IABM Market Intelligence Blog - Broadcasting in the Russian Federation 31 March 2016
IABM Market Intelligence Blog - Broadcasting in the Russian Federation Written by IABM Research Analyst Lorenzo Zanni (lorenzo.zanni@theiabm.org)
The European Audiovisual Observatory has recently published a report on the Russian media industry. In this blog, we have included some of the most interesting results from this study.
Source: iKS-Consulting
In 2014, HDTV penetration in Russia was equal to 32% of the population (40% of households), a very low figure compared to Western countries where HD penetration was more than 60% in most cases. In Russia, HDTV sets are still priced at a premium, making it too expensive for the majority of the population. Pricing for HDTV sets has arguably increased in 2015 as a result of international economic sanctions, which squeezed the supply of HD sets, and the deep depreciation of the Ruble. Moreover, according to the MAVISE database, 80% of HD channels were available only through a Pay-TV subscription at the end of 2015. The penetration of Smart TV was still at a low level in 2014. It is interesting to note that although 10% of households own Smart TVs, only 6% had connected them to the Internet.
Between 2015 and 2016, new legislation by the Russian Government has taken effect. Since January 2015, Pay-TV operators have been prevented from airing advertising on their channels. As a result of this, advertising revenues in the satellite and cable TV industry declined by 46%. At the beginning of 2016, a new law limiting foreign ownership of media organizations to 20% was adopted restricting the possibility of foreign direct investment (FDI) in the Russian broadcasting industry. This law is provoking a reshuffle of the current industry landscape with large media holdings having to adjust to the new regulations.
Source: iKS-Consulting
Russia is one of the many countries that have not met the original 2015 ITU deadline for completing the digital transition; this deadline has now been postponed to 2018. The chart above shows that a large part of the population still relies on analog television. The gap between supply and demand for digital television services is still a problem as many households still do not see enough benefits to justify the cost of buying digital equipment. For instance, although 85% of the total population is able to receive digital signals, only 6% of households have a digital terrestrial signal on their televisions. This will rapidly change when analog signals are shut down.
Source: iKS-Consulting
Pay-TV penetration in Russia is quite high; 68% of households had a Pay-TV subscription in 2014. The chart above shows total revenues in 2013 and 2014 for cable TV, satellite TV and IPTV. Cable is the dominant platform although satellite has experienced more growth between 2013 and 2014. This is partly the result of analog cable subscribers switching to digital. IPTV is the fastest-growing platform in relative terms.
Source: iKS-Consulting
The two major Pay-TV broadcasters in Russia are Tricolor TV, a satellite operator with 29% market share, and Rostelecom, a cable and IPTV operator with 21% market share. MTS, ER-Telecom and Orion Express follow with 7% market share each. The majority of media organizations in the Russian broadcasting industry are controlled by a few media holdings such as Gazprom Media, National Media Group and Russia Television & Radio. Some holdings receive state subsidies.
Source: European Audiovisual Observatory
Despite the recent launch of Netflix in the region, online streaming and catch-up in Russia are far from being widespread as demand for these services is still low. The chart above shows that just 37% of TV channels in Russia are complemented by online streaming and/or catch-up services. Among the major Pay-TV operators, only Rostelecom has its own free OTT offering - zabava.ru portal.
Most recent headlines
04/08/2024
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet, a leading technology and service provider for media-rich organizations, a...
04/05/2024
NEW YORK As the Asian Pacific American Heritage Month kicks off in May, Nielsen has released an extensive new report diving into their media habits with data sh...
04/05/2024
PHILADELPHIA As National Military Appreciation Month gets underway, Comcast has announced several new initiatives to help veterans, service members, and their f...
04/05/2024
WASHINGTON, D.C. Federal Communications Commission chairwoman Jessica Rosenworcel has announced a tentative agenda for the May Open Commission Meeting scheduled...
04/05/2024
The Broadband Forum has announced major enhancements to key 5G convergence standards that the group said will help advance next-generation applications, improve...
04/05/2024
Spotify Wrapped Campaign Spot Graded With DaVinci Resolve Studio
Brie Clayton May 3, 2024
0 Comments
Blackmagic Design today announced that Colorist M...
04/05/2024
Three Boston Conservatory at Berklee Alums Nominated for Tony Awards An additional eight alums and two current students performed in nominated productions.
...
03/05/2024
An innovative learning tool to help media and civil society better understand ho...
03/05/2024
PARK CITY, UTAH - JANUARY 21: (L-R) Actors K stutis Cic nas and Greta Grinevi i t , Director Marija Kavtaradze and Producer Marija Razgute attend the 2023 Sunda...
03/05/2024
If you aren't familiar with Danny Ocean's music, it's only a matter ...
03/05/2024
Spotify has an unwavering commitment to supporting emerging artists across all genres, to helping them launch and thrive in their careers, and to connecting the...
03/05/2024
Como uno de los sonidos de mayor expansi n en el mundo, la M sica Mexicana va m ...
03/05/2024
As one of the fastest-growing sounds worldwide, M sica Mexicana is more than jus...
03/05/2024
NEW YORK FuboTV reported that it lost 110,000 subs in Q1 2024 but it exceeded its guidance for the quarter with double digit year-over-year increases across key...
03/05/2024
Only 3 Weeks Left To Enter The Creative Industries Most Award
Brie Clayton May 3, 2024
0 Comments
Creativepool is giving a last call to the creative i...
