Online video (Russian market) Online cinemas

Video Service Monetization Models

• AVOD (advertising video on demand) - advertising. The video is accompanied by a certain number of advertising messages;
• TVOD (transactional video on demand) - paid. The viewer rents a unit of video content for a limited time;
• SVOD (subscription video on demand) - paid. Subscription access to the content library for a certain time without limiting the number of views;
• EST (electronic sell through) - paid. User purchase a digital copy of the content

Market structure

• Online cinemas are content aggregators that provide the ability to watch videos both through project sites and through the applications of services for mobile platforms and Smart TV. For example, ivi, Amediateka, Okko, etc.
• TV channels are broadcasters who monetize primarily their content on the Internet using a paid or advertising model STS(,, etc Channel One TNT.)
• Operators are pay TV operators who have implemented services for watching paid video content on set-top boxes (STB) in the form of VOD or cinema halls on dedicated channels (Rostelecom, Beeline, MTS, etc.)
• Digital distribution platforms are video content aggregators that provide applications for mobile platforms and Smart TVs with the ability to view without binding to the network of a specific provider (iTunes, Google Play, etc.).

2023

Online piracy in Russia is failing. Income from it has been falling for 5 years in a row

Revenues of pirated video services in Russia at the end of 2023 amounted to $38 million, which is 2.2 times less than five years ago. The income of illegal distributors of video content has been steadily falling for 5 years, according to a study by the information security company F.A.C.C.T. (released in mid-May 2024).

According to the report, pirate advertising revenues for 2023 also fell again: the average CPM (Cost-Per-Mille, price per 1000 impressions in the advertising campaign) was $3.13, which is 6% less than in 2022 and compared to 2018, the decline was 2.5 times.

Revenues of pirated video services in Russia in 2023 amounted to $38 million

In addition, the decline in pirate revenues, according to analysts at the F.A.C.C.T., occurs along with a decrease in the interest of viewers who are increasingly attracted to legal services. The traffic of search queries to pirated portals decreased by 10%, and to legal streaming video services it increased by the same 10%.

At the same time, as Vedomosti writes with reference to F.A.C.C.T materials, the number of pirated domains with Russian-language video content continued to grow: in 2023, the number of such resources reached 80 thousand units, which is 11 thousand more than a year earlier. Analysts draw attention to the fact that in 82% of cases this content was posted on sites, in 12% - on social networks and instant messengers and in 6% of cases was uploaded to video hosting sites. The increase in domains is due to automation technologies and the use of dynamically changing mirrors by pirates, which allow them to stay in search results for longer, the company added.

In addition, experts noted additional tools for obtaining illegal income from video rental - the development of "alternative" voice-over studios. The unofficial translation is relevant "due to the geopolitical situation, a large number of foreign series and films that are not officially presented on the Russian market," explained in F.A.C.C.T.^[1]

Pirate video services market growth by 11% to 3.36 billion rubles

The volume of the Russian pirate video services market in 2023 amounted to 3.36 billion rubles, an increase of 11% compared to the previous year. At the same time, the share of such resources in the total revenue from video content in the Russian Federation decreased from 3.4% to 2.9%. This is evidenced by the data of the analytical company J'son & Partners Consulting, released in early April 2024.

As Kommersant writes with reference to this study, Lostfilm remains the largest pirated video service in the Russian Federation with a 45% share in 2023. Following the projects LordFilm (3.5%) and Zona (29.1%). The most popular film on pirated resources in 2023 was the new Avatar, in second place was Guardians of the Galaxy: Part 3, and in third place was Barbie.

Researchers attribute the decrease in the share of pirated video services in Russia to the growth of the legal services business, as well as to the "struggle at the legislative level." At the same time, analysts note that due to the growth of advertising and the absence of "new implemented anti-piracy initiatives," the illegal market is "adapting." The largest buyers of advertising on pirated sites remain manufacturers of tobacco and alcohol, as well as crypto exchanges, "but due to lack of inventory, there were examples of placements of manufacturers of meat, clothing and dishes."

According to J'son & Partners Consulting, the revenues of legal online cinemas in Russia in 2023 reached 111.7 billion rubles, which is 28.9% more than a year ago. The market has fully recovered from the failure of 2022 and even exceeded the highs of 2021, the report says.

Analysts note that about 61.6% of the Russian market for legal video services fell on the subscription model (SVOD, subscription video on demand; the subscription user accesses the content library for a certain time without limiting the number of views).^[2]

Revenue of online cinemas in Russia in 2023 increased by 45%

At the end of 2023, the revenue of online video services in Russia increased by 45% to 80.9 billion rubles. (against 55.8 billion a year earlier), returning to the high growth rates that the market demonstrated until 2021 inclusive. Such information is provided in the report "Online Video Market 2022-2023," published by IAA TelecomDaily in March 2024.

For comparison, at the end of 2022, revenue growth did not exceed 5-10%. However, it would be incorrect to accurately compare with previous data due to the methodology changed in 2024, the researchers explained. In general, the dynamics are obvious: from 2019 to 2021, revenue grew by an average of 53% annually. The outflow observed in 2022, experts associate with the departure of a number of large services and a decrease in purchasing activity.

The paid model (mainly subscription payment, but this also includes ordering one item of content) continued to strengthen its position compared to advertising (free viewing subject to mandatory advertising). At the end of 2022, the share of revenue from the advertising model decreased to 10%, in 2023 - to 8%. For comparison, in 2018, the advertising model provided 36%, the report said.

As part of the study, video services revenue from licensing and partnerships is calculated separately to avoid stifling results. This includes the revenues of online cinemas (OK) from partner integrations and the sale of content ("originals") to other platforms, TV channels, as well as through traditional film distribution. Here, revenue growth year-on-year amounted to 30% - from 10.9 billion rubles. in 2022 to 14.2 billion in 2023.

According to the document, the position of the main players has not changed. As a year earlier, the top five included Kinopoisk, Evie, Wink, Okko and Kion (players are listed in descending order).

So, in the total revenue, the online cinema "Kinopoisk" increased the gap from the "Ivi" following it - 35.6% (a year earlier - 26.9%). The latter's share in revenue decreased - 17% at the end of 2023 and 20.3% in 2022. Number three, Wink online cinema, the share, as a year earlier, continued to increase - 15.3% (13% in 2022).

If you divide the segment by players, then Start (31%) became the leader in terms of licensing revenue, then Amediateka - 27%, Kinopoisk - 18%, Evie - 13.5%, viju - 6%, Kion - 5%.

Okko service remained fourth and slightly lost its share - 9.8% in 2023 and 12.3% in 2022. The fifth, the Kion service, also cut its share - 6.9% versus 7.6%. Start and Premier raised revenue to 6% - 4.5% and 4%, respectively, at the end of 2022.

If you look at the growth of revenue for companies, then here in the first lines the same services that managed to increase their share in total revenue more significantly than others. Thus, Premier's revenue grew by 117%, Kinopoisk - by 93%, Start - by 76%, Wink - by 71%, Kion - by 32%.

Online cinema market growth by 39% to 94.2 billion rubles

The volume of the Russian Internet cinema market in 2023 amounted to 94.2 billion rubles, an increase of 39% compared to the previous year. This is evidenced by the data of the analytical company TMT Consulting, published at the end of February 2024.

Video services revenues from advertising in 2023 reached 6.6 billion rubles, which is 19% higher than a year ago. Subscription revenue rose 41% to 87.6 billion rubles. As factors contributing to a significant rise in the Russian online cinema market, researchers cite the following:

• increase in production of own content;
• exclusive projects;
• technological improvement of platforms, including recommendation services;
• strengthening users' habit of paid subscriptions;
• development of video services as part of digital ecosystems;
• expansion of partnerships with telecom operators by online cinemas;
• building relationships with new foreign content providers;
• Freak subscription.

As for negative factors, according to TMT Consulting analysts, such in 2023 were a reduction in the volume of foreign content from large manufacturers, the absence of Western film innovations and a high level of piracy. It is noted that user spending on the purchase of individual films and TV shows in 2023 decreased by 70%. In 2021, Russian users spent about 8% of the total revenues of online cinemas on the purchase of films and TV series.

At the end of 2023, Kinopoisk was named the leader of the Russian online cinema market with a share of 30%. Next come "Evie" (15%) and Wink (13%).

According to TMT Consulting, the number of households with at least one paid subscription to an online cinema increased by 40% in 2023

Russian VoD market 2023

The number of subscriptions to online cinemas in Russia has grown to a new record - 45.2 million

By 2023, there were 45.2 million users of subscriptions to online cinemas in Russia, which was a record result for the market. Compared to the end of 2022, when there were 36.7 million subscriptions in the Russian Federation, the figure increased by 23%. This was reported at the end of January 2024 by RBC with reference to analytical data.

By the end of 2023, the top five in terms of the number of subscribers to video services included "" Kinopoisk(25.1%), "" Evie(19.3%), (Okko 12.8%), (Wink 12.8%) and (Kion 9.9%) - they occupy almost 80% of the market. The sixth place was taken by Premier (6.7%), but in fact it is the fifth, since Wink and Okko have the same number of subscribers. Analysts noted that data on Wink did not take into account the merger with more.tv. They will be taken into account in the report for the first half of 2024. Previously, after the merger, the platform gained 5 million paid subscribers.

By 2023, there were 45.2 million users of subscriptions to online cinemas in Russia

If we consider the largest services for the share of paying subscribers, then Kinopoisk (Yandex) accounted for 74%, Evie - 55%, Wink - 81%, Okko - 67%, Kion - 74%, Premier - 67%. That is, the best results were recorded at Wink, as well as at Kinopoisk and Kion. In total, Kinopoisk holds 26.9% of the paid market segment (28.2% six months earlier), Evie - 15.3% (previously 16.2%), Wink - 15% (11.9%), Okko - 12.5% (13.5%), Kion - 11.7% (9.6%), Premier - 6.5% (6.1%).

Analysts attribute the increase in the number of subscriptions to streaming to the fact that online cinemas began to focus on their own content. Films and TV series of their production are a key driver for attracting a new audience. This is due to a reduction in foreign content on streaming after a number of Hollywood film studios leave the Russian market, experts say. In addition, they said, the growth of the market is facilitated by increased investment in marketing and the cost of subscription available to most of the population.^[3]

The number of phishing domains that disguise themselves as Russian online cinemas and music services is growing on Runet

RuNet There are a growing number phishing domains that disguise themselves as the Russian online cinemas and music services - a round of activity cybercriminals in this area was discovered by experts on. According to cyber security Angara Security to data the company, content the number of fake services with video and music increased by 10 and 15%, respectively, compared to the same period in 2022. Angara Security announced this on August 23, 2023. More. here

Online cinemas in Russia first broke even

Online cinemas in Russia first broke even, which became known at the end of July 2023. According to Kommersant, Kinopoisk's business began to pay off in the second quarter of 2023. The ivi service also became profitable. Read more here.

Russians warned about a new fraudulent scheme with online cinemas

In July 2023, it became known about a new fraudulent scheme with online cinemas in Russia. Swindlers send a message to potential victims in instant messengers and offer work allegedly to evaluate online cinemas. The newsletter indicates a phone number for feedback, and also mentions popular streaming platforms in Russia. Real employment is not confirmed, while communication with such "employers" can lead to theft of funds, the Prime agency reports, citing a statement from one of the Russian banks.

Bank customers began to receive messages offering to help with a review of the film, TV show or assessment of the streaming platform. Such invitations come, as a rule, from foreign numbers, the owners of which promise to pay for "work" from 3 to 12 thousand rubles.

At the end of the message, the phone number of the "manager" is indicated, which can be contacted and clarify the details. Fraudsters are asked to fill out a questionnaire with contact details allegedly for issuing employment documents and send a link to a phishing site to the interlocutor. After registering, the client is asked to pay a certain amount to the specified account in order to start performing tasks for evaluating films. From the number of reviews, the amount on the account begins to increase according to the principle of a financial pyramid, but the "victim" will no longer be able to withdraw the "earned" money, so the client simply loses his funds.

It is noted that by July 2023, 19% of all fraudsters' calls are made through instant messengers, but now a new scenario has acquired the threat of facing them. The main goal is to involve as many people as possible in a fraudulent scheme, "accumulate" the amounts listed by the "victims" in the account, and then withdraw an already impressive amount from it.^[4]

For the first time, there are more Hollywood films and TV series of Korean and Turkish production in Russia

For the first time, there were more Hollywood films and TV series of Korean and Turkish production in Russia. This was reported on June 9, 2023 by RBC.

Experts studied the paintings now available on Ivi, Kinopoisk, Okko, Wink, Premier, Kion and more.tv, and came to the conclusion that by June 2023 the number of Hollywood tapes equals about 200-270 units. This low figure is largely due to the expiration of license agreements with major studios, which is why old paintings have not only disappeared in libraries, but also new ones do not appear.

Wink emphasizes that the departure of American majors "stimulates" interest, in particular, in Turkish content. Kion and Premier note that there is no direct dependence on the country of production of films and TV shows.

As an alternative to Hollywood cinema, Russian services have begun to actively purchase content from South Korea and Turkey. Thus, the leader in the number of Korean content was Kinopoisk, where 276 Korean and Turkish titles are presented, and the largest number of Turkish TV series and films are presented on Evie - 63 titles. According to representatives of online platforms, projects from South Korea and Turkey are popular with viewers: every tenth Okko user watches them, and the share of viewing time for projects from these countries in the Start cinema has reached almost 6%, and in more.tv - 22% of the total viewing time of all subscribers.

The Kion representative, in turn, although he recognizes the growing demand for content from Turkey and Korea, argues that there is no direct relationship between the country of origin of the film or series and its popularity. Premier Deputy Director General Makar Kozhukhov also confirms that, despite the "active enrichment" of the streaming library with projects from these countries, the service will focus on Russian content.^[5]

2022

Revenue of online cinemas from the sale of content of its own production reached 5.1 billion rubles

The revenue of Russian online cinemas from the sale of its own content to third-party sites (originals) in 2022 reached 5.1 billion rubles. This is evidenced by data from analysts at J'son & Partners Consulting, which were released in early April 2023.

