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Thread: OTT struggle for Russian movies due to piracy

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    OTT struggle for Russian movies due to piracy

    Russian movies have yet to cash in on the country’s rapidly expanding OTT sector.

    Kommersant reports that online distribution of titles does not bring producers significant income and is hampered by both high levels of piracy and the cost of content.

    It gives the example of The Last Warrior, one of the most successful Russian releases of 2017, which accounted for only 1% of the income of Okko, an OTT service that operates a paid business model.

    Russian movies generally contribute little to the OTT sector, with the most successful titles making only some R20 million (€284,000).

    To be deemed a success, releases should attract at least 2.5 million viewers, whereas OTT services usually deliver only around 100,000.

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    Revenues from online movie theaters are significantly behind due to piracy


    Online distribution does not bring significant revenue to producers. The maximum fees in it are about 20 million rubles. The large fees, according to experts, hinder the level of piracy and the price of content.

    In 2017, the number of views of Russian content increased by 63%, and the total amount of views in the online cinema - by 133%. The most popular were two Russian films: "The Last Bogatyr" and "Gogol. Beginning ", as well as one foreign action film" John Wick 2 ", reports Kommersant.

    Recall, the online cinema market in Russia over the past year has exceeded 5 billion rubles. According to the expert, the main share of the market is occupied by video service IV, followed by Okko, the third place is occupied by Megogo, then - "Amediatka", TVigle, TVzavr.
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