J'SON & PARTNERS CONSULTING: OKKO IS THE LEADER OF EST-SALES IN 2017

International consulting company J’son & Partners Consulting presented “Atlas of legal video services of Russia. Results of 2017”. According to the study,
Okko is the leader by income from EST model (buying content forever) and the second among online cinemas on paid monetization model with a slight margin from the leader.

J’son & Partners Consulting analyzed legal video services market in Russia in 2017. According to the repost, the main trend is fast income growth from paid monetization model compared to advertising. Market volume of legal video services from paid monetization model in 2017 is 6.6 billion rubles.

Total amount of payments made by users in online cinema Okko (Consumer Spendings) amounted to 1.38 billion rubles for 2017 (1.18 billion rubles without VAT).

Most of the payments are from EST model, on which OKKO is a leader. Analysis of rightholders’ windows and sales structure of online cinemas on EST model shows that users often choose Okko to watch new products in high quality (UHD/4K, HDR, Dolby Atmos sound) immediately after rental in cinemas.

Online cinema income from SVOD (subscription) model continued to grow rapidly. According to the materials of J’son & Partners Consulting, in 2017 the segment increased by 129%, so subscription became the second largest source of income for online cinemas. Okko`s income for SVOD made up 480.4 million rubles (without VAT), it 341,7% more than in 2016. In 2017, almost half of the audience enjoyed various subscriptions, which makes Okko a full service of regular review.

“We remain market leaders in EST segment, and this indicates that the audience is watching new stuff mainly in Okko. In addition, we continue to develop subscription model and have achieved good results. In Okko growth dynamics of SVOD turned out to be much higher than dynamics of the market as a whole and one of the highest among the players. Today, Okko’s share in paid online cinemas market is 20%,” commented Ivan Grodetskiy, CEO of Okko.

In 2017, Okko demonstrated twofold increase in income from EST, SVOD and TVOD (48-hour content rental) models across all presence platforms: website, mobile and Smart TV applications, Play Station 3 and 4 game consoles. With the income of 1.38 billion rubles (1.18 billion rubles without VAT) online cinema showed an operating profit.

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