According to experts, the entire market for legal video services in 2022 decreased by 12.9% compared to 2021 and amounted to 86.25 billion rubles. Analysts take into account data on the revenue of online cinemas (independent and owned by telecom operators or TV channels), video platforms of social networks, content aggregators and Infoservices.

Start became the leader in licensing revenue from originals among online cinemas. He managed to release 20 of his projects in 2022, which brought 2.25 billion rubles. The ivi service in the spring of 2022 presented seven originals projects, revenue from the distribution of original content amounted to about 900 million rubles.

It is noted that the active creation of originals began in 2018, but the boom happened in 2021, when the amount of its own content increased 2.2 times compared to a year ago. A total of 87 projects had been created by this time.

Experts interviewed by Vedomosti note that for video services originals are brand-forming projects that contribute to attracting new subscribers. However, the sale of rights to other sites is also one of the main revenue items of video services.

With the departure of the content of Hollywood majors, originals become one of the most important types of content that can attract an audience, says Dmitry Kolesov, director of the new technologies department at J'son & Partners Consulting. In his opinion, the partnership between platforms and TV channels on originals will continue to expand.

But video services will still continue to release some of their own projects as original premieres in order to differ from other online cinemas, he added.[6]

Market growth by 17% to 67.8 billion rubles - TMT Consulting

In 2022, Russian online cinemas earned a total of 67.8 billion rubles, which is 17% more than a year earlier. Such data were presented in the research company TMT Consulting in March 2023.

According to analysts, the market rose due to the following factors:

• the development of digital ecosystems, an increase in the number of users of multi-service subscriptions (Yandex.Plus, MTS Premium, etc.), which include access to online cinemas;
• expansion of partnerships with telecom operators by online cinemas (partnership payments accounted for almost 8 billion rubles);
• building relationships with new foreign content providers;
• increasing the production of its own film and serial content;
• increasing the cost of subscription by a number of video services;
• increase in consumption (almost all video services note a significant increase in the number of views and video viewing time), including through subscriptions to additional packages (as a result, an increase in ARPU).

Experts attributed to the negative factor the continued rather high level of piracy and the reduction in the volume of foreign content from large manufacturers, in particular, the lack of new films from the majors. In addition, the departure from the Russian market of foreign video services American Netflix affected - and, Ukrainian Megogo which took 5th and 6th places at the end of 2021, respectively.

The segment of VoD services developed by telecom operators, offering professional video content for viewing, in 2022 grew by 32% compared to 2021 and reached 15.7 billion rubles. Revenues of online cinemas operating under the OTT model (non-operator VoD services) amounted to 13%: its volume increased to 52.1 billion rubles. The lower growth indicators of this segment were led by the withdrawal from the Russian video services market Netflix and Megogo (excluding these services in 2021 and 2022. Segment growth would be 31%).

Advertising brought video services 5.3 billion rubles at the end of 2022, which is 9% less than a year ago. This decline is caused by the withdrawal from the Russian market of many large foreign advertisers. However, the strong decline in advertising revenue in the first half almost offset the growth in the second. The growth of income received under the paid model in 2022 amounted to 20% (up to 62.5 billion rubles). At the same time, revenues from TVoD/EST decreased: the decline was 28% - this was the result of the absence of many foreign film innovations on the screens. Revenues received from subscriptions increased by 25%, the study said.

Kinopoisk was named the leader of the Russian Internet cinema market in 2022. Its annual revenues increased by 78%, which was the highest dynamics among services. Such results were led by the continuing general growth in the number of Yandex.Plus subscribers (from 12.0 million to 19.3 million), which occurred, among other things, due to the transition to a single family tariff "Plus Multi." Accordingly, the number of those who watched video content increased - from 4.8 to 8.4 million.

In second place is ivi. The company's revenue excluding income from the sale of licenses for content of its own production for the year 2022 increased by 6% (all revenue - by 8%). The departure of foreign majors led to a noticeable reduction in the size of the video service library, which was largely replaced by contracts with new content partners, the researchers point out. The total viewing time for ivi in 2022 increased by more than 30%.

TMT RATING Russian VoD 2022 market

Revenue of video services reached 63.3 billion rubles.

At the end of 2022, the revenue of online video services in Russia increased by only 5% - this is significantly lower than a year earlier, when the market in money grew by 54%, and also falls short of the pace of 2018-2020. In addition, the position of the players has changed. The permanent leader over the past years, ivi, lost to Kinopoisk, and the departure of Western players made it possible to further strengthen domestic projects. So, the top five included Kion and Start. This is stated in the report on the results of the study "Russian Market Originals," presented on March 3, 2023 in IAA TelecomDaily.

The study considers more than 40 projects implemented in the Russian Federation. In addition to analyzing closed and open data, an expert survey was conducted.

In 2022, the revenue of video services reached 63.3 billion rubles. against 60.3 billion a year earlier. Thus, the growth was 5% against 54% at the end of 2021, that is, it slowed down by almost 50 percentage points. 2021 became a record over the past four years - in 2019 and in 2020, revenue grew by an average of 52%.

Experts agreed that the process of saturation with OTT services in 2020-2021 stopped due to a jump in demand caused by the presence of consumers at home during the pandemic. Many viewers came to the platforms using promotional codes or promotions with free subscription periods. In 2022, the inevitable outflow of users also intensified due to the departure of a number of large services and a decrease in purchasing activity.

The paid model (mainly subscription payment, but this also includes ordering one item of content) has further strengthened its position compared to advertising (free viewing subject to mandatory advertising). At the end of 2021, the advertising model still brought 15% of revenue, in 2022 its share decreased to 9%. For comparison, in 2018, the advertising model provided 36% of revenue.

Online cinema ivi, which increased its share of revenue compared to last year (20.5% versus 19.7%), did not have enough to hold the lead. Kinopoisk came out on top - 24.1% (at the end of 2021 - 14.6% of the market in money). Yandex has been adding very significantly over the past three years.

The Rostelecom Wink project moved to third place, taking 11.4% in total revenue (at the end of 2021 - 8.4%). This turned out to be enough to push Okko to fourth: at the same time, this online cinema increased its share - 10.8% in 2022 and 10.4% in 2021. Start (6.8% versus 5% at the end of 2021) and Kion (6.8% versus less than 1%) took fifth place together.

A year earlier, Netflix was in fifth place at 8.1%. YouTube and Megogo occupied 6.6 and 5.6%, respectively (in 2020 - 9 and 5.9%), nevertheless influencing the balance in the top ten. Now these three services no longer accept payments in Russia, Netflix and Megogo have left the market.

This also contributed to the fact that over the year the market share in monetary terms, which is occupied by the first five players, increased by another 12.4 percentage points. So, at the end of 2021, they accounted for 61.2%, and in 2022 - almost 73.6% of revenue.

If you look at the individual revenue growth for the year, it is logical that here in the first lines the same companies that managed to increase their share in total revenue more significantly than others.

Kinopoisk grew by 73%, Kion - by 66%, Wink - by 42%, Start - by 41%, Tricolor Kino and TV - by 36%. A year earlier, these revenue growth projects went exactly the same way one after another, with the only difference being that Netflix wedged into fifth place between them, and the Tricolor online cinema was sixth.

Rating of the most popular online cinemas

At the end of January 2023, the analytical company GfK published a study on the Russian video services market. According to experts, by the end of 2022, the number of subscribers to online cinemas had grown and returned to the level of the beginning of the year. The subscription was issued by 46% of residents of Russian cities, a paid subscription - 31%. At the beginning of 2022, these indicators were 46% and 30%, respectively.

Kinopoisk remains in first place in popularity: at the end of 2022, 17.8% of city residents aged 16-55 used it, 13.1% paid for a subscription. The second and third places were shared by Ivi (it was used by 10%, paid - 6.1%) and Wink (8.3% and 6.2%). The top 5 also included Okko (6.2%, 3.2%) and Kion (5.8% and 3.4%).

By the end of 2022, the share of subscribers to online cinemas in the Russian Federation grew among citizens at the age of 16-24. Most of all the young audience at Kinopoisk. Wink has the "oldest" audience, which is popular among users 25-55 years old. Ivi and Okko are most often used by residents of cities aged 25-44 years.

The online survey involved 7501 respondents aged 16 to 55 years living in cities, Russia including small towns with a population of up to 100 thousand people. A total of 15 online cinemas were examined.

According to Kommersant, since the summer of 2022, Russian online cinemas have had problems with concluding contracts with foreign copyright holders. At the end of December 2022, the Russian Ministry of Justice sent a letter to the government indicating the need to allow the rental of foreign films without the consent of copyright holders, including in online cinemas. The latter initially opposed the idea of ​ ​ forced licensing of content, not wanting to aggravate the crisis in relations with foreign producers. The Ministry of Economic Development and the Ministry of Culture also oppose the measure.^[7]

Film companies obliged to post films shot on state subsidies in online cinemas

In mid-July 2022, Prime Minister Mikhail Mishustin signed a government decree, which ordered film companies to place films shot for state subsidies in online cinemas.

As Kommersant writes with reference to the relevant document, changes are being made to the rules for providing subsidies from the federal budget to support cinematography. The resolution says that subparagraph "a" of paragraph 6 must be supplemented with a paragraph of the following content: "the presence of a guarantee letter from the organization of cinematography on the priority placement of the completed project on Russian video hosting platforms and audiovisual services when it is distributed in the information and telecommunication network" Internet. "

Thus, in order to receive a subsidy for filming films, their producers will have to ensure the subsequent placement of the picture on online video services. The document provides that film studios should guarantee "priority placement of the completed project on Russian video hosting platforms and audiovisual services." These amendments are addressed to film companies and non-profit organizations of filmmakers.

In April 2022, the Internet Video Association proposed to the government to reduce VAT on subscriptions of films and series of Russian online cinemas from 20% to 10%. This will increase investment in the production of domestic content, which, in turn, will mitigate the lack of foreign premiere content.

Earlier, cinema owners asked the state for subsidies in the amount of 6.5 billion rubles and other support measures. However, the Ministry of Finance of the Russian Federation in May 2022 refused to allocate funds. The department then said that such a measure is not included in the list of priority tasks that ensure the development of the Russian economy in the context of sanctions.^[8]

2021

Revenues of pirated video services in Russia for the year fell by $9 million

In 2021, pirated video services Russia in earned about $50 million, which is $9 million less than a year earlier. Such data were released on July 21, 2022 by the company's experts. Group-IB More here

The Russian market for online cinemas jumped 56% to 43.6 billion rubles. In the top three changes

The Russian market for online cinemas at the end of 2021 grew by 56% compared to 2020 and reached 43.6 billion rubles. There are changes in the top three, according to a study published in March 2022 by TMT Consulting, an analytical company.

We are talking about legal VoD services that work according to the OTT model and offer professional video content for viewing. According to experts, carrier VoD services are beginning to compete more and more with non-operator video services. According to TMT Consulting estimates, the amount of income received by operators from the provision of video-on-demand services in 2021 amounted to 11.9 billion rubles.

The paid model has further strengthened its position - revenues received from user payments amounted to 37.2 billion rubles (an increase of 61%). Advertising brought video services 6.2 billion rubles. (up 31%). At the end of the year, the share of revenue from user payments in the total market volume increased by 4 percentage points. and amounted to 86%.

Revenue growth in the entire Russian video services market was associated by analysts with such factors as:

• The development of digital ecosystems, the growth of the number of users of multiservice subscriptions (Yandex.Plus, SberPrime and others), which include access to online cinemas
• Expansion of partnerships with ecosystems, telecom operators, other service companies by online cinemas
• Increased investment by online cinemas in the production of their own film and serial content
• The impact of the pandemic on cinema attendance and the growing interest in home video viewing continued in 2021.

At the same time, a fairly high level of video piracy still continues to have a negative impact on the market, the report said.

The composition of TOP-3 video services at the end of 2021 has not changed - it still includes ivi, Okko and KinoPoisk, but the positions of the players have changed. The online cinema ivi remained the market leader in 2021. The company's revenue excluding revenues from the sale of licenses for its own production of content increased by more than a third (all revenue - by 41%). In 2021, the company managed to attract the largest volume of investments in its history, which will be aimed at the further development of the service, in particular, at the production of its own content and improving the technological platform.

At the end of 2021, KinoPoisk came in second place: video service revenues tripled over the year (this is the highest indicator on the market). Thanks to the development of the Yandex.Plus ecosystem subscription, KinoPoisk has become the largest video service in Russia in terms of the number of subscribers. The audience was attracted, among other things, by the offer of rating series of its own production (in 2021 there were 5 of them).

The Okko online cinema, which is part of the Sberbank ecosystem, grew somewhat slower than its closest competitors in 2021 and, as a result, lost 2nd place, which it has consistently occupied since 2013.

Megogo, which was one of the top three until 2020, significantly increased in growth in 2021: the company's revenue increased by 46% due to the development of partnerships with TV vendors, other online cinemas and other services, and the expansion of the content offering.

The Start video service strengthened its market position - revenue growth by 85% (which is higher than the market average) allowed the company to enter the TOP-5. Within 2021 year, Start offered its audience 28 original projects - including thanks to this, the total time of video screenings on the site increased 2 times.

Research of the Russian online cinema market from TMT Consulting

Revenue of online video services for the year increased by 41%

Revenue of online video services in 2021 increased by 41%. Such data on March 10, 2022 with TAdviser was shared by TelecomDaily, publishing its report "Online Video Market 2020-2021."

At the end of 2021, the total revenue of legal online video services in Russia amounted to 54 billion 962 million rubles, which is 41% more than a year earlier. Thus, the services earned a record almost 14 billion rubles, which is almost comparable to the revenue for the full 2018 year (16.5 billion rubles).

