RTL Group to Expand TV Activities in Russia

LUXEMBOURG, November 26:
RTL Group has entered into a joint venture with Luxembourg-based Continental
Finance Group S.A. (CFG) for the production, operation and distribution of
thematic, non-terrestrial TV channels in Russia and in the C.I.S.

According to the
agreement, RTL Group will purchase 50 percent of the shares of Content Union
S.A. (CUSA), in which CFG has already contributed its four Russian thematic
channels: Russkiy Illusion, offering Russian movies; Illusion Plus, featuring
international classic movies; the children’s channel Detskiy and the
animal-themed Zoo Park. These channels are also distributed in the cable
networks of Ukraine, Belarus, Kazakhstan, Moldova and Georgia. In addition, the
joint venture will act as a distribution agent for third-party channels.

With the deal, RTL Group
will enter the nascent Russian satellite and cable TV market. In 2005, RTL
Group acquired a 30 percent shareholding in the terrestrial TV network Ren TV,
which will continue to operate independently from the newly created joint
venture.

—By Irene Lew