03/05/2024
WePlay Studios Transforms the Future of Live Event Storytelling with AJA Gear
Brie Clayton May 3, 2024
0 Comments
By 2032, the esports market is expec...
03/05/2024
WASHINGTON Shannon Bream, Fox News Sunday anchor and chief legal correspondent, sat for a keynote chat at The Business of TV News, with Tom Umstead, senior co...
03/05/2024
WASHINGTON Asked how important is local news, Martha Raddatz, who has covered foreign conflicts for decades and moderated presidential debates for ABC News, s...
03/05/2024
Sony Pictures and Apollo Global Management have made a $26 billion cash offer fo...
03/05/2024
CBS announced its 2024-2025 primetime schedule, which features the new dramas NCIS: Origins, Matlock and Watson, and new comedies Poppa's House and Georgie ...
03/05/2024
Sports-focused streaming service Fubo said it reduced its red ink in the first quarter, despite losing 110,000 subscribers since the end of the year....
03/05/2024
Walmart is reportedly about to release a new 4K streaming box/smart speaker hybrid device for Google TV that could retail for as low as $50, according to a repo...
03/05/2024
Enhancements to its Delivery Workspace solution provide increased content delivery robustness and security
By Matthew Corrigan
Published: May 3, 2024
Enha...
03/05/2024
According to reports, if the bid is successful, Sony would be the significant majority shareholder of the new private company
By Jenny Priestley
Published: M...
03/05/2024
Located in Manchesters Spinningfields district, the course aims to equip students with the skills, knowledge and industry insight for a career in the creative s...
03/05/2024
Lightbridge has created a new Cine Reflect Lighting System kit, dedicated to enabling artistic lighting with consideration of today's productivity practical...
03/05/2024
Broadcast media systems integrator BeckTV and Lawo worked together on a large-scale AES67 build of radio control rooms at KPBS, San Diego's NPR and PBS memb...
03/05/2024
Raleigh, NC, April 12, 2024 SmallHD announces PageOS 6, a powerful software update free for owners of SmallHD monitors, featuring increased functionality, exp...
03/05/2024
SmallHD announces the Quantum 32 a new 31.5 OLED monitor designed to provide reference HDR/SDR images for post-production final color grading, as well as cri...
03/05/2024
By 2032, the esports market is expected to grow to $9.29 billion, bolstered by a global player count and fan following that both continue to climb. The 2023 Lea...
03/05/2024
Amagi, the global leader in cloud-based SaaS technology for broadcast and connected TV (CTV), today announced that the 11th edition of the Amagi Global FAST Rep...
03/05/2024
Riedel Communications today announced that Westdeutscher Rundfunk (WDR) is relying on a media and intercom network based on Riedel technology for the renewal of...
03/05/2024
Broadpeak , a leading provider of content delivery network (CDN) and video streaming solutions for content providers and pay-TV operators worldwide, announced t...
03/05/2024
Media technology innovator Limecraft will exhibit the latest updates to its online platform on stand G79 at the 15-16 May 2024 Media Production & Technology Sho...
03/05/2024
Audio interface specialist Prism Sound is partnering with console manufacturer Solid State Logic, professional monitor manufacturer PMC and acoustic panel and d...
03/05/2024
Intinor, Sweden's leading developer of products and solutions for high-quality video over the internet, is set to join forces with its UK partner Zest Techn...
03/05/2024
NAKIVO Inc., a fast-growing software company dedicated to protecting physical, virtual, cloud, and SaaS environments, announced its Q1 2024 financial results to...
03/05/2024
Hiltron Communications announces an addition to its range of satellite communication products and systems: a field-upgradable motorisation kit specifically desi...
03/05/2024
Visit LiveU at Stand D30
With this year an exceptional one for major sporting events alongside multiple, key elections, the power and flexibility of LiveU'...
03/05/2024
Agile Content, the leader in the development of technology and solutions for the provision of television services over the Internet, announces Koldo Unanue as i...
03/05/2024
Eight co-signers representing streaming services, pay TV operators and public interest groups have sent a letter to Congressional leaders urging their Committee...
03/05/2024
BOSTON Brightcove has announced that it has implemented Amazon Q Business, a new generative AI assistant on Amazon Web Services (AWS)....
03/05/2024
NEW YORK CBS has declared that it will finish the 2023-24 season as Americas Most-Watched Network in primetime for the 16th consecutive season....
03/05/2024
A new survey indicates that U.S. businesses and consumers had an overall positive attitude towards their technology spending plans in the first quarter of 2024,...
03/05/2024
Sony and Apollo Global Management have sent an offer letter to Paramount Global's board of directors making an $26 billion all cash offer for Paramount Glob...
03/05/2024
EMG / Gravity Media has appointed Charlie Cubbon chief operating officer (COO) and Jamie Hindhaugh regional CEO for the U.K., U.S., Australia and the Middle Eas...
03/05/2024
Final 2024 Season Games to Air Saturdays on WRAL at 10:30am in May, Championship on June 1
Taping for the final episodes of the 2024 season of WRAL-TV's Br...
03/05/2024
Estrella MediaCo said it is expanding its connected TV portfolio by launching three new channels with Curiosity that will first appear on Samsung TV Plus....
IABM Market Intelligence Blog - Broadcasting in the Russian Federation 31 March 2016