For comparison, from 2019 to 2020, revenue growth reached 56%, from 2018 to 2019 - 52%. Nevertheless, analysts note that, despite the difficult economic situation, nor on, video piracy the income of online video services demonstrate an impressive growth in monetary terms. In 2021, the formed habit of services and OTT the continuation of the remote work part played a role. population

In the second half of 2021, the OTT market managed to accelerate - according to the results of the first half of the year, the total revenue of legal online video services amounted to 21 billion 919 million rubles, and in the second half of the year the services received more than 33 billion rubles. Thus, the market for the year grew above TelecomDaily forecasts - by 41% against 25-30%, as analysts assumed.

The paid model continues to increase its share and dominate advertising. If in the structure of revenue of online video services at the end of 2019 its share was 69%, in 2020 - 78%, now it reaches 82%.

Among players in terms of revenue, he leads ivi - over the year his share has slightly decreased and is 20.5% against 22.5% in 2020. Kinopoisk almost doubled its revenue to 16.5% (at the end of 2020 - 9%). Okko Over the same period, the share was 11.4% (in 2020 - 14.7%). Owned "" To Rostelecom Wink received 9.7% (in 2020 - 7.3%). Netflix continued to increase revenue, although it did it slower than in previous periods - 8.9% (in 2020 - 8.3%). YouTube Megogo and also reduced the indicators - 7.3 and 6.1%, respectively (in 2020 - 9 and 5.9%).

The same companies increased their revenue as at the end of 2020, but then Kinopoisk, Netflix and the Start service managed to achieve a twofold increase in revenue. This time, they all showed more modest results in shares. Among those companies that managed to leave revenue in the black in 2021, Start is still 5.5% (in 2020 - 4.2%). Wink has grown noticeably this year, although its share has not changed in 2020.

In monetary terms, among the largest online services, Kinopoisk has the maximum growth - 157%, owned MTS Kion - 128% (its share in total revenue - 0.8%), Wink - 86%, Start - 85%, Netflix - 50%, and "Tricolor Kino and TV" 47%.

The Russian market for online cinemas soared by 56% over the year

The Russian market for online cinemas in 2021 showed an increase of 56% compared to a year ago - up to 43.4 billion rubles. Such data in the research company TMT Consulting were published in early March 2022.

The top three in terms of revenue among Russian video services at the end of 2021 is as follows:

• ivi (share - 26%);
• Kinopoisk (share - 20%);
• Okko (16%);
• Megogo (8%);
• Start (7%)
• more.tv (7%).

According to Vedomosti, citing data from TMT Consulting, in 2021 user payments - subscriptions, purchases and rentals of films and TV series - showed more dynamic growth than advertising revenues - 61 and 31%, respectively. As a result, revenues from the paid model brought video services 37.2 billion rubles, or 86% of total revenue, advertising - 6.2 billion rubles, or 14% of all revenues.

more.tv General Director Ivan Grodetsky noted that revenue increased thanks to original content (among them - the series "Chiki" and "Psycho"), platform refinement, marketing and partner deals. Since November 2020, Kinopoisk offers a joint subscription with more.tv.

TMT Consulting for the first time estimated the work of video services from telecom operators: in 2021, the total revenue of operator video services amounted to 11.9 billion rubles. The largest players: Wink from Rostelecom (42% of all revenue from camera video services) and Kion from MTS (22%).^[9]

According to the researchers' forecasts, in 2022 the growth of the Russian video services market will amount to 28% - up to 55.5 billion rubles. The dynamics of market growth may be influenced by a change in the geopolitical situation. On the one hand, it can attract an additional Russian audience to Russian video services, and on the other, it can reduce revenues from the provision of services in foreign markets, analysts say.

The State Duma is preparing tough measures to regulate online cinemas: there should be no more than 10 of them

Lawmakers plan to develop tough measures to regulate online cinemas to allow Russian companies to develop. This became known on June 18, 2021 from the words of the deputy of the United Russia faction, a member of the State Duma Committee on Information Policy, Information Technology and Communications Anton Gorelkin. The bill may be submitted to the State Duma in the fall of 2021.

We want to see foreign audiovisual content in Russia, but we don't want to see their big platforms here. They will be able to sell licenses to Russian services, but they themselves will not be able to "burn out" our market, as happened in Europe, "said Anton Gorelkin.

According to him, the regulation will be "tough" and the task of these measures is "protectionist," it is necessary to protect Russian audiovisual services and allow them to develop.

Gorelkin proposes to "build" the Russian segment of audiovisual services of no more than 5-10 market participants who will conclude partnership agreements with foreign companies to demonstrate their products in Russia.

The source turned to the representative of the deputy Gorelkin with questions about the upcoming measures and clarifying which Russian cinemas the Government plans to leave. However, representatives of the deputy by the time of publication of the material could not answer the publication.

As of June 2021, the Register of Audiovisual Services Roskomnadzor includes 21 audiovisual services:,, Ivi,, Megogo,, Restrim Media (Wink and more.tv)" Movix Okko SPB Premier (Premier) TV Russia," Start,, "" Wink Amediateka, "", "" Beeline TV Kino1TV, "" Kinopoisk, "", "", "", "" Match TVMegaphone TVMTS TVNTV PlusChannel One cinema and We lookTricolor TV online "and" NTV - TV, TV shows, shows and live broadcast for free. "

Nevertheless, the main market share in Russia is occupied by Russian video services. In 2020, the top 3 online cinemas were Ivi with a 32% market share, Okko with 20% and Megogo in third place with a 9% share, follows from the data of the TMT Consulting analytical agency. According to analysts, the total audience of video services in 2020 increased by 17%, and reached 63 million, while the indicators of online cinemas increased by 66% in 2020 and amounted to 27.8 billion rubles.

However, analysts noted the growth of third-party services in the Russian market - Netflix, which began to be promoted in Russia only in 2020. As of June 2021, it ranks fourth in the Russian market, its share is 8.4%. Apple TV + and Amazon TV are also available in Russia.

In an open letter from the Internet Video Association, which includes video service managers Ivi, Okko, Megogo, Start, Amediateka and ViP Viasat Play, market participants expressed "deep concern that foreign companies providing similar services on the Russian market are not included in the register of audiovisual services and for this reason do not comply with the requirements of the current legislation imposed on owners of audiovisual services." The reluctance of Western sites to comply with Russian legislation gives them a competitive advantage over Russian platforms that are required to pay taxes and comply with other legal requirements, the Association notes.

Netflix, YouTube, Google Play and Apple (iTunes and Apple TV +) occupy a significant share in the Russian online video market. In the niche of cinema and TV series, these services occupy about 25-30% of the market, said Alexey Byrdin, General Director of the Internet Video Association.

There is objectively more foreign content on the market than Russian, the scale of the industry and the budgets of world studios exceed ours by several orders of magnitude. However, Russian services are actively investing in production and their premieres are a great success with the audience, "emphasizes Alexey Byrdin.

{{quote 'We see the main danger in the fact, - said at the Institute for Internet Development, - that more and more foreign players come to the market who are ready to pay significantly more than Russian content customers. This threatens at least an increase in production prices and the reorientation of our producers to foreign players, and in the future - the loss of the domestic market. In my opinion, protectionism in combination with state support is the necessary measures that will not only preserve, but also serve the development of the domestic market,^[10] emphasized^[11]. }}

2020

The total revenue of legal online video services in Russia amounted to 38 billion 942 million rubles.

At the end of 2020, the total revenue of legal online video services in Russia amounted to 38 billion 942 million rubles, which is 52% more than a year earlier. For comparison, in 2019, the growth at the end of the year was the same 52%. TelecomDaily reported this on March 9, 2021.

If we compare the data for the first half of 2020, then the dynamics there was slightly higher. The market volume reached 18 billion 637.2 million rubles, which turned out to be 56% more year-on-year. Therefore, the predicted growth rate, according to TelecomDaily analysts, could reach 55% at the end of 2020. However, the actual pace slowed slightly towards the end of the year and repeated the results of previous reporting periods.

Thus, in general, quarantine measures in 2020 favorably affected the income of online cinemas: revenue growth continued at the same pace, saturation in the segment did not occur, and there was no outflow due to mass subscriptions with a free industrial period.

The paid model continues to increase its share and dominate advertising. If in the structure of revenue of online video services at the end of 2019 its share was a little more than 70%, then as of March 2021 it already exceeds 78%.

Moreover, in the first half of 2020, the advertising model for income for the first time lost to the purchase of video on demand (renting a piece of content or purchasing a digital copy), but at the end of the year the share of income from renting/buying content is still lower than that of the advertising model - a ratio of 17% to 21%. At the same time, the share of subscriptions reached 61%.

Among players in terms of revenue, it leads ivi - over the year its share has decreased slightly and is 22.5% against 23.8% in 2019. Okko In the same period, the share was 13.6% against 14.2% a year earlier. Youtube Revenue decreased more significantly, to a share of 9% (in 2019 - 12.1%, in 2018 - 16%). At the same time, the share Netflix more than doubled, to 8.4% (against 4.1% in 2019).

The Wink cinema (Rostelecom) came in fifth place: its share has not changed, the same 7.3%. Kinopoisk has almost the same share - 7.1%. This player more than doubled the figure (in 2019 - 3.1%). Megogo was lower, its share dropped to 6.6% (in 2019 - 8.1%).

Among all 14 companies included in the rating, in addition to Kinopoisk and Netflix, the Start cinema managed to achieve a share growth - it has 4% (against 2.2% in 2019), as well as Premier (Premier) - it has 3% (in 2019 - 1.8%).

The maximum revenue growth in the second quarter was demonstrated by the Kinopoisk online cinema (378%). Netflix has also picked up a strong pace - it has 207%. Start, which led in this indicator in the first half of the year, in the second - 173%. Premier (Premier) also doesn't come out on top - it has 158%.

For leaders in terms of revenue, this growth is not so impressive, but it is significant. ivi - 44%, Okko - 45%. But YouTube's revenue is growing more slowly - by 13% (that's why the site is rapidly losing market share).

{{quote 'At the end of such a difficult year, some players managed to increase revenue, which ultimately supported the market. We even assumed that the results would surpass by 3-5% in 2019, but the market growth in monetary terms remained at the same level. We see that the assumptions that all subscribers connected during incentive actions during quarantine will leave and turn into a high outflow for players have not yet been justified. Nevertheless, the usual schemes work poorly and it is increasingly difficult for leaders to increase their subscriber base. There are also very successful cases, each of which should be disassembled separately, - commented on the results of the study, IAA TelecomDaily CEO Denis Kuskov.}}

Online cinemas are asked not to limit the 20% share of foreign owners

In December 2020, the largest online cinemas in Russia, which are part of the Internet Video Association, opposed limiting the share of foreign owners to 20%. They sent a letter criticizing the relevant bill of the deputy from United Russia Alexander Gorelkin to Gorelkin himself, as well as to the Chairman of the State Duma Vyacheslav Volodin and the head of the Committee on Information Policy, Information Technology and Communications Alexander Khinshtein.

As Kommersant writes with reference to this letter, its authors believe that the initiative will limit domestic companies in raising capital, which will stop their development and roll back the market by several years.

Technological developments in such advanced areas as artificial intelligence and big data processing will be lost, the Internet Video warns.

According to the members of the association, as a result, it will be possible to forget about entering the foreign market, and the Russian one will seize pirated resources and foreign services that have significant financial resources and large content libraries.

The initiative actually duplicates the original version of the 2017 bill, which was then softened at the insistence of the industry, says Karen Ghazaryan, general director of the Institute for Internet Research. The goals of the project may be related "to someone's financial interests" in relation to Ivi, he does not exclude.

Alexander Gorelkin proposed introducing a 20% limit on foreign ownership of all online cinemas and video streaming services in Russia without exception, regardless of the composition of the audience. The 20% limit for foreigners in capital is also valid by December 23, 2020, but an exception has been made for local services, which account for more than 50% of viewers per Russian audience. The deputy proposes to remove this exception from the law and give companies two months to change the ownership structure.^[12]

10 Russian services approved for mandatory pre-installation on Smart TV

In December 2020, the Presidium of the Government Commission for the Development of the Production and Distribution of Domestic Audiovisual Content approved 10 services for mandatory pre-installation on TVs with Smart TV support from April 1, 2021. According to the Ministry of Digital Development, a total of 28 applications were submitted, of which the most popular services were selected, while having their own content created in the Russian Federation.

The following applications were included in the final list:

• Wink;
• Ivi;
• Okko;
• Restrim Media (Wink and more.tv);
• Premier (Premier);
• Start;
• "Kinopoisk";
• "We Look";
• NTV application;
• application of the First channel.

The press service of the Ministry of Digital Development told TASS Information Agency of Russia that the services were evaluated according to three main criteria:

• popularity (by daily audience);
• state participation in the ownership structure of the service owner;
• availability of domestic audiovisual content of own production and/or produced to order.

Roskomnadzor launched a register of online cinemas

On December 2, 2020, the Federal Service for Supervision of Communications, Information Technologies and Mass Media (Roskomnadzor) announced the creation of a register of online cinemas. It includes audiovisual services ( ABC), focused mainly on the Russian audience, with an attendance of more than 100 thousand users per day, the ministry said in a statement. Read more here.

2019

Market growth by 50% to 17.1 billion rubles

The volume of the Russian market for legal online cinemas (operating according to the OTT model and offering professional licensed content for viewing) in 2019 reached 17.1 billion rubles, an increase of 50% compared to the previous year. This is evidenced by the data of the analytical company TMT Consulting.

Most of the services' revenues came from payments from users, which in 2019 amounted to 12.9 billion rubles and increased by 68% compared to 2018. The remaining part of the revenue was formed by advertising sales (in 2019 amounted to 4.2 billion rubles, an increase of 13%). The share of revenue from user payments in the total market volume for the year increased by 6 percentage points and turned out to be equal to 75%.

Subscription revenue grew faster than other monetization methods (an 88% increase), its share in the structure of user payments increased from 62% in 2018 to 79% a year later. According to the researchers, the subscription model in 2019 became the main one - it accounted for more than half (59%) of the total market.

