Overview of the online cinema market and its growth drivers
Despite a slowdown in the growth of the domestic online cinema market, there are clear opportunities for expansion in the country. A research firm, TMT-Consulting, notes that only about one in five households currently subscribe to online video services. This indicates a large untapped audience in both Canada and the United States, where streaming penetration continues to rise and new services compete for attention.
In the first half of 2022, growth came mainly from services owned by telecom operators, which climbed 46 percent to reach 7 billion rubles. Non-operator platforms in Russia also gained momentum, with revenue rising 29 percent to 25.6 billion dollars for the half-year period. The pattern suggests that bundles, partnerships, and cross-service promotions play a major role in boosting user adoption across regions that share similar telecom-driven distribution models.
Among operator-owned online cinemas, KION, a unit within the MTS group, led the growth with a 123 percent increase. A key strength cited in the report is KION Originals, a line of in-house productions that helps attract and retain subscribers by offering exclusive content. This strategy aligns with broader industry trends where original programming acts as a strong differentiator in crowded streaming markets in North America as well.
Wink, owned by Rostelecom, also posted solid results, reaching a 47 percent growth. The rise came from new subscription options combined with access to multiple video services and the integration of Wink into mobile plans. Such tiered offerings showcase how bundling can boost both subscriber counts and average revenue per user, a tactic often mirrored by major streaming players in North America and beyond.
In another segment, Kinopoisk, under Yandex, moved ahead of ivi to claim the top position and doubled its revenue in the first half of the year compared with the previous year. Kinopoisk’s strong performance underscores the importance of a robust discovery engine, localised content, and strategic alliances in maintaining momentum in a competitive market that Canadian and American viewers similarly navigate when choosing their streaming platforms.
Overall, the segment grew by 29 percent, though momentum slowed due to the impact of foreign platforms such as Netflix and Megogo stepping back from certain markets, with revenue reaching 25.6 billion rubles. The top three also included ivi with modest gains and Okko with stronger growth. Analysts note that if ivi loses ground in advertising, Okko may accelerate its own expansion. This dynamic highlights how shifts in major players can influence market trajectories and pricing strategies in other regions as well.
Analysts from the agency point to several factors helping the market stay afloat. These include ongoing investments in digital ecosystems, partnerships across the industry, and the slow convergence of entertainment options with telecom and device ecosystems. On the downside, challenges persist: frustration with foreign digital innovations in movie theaters and traditional TV channels, increased piracy pressure as some users seek free alternatives, and fluctuating promotional costs for certain online cinemas. These issues offer a cautionary note for operators and policymakers in Canada and the United States as they monitor consumer behavior and competition in streaming markets.
Overall, the current landscape shows a resilient market with opportunities to grow through exclusive content, smart bundling, and strong collaborations. For readers in North America, the takeaway is clear: success hinges on combining original programming with compelling bundles, improving discovery and user experience, and maintaining flexible pricing that appeals to a broad audience while staying mindful of piracy and regulatory considerations.