Sistema JSFC announced that it had reached the agreement to join forces with Mobile TeleSystems OJSC (MTS) in developing and managing the multimedia content portal Stream.ru (formerly Omlet.ru).
After completing the state registration procedure in accordance with Russian legislation, the shares of Sistema JSFC and MTS at Stream LLC (further Stream) make up 55% and 45% respectively. For this purpose Sistema JSFC invested cash funds amounting to 496.1 M RUR in the authorized capital of Stream.
Stream LLC will operate under the Stream brand, Omlet.ru portal was renamed Stream.ru. Operational management of the Stream company will be implemented by Sistema Mass Media JSC.
MTS has created one of the most successful start-up projects in the Russian media content market, and today it is obvious that the project has reached the next stage of development, requiring additional unique resources. Attracting Sistema JSFC investment and Sistema Mass Media JSC expertise will enable Stream.ru to enhance its position in the fast-growing market for video and audio content. Taking it into consideration, the selected scheme of Stream’s further development will allow MTS not only to retain stake in the asset in order to leverage competitive advantages through the launch of media content services in mobile and fixed networks, but also will add momentum to the development of the legal content market in Russia - Andrei Dubovskov, the MTS President marked.
The mission of Stream is to become a universal point of access to the variety of media resources, a single user media-space, an integral part of daily life for every person. Sistema JSFC’s investment opportunities, MTS’ expertise, as well as Sistema Mass Media’s experience in the sphere of video content production, aggregation and distribution, as we expect, will allow to create a leader in the Russian media content market and increase shareholder value, - Mikhail Shamolin, the President of Sistema JSFC, said.
Stream.ru is a universal multimedia entertainment portal launched by MTS in 2009. The service is operating on high-tech Smart TV devices from such corporations as Samsung, Philips, LG, Panasonic, as well as smartphones, tablets, television set-top boxes and PCs. The portal offers movies of Russian and foreign copyright holders – such studios as Universal Pictures, Warner bros. Entertainment, Walt Disney, Warner Bros., Sony Pictures Entertainment, Bazelevs, Central Partnership. Stream.ru videocatalogue estimates more than 7000 feature films and TV series episodes. The portal audience is over 1.5 M unique visitors per month.