In the structure of income received under the paid model, the EST share (purchase) exceeded the TVoD share (lease). This is due to the fact that the greatest demand among the audience is for new film distribution, usually distributed according to the EST model.

As for the growth drivers of the Russian market for legal VoD services, experts include the following:

• growth of the paying audience, strengthening the habit of shopping on the Internet;
• increased penetration of Internet access;
• growing penetration of smartTV and smartphones;
• offering exclusive content (own production, sports, according to the catch-forward model) by online cinemas;
• activation of the largest Internet companies and media holdings on the market;
• partnerships with leading Russian and Hollywood studios;
• active fight against piracy.

The main barrier preventing the development of the online cinema market, experts call the wide availability of pirated content.

The most popular service for watching video content Russia remains, Ivi which in 2019 increased revenue by 46%. This was largely facilitated by the fact that the company paid a lot of attention to exclusive content and film premieres, as well as conducting federal advertising campaigns.

The second place in 2019 was retained by Okko. The service strengthened its market position, showing the highest of the top 5 growth - by 96%. The video service was significantly supported by the new co-owner of Rambler Group - Sberbank, which promoted a subscription to Okko in its multi-million dollar client base.

The third place at the end of the year was taken by the Megogo video service, which carried out great work in all areas in 2019 - content, advertising, technical improvement of the service.

According to a study by TMT Consulting, the total audience of OTT video services at the end of 2019 increased by 10% to 54 million. At the same time, the paying audience increased by 48% - by the end of the year it amounted to about 5.6 million users. The growth of the paying audience is primarily associated with the active development of subscriptions (video services attract users with exclusive content, including their own production) with low prices and the possibility of free testing of the service.

Analysts called the main trends in the Russian online cinema market:

• Further growth in the popularity of the paid model, primarily subscriptions;
• Changes in the composition of market participants due to M&A transactions, entry into the market of media holdings and IT companies;
• The growth of the quality of services is the offer of 4K content, new products, exclusive content (including its own production), the development of recommendation services, etc.;
• The influx of audiences thanks to the increasing availability of pirated content.^[13]

J'son & Partners Consulting: 41.2 billion rubles (+ 65.7%)

The total revenue of the legal video services market from the provision of services in Russia in 2019 amounted to 41.2 billion rubles excluding VAT (+ 65.7%). In 2019, it is calculated taking into account the intersections of revenue as a result of the partnership of various players among themselves.

The

study introduced a new segmentation and analyzed the revenue of 68 companies: online cinemas (16), TV channels (23), operators (11), digital distribution platforms (2), social networks (5), aggregators and Infoservices (11). You can familiarize yourself with the peculiarities of the study calculation method by following the link below.

The legal video industry in Russia is increasing its growth rate in rubles. If in 2016 the growth was 32% in relation to 2015, in 2017 42%, then in 2018 56%, in 2019 - already 65.7%. Thanks to this and the stability of the exchange rate, Russia has increased its share in the global legal video market, which amounted to 0.7% according to the results of 2019.

In 2019, the advertising model showed an increase of 60.1%, and all paid - 73.2% compared to 2018.

When building a forecast of market development for the near future, in addition to the factors that appeared in 2019, the impact of the events that occurred in February-March 2020 (coronavirus pandemic and related economic crisis) was taken into account. Taking into account all the factors that will affect the development of the market, in 2020 the share of the AVOD model will become less than 50%.

Key trends in the development of the Russian market for legal video services in the near future.

• The success of online video services as part of large holding ecosystems.
• Audience growth on mobile devices.
• Development of vertical video format.
• Revenue growth from paid monetization models.
• Out-stream ad format revenue growth.
• Cooperation of pay TV operators, online cinemas, TV channels, social networks.
• Production of own content by video services.
• Increase the volume of content offered in the 4K

IAA TelecomDaily: 26.437 billion rubles (+ 42 %)

IAA TelecomDaily on June 18, 2020 announced amendments to the previously compiled report on the results of online cinemas in 2019 due to the fact that the data presented by the second largest player, Okko, turned out to be incorrect. According to the Federal Tax Service, the total revenue of companies included in Okko is almost 1 billion lower than announced, more precisely, by 943 million rubles. This affected the main indicators of the report: the total revenue of legal online video services in Russia decreased by 3%, Okko's share in the market decreased from 15 to 12%, otherwise the first three dynamically growing companies look like.

Thus, at the end of 2019, the total revenue of legal online video services in Russia amounted to 26.437 billion instead of 27.071 billion rubles. in the previous version of the report (according to the results of 2018, it was 18.66 billion rubles without VAT). The growth was just under 42% instead of the previously announced 45%.

The paid model is increasing its share at a high pace and continues to dominate the advertising model. According to the results of 2019, its share in the revenue structure of online video services amounted to more than 70%. The share of advertising revenues (free TV viewing model) decreases proportionally: at the end of 2018, aVOD accounted for 36.9% of revenue, at the end of 2019 - 30%.

Among the main players, their market share was able to increase IVI - from 21% to 23%, Okko - from 11 to 12%, - Megogo from 7 to 8%. International services, on the contrary, reduce their presence. For example, Youtube the share decreased for the third year in a row, in 2019 - from 13 to 12%, in - 5 Netflix to 4%.

The first three largest online cinemas are, respectively, ivi (23%), Okko and Youtube (shared second place with 12%), Megogo (8%). At the same time, the maximum revenue growth for 2019 was shown by Start (242.2%), ivi (55%), [Premier (Premier)]] (86.7%).

According to the agency's forecast, the market will maintain a high growth rate of at least 35% in 2020, so its volume by the end of 2020 may exceed 37 billion rubles. It is likely that due to the coronavirus, the situation may seriously change, due to the impossibility of attending public events (cinemas, etc.), people will watch more content at home.

10.62 billion rubles. in the first half of the year

On September 11, 2019, IAA TelecomDaily reported that the total revenue of legal online video services in Russia in the first half of 2019 amounted to 10.62 billion rubles. (according to the results of full 2018, it was 16.495 billion rubles, and according to the results of 1H2019 - 7.4 billion rubles). Thus, in six months, video services have already received 64% of the full 2018 revenue, the market growth rate continues to accelerate.

According to the agency's forecast, the market will maintain an annual growth rate of at least 30-35%, so its volume at the end of 2019 may exceed 21.4 billion rubles.

The paid model is increasing its share at a high pace and continues to dominate the advertising model. According to the results of 1H 2019, its share in the revenue structure of online video services amounted to almost 70%. The share of advertising revenues decreases proportionally: at the end of 2018, aVOD accounted for 36.9% of revenue, at the end of 1H 2019 - 31.2%.

Among the market players, the increase in share was provided only ivi.ru and, OKKO while YouTube over the past year it reduced Russian its market share and lost the second position to OKKO. Online cinema TVZavr has reduced its market share for the first time in many years.

The largest online video services on the Russian market in 1H 2019 were ivi, Okko and YouTube with shares of 26.4%, 14.2% and 12.3%, respectively. The maximum revenue growth in 1H 2019 was shown by Okko (76%), Megafon.TV (56%), ivi (55%). The smallest are Tvigle (9%).

MPs allowed to insert as many ads as they like into internet videos

The State Duma rejected the bill providing for the restriction of advertising in online video. Only 89 parliamentarians voted for the adoption of the relevant amendments to the law "On Advertising." The broadcast of the meeting could be seen on the website of the State Duma^[14]

The bill was introduced in February by deputies from the LDPR party Alexander Starovoitov, Vasily Vlasov, Elena Strokova, Oleg Lavrov, Sergei Marinin, Pavel Shperov, as well as Deputy Chairman of the State Duma Committee on Ecology and Environmental Protection Kirill Cherkasov and Chairman of the Committee on Labor, Social Policy and Veterans Affairs Yaroslav Nilov.

The essence of the bill

According to the rejected bill, video content on the Internet can be interrupted by advertising only after the viewer is shown a warning that the advertising insert will soon begin. The only exception is sponsorship advertising.

In addition, advertising cannot interrupt religious video materials and video content lasting less than three minutes. In such videos, sponsorship advertising can be shown, but only at the beginning and at the end, while the total duration of inserts should not exceed 15 seconds.

No advertising, including sponsorship, cannot be interrupted by broadcasting campaign materials - this is provided for by Russian legislation on elections and referendums. In videos that can be watched exclusively for a fee, there should be no advertising.

Cases when a manufacturer on his website or on his page in social networks posts information materials about his own goods are not considered advertising. Also, information about the company's activities, promotions, events, discounts is not considered an advertisement. Information about discounts and promotions can also be posted on resources where various coupons and discount tickets are offered, this will also not be an advertisement.

Dmitry Medvedev instructed to consider the exemption of online cinemas from VAT

The Prime Minister Dmitry Medvedev in March 2019 instructed to work out the issue of exempting online cinemas from payment, VAT they write "" Sheets with reference to the minutes of the meeting of the Government Council on Cinema. It is specified that the meeting was held on March 15, 2019, the order was given, and To the Ministry of Finance, Ministry of Culture Ministry of Digital Development, Communications and Mass Media the deadline is until July 5, 2019.

Vedomosti notes that online cinemas have been asking for tax breaks for several years, since the sale of tickets by ordinary cinemas is not subject to VAT, and online cinemas provide the population with services of the same kind, while paying VAT at a standard rate of 20%. At the council, according to Vedomosti, this issue was raised by the founder of ivi [Oleg Tumanov]], Tumanov himself confirmed this.

2018

IAA TelecomDaily: 16.49 billion rubles (+ 46.3 %)

According to IAA TelecomDaily, the total revenue of legal online video services in Russia at the end of 2018 amounted to 16.49 billion rubles. (at the end of 2017, it was 11.27 billion rubles). Revenue growth year-on-year was 46.3%. According to the agency's forecast, the market will maintain an annual growth rate of at least 30-35%, so its volume at the end of 2019 may exceed 21.4 billion rubles. Among market players, only IVI and OKKO provided a share increase, while YouTube reduced its share in the Russian market over the past year. TVZavr online cinema dropped out of the most growing players for the first time, taking only 7th place.

The paid model is increasing its share at a high pace and continues to dominate the advertising model. According to the results of 2018, its share in the revenue structure of online video services amounted to 63%, adding almost 6 percentage points. since the end of 2017.

The share of advertising revenues decreases proportionally. Moreover, the share of the paid model (tVod + ESE and sVOD) reached 2/3 in the total market volume, the advertising model (aVod) accounts for only a third.

The largest online video services on the Russian market in 2018 were ivi, YouTube and Okko with shares of 23.9%, 14.7% and 12.8%, respectively. Three of these players account for nearly half of all revenue. The leaders in revenue growth were Megaphone TV (+ 87.4%), Okko (+ 79.9%) and ivi (62.5%). Tvzavr, for the first time in years, dropped out of the top three in terms of revenue dynamics, taking only 7th position.

Among the main trends in the Russian online video services market are the following:

• Growth in the market share of the paid service model over advertising: the ratio of these models in total revenue is already 2/3 to 1/3 and the gap continues to grow.
• The share of citizens using non-linear video viewing (watching films, TV shows, TV programs via the Internet at least once a week) continues to grow from year to year: in 2017 it was 38%, in 2018 - 41%.
• Nonlinear viewing consumption is dominated by PCs and laptops, although they lost 1pp in a year, they accounted for 47%. In 2018, 27% of users watched online videos from mobile devices and another 26% from home screens.
• Smart TV penetration continues to grow. So, in 2018, sales of "smart" TVs accounted for almost half: 2.7 million out of 6 million units, and their penetration increased from 15.2% to 17.1%. According to the results of 2018, the Russian fleet of Smart TV receivers amounted to 19.1 million devices. 79% of them are connected to the Internet.

J'son & Partners Consulting: 24.86 billion rubles (+ 56%)

The total revenue of the legal video services market from the provision of services in Russia in 2018 amounted to 24.86 billion rubles excluding VAT. This is an assessment of legal video in the Russian Federation, since many online cinemas expand the geography of their presence and have income from foreign citizens. Russia's share in the global market increased slightly over the year and amounted to 0.6%.

For the third year in a row, the industry has increased its growth rate in rubles. If in 2016 the growth was 32% in relation to 2015, in 2017 42%, then in 2018 it was already 56%.

The main factors influencing growth are:

• The demand of users for a subscription model is increasing.
• Growth of advertising inventory through out-stream advertising.
• Strengthening the role of Russian Internet giants (Yandex and Mail.ru).

Online cinemas accused Yandex of helping Internet pirates

Search engines are the main source of traffic to pirated resources, follows from St. Petersburg International Economic Forum the presentation of the general director shown during (SPIEF), online movie theater ivi.ru Oleg Tumanov which is based on data, SimilarWeb Yandex.Metric^[15]

The share of Yandex in the search traffic of the ten largest pirated resources, according to these data, is 78%. At the same time, the ivi.ru itself has a traffic share from Yandex of 15%, the share of Google in this indicator is 60.3%.

The income of copyright holders from resolving the issue of placing illegal content on the Internet can be increased four to five times, noted in the presentation of Tumanov.

Alexander Akopov, a member of the board of the Association of Film and Television Producers, co-founder of the production company Cosmos Studio, said at the SPIEF session that Yandex is currently the main pirate platform. He clarified to RBC that both Yandex and Google are engaged in piracy, but there is more damage from the Russian service at times.

