Online Video Market in Russia Grows by 56%

In the first half of 2020, the Russian online video market grew by 56% year-on-year amounted to 18.6 billion rubles ($250 mln), according to a study conducted by the information and analytical agency TelecomDaily, which was released on Friday.

This year, in particular due to the coronavirus pandemic, the growth rate of the Russian online video market is noticeably higher than in previous years, which ranged from 35% to 45%. By the end of 2020, experts predict a growth of 55% – up to 41.9 bln rubles ($562 mln), if remote work continues to be a trend, TASS reported.

According to the results of H1 2020, the market leaders were ivi online cinema (with a constant share of 23%), Okko multimedia service (its share increased to 17% from 12%) and YouTube video hosting (the share decreased to 9% from 11%). The shares of Megogo (up 7%), Rostelecom (up 6%) and Netflix (up 3%) decreased by 1 pp.

The biggest revenue growth (4.6 times) in H1 2020 was shown by the Start online cinema, whose market share was 4% – the same as that of Kinopoisk, Amediateka and Megafon TV. In second place in terms of growth rates is Okko, whose revenue grew 2.2 times. Ivi, Rostelecom and Premier have increased their revenues by about 1.5 times.

In addition, according to TelecomDaily, for the first time, the share of revenue from purchases of video on demand (one-time paid rent or purchase of a digital copy of a unit of content) exceeded the share of revenue from advertising (27.1% versus 26%). The subscription model still dominates sales (46.9%).

According to the general director of TelecomDaily Denis Kuskov, during the pandemic, some market participants managed to increase their revenue, which ultimately affected the market volume in monetary terms, and the assumptions that all subscribers connected during stimulating campaigns during quarantine will leave without starting pay until they are justified. However, he admitted, companies that are too keen on subscriptions for 1 ruble will see subscribers turn away by the end of the year.

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