The Russian Film Scene Amid Negotiations and Shifts

Last month, a quarter of Russia’s cinemas shut their doors. Alexey Voronkov, the managing partner of the C5 cinema network, spoke about the situation during a meeting of cinema-chain leaders with Boris Titov, the presidential commissioner for protecting entrepreneurs’ rights. Voronkov’s remarks were noted by Film Distributor’s Newsletter.

According to a C5 representative, the theaters’ working capital plunged by more than 40 percent in March. In April, another steep decline was anticipated, followed by further reductions in May. Voronkov warned that May could bring staff reductions and the closure of all cinemas rather than selective closures or temporary freezes. He estimated that by the end of 2022, the cinema network could incur losses totaling at least 11.1 billion rubles. [Source: Film Distributor Newsletter]

Film Distributor Bulletin readers viewed the support measures as insufficient. They argued that redirecting attention to content from India, China, Korea, and Latin America would take time and may not appeal to a broad audience, and that a fresh, widely appealing Russian blockbuster would take even longer to materialize. Last week, Russian Prime Minister Mikhail Mishustin confirmed the allocation of more than 11.5 billion rubles from the budget to Russian film production this year. [Source: Film Distributor Bulletin]

Attendees noted that re-releases of Russian films in March accounted for only about 6 percent of box office takings.

Nevertheless, one of the ongoing strategies involves adding classics back to the big screen, with Vladimir Menshov’s Love and Pigeons and the Last Hero trilogy slated for return. The latter is currently chartered by Central Partnership. There was no press release or promotional material indicating it is a reimagined original Russian project by the departed Disney studio. [Source: Film Distributor Bulletin]

In terms of box office, March 2022 marked the weakest performance in five years for cinemas. Compared with February, box office receipts fell 28 percent to 2.16 trillion rubles, according to BK. The year-over-year comparison with March 2021 showed a 45 percent drop. [Source: BK]

Previously, the Cinema Owners Association called for state support totaling 4.2 billion rubles. Online cinemas have since joined the plea for relief. In particular, the Internet Video Association, whose members include ivi, Okko, Amediateka, and Start, proposed reducing the VAT on movies and TV shows from 20 percent to 10 percent and passing an anti-piracy law that would allow removal of illegal links from search results out of court. The bill was submitted to the State Duma last year. [Source: Industry News]

Meanwhile, studio A24 announced the end of film screenings in Russia, with projects like Moonlight, The Lighthouse, The Witch, Reincarnation, and Solstice among those affected. The sole exception was Everything Everywhere All at Once, which the Russian company Volga secured the rights to release on April 7, reportedly because the rights were secured before February 24. The film earned 26.4 million rubles at the box office, a strong result for A24 in Russia. [Source: Industry News]

Hollywood’s hope to return to the Russian market remains alive, according to sources cited by Film Distributor Bulletin.

In early March, rumors pointed to a comeback plan for May. The newspaper later described that plan as being considered a strong option, with one of the leading names contemplating a July restart for lease activity. However, the timing hinges on the resolution of the Ukraine conflict; without progress there, Western studios may be reluctant to resume operations in Russia. [Source: Film Distributor Bulletin]

Regardless of Hollywood’s plans in Moscow, screenings of Matt Reeves’ Batman were continued by Kinokomiks. The film was set for release in Russia on March 3, and it became the first title pulled from distribution after February 24. An event described as an “all-Russian premiere” for the film was planned for an April gathering at a Moscow club, with tickets expected to cost between 300 and 500 rubles on the day of the show. Warner Bros. and Universal had not publicly commented on the initiative. By late March, former Culture Minister Vladimir Medinsky was already discussing who needed these copyrights. [Source: Film Distributor Bulletin]

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On April 11, Spotify’s music service became unavailable in Russia due to a new “fake law” restricting information access. The law applies to podcasts, a key area for Spotify’s growth. On April 13, Yandex.Music removed BBC Russian Service podcasts at Roskomnadzor’s request, a move described in Russia as part of ongoing political tensions surrounding media. Spotify subsequently offered Russian users a way to change their region in settings, enabling limited access to the platform by periodically switching regions via VPN. Spotify’s support channels remained active. [Source: Tech & Media Updates]

Outline Electronic Music Festival was postponed to July 2023 as a precaution to protect audiences and performers. Originally slated for an idle Soviet-era health complex near Moscow, the event was organized by Arma, Stereotactic, and Sila Sveta. Another festival, Signal, was still planned for the summer, according to Newspaper.Ru. [Source: Event Coverage]

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Exhibits from the Hermitage, the Tretyakov Gallery, Pushkin Museum and others, which had been detained by Finnish customs, were returned to Russia after participating in foreign exhibitions. This followed the Finnish Foreign Ministry authorizing the return of artifacts and legal changes allowing sanctions-excluded EU countries to permit export and transfers of cultural property as part of broader cultural cooperation with Russia. [Source: Cultural Affairs]

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Russian book publishers facing a difficult period launched a campaign called Books Left on the Bookmate subscription service. During a two-month marathon, 60 books aligned with current events were made freely available. Bookmate noted that many publishers have lost their primary channels of communication with readers, so the platform would also host discussions about the state of the publishing industry and provide a space for industry voices. Gorodets publishing described frustration from Scandinavian, Italian, and French partners who did not inform them about ruptures in relations, emphasizing the importance of continuing publishing to maintain cultural ties in hard times. [Source: Publishing Industry Digest]