Leading analysts and players of the Russian market of online cinemas summed up the preliminary results of 2017, highlighted the main trends and made predictions for the future. According to “TMT Consulting”, the volume of the market of online cinemas increased by 50% and reached 7.2 billion rubles in the past year. Many online cinemas drew attention to the increase in the share of paid monetization models in relation to advertising. Analysts predict that by 2022 the volume of the market of online cinemas will amount to 15.6 billion rubles, and 75% of the income will be from paid services.

According to preliminary estimates of “TMT Consulting”, the Russian market of online cinemas increased by 50% and amounted to 7.2 billion rubles in 2017. This was told by Konstantin Ankilov, General Director of “TMT Consulting”, at CSTB 2018. Shares for market players as follows: ivi.ru – 35%, Okko – 17%, Amediateka – 15%, Megogo – 12%, Tvigle – 7%, Tvzavr – 6%, other – 8%.

The income received for the paid model was growing the fastest. Its volume amounted to 4.4 billion rubles last year (growth on 88% compared to 2016). Advertising brought 2.8 billion rubles (growth on 15%). The share of income received under a paid model, exceeded 60%.The income from the subscription services (SVOD) was growing especially fast (almost two times).

According to preliminary estimates of J’son & Partners Consulting, the Russian market of VOD by the end of 2017 amounted to 15.7-15.9 billion rubles. Dmitry Kolesov, Director of TV and content Department of J’son & Partners Consulting, named the audit of quality (watching till the end), fight against fraud, accounting for offline conversions, the partnership of TV companies and online cinemas and Big TV Rating as trends of the Russian market on advertising model of 2017.

“Now the advertiser can buy all in one place, pay in one place. This should lead to increase of turnover of TV channels from online advertising. In the near future we will be faced with the fact that most of TV channels will not sell linear content, they will sell the content and the audience in general”, – predicts Dmitry Kolesov.

Specialist of J’son & Partners Consulting also outlined the trends of the Russian market of 2017 on the paid model. Here he added the continued growth of SVOD (subscription), the efforts of the online cinemas, designed to stand out among the competitors, the fact that Russian online cinemas came to foreign markets, and the use of Ultra HD content as a tool to attract audience.

Some of the online cinemas present at the round table dedicated to the market of video content shared their preliminary financial results at the end of last year in CSTB-2018.

Ivan Grinin, director of strategic analytics of ivi said that the income in 2017 under IFRS amounted to 2.4 billion rubles, showing an increase of more than 50% compared with 2016. He drew attention to the fact that paid model continued its dynamic growth. If at the end of 2016, paid model was a bit ahead of advertising (55/45), by the end of 2017, it was 40/60 in favor of a paid model. Ivan Grinin said that in December 2017 there were over 500 thousand paid users, most of them were subscribers.

Viktor Chekanov, general Director of Megogo, did not disclose figures of income yet. He noted, however, that distribution of shares of paid and advertising models by the end of 2017 were almost equal. In 2016 Megogo had about 80% on the advertising model and 20% on paid model.

The income of online cinema Okko, which is a fully paid service, grew up in 2017 on 65-67%.

According to forecasts of “TMT Consulting”, by 2022 the volume of the market of online cinemas will be 15.6 billion rubles. And the income from paid services will be 75% of all the income. The average market growth rate (GAGR) in the next five years will be 17%.

J’son & Partners Consulting predicted that by 2020 the average annual growth of VOD market will be about 30 billion rubles.

SOUECE: COMNEWS