2017

TelecomDaily: 11.6 billion rubles excluding VAT (+ 37%)

According to IAA TelecomDaily, the total revenue of online cinemas in Russia in 2017 amounted to 11.6 billion rubles. (excluding VAT). At the end of 2016 - 8.5 billion rubles. Growth for the year was almost 37%. The figures given have a minimum error in relation to the real volume of the online video market and are significantly less than that of colleagues from other analytical agencies who take estimates of market players, without checking the reality of the data provided. A significant number of market participants working according to the AVOD model show advertising budgets in the advertising revenue of the company, which the advertiser placed on the video resource, others - funds that came to the platform. Consequently, the former reflect revenue without deducting the commission to agencies (it is about 40%), others - with its deduction. Also, some companies show revenue noticeably more than it comes to their accounts of Russian companies, thereby implementing the transfer of part of the funds to the accounts of third parties without paying taxes. All this makes the market not transparent and puts companies in unequal conditions in terms of recognizing the results of their activities in the professional community. Another reason for the biased market is financial reporting systems: some players publish their reports according to IFRS, others - according to RAS, the indicators of which are often incorrect to compare with each other (for example, the proceeds from access to the annual paid subscription of the IFRS service will be recognized in parts for 12 months, and in RAS - at once in the month of connection of the annual subscription). Thus, many data on market volumes and company shares published in the media today are incorrect and greatly distort the real economic indicators of the market, interfering with its objective and transparent assessment. A distinctive feature of this report is the mandatory comparison of financial information provided by companies with their financial statements (RAS, IFRS), recalculation of data and an attempt to bring indicators to a single coordinate system, which makes it possible to significantly reduce the error of estimates and see more reliable figures.

During the reporting period, the following can be distinguished:

• The market leaders in terms of total revenue at the end of 2017 are: IVI ranks first with a share of 20.9%; Youtube occupies the second position with a share Rostelecom of 15.5%;, the only operator BROADBAND ACCESS present in the ranking takes 3rd place with a share of 10.4%.
• The share of the paid model increases from year to year and reached 56.5% at the end of the year; the share of the advertising model, on the contrary, decreases and reached 43.5% in 2017.
• TVZavr The company (+ 108.1%) became the leader in revenue dynamics among all online cinemas of the Russian Federation for the period 2016/2017, followed by MegaFon (+ 89.8%), Okko (Okko) Online cinema (+ 78.5%)
• The maximum share of online video audience remains with the category of PCs and laptops (48%), home screens account for 26%, mobile screens - 26%
• The market is growing significantly, but many companies are still trying to provide their achievements with even more exaggeration, which, in fact, blurs the true picture. The reasons for this are on the surface, since almost all of them are for sale and there is a need to improve performance.
• The most open companies, i.e. which provided all the necessary reliable data on request, up to financial statements are Tvzavr, Rostelecom, ivi.

Key Drivers of Online Video Market Development

• Attention to online video services from the state will grow. The first significant amendments to the legislation regarding the regulation of online cinemas have already been adopted. They were actually equated with the media and limited the share of foreign capital to 20% (provided that the share of users from the Russian Federation exceeds 50%). The rules for issuing rental certificates for films have changed, including for screenings through video-on-demand services.
• Despite all the difficulties (pressure from legislators, a limited increase in new viewers, economic instability, etc.), the current situation is favorable for the development of online cinemas. Online video-on-demand services operating in the legal segment in the coming years have great development potential in the domestic market, since there is practically no competition from a potentially powerful rival - pay-TV operators.
• Blocking pirated resources significantly affects the user behavior model and, as a result, contribute to the growth of paid monetization models. Online cinemas face an important task - to create a habit of accessing online video services, to develop characteristic situations and circumstances of using legal video services.
• If earlier one of the main tools of competition was the expansion of content libraries, now the competition will be based on an understanding of the needs of the viewer, his preferences regarding video genres, screens and typical viewing circumstances. The experience of foreign cinemas shows that the production of its own content is one of the powerful tools in the competition, which allows you to attract and retain users.
• In the next few years, the share of long video views through Smart TV applications will grow, and this will happen mainly in the segment of legal video services.

The following sources were used to collect data:

• Data of companies (information exchange and responses to requests for business indicators);
• Reporting of companies under RAS and IFRS;
• Expert survey, including as part of the discussion of sector development trends;
• Statistics systems (GA, SimilarWeb, Webomer, etc.);
• Results of generally accepted online video market measurement programs (TNS, ComScore, etc.);
• Research of other agencies and analysts (GfK, AC VI, etc.);
• Industry statistics (Ministry of Communications, Rosstat, IAC of the Government of the Russian Federation, etc.);
• Other open and closed sources.

J'son & Partners Consulting: RUB 15.89 billion excluding VAT (+ 42%)

At the end of 2017, the volume of the Russian market for legal video services reached 15.89 billion rubles excluding VAT (+ 42% compared to the previous year). Total revenue of players for the advertising model increased by 37.3%, and for all paid models - by 49.6%. According to J'son & Partners Consulting estimates, by 2021 the revenues of the legal video services market may increase to 34.3 billion rubles. At the same time, the average annual growth rate in 2018-2021 will be^[16].

The online video industry is growing globally (+ 26% in 2017 earnings). Due to the stability of the exchange rate, the share of the Russian market in global revenues increased from 0.5% in 2016 to 0.6% in 2017.

Over the year, another important change has taken place in the market structure. The most common monetization model remains AVOD, but its share has decreased from 60.5% to 58.5%. Subscription is growing at a faster pace (market share increased from 11.2% to 18.1%), which moved it to 2nd place.

Online cinemas occupy a market share of 71.6% (11.37 billion rubles excluding VAT). In 2017, the list of operationally profitable companies increased again. TV channels increased their market share to 12% (to 1.91 billion rubles) and moved to second place. The market share of operators amounted to 11.5% (1.83 billion rubles). 780 million rubles (4.9% of the market, a decrease of 1 pp) earned digital distribution platforms.

The key trends in the development of the legal video services market in Russia are:

• Revenue growth from paid monetization models
• Growth of video advertising due to more active participation in this segment of the market of Russian Internet giants
• Cooperation of pay TV operators, online cinemas, TV channels.
• Increase the volume of content offered in the 4K
• Production of own content by online cinemas
• Integration of linear television into online cinemas

Mediascope data

In 2017, a total of 26.3 million Russians used stationary PCs to watch videos on the Internet. This is 9% less than in 2016. The reason for the decrease in the indicator was the fact that an increasing number of users are watching online videos from mobile devices. In September 2017, the number of users in these two categories caught up, that is, desktops ceased to be the main means of watching videos on the Internet. More than 26 million Russians also use mobile devices for viewing^[17], for^[18].

Such conclusions were reached by the analytical company Mediascope, which conducted research in December 2016 and December 2017 among Russian users aged 12-64 years from cities with a population of more than 100 thousand people. According to Natalya Dmitriyeva, general director of Gazprom-Media Digital, which operates in the video advertising market, "in some age groups, including among active buyers of 20-35 years old, up to a third of Russians today use exclusively mobile devices."

Advertising budgets

Despite the rapid redistribution of video views between PCs and mobile devices, the budgets allocated for mobile and desktop advertising have remained practically unchanged. In 2017, about 1.6 billion rubles were spent on mobile advertising in Russia, which is only 20% of Runet's advertising budgets in general, Gazprom-Media Digital reports. This is despite the fact that mobile devices account for more than 40% of advertising inventory, that is, the space provided to advertisers to post ads.

Gazprom-Media Digital explains the inadequacy of the distribution of advertising budgets by the lack of reliable tools for measuring mobile advertising. Mediascope has only provided data on ads in mobile applications since the beginning of 2018, and tools for measuring ads in browsers are still in development. By 2018, Gazprom-Media Digital predicts an increase in the share of mobile advertising costs to 30-40% of advertising budgets, that is, to 3-4 billion rubles. The estimated growth rate could range from 87% to 150%.

Video advertizing

If we talk separately about video advertising, then the volume of this market segment amounted to 8.3 billion rubles in 2017, which is 25.8% more than the same indicator for the previous year. Gazprom-Media Digital predicts slower growth for this segment than the advertising market in general. In 2018, the video advertising market will grow by about 20%, approaching 10 billion rubles.

At the same time, in 2017, the amount of funds that federal advertisers invest in video advertising increased by 23%, Gazprom-Media Digital reports based on an analysis of its own network. 47% of all funds come from manufacturers of consumer goods, 19% - from manufacturers of medicines.

The most aggressive advertising policy is conducted by players in the financial services market. Together, advertisers from the banking and financial sectors increased the budgets allocated for video advertising by 2.5 times in 2017. Along with this, there is an influx of new advertisers from these areas into the video advertising market. According to Dmitriyeva, advertisers are ready to spend money on video advertising on mobile devices even in the absence of accurate audience measurements.

RAEK and Okko: 13.64 billion rubles

In 2017 RAEC , together with the online cinema Okko , he conducted a study of the development of the Russian online video services market from 2010 to 2017. "Online cinema ecosystem Russia 2017^[19] ecosystem^[20] of the study are to describe the online video ecosystem in Russia, track the dynamics of online video consumption from 2010 to 2017, identify key players in the online cinema market and content monetization models, study the audience and structure of online video consumption in Russia, determine the place of the Russian online video market in the global video consumption system and the degree of its impact on the ecosystem. digital economy of Russia

According to the results of the study, 13.64 billion rubles will be the volume of the Russian online services market in 2017. In addition, 70% or 7.83 billion rubles. revenue in 2016 falls on the share of online cinemas.

The largest market players in 2016:

• ivi - 33% of the market
• Okko (Okko) Online cinema - 16%
• Megogo - 13%
• Amediateca - 8%
• TVzavr - 5%

RAEK analysts provide the following digital indicators for this slice:

Online video

• (The AVOD model is considered in the Marketing and Advertising segment)
• RUB 4.6 bln in 2016
• RUB 5.1 bln in 2017 (+ 12%)

Online music

• RUB 2.8 bln in 2016
• RUB 3 bln in 2017 (+ 7%)

Online video

• (The AVOD model is considered in the Marketing and Advertising segment)
• RUB 4.6 bln in 2016
• RUB 5.1 bln in 2017 (+ 12%)

Online music

• RUB 2.8 bln in 2016

The audience of online videos in Russia amounted to 69.3 million people or 47% of the population at the end of 2016. Experts also note an increase in the audience of legal online cinemas in Russia. Today it is 39.6 million people, and in 2013 it was 21.7 million people.

'At the end of 2017, the paid model of watching online videos overtook the advertising one for the first time. The total ratio of advertising revenue and user payments was 42% and 58%, respectively. It can be stated that a culture of consumption of legal content is gradually being formed in Russia. 71% of users are willing to pay for legal content. 38% already buy or rent watching films or TV shows, "says Sergey Plugotarenko

.

Despite the fact that most of the large online cinemas present on the Russian market mainly use the monetization model through advertising, most experts and representatives of online cinemas note an increase in the number of users paying for content.

As of the first quarter of 2017, the number of paying audiences amounted to 3 million people, and the number of paid transactions in 2016 amounted to 15-20 million. In total, in 2016, the total amount of user payments in Russian online cinemas amounted to 2.34 billion rubles.

Video services explain the growth in user funding, including their adaptation to work in conditions of piracy, as well as the growing popularity of SmartTV.

Smart TV is one of the main platforms for attracting paying audiences. According to experts, at the end of 2016, the Smart TV fleet in Russia amounted to 13.8 million devices, of which 69% were connected to the Internet. The leader in the share of Smart TV audience in the average monthly audience is the Okko online cinema: with a total average monthly audience of 1.5 million people, the share of Okko's Smart TV audience is 76.8%.

83% of online cinema viewers prefer a free content consumption model with viewing ads, only 3% of users buy a paid subscription. The average price that most users are willing to pay for a piece of content is 50-100 rubles.

Over the past few years, digital windows have significantly decreased - the time intervals between the premiere of the film in cinemas and on the Internet, today the average gap is 6-8 weeks, while 5 years ago it was 16 weeks.

According to the results of the study, it was concluded that the market for online video services operating in the legal segment in the coming years has significant development potential in the Russian market, as well as drivers and limiting factors for the development of online cinemas and the growth of legal video consumption.

Drivers:

• The growth of Internet penetration, the development of 3G and LTE networks, which allow you to consume online video content as comfortably as possible at high speed without interruptions
• Development of payment systems that allow you to purchase paid content in a way convenient for users
• Improving the level of online cinema service, increasing the amount of content
• Poor quality of pirated services
• Development of new technologies: VR, 4K, etc.
• New devices suitable for watching online videos
• The growing popularity of Smart TVs, which have already begun to rapidly displace conventional TVs
• Increasing user engagement with this type of service thanks to the ability for the user to choose content by interest, comment and exchange opinions
• Expanding the geography of the provision of services by Russian video services

Limiting factors:

• Insufficient digital literacy of users
• Maintaining a high level of illegal consumption
• Relatively high cost of content and services
• Competition from other types of online entertainment and services (games, social networks, etc.)
• Over-regulation

List of audience meters for online cinemas

Roskomnadzor published in September a recommended list of programs designed to determine the number of visitors to sites - news aggregators and online cinemas.

The list, in particular, includes seven resources: Sputnik, Yandex.Metric, Рейтинг@mail.ru, Rambler/Top-100, Mediascope, Liveinternet and HotLog.

In accordance with the amendments to federal legislation, the owners of news aggregators and owners of audiovisual services are obliged to establish one of the programs proposed by Roskomnadzor designed to determine the number of users of the site.

Methodology for determining the number of users of audiovisual services

Roskomnadzor approved^[21], the methodology for determining the number of users of online cinemas. The regulator proposed counting one-time calls of unique users to the site during the day.

The agency will receive this information on the basis of publicly available information in the form of open data. In addition, software can be used to fix the number of users. If these methods are not available, Roskomnadzor will send a request to the owner of the online cinema.

This will allow the regulator to provide a unified approach to determining the number of users of sites of audiovisual services, access to which is provided for a fee or subject to viewing ads. Such information resources will be included in the register of audiovisual services.

If more than 100 thousand users from Russia visit the online cinema per day, it will be entered into the register of Roskomnadzor and will have to comply with the provisions of the new law. They, in particular, include restricting the participation of foreign capital, banning the distribution of videos containing signs of extremism, age labeling of content, etc.

