Despite the slowdown in the growth of the domestic market of online cinemas, there is potential for development in the country. Research analytical agency “TMT-Consulting”. This is because only 20% of households currently use online video services.
According to the agency’s research, the biggest growth in the first half of 2022 was the services owned by telecom operators, this figure increased by 46% to 7 billion rubles. Non-operator services in Russia grew by 29% in revenue for the half-year, reaching a volume of $25.6 billion.
Among telecom operators-owned online cinemas, the growth leader was KION, which is part of the MTS group with a growth rate of 123%. “A key advantage of Kion is the production of its own content in the KION Originals series,” the report says.
In contrast, the dynamics of Wink, owned by Rostelecom, reached 47%. The revenue from this platform resulted from the introduction of new subscription types with other video services (Start, Amediateka, more.tv, Kinopoisk) and the addition of Wink access to packages with mobile communications.
The leader in another segment was Kinopoisk, part of Yandex: it pushed ivi out of the top spot and doubled its own revenue in the first half of the year compared to last year.
In general, the growth of the segment amounted to 29%, slowed down by almost half, primarily due to the separation of foreign platforms of Netflix and Megogo, reaching 25.6 billion rubles. The top three also included ivi (+9%) and okko (+24%). But analysts noted that if it loses ivi in the advertising segment, then okko increases its dynamics accordingly.
The agency’s analysts note that problems with foreign innovations in movie theaters and federal TV channels, the development of digital ecosystems, and partnerships in the industry are helping the market stay afloat. Analysts say that among negative factors for the market, Western gamers flock to pirate video services due to the departure, weakening of the fight against piracy and falling promotional costs of some online cinemas.
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.