One of the largest Russian online cinemas Okko joined Rambler Group of Alexander Mamut. The deal was non-cash: Era Capital Company of Ekaterina Lapshina, which owned Okko, will receive minority stake in Rambler Group, which also includes such cinema networks as “Cinema Park” and “Formula Kino”. Market participants warn that online video and film rental, as a rule, compete with each other.

Rambler Group has teamed up with online cinema Okko, told “Kommersant” representative of Rambler. This is a non-cash transaction: owner of Okko Era Capital receives a share in main company of Rambler Group. Size of the share is not disclosed. Ekaterina Lapshina, owner of Era Capital, confirmed to “Kommersant” the fact of unification. Rambler needs online cinema to “create cross-media ecosystem covering all screens: mobile, computer, cinema and Smart TV”, the company explains. Combined group will become the largest distributor of content online and offline with a common loyalty program, which will give new opportunities to advertisers and partners, expect in Rambler.

Alexander Mamut has long studied the possibilities of development in online video market. Sources of Kommersant said that businessman looked at different video services, including the largest- ivi. Rambler representative confirms that the company held talks “with almost all participants of online cinema market”. Rambler already had transaction in this segment: as reported by “Kommersant”, in 2017, the holding company bought control in “Dulton Media”, which develops Eagle Platform (video on the websites of “Vedomosti”, “Dozhd” channel and projects of Rambler work through it). In 2017, Mr. Mamut has bought the largest cinema networks “Cinema Park” and “Formula Kino”, which are now operationally merged with his other media assets — Rambler and publishing house “Azbuka-Atticus” in holding with projected income of 25 billion rubles.

Okko was launched in 2009 by Sergey Adonyev and Albert Avdolyan, founders of Yota operator; at first it was called Yota Play. Last few years, video service belonged to their Fund Telconet, ruled by investment consult Marsfield Capital. At the end of 2017 Era Capital of Ekaterina Lapshina, CEO of Marsfield Capital, bought a number of assets from Telconet, including Okko. By uniting with Rambler, Mrs. Lapshina counts on integration in the field of home and cinema viewing. “This is a synergy of online and offline consumption, all services are seeking to use it: classified, e-commerce, market-place. We are very pleased with the assessment and are interested in receiving more interesting figures. If there are no stories about the exit, we will earn together,” she said.

Unlike the majority of online cinemas, Okko works without advertising, user is offered to subscribe or buy a separate movie. This model will be preserved after the deal. By the end of 2017 Okko doubled the income to 1.38 billion rubles and ranks second among online cinemas after ivi, which income was 2.43 billion rubles. Okko estimates its market share at 18%. In 2017, the company went on no-loss basis and develops “almost without the use of debt instruments”, Rambler says. In 2016, owners of Okko held talks with Vympelcom about the partnership, which assumed buyback of the company at an estimated $40 million, says source of Kommersant. Ekaterina Lapshina does not comment on this assessment, but notes that since then Okko has grown and is now rated much more.

General Director of online cinema Okko exclusively for RUVOD commented on the deal: “this is an unconditional recognition of achievements for Okko team, and for business – new opportunities in synergy and partnership with the verticals of Rambler group to change the market and how people watch movies and, ultimately, their lives. Soon on “all” screens of the country…»

In general, online video market in Russia has been growing rapidly for several years, but most of the services have not yet reached a stable payback. Among the problems —are piracy and high costs of licensed content. Oldest players like ivi or Okko started when the market was not ready yet, and lived for a long time at the expense of shareholders, says Alexey Soloviev, iTech Capital partner. “Now is the time when market is ready, but the question is, what is financial condition of online cinema after several years of this ice age”,- he notes. From the point of view of distributors, there will be no preferences for combined player in the field of offline and online, doubts Vadim Vereshchagin, Director of film distribution of “Central partnership”. In addition, film rental and video-on-demand are competing markets, and giving preferences to one, inevitably harm the other, he argues.

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