Online Cinema Regulation Act

The president Russia Vladimir Putin signed a law regulating online cinemas in May 2017. The document regulates the legal status of audiovisual services that monetize their services by viewing advertising or providing video content for a fee.

Owners of news aggregators are required to install one of the computer programs proposed by Roskomnadzor and designed to determine the number of users with an information resource on the Internet. A similar duty is introduced for owners of an audiovisual service. Other obligations are also enshrined for them: to prevent the use of the service in order to commit criminal offenses, to disclose information constituting a state or other secret specially protected by law, to distribute materials containing public calls for terrorist activities or publicly justifying terrorism. The law also provides for the creation and maintenance of a register of audiovisual services.

The owner of the audiovisual service may be a Russian legal entity or a citizen of Russia who does not have the citizenship of another state. In other cases prescribed in the law, the decision is made by the government commission. These restrictions do not apply to economic societies of strategic importance for ensuring the country's defense and state security. If the Russian audience is more than half of the service's users, a restriction on the participation of foreign capital in such a company is introduced.

At the same time, the audiovisual service is not information resources registered in accordance with the law on mass media as online publications, search engines, information resources on which audiovisual works are placed mainly by users.

The Administrative Code establishes administrative liability for violation of restrictions imposed on Internet services. If information disseminated in violation of the law is found on the audiovisual service, Roskomnadzor sends a demand for measures to eliminate the identified violations. In case of repeated violation or failure to comply with the requirements, the regulator applies to the court with a statement restricting access to the audiovisual service.

The law came into force on July 1, 2017.

On July 1, 2017, Federal Law No. 87-FZ "On Amendments to the Federal Law" On Information, Information Technologies and Information Protection "and Certain Legislative Acts of the Russian Federation" entered into force, which introduced the concept of "audiovisual service."

An audiovisual service is a site, information system or computer program that is used to form and (or) organize the distribution of a set of audiovisual works on the Internet, access to which is provided for a fee and (or) subject to viewing advertising aimed at Russian consumers, and access to which during the day is more than one hundred thousand Russian Internet users. For the purposes of the Law, audiovisual services are not considered registered network media, search engines and information resources, on which video is downloaded mainly by Internet users.

The owner of the audiovisual service can only be a Russian legal entity or a citizen of the Russian Federation who does not have citizenship of another state. Foreign persons are allowed to be only owners of shares in the authorized capital of owners of audiovisual services. If such foreign persons own information resources aimed at distributing audiovisual works and have a predominantly (more than 50%) non-Russian audience, then the possession, management or control of more than 20% of shares (shares) in the Russian audiovisual service is possible only if such ownership, management or control is previously approved by the Russian government commission for foreign investment control.

The law assigns a number of duties to the owner of the audiovisual service, including, among other things, the implementation of age marking of the posted video, compliance with election legislation and rules on the distribution of media, the installation of a program recommended by Roskomnadzor to determine the number of users of the Internet resource, as well as the fulfillment of requirements for the content of information distributed through such services. In addition, a ban is introduced on the distribution by owners of audiovisual services of TV channels or television programs that are not registered in accordance with the law on the media. It also provides for the creation of a register of audiovisual services.

Discussion of the bill on online cinemas

The State Duma adopted in April 2017 in the II reading the bill "On online cinema meters" (OTT services). The document was primarily developed by deputies Andrei Lugovoi and Shamsail Saraliev, but was criticized by the industry, the Ministry of Economic Development and the Government. In the second reading, the bill underwent significant changes^[22].

The bill provides for the regulation of the activities of audio-visual services and the creation of an appropriate register by Roskomnadzor. It will include services that demonstrate cinema for a fee or in exchange for watching advertising, whose activities are aimed at attracting the attention of the Russian audience and whose daily attendance in Russia exceeds 100 thousand.

Foreigners will be banned from owning foreign online cinemas

Foreign organizations, as well as subcontrolling foreigners, Russian organizations and persons with dual citizenship are prohibited from owning more than 20% in online cinemas from the corresponding register. But in the second reading, this requirement was relaxed: now it will apply only to online cinemas, whose audience in Russia is less than half of the total audience.

However, in such cases, foreigners will be able to apply to a specially created government commission with a request for permission to own an online cinema. Such a permit can be issued provided that it will correspond to "the interests of the development of the audiovisual services market in Russia." Also, permits for foreigners to own online cinemas can be issued by the government commission on foreign investment in strategically important industries.

The amendments adopted in the second reading will allow foreigners to own online cinemas with a predominantly Russian audience. Also, the provisions of the bill do not apply to services that host user content - for example, YouTube. One of the main candidates for blocking under the current version of the bill was Netflix.

Blocking by Roskomnadzor through the Moscow City Court

When Roskomnadzor discovers a resource that should be included in the register of audiovisual services, its hosting provider will be sent a request to provide information about the owners of this service. The response to the request must be sent within three days. Then the owner of the resource will have two months to bring his work in line with the law.

If the online cinema does not satisfy the ownership requirements, then Roskomnadzor will be able to demand through the court to block access to it from the territory of Russia. The Moscow City Court will consider the relevant claims as a first instance.

A number of requirements will be presented to the audiovisual service from the corresponding register. They will be prohibited from spreading obscene language, information that violates state secrets, promoting terrorism, extremism, the cult of violence, etc.

In addition, online cinemas will have to comply with the requirements of the legislation on holding elections and carry out labeling of materials prohibited for children.

During the II reading, the item originally contained in it was removed from the bill, which obliged online cinemas to meet the requirements of citizens and the organization to remove inaccurate information about them. Removed the clause on the need to include in the Register of audiovisual services aimed at residents of one Russian region (in order to get into the Register, their daily attendance should have exceeded 20 thousand) But there was a ban on the distribution of TV channels and television programs that were not registered in Russia as media.

Meters from Roskomnadzor

The document contains a requirement on the need for owners of online cinemas to install online meters recommended by Roskomnadzor. A similar requirement is introduced for news aggregators (regulation of their activities began in Russia in 2016).

Fines for online cinemas

Another innovation that appeared in the II reading is the introduction of amendments to the Code of Administrative Offenses on the establishment of fines for owners of online cinemas. For the distribution of unregistered media, fines will be imposed on individuals in the amount of 5 thousand to 10 thousand rubles, on officials - from 50 thousand rubles. up to 100 thousand rubles, on legal entities - from 500 thousand rubles. up to 700 thousand rubles.

For failure to implement age marking, fines are introduced for individuals in the amount of 3 thousand to 5 thousand rubles, for officials in the amount of 30 thousand rubles. up to 50 thousand rubles, for legal entities - from 300 thousand to 500 thousand rubles. For the dissemination of information promoting terrorism or extremism, fines are introduced in the amount of 50 thousand to 100 thousand rubles, for officials - from 200 thousand to 400 thousand rubles, for legal entities - from 600 thousand to 1 million rubles.

Similar fines are introduced for non-compliance by the owners of online cinemas with the requirement of Roskomnadzor to eliminate violations of the law. Repeated non-fulfillment of the requirements of Roskomnadzor will be punished with fines in the amount of 200 thousand to 300 thousand rubles for individuals, from 500 thousand to 700 thousand rubles for officials, from 1 million to 3 million rubles for legal entities.

The State Duma has decided on the concept of a foreign video service

The State Duma Committee on Information Policy proposed in April 2017 an amendment to the draft bill on foreign online cinemas. The amendment assumes that the service will not be defined as foreign if its main audience is made up of Russian citizens.

"If most of the users are located on the territory of the Russian Federation, this resource is not foreign," the head of the committee Leonid Levin quotes RNS.

Such a service will be foreign if Russian users account for less than 50% of the audience.

In addition, amendments have been approved, according to which audiovisual services will not include search engines and resources with mainly user content. A total of 10 of the 16 amendments were approved. A positive verdict was also issued by the Internet Video Association.

"We

have insisted from the outset that regulating the market for its development should not restrict national players regardless of what ownership structure they have. The share of Russian users is a very simple and understandable criterion by which you can separate Russian services from foreign ones, "said its head Alexei Byrdin

.

If the law is passed, it will enter into force on July 1, 2017.

The government obliged online cinemas to receive rental certificates

The Ministry of Culture of the Russian Federation published explanations on the application of the amended rules for issuing a rental certificate for a film, approved by a federal government decree of February 27, 2016. According to the changes, the rental certificate is issued for three methods of using the film: screening in the cinema hall, rental on a material medium and "screening the film by other technical means"^[23].

As the ministry explains, the last point should be understood as any way to demonstrate the film to the public using technical means, including on the Internet. However, the demonstration of the film by means of television (including online versions of TV channels) is not included in this concept.

The activities of online stores to distribute films by downloading them to the user's technical means (downloading) is also not a "show" of the film in the understanding of the law, the message says. However, the "show" includes the demonstration of films through VOD services.

"Obtaining rental certificates for screening a film by other technical means is necessary for films, the placement of which on the Internet was carried out after the entry into force of the specified decree," the Ministry of Culture explains.

The bill on restrictions for video services passed the first reading in the State Duma

The draft law, limiting the share of foreign capital in video services operating in Russia, passed the first reading in the State Duma in January. 321 deputies spoke in support of the bill, two voted against.

In particular, the document limits 20 percent of the share of foreign capital in video services, whose daily audience during the month is more than 100 thousand users throughout Russia or more than 20 thousand users in one of the regions. Also, online cinemas will be required to register in the register of Roskomnadzor. If the law is passed, it must come into force on March 1, 2017.

The bill, as its authors, as well as representatives of the Ministry of Telecom and Mass Communications, have repeatedly emphasized, includes services with professional, but not user content, primarily online cinemas. Video services such as YouTube will not be affected.

At the same time, deputy Andrei Lugovoi said that "it is high time that social networks become telecom operators," because, according to him, it is through Facebook, VKontakte that terrorism spreads, it is there that they are recruited into ISIS (banned in Russia) "The^[24].

2016

Revenues of the largest pirated online cinemas 3.3 billion rubles

In 2016, the counterfeit online video market more than doubled, reaching 3.3 billion rubles. At the same time, the total income of Runet pirates in 2016 is estimated at about 4.3 billion rubles. And the annual losses of the state in the form of lost taxes and fees amount to about 1 billion rubles, Izvestia writes.

As shown by the study "Economics of Pirate Sites - 2016" by Group-IB, suppliers of illegal online video have the highest incomes in this area. If in 2015 they earned 1.5 billion rubles, then in 2016 they already earned twice as much.

For more information, see Copyright on the Internet

Ministry of Economic Development against ISS bill

The Ministry of Economic Development (MED) criticized the bill "On the regulation of OTT services," which was submitted to the State Duma by deputies Andrei Lugovoi and Shamsail Saraliev. The text of the review is at the disposal of CNews^[25].

Foreigners will not show movies to Runet users

Foreigners, as well as Russian organizations in which foreign structures own 20% or more, will not be able to control online cinemas included in this register. That is, working in Russia of services such as Netflix will become impossible. In some cases, the government commission on foreign investment will be able to give permission to foreign investors to own such services. Services hosting user videos, such as YouTube, should not fall under the bill.

Online cinemas, which will be included in the register of Roskomnadzor, will have to fulfill a number of requirements. They will not be able to use their platforms to commit criminal offenses, promote terrorism and extremism, distribute pornography, disclose state secrets, campaign, etc. Age labeling will also have to be observed to protect children from information harmful to them. In addition, the owners of online cinemas will be obliged to respond to the requirements of citizens and organizations to remove information that is unreliable, violating their business reputation or violating the right to privacy.

How to determine an online cinema aimed at residents of Russia?

In its review, the Ministry of Economic Development indicates that the bill lacks a method for determining the circumstances that the online cinema is aimed at residents of Russia. The bill understands this to mean online cinemas that charge fees from residents of Russia or post advertisements aimed at Russians. But the current legislation does not contain a definition of advertising aimed at attracting the attention of Russians or residents of any individual territory, the ministry warns.

"Corruption factor"

Even more objections were caused by the definition of an online cinema aimed at residents of one subject of the federation - there is also no corresponding methodology. "The specified

provision of the bill in the submitted version, in accordance with the government decree" On anti-corruption examination of regulatory legal acts and draft regulatory legal acts, "can be regarded as a corruption factor" the breadth of discretionary powers, "expressed in the uncertainty of the conditions for making decisions," - said in the recall of the Ministry of Economic Development

The Ministry of Economic Development expressed doubts about the definition of audiovisual products used in the bill. "It is unclear what the legislator understands by the totality of films, films, other audiovisual works and TV channels, television programs, video programs," the Ministry of Economic Development points out. The bill thus tried to describe audiovisual services.

Also the MEDT considers it necessary to specify definition of the organizer of audiovisual service. In the current version of the draft law, it is a person who generates and/or organizes the distribution of audiovisual products in information and communication networks. But the concept of "formation of audiovisual products" is contained only in the Concept for the Development of Broadcasting in Russia for 2018-2015 and refers only to a broadcaster - a legal entity conducting broadcasting under a broadcasting license.

If the online cinema ceases to comply with the attendance requirements laid down in the bill, its owner can send a request to Roskomnadzor to exclude it from the register. The Ministry of Economic Development believes that Roskomnadzor should monitor the attendance of resources itself and, if necessary, exclude them from the register. Finally, the bill obliges online cinemas to appoint an official responsible for fulfilling the requirements of the legislation. But the Ministry of Economic Development considers it expedient to allow online film theaters to independently determine the procedure for complying with the requirements of the law.

Experts against the ISS bill

The working group "Communication and IT" prepared Government of the Russian Federation an opinion on the bill on the regulation of online cinemas, developed by the Media Communication Union (ISS). According to "" Businessman^[26]experts, including representatives of Russian Association of Electronic Communications the Open Network, Internet Video, the Association Internet of Things, as well as a number of large companies, gave a negative assessment of the bill.

According to the publication, experts concluded that the changes will lead to the monopolization of the online video market by players who participated in the development of the document, while at the moment they occupy only 12% of the segment. The developers themselves emphasize that their document only unifies the market.

