“Gazprom-Media” has returned to the idea to create its own video service. Two years after the holding has lost control of the Rutube resource, it launches an online movie cinema.

“Gazprom-Media” is working on a project of its own online cinema, told RBK two sources close to the holding. One of the partners of “Gazprom-Media” is aware of this initiative too.

Holding need its own video service to monetize the content of its entertainment channels in the digital environment, especially TNT, explains one of the interlocutors of RBK. The future is for video streaming, therefore, success in Internet “is the key to survival for broadcasters,” says another source of RBK.

The sub-holding “GPM entertainment TV” is really preparing for the launch of the video service confirmed Irina Osadchaya, corporate communications Director of “Gazprom-Media”. According to her, the launch of the project “approximately” scheduled for the spring. “The main purpose of launch of the service is to make relevant and popular content of the holding closer to the viewers on all platforms,” said Osadchaya.

Number one
“Gazprom-Media”, the largest by income local media holding, operates, particularly NTV channel, such radio stations as “Autoradio”, “Echo of Moscow”, “Humor FM”, Energy, “7 days” publishing house, “Central partnership” film company, “NTV Plus” satellite operator.

The sub-holding “GPM entertainment TV” has such TV channels as TNT, TV3, Pyatnica, ТНТ4, “2×2” and “Super”. In addition, the sub-holding also manages the broadcasting channel “Match TV” and its thematic versions for cable networks.

For the first nine months of 2017, the income of “Gazprom-Media” under IFRS has reached 60.8 billion rubles, operating profit was 2.6 billion RUB, net profit was 997 million rubles. At the end of 2016 74% of its revenues were provided by ads.

Three tries
“Gazprom-Media” was one of the first broadcasters who purposefully invested in the development of their own video services.

In 2008 the holding has closed the transaction on purchase of Rutube service. At that time the whole company could be valued at $15 million, as “Kommersant” wrote.

In 2011, TNT channel, which was part of “Gazprom-Media” announced the launch of its own online cinema Now.ru. It was planned that the service will work on the paid model only (when the user pays for access to the content). At that time monthly subscription fee was determined in 499 RUB. However in its accounts for 2013, TNT stated that it had to reconsider the business model of Now.ru, which was never able to become profitable project over the years.

“Gazprom-Media” does not consider Now.ru as a failure. According to Osadchaya, “it was a useful experiment and a try to foresee the development of the market.” “We’re a little ahead of time,” — said the representative of “Gazprom-Media”.

In 2014 “Gazprom-Media” bought about 74% of WebMediaGroup (the remaining 26% belonged to VGTRK) for 1.3 billion rubles (about $33 million at the average exchange rate for that year) from its shareholder — Gazprombank; the main asset of it was online cinema Zoomby. In that year, “Gazprom-Media” wanted to create a joint venture with Rostelecom, to which would transfer all of its video services. But the deal never took place. “In changed economic situation, the agreements that were reached [with Rostelecom], ceased to be relevant”, — explained Dmitry Chernyshenko, General Director of “Gazprom-Media” in November 2015 in an interview with “Kommersant”.

Loss of control
In 2016, “Gazprom-Media” refused self-development of video services. At that time the holding announced that it gives Rutube and Now.ru (Now.ru and Zoomby had almost ceased to exist and by that time) to the management of Pladform company, distributor of content through its own video player. For that “Gazprom-Media” has received 33.3% in Pladform, which in this context was renamed Ruform.

By the end of 2015, “TMT Consulting” estimated the share of “Gazprom-Media” in the market of legal video services of 10%, which meant the income of 340 million rubles in this segment. At the end of 2016, “Gazprom-Media” had not appeared among the largest players; also “TMT Consulting” did not name services given to the management of Ruform among them.

Irina Osadchaya did not disclose the current numbers of Ruform, noting only that the project is developing as planned.

Subscribers paid
Last summer “TMT Consulting” predicted that in 2017 the Russian market of legal video services will grow by 31% to 6.3 billion RUB. For the first time, the income of the sites from subscription fees will exceed the income from advertising: 3.4 billion against 2.9 billion RUB.

By the end of 2016, the largest online cinema, according to “TMT Consulting” was ivi with the income of nearly 1.6 billion (market share — 33%). The second largest player — was Okko with the income of about 770 million rubles (16%).

Sources of RBK explained the refusal of “Gazprom-Media” to participate in the project “Window” (Vitrina) — total for major broadcasters ‘ online platform – by the deal with Ruform. In 2016, National Media Group, VGTRK, “STS Media”, “Perviy Kanal” and “Gazprom-Media” has decided to create a common video service — local analogue of Hulu (its founders are the American major Walt Disney Co., 21th Century Fox, CBS Corp. and NBC Universal). But then “Gazprom-Media” refused to participate in “Vitrina”. This is due to the fact that the holding has already transferred the exclusive rights for their content to Ruform, said one of the initiators of “Vitrina” in September 2017.

Creating a new own service is not contrary to the agreement with Ruform, said Osadchaya. This is also confirmed by Armen Gulyanyan, the CEO of Ruform.

Came to Start
In December 2017, “Gazprom-Media” became co-owner of the online cinema Start, which last fall was launched by the founders of the production Studio “Yellow, Black and White”. As RBK wrote, during the number of transactions “Gazprom-Media” has received 26% of LLC “Start Media”.

New online cinema, which is now preparing to launch, and Start will not interfere with each other, says the representative of “Gazprom-Media”. “On the contrary, we will solve the General task of improving the culture of digital content consumption,” says Osadchaya. The representative of Yellow, Black and White did not respond to a request of RBK.

SOURCE: RBC