia in Sweden, Telenor in Sweden and Norway, Elion in Estonia, as well as with Tele2’s cable TV operation in Sweden.

Com Hem is the largest Swedish TV distributor and reaches 40% of all Swedish households. Com Hem has to date offered pay-TV packages including Viasat’s free-TV and pay-TV channels, as well as the TV1000 movie and Viasat Sport packages. The new agreement will in due course enable Com Hem’s customers to subscribe to the full Viasat Gold package, which includes all of Viasat’s own-branded free-TV and pay-TV channels and a wide range of leading third party free-TV and pay-TV channels. The Viasat Gold package is a bundled combination of Viasat’s Premium package and Com Hem’s Medium package.

The new agreement expands the existing sales cooperation between Viasat and Com Hem, and Viasat will now be the exclusive partner for the door to door sale of Viasat pay-TV packages and the whole range of Com Hem packages to Com Hem households. Furthermore, the agreement significantly enhances the Viasat OnDemand video offering, which will now be available via Com Hem’s digital set top boxes.

Hans-Holger Albrecht, President and CEO of MTG, commented: “The agreement with Com Hem extends our position as Scandinavia’s leading virtual pay-TV operator. We can now market our full pay-TV packages to a new universe of cable households that we have not been able to reach directly before. With this deal, we are able to access 90% of cable households in Sweden and 75% of IPTV households, in addition to our existing satellite platform. This is all part of our “anytime anywhere” strategy, whereby we strive to make our channels as broadly available on as many distribution platforms as possible, and illustrates the growing demand for our leading premium pay-TV packages”.

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