The conclusions of experts can be presented in the State Duma Committee on Information Policy in the near future.

The document spells out amendments to existing legislation regarding the regulation of online cinemas, and the main innovation - OTT is actually equated to the media, projects with a monthly audience of more than 100,000 users fall under it, and foreign ownership of such services is limited to 20%. If the bill is adopted, all video services will have to be registered in the Roskomnadzor register, check downloaded content in advance for compliance with Russian legislation, and also delete irrelevant or unreliable content about users at their request. In addition, online cinemas will be banned from posting election campaigns. The^[27] from^[28].

ROCIT against ISS bill

When forming the bill, the interests of only one group were taken into account - domestic video producers and sellers, and the interests of users were ignored. The current form of the bill will adversely affect most online cinemas that create legal professional services for our users.

The adoption of the bill in its existing form will allow to legislate the status of companies developing cable TV, OTT and VoD services. It is assumed that this will increase the transparency of their activities, which should be aimed at increasing consumption opportunities for the Runet audience.

The Internet should remove infrastructure barriers to improving Russia's information independence, not creating them. The current version of the bill could create 'grey spots' and barriers for consumers. Today, there are no services that can simultaneously replace world resources (sites, film studios) that could provide a solution to fundamental educational and entertainment problems.

'The proposed regulatory measures look unwarranted and redundant. By closing companies' access to foreign investment, the bill eventually limits opportunities for the development and scaling of video services. Ultimately, this will lead to an increase in the position of pirated resources on the Internet and again create an uncomfortable and safe environment for Runet users, "said Sergey Grebennikov, director of ROCIT - Regional Public Center for Internet Technologies.

ROCIT opposes the artificial restriction of various interactive services on the Internet. ROCIT will actively interact with the legislative authorities in terms of bringing the draft law to the realities of the market and the requests of millions of Runet users.

YouTube's video service will not be subject to the restrictions of the law on the regulation of online cinemas, and fears that it may leave Russia are not true. This was announced in November by the RNS service with reference to the deputy head of the Ministry of Telecom and Mass Communications of Russia Alexei Volin. He stressed that the restrictions will not apply to services with mainly user content. "That is, professional content may also be, but its presence is not a reason for restrictions. The question is the specialization of the service, "the official said. According to him, the information that YouTube, allegedly, can leave the Russian market after the adoption of the bill is "a panic reading by lawyers who live on the principle that nothing is impossible, and therefore scare themselves and others."

Yandex and Mail.ru against the ISS bill

Yandex and Mail.ru. protested against the bill to regulate web messengers and online cinemas on the Russian market in November 2016

Yandex and Mail.ru filed a statement with the Ministry of Telecom and Mass Communications regarding the draft law on the regulation of instant messengers. The companies believe that the proposed option of regulation will only limit the development of Russian services for the rapid exchange of messages and audiovisual online resources.

The Media and Communications Union (ISS) previously introduced a proposal according to which messenger companies should identify users and conclude contracts with Russian telecom operators, as well as introduce a restriction on the dissemination of information, in particular one that violates Russian law. Under the bill, foreign participation in the authorized capital of the same online cinemas should be no more than 20%.

Web companies in a letter to the Minister of Communications of Russia Nikolai Nikiforov expressed concern about the current situation: "The proposed restriction of foreign capital in audiovisual services will help reduce the availability of legal content, the departure of foreign investors from the Russian market, and the lack of competition in this market will lead to a deterioration in the quality of services and market degradation in this part."

ISS bill on the regulation of online cinemas

Deputies Andrei Lugovoi (LDPR) and Shamsail Saraliev (United Russia) submitted a bill to the State Duma in November regulating the work of online cinemas. Friday "Vedomosti" write about this. The development of this document was carried out by the Media Communication Union (ISS), which united several of the largest telecom operators and media holdings. The authors of the bill claim that they continue to consult with the industry, which, however, is not confirmed by independent associations and companies that are not part of the ISS.

The ISS bill spelled out amendments to existing legislation regarding the regulation of online cinemas, and the main innovation - OTT is actually equal to the media, projects with a monthly audience of more than 100,000 users fall under it, and foreign ownership of such services is limited to 20%.

True, this restriction does not apply to strategic enterprises, as well as to projects whose activities are regulated by an international treaty or a decision of the government commission for control over foreign investments. The previous version of the project also affected messengers, but this part was not included in the final version (it is planned to develop a separate regulation for messengers).

If the bill is adopted, all video services will have to be registered in the Roskomnadzor register, check downloaded content in advance for compliance with Russian legislation, and also delete irrelevant or unreliable content about users at their request. In addition, online cinemas will be banned from campaigning.

I must say that the previous version of the ISS bill was sharply criticized by market participants. It was opposed by online cinemas and internet companies; even the online services Yandex.Video and Афиша.Mail.ru (both of these companies have foreign shareholders, and their shares are traded on foreign exchanges) are covered by the bill in the existing wording. An expert council under the government also gave a sharply negative assessment of the bill. However, despite the protests of the industry, the document entered the State Duma almost unchanged.

"Probably, the opportunity to get permission through the government commission somehow eases the situation," Megogo CEO Viktor Chekanov is quoted by Vedomosti, "but how exactly, while it is impossible to understand, we have never dealt with it." In any case, this does not change the situation fundamentally, he is sure: "There are many problems in the online video market in Russia, TV channels and film producers are losing huge sums of piracy, but in return for the ISS and now the deputies are engaged in destroying the most successful video services."

TMT Consulting: 4.8 billion rubles (+ 40%)

According to the results of 2016, the Russian market for legal online video services grew in money by 40%, reaching 4.8 billion rubles. Such figures in their report are cited by TMT Consulting analysts. It is important to note that the agency does not take into account app stores in its analytics, such as the Apple Store or Google Play, as well as operator IPTV/OTT products, for example, Interactive TV from Rostelecom. Although "Interactive TV 2.0," which does not require an Internet connection from RTK, "TMT Consulting" believes.

Of these, 4.8 billion 2.46 billion rubles were brought by advertising (+ 22% compared to 2015) and 2.34 billion rubles - a paid model (+ 65%). The largest jump in revenue, according to analysts, was due to the growth of the Amediateka service and the entry of thematic subscriptions by the Okko (Okko) Online Cinema online cinema.

What factors have had a positive impact on the market? First of all, this is working with content - an increase in the number of new products and exclusive offers, as well as the introduction of a new format - 4K and HDR. The next important factor was the improvement of the paid model (primarily subscription).

In addition to financial, 2016 was also marked by the appearance of new OTT services on the Russian market: foreign Netflix and Amazon came to us, OTT video services opened several more pay-TV operators. "Nevertheless, they do not yet constitute much competition: foreign players have little localized content, and operator services are designed primarily for their subscribers," analysts say.

At the end of 2016, 6 players had a market share of more than 5%. The first two positions were retained by last year's leaders - online cinemas ivi and Okko. For the third year in a row, these two companies account for about half of the market, while the ivi share is constantly growing (from 28% in 2014 to 33% in 2016).

The leader in growth rates was the Amediateka service, whose revenue grew by 2.12 times over the year - this allowed the online cinema to gain a foothold among the largest players in the Russian market.

According to TMT Consulting estimates, the audience of OTT video services in 2016 increased by 3.0% and amounted to 39.6 million people. The audience of Smart TVs (19% growth) and mobile devices (12%) grew most rapidly during the year. At the same time, the PC audience, although still the largest, has shown a decline for the second year in a row.

According to TMT Consulting forecasts, in 2017 the OTT video services market will continue to grow actively. The growth will be mainly due to paid services, the market volume will grow by 31% to 6.3 billion rubles.

By 2021, the OTT video services market will amount to 11.4 billion rubles, revenues from paid services will account for two-thirds of revenue. The average market growth rate (GAGR) in the next 5 years will be 10.4%.

The main trends in the coming years will be:

• change in the composition of market participants due to the arrival of global players, M&A transactions, entry into the OTT market of telecom operators and IT companies;
• preferential development of the paid model, primarily subscription;
• orientation of services to offer exclusive content, including in-house production;
• further expansion of the geography of the provision of services by Russian video services;
• implementation of further steps to regulate the market.

J'son & Partners Consulting: 11.18 billion rubles (+ 32%)

At the end of 2016, the volume of the Russian market for legal video services reached 11.18 billion rubles. The growth compared to 2015 was 32%. At the same time, the total revenue of players in the advertising model increased by 22.4%, and in all paid models - by 50.4%.

According to J'son & Partners Consulting estimates, by 2020, revenues from the legal video services market will grow by 78% compared to 2016 - to almost 20 billion rubles. The average annual growth rate in 2017-2020 will be 16%.

The online video industry shows high growth rates worldwide (+ 25% in 2016 revenues). For this reason, the share of the Russian market in the global volume remained at the same level of 0.5%.

In 2016, there were significant changes in the market structure. As before, the most common monetization model is AVOD. But players are increasingly making money on paid content, putting a lot of effort into it (developing delivery platforms, advertising, improving service and payment convenience). As a result, AVOD's market share declined significantly to 60.5% in 2016. The main benifician was the subscription, the share of which increased from 3.8% to 11.2%. It now ranks third in the market structure and ahead of the EST segment.

Online cinemas collected 70% (7.83 billion rubles excluding VAT) of all revenues. Paid services for the audience of mobile devices and Smart TV made a great contribution to this. Over the year, the list of operationally break-even companies has increased.

Operators increased their market share from 11.7% to 12.2% (to 1.37 billion rubles) and moved to second place. The main reasons for this are the growth of the base of IPTV subscribers and the efforts of operators to promote VOD for pay-TV viewers.

The share of TV channels for the year has not changed (11.8%). For non-linear viewing of their video, they collected 1.32 billion rubles. The innovation was the introduction of subscriptions that give the right to watch content without advertising.

660 million rubles (5.9% of the market, a decrease of 1 pp) earned digital distribution platforms. The introduction of VAT on sales of digital content can slow down the development of this segment in the next few years due to rising costs for users.

The key trends in the development of the legal video services market in Russia are:

• Increased attention to the industry from the state. Amendments to existing legislation regarding the regulation of online cinemas were prepared and adopted by the State Duma in the first reading. The main innovation is that they were actually equated with the media and limited the share of foreign capital to 20%. By its decree, the government changed the rules for issuing a rental certificate for films, including for their demonstration through VOD services.
• Increased cooperation between telecom operators and online cinemas. In 2016, according to this model, it launched its VOD service "Tricolor TV" - the largest player in the pay TV market in the country by the number of subscribers.
• Continue blocking pirated resources. This directly affects the change in behavior of most users and, as a result, contributes to the growth of paid monetization models.
• Production of own content, integration of linear TV into online cinemas. The main task of online cinemas is to differ from competitors, since from the point of view of the user, when the size of the video projection increases, the difference between different services disappears.
• Continued expansion of Russian online cinemas to the international market. In the CIS, almost all major online cinemas in Russia have been present for a long time. In 2016, they began promoting to the markets of non-CIS countries (Europe, USA) mainly for the Russian-speaking audience. The calculation is made on an inexpensive subscription to demanded content by Western standards (primarily "Russian Cinema").

Initiative Data

Almost half of Russians - 47% of the country's population or 69.3 million people - consume video online. Compared to other countries, this figure is higher than average, according to a study by the Initiative, the data of which are cited by Sostav. Thus, the first place in video consumption is occupied by the United Kingdom (77%), followed by Australia (68%) and Canada (67%). Indonesia closes the rating (9%). Russia in this list is ahead of Spain (45%) and Chile (42%)^[29].

"In the first half of 2016, the number of watched video content in Runet increased by 14%. However, in terms of the number of videos watched per user, our country is significantly behind developed countries and occupies only 9th place, but in terms of viewing time, Russians are in the lead, which indicates greater involvement in content, "said Elmira Sabitova, executive director of the Initiative.

According to the agency, 80% of the audience watches videos at least once a week, and 44% do so every day. A year ago, these figures were 72% and 41%, respectively. On average, every Russian on the Internet watches 218 videos a month, spending a total of 21 hour on this lesson. Moreover, in terms of viewing time, Russia leads together with Canada, in which 402 videos manage to view in a similar time.

The vast majority of users (95%) watch videos at home. Only 7% of Russians include videos in public institutions and 8% in transport, but this category has the greatest potential due to the development of wireless networks in public places. Only 4% of compatriots have time to travel for viewing.

The authors of the study note that Russians on average use more than two devices for viewing, and the share of laptops and stationary PCs used for this purpose is decreasing (by 2% and 4% per year), and the share of smartphones (by 5%) and tablets is growing (by 12%). The leader in growth was Smart TV (by 33%).

The most popular resource is YouTube, more than 70% of users watch it. In June, the average video service viewing time was 300 minutes, and the total number of minutes watched in the same month is estimated at almost 20.3 million minutes. Moreover, the audience of the resource is comparable to the audience of TV channels: in a study by Initiative YouTube, in terms of coverage, it is in 7th place after Channel One, Russia 1, STS, NTV, TNT and Ren TV, thus entering the top ten most popular projects.

The still high share of views falls on user video - 83%, and compared to last year, the figure increased by 2%. Advertising content accounts for only 12% of views, while, for example, in the USA[[]] share is up to 39%, and the same country is the leader in the share of online video in total investment in online advertising (11%)|]] the share is up to 39%, and the same country is the leader in the share of online video in total investment in Internet advertising (11%)]] Russia with its 6% is in last place in this rating.

"The largest category in video advertising is FMCG in general and food in particular, but FMCG's share is significantly higher in out-stream video (83%), while in-stream video is a more attractive format for advertising leisure and electronics," Sabitova said.

TelecomDaily: 7.35 billion rubles

According to IAA TelecomDaily, the total revenue of online cinemas in Russia in 1H2016 amounted to 3.1 billion rubles. According to the agency's forecast, annual revenue can reach 7.35 billion rubles.

