In 2017, volume of Russian legal video services market reached 15.89 billion rubles, adding 42% to the figures of previous year. Total income of players on advertising model increased by 37.3%, and for all paid models — by 49.6%, according to study by J’son & Partners Consulting.

Analysts have studied various models of video services monetization, in particular free scheme with demonstration of advertising, as well as paid services on subscription basis and purchase of digital copies of materials and concluded that market structure has undergone important changes. The most common monetization model is AVOD, but its share fell from 60.5% to 58.5%. Subscription is growing faster (market share increased from 11.2% to 18.1%), which moved it to the second place.

The key trends in development of legal video services market in Russia were the growth of income from paid monetization models and the growth of video advertising due to more active participation of Russian Internet giants in this segment. Operators of pay TV, online cinemas and TV channels actively cooperated with each other and increased the volume of content in 4K. In addition, online cinemas produced their own content and integrated linear television into their services.

In 2017, list of operationally profitable companies increased again. Online cinemas took a market share of 71.6%, which amounted to 11.37 billion rubles. TV channels increased their market share to 12% (up to 1.91 billion rubles) and moved to second place. The market share of operators was 11.5% (1.83 billion rubles). Digital distribution platforms earned 780 million rubles.

Online video industry is growing worldwide (+26% in income of 2017). Due to stability of exchange rate, share of Russian market in global income increased from 0.5% in 2016 to 0.6% in 2017.

ivi, Megogo Okko and TVzavr already reported on profit at the end of 2017. Russian online cinemas have proved that they do not slow down the growth of income, and some even accelerated this figure.

According to analysts, the income of legal video services market could increase to 34.3 billion rubles by 2021. While average annual growth rate in 2018-2021 years will be 21%.

SOURCE: SOSTAV