Online theater revenue growth showed at least 5 years due to Netflix exit and lack of new Hollywood

In the first half of 2021, growth was 31%, in 2020 against the background of the coronavirus pandemic – 71%, 2019 – 44%.

Online theaters traditionally generate revenue in two ways:

• paid model: users subscribe, buy or rent an individual movie and series. Revenue from this monetization model showed an increase of almost 12%, from 20.7 billion to 23.1 billion rubles;
• advertising model: the user sees advertisements for the opportunity to view content for free. Revenues under this model fell by 30%, from the maximum of the last five years, 4 billion to 2.8 billion rubles.

The largest video services in Russia by revenue:

1. Yandex-owned Kinopoisk became a leader for the first time. TelecomDaily estimated its market share at 23.2%, which corresponds to 6 billion rubles in revenue for the first half of 2022.
2. ivi, the former leader, despite the growth in share from 22 to 22.8% (5.9 billion rubles), took second place.
3. Service “Rostelecom” Wink – the share increased from 10 to 12.7% (3.3 billion rubles).
4. Okko, previously associated with Sberbank, dropped out of the top three. The service took fourth place with revenue of about 3.1 billion rubles.

TelecomDaily explains the sharp slowdown in online theater revenue for three reasons: the departure of Netflix, the lack of news from Hollywood, and the decline in overall purchasing power.