During the reporting period, the following can be distinguished:

• The share of the paid model increases from year to year and will reach 37.2% by the end of 2016; the share of the advertising model, on the contrary, decreases and by the end of 2016 will reach 62.8%.
• In terms of total revenue among online cinemas are leading, and Yotube IVI. Rostelecom
• TVZavr The company (+ 50%) became the leader in revenue dynamics among all online cinemas of the Russian Federation for 6 months of 2016, followed by (Google Play + 40%) and Tvigle (+ 37%).
• The largest decrease in revenue for 6 months of 2016 was shown by Zoomby (-21%) and Rutube (- 6%).
• TVZavr (+ 51%) also became the leader in terms of revenue dynamics among free online cinemas of the Russian Federation for 6 months of 2016 (meaning online cinemas using the aVoD model), followed by Megogo (+ 38%) and Tvigle (+ 37%).
• The top 3 online cinemas of the Russian Federation in terms of the number of content units in the video library include Megogo, IVI, TVZavr.
• The maximum share of video viewing remains with the category of PCs and laptops (49%), home screens account for 27%, mobile screens - 24%. In this half of the year, only the category of mobile screens (+ 4%) showed an increase in the share, while in other categories a decrease was recorded.

  

For 6 months, the following companies saw market share growth: IVI, Rostelecom, Tvigle, Megogo, TVZavr. In turn, Yutube, Rutube, STS Media and iTunes lost their positions. IVI (+ 5%), Tvigle (+ 3.3%), TVZavr (+ 2.9%) provided the largest share growth for the period from 2014 to the 1st half of 2016.

  

In the first half of the year, IVI, Tvigle, Megogo, TVZavr and Channel One recorded market share growth, while Yutube, Rutube, STS Media lost ground. Tvigle (+ 2014) and TVZavr (+ 1) had the largest increase in the share of total advertising revenue for the period from 2016 to the 5.6% half of 4.8%.

Key Drivers of Online Video Market Development

• Online video on demand services operating in the legal segment in the coming years have significant development potential in the domestic market - even despite the limited growth of new viewers, economic instability, etc.
• The period of "spontaneous" extensive development of the service, due to the constant influx of new viewers, has exhausted itself.
• If earlier one of the main tools of competition was the increase in the volume of available content, now the competition will be based on audience needs, preferences regarding video genres, screens and typical viewing circumstances.
• The goal of online cinemas is to create a habit of use, to develop characteristic situations and circumstances for the consumption of legal video.
• In the next few years, the share of views of "long" video through Smart TV applications will grow: this will happen mainly in the segment of legal video services.
• Despite all the difficulties, the current situation is favorable for the development of online cinemas, since there is practically no competition from a potentially powerful rival, pay-TV operators.

2015

J'son & Partners Consulting: 8.5 billion rubles

In 2015, J'son & Partners Consulting added new player segmentation to the description of the market structure. This is due to the need to take into account the trends and prospects of the industry in more detail. All 50 companies included in the study are divided into the following groups:

• Online cinemas are content aggregators that provide the ability to watch videos both through project sites and through the applications of services for mobile platforms and Smart TV. For example, ivi, Amediateka, Okko (Okko) Online cinema, etc.
• TV channels - broadcasters monetizing primarily their content on the Internet using a paid or advertising model (STS, Channel One, TNT, etc.)
• Operators are pay TV operators who have implemented services for viewing paid video content on set-top boxes (STB) in the form of VOD or cinema halls on dedicated channels (Rostelecom, Beeline, AKADO, etc.)
• Digital distribution platforms - video content aggregators that provide OTT viewing, service applications for mobile platforms and Smart TV (iTunes, Google Play, etc.).

At the end of 2015, the volume of the Russian market for legal video services reached 8.5 billion rubles.

According to J'son & Partners Consulting estimates, by 2019, revenues from the legal video services market will grow 1.7 times compared to 2015 - up to 14.3 billion rubles. The average annual growth rate in 2015-2019 will be 14%.

Due to the devaluation of the ruble and the growth of the global market at a faster pace in 2015, the share of the Russian market in the global volume halved to 0.5%.

In 2015, AVOD remained the most common monetization model. But its market share has declined slightly due to the growth of paid services. However, according to J'son & Partners forecasts, AVOD will remain the absolute market leader and will maintain its share of at least 65% until 2019.

Online cinemas are a key link in the market, in 2015 they earned 5.9 billion rubles. The main players have sharply increased revenues (by 50-70%), including due to the development of paid services. This allowed some of them to declare operating breakeven.

TV channels occupy the second place in terms of revenue from legal video with revenue of 1 billion rubles. This is still less than 1% of advertising revenues on television, but the rapid growth online in the number of channels and their revenues will continue.

Pay TV operators received 994 million rubles from the provision of video on demand. Over time, this may become an important additional service for them that will increase ARPU.

Digital distribution platforms in 2015 earned VOD581 million rubles. The introduction of VAT on sales of digital content can slow down the development of this segment in the next few years due to rising costs for users.

The key trends in the development of the legal video services market in Russia are:

• The exit of large new players is unlikely, but it is possible to strengthen existing ones. A striking example is the appearance of Netflix in Russia in early 2016 and the possible strengthening of its position of the company in 2017. If the company rusticates the interface, revises tariffs and replenishes the library with content in demand by the Russian user, then it can take a significant market share.
• Increased cooperation between pay TV operators and online cinemas. Such agreements are beneficial for both parties - pay-TV operators receive a ready-made VOD offer that complements basic services well, and online cinemas - new users.
• Production of own content. In 2016, several new projects are expected to be released, which will be produced by legal video resources.
• Development of recommendation systems

An important phenomenon in 2015 was the development of recommendation systems for users by many video services. The main goal is to simplify the task of selection and keep the viewer in front of the screen for the maximum possible time. Which, in turn, should lead to an increase in income.

2013

J'son & Partners Consulting: 4.3 billion rubles (+ 116%)

According to J'son & Partners Consulting forecasts, the Russian OTT video services market will grow at a faster pace in relation to the global OTT market: in the period 2013-2017. the market will increase 4.8 times, while the CAGR 2013-2017 will be 48%. The total volume of the global OTT video services market will grow from $17 billion in 2013 to $28.9 billion by 2017, and the volume of the Russian OTT video services market will grow from $98 million to $470 million by 2017.

According to J'son & Partners Consulting consultants, OTT service penetration in Russia amounted to 25% in 2012 and 37% in 2013. The largest increase in audience occurred in 2010-2011. By 2017, the audience of OTT video services in Russia will amount to 91 million people, reaching 63% penetration.

In the future for 2017, a change in the viewing structure by device type is expected. Users will be more inclined to watch online videos on Smart TVs, consoles and smartphones than on personal computers.

According to J'son & Partners Consulting estimates, the total online video market in Russia in 2013 amounted to about $136 million, an increase of 116% since 2012. In 2016, it will reach $341 million with a CAGR of + 36%.

The main trends in the Russian online video market:

• the popularity of new devices suitable for watching online videos (except for traditional computers): smartphones, tablets, smarttelevisors;
• certain successes in the fight against illegal content and the growth of consumer demand for paid content;
• Increasing user engagement with this type of service by enabling the user to select content by interest, comment, and exchange views;
• the development of payment systems that allow you to purchase paid content in a way convenient for users;
• the development of 3G and LTE networks, which allow you to consume online video content as comfortably as possible at high speed without interruptions;
• the growing popularity of Smart TVs, which have already begun to rapidly displace conventional TVs, which is also the most secure channel for monetizing digital legal content by model ("Video on Demand" with a one-time pay-per-view option, "" Video on Demand, "provided on a subscription basis," "User's purchase of a digital copy of content or perpetual rental of a piece of content").

iKS-Consulting: 1.65 billion rubles (+ 105%)

In

2013, the volume of the online cinema market in Russia amounted to 1.65 billion rubles, adding 105% compared to 2012, and in the near future, growth will continue. At the same time, Smart TV and mobile environments will become drivers in the five-year perspective, according to analysts. In addition, the interest of advertisers in new opportunities to interact with the audience through advertising in online video will also play a role. The development of Russian legislation in the field of copyright protection on the Internet is also expected.

According to analysts, the distribution of Smart TV and mobile devices is directly related to the development of a paid model of access to content, which is already being implemented by many market players (Play, Megogo, ivi.ru). It is believed that by 2018 the share of revenue from paid services will amount to 50% of all revenues of online cinemas in Russia and in financial terms will reach 4.6 billion rubles a year.

According to iKS-Consulting, the number of Smart TVs sold in Russia has reached 6.8 million, with about 60% of them connected to the Internet. Thus, the growth in the audience of online cinemas is explained by both the growth in sales of the TVs themselves and the increase in the number of video services that are already installed on equipment.

There are more than two dozen players in the online cinema market, but 97% of the market is controlled by 9 of them.

In 2013, the turnover of the largest online cinemas increased 1.5 times, which is due to the growth in sales of Smart TVs and mobile gadgets. Market experts note that it is not yet possible to identify with confidence the only correct model for the successful development of an online cinema: there are examples of successful development in both advertising and paid models. The content policy of the online cinema depends on the business development model: ivi.ru and Megogo create a wide and diverse catalog of films and TV series, Play focuses on new products, Tvigle provides UGC content (created by end users) and content of its own production. But a common feature of the development of online cinemas is the desire to reach the maximum audience of all devices, present on the maximum possible number of platforms.

The distribution of the audience of online cinemas today is as follows: the overwhelming majority of people watch video content using a PC (22.3 million people), on Smart TVs - 6.5 million people, and using mobile devices - 4.8 million people. The total number of viewers of video content for 2013 is 33.5 million people, while 24 million people watch videos in online cinemas.

The growth in the audience of online cinemas is due not only to the increase in the number of applications for mobile devices and Smart TVs, but also to the distribution BROADBAND ACCESS in Russia, including mobile. Recall that this year the Big Three operators, in particular the company, MegaFon have significantly expanded the coverage area of ​ ​ 4G/LTE networks.

The behavior of a visitor to an online cinema, according to experts, is directly influenced by the way he goes to the site. For example, the Zoomby resource has the highest referral traffic rate (clicking on links on third-party sites), but this has a spam effect on the audience, so Zoomby has 84% of site visitors who visited only one page of the resource (bounce rate). The leader of the ivi.ru market has the most direct transition to a resource, so the failure rate is only 40% of the audience. The ivi.ru also has the greatest viewing depth (the number of pages viewed within one resource), Zoomby has the smallest indicator for this parameter.

Last year was characterized by a significant penetration of mobile devices into the online cinema market. Analysts have not yet made accurate audience measurements, but they provide data on the number of installations of mobile applications in 2013. The absolute record holder for this indicator is ivi.ru, the smallest number of downloads for the resource Videomore"."

The total number of downloads of mobile applications of online cinemas in 2013 amounted to 14.3 million. The monthly mobile audience of online cinemas is 4.8 million people. Above, we have already focused on the fact that most video content views now fall on personal computers, but the distribution by viewing frequency is absolutely the opposite. Most often, users of Smart TVs watch videos (11.5 views per month), on mobile devices the average number of views is 5.9, and using a PC only 3 views. On mobile devices, short content is most often watched. The average duration for all devices is 12-16 minutes. The very structure of video traffic is increasingly shifting towards large screens due to the high consumption of video content in Smart TVs. As a result, advertisers are increasingly considering this platform as a platform for advertising.

As a result, the advertising model of doing business remains key in 2013. The structure of the online cinema market last year was as follows: 78% - advertising, 22% - user payments. The growth in advertising revenues is due to an increase in the total audience of online cinemas to 24 million people, which is a third of Russian Internet users. The number of video viewing on the network has also significantly increased to 100-200 million views per month among market leaders. The approach of advertisers to their content is also changing: more and more often advertising becomes interactive, and also "adjusts" to the audience.

Analysts predict that advertising revenue will continue to exceed revenue from the paid model by 2018. The segment will grow 3.8 times and amount to 4.9 billion rubles. Growth drivers include an increase in the audience of online cinemas, the development of Smart TVs and the further "evolution" of advertising with an emphasis on targeting and interactivity.

The growth in revenue under the paid model is due to the increase in the penetration of Smart TVs and the popularity of online cinema applications and the expansion of the content offering due to new film distribution. An important role in the development of online cinemas is played by the Russian state. The adoption of the "anti-piracy" law and the beginning of the stage of "whitewashing" of the video content segment in Runet gave a significant impetus to the spread of online cinemas. However, experts believe that the problem of piracy in Russia has not yet been eliminated.

Users of online cinemas operating on a paid model prefer to pay only for the content that will be accurately viewed. The revenue from content purchases (or content items) with the ability to view once (multiple) is 85% and only 15% of the audience purchase a subscription for a certain period. It is expected that revenues generated under the paid model in the next 5 years will grow at a high rate: an average of 73% per year. Compared to 2013, the segment will grow 12 times and amount to 4.6 billion rubles.

iKS-Consulting experts predict that in 2014 the growth rate of the online cinema market will exceed 75% and the market volume will amount to 2.9 billion rubles. Market growth will be dynamic and by 2018 will grow 5.7 times, reaching 9.5 billion rubles in financial terms with an average growth rate of 43%.

Maxim Klyagin, analyst at Finam Management Management Management Company, assessed the online cinema market in Russia: "The online cinema market is growing very dynamically and, given the shift in the vector of development of the communication market to the mobile data transmission sector, undoubtedly retains very significant prospects for further expansion. The main growth drivers are high rates of development of high-speed networks, a decrease in the cost of access, the rapid distribution of portable consumer devices and the very dynamic growth of mobile traffic (the audience of mobile Internet is estimated at more than 25 million people). Against this background, the structure of video content consumption is gradually changing: online services are becoming more convenient and adaptive. Thus, competition with traditional solutions is constantly growing. However, at this stage, the volume of the local Russian market remains relatively small, the scale of the legal market is estimated in the range of several tens of millions of dollars. One of the industry's key challenges remains the widespread distribution of illegal content. "

1989: Development of the concept in the USSR