J’son & Partners Consulting presents short results of the research: Geography of OTT-Video Services Audience in Russia in Terms of the Report - Atlas of Professional OTT-Video Services Market in Russia, Preliminary Results of 2014.
General Characteristic of Russian OTT-Video Services Market
OTT (Over the Top) – delivery of video signal technology of professional content to users’ STB (computer, mobile phone, tablet, Smart TV) via Internet without direct contact to communication operator. OTT-Video Services, which provide non-linear online video services, are being researched.
In Russia half of OTT-Video services audience is in Volga and Central Federal Regions. Central Federal Region is a leader with 31% market share in Russia by the indicator of monthly average audience.
During the research, it was revealed that the distribution of OTT-Video services audience by federal regions, in general, repeats Pay TV subscriber base. Main share of OTT-Video services audience is in Central Federal Region, while Far-East and North-Caucasus Federal Regions have 3 and 4 percent accordingly.
Desktop PC is the most popular way to receive access to the content in the structure of viewing – 54% of users prefer this method of video viewing.
According to J'son & Partners Consulting’s estimations, in the structure of OTT-Video services viewing the progressive increase of mobile devices and Smart TV’s share is forecasted. It is connected to the development of Multiscreen approach and high growth rates of Smart TV sales – 22% in 2014.
In terms of the research, J'son & Partners Consulting’s specialists have surveyed key representatives of Russian OTT-Video services market and found out their opinion regarding key market trends in the nearest future.
– The result of online video services market geography analysis revealed that the audience is a little bit less concentrated then the audience of Pay TV, will there be a concentration or not, how important and expansive the audience of million-populated cities?
Tvzavr, General Director of Internet-Cinema
«If to speak about the audience in largest cities (excl.regions), this is approximately half of Tvzavr.ru audience. In small cities there are fewer opportunities for entertainment than in million-cities, that is why, it is easier to compete for free users’ time. And this is one of the main reasons why we invest in the services’ quality for regions – conclude agreements with local internet providers on placement of our CDN network’s units. If provider is ready to promote our paid services via its own subscriber base, we conclude an agreement on revenue share and start to get income together»
Rutube, Deputy CEO
«The only barrier to distribute OTT in some regions – expensive internet with low speed and bad connection quality. Especially this concerns the most remote from Moscow regions. Nevertheless, our experience showed that the services’ accessibility can be improved in no dependence with geographical country’s peculiarities. It is not obligatory to use CDN in order to provide quality video delivery – it can be provided from Moscow. It means, share of regions in OTT viewing can continue to grow and the audience’s concentration in large cities will drop»
Amediateka, Commercial Director Amedia TV
«We are observing that most audience of our online service is concentrated in large cities. Last month we really see the activity of regional audience. According to our estimations, growth of video on demand audience will be happening, also, due to the regional audience. Exactly why, it is possible to talk about active trend towards de-centralization on this market.
But, nowadays large cities are still very important for paid content services providing, as the development of consumption culture and payment for legal content, for now, has the nature for development from administrative centers to regional ones»
– How trends of viewing will be changing on different devices?
Okko, Marketing Vice President
«Our goal is to provide users best experience of home digital entertainments on the home screen, Smart TV. Currently, new movies in Okko have been watched in over 1300 Russian cities. Such expansive geography is reasonable, as general home internet with 10-15 Mbyte/sec speed is enough to watch movies in premium Ultra HD or Full HD. Smart TV is still the main Okko platform with over 90% share in revenue. According to experts’ forecast, over 80% of all sold TV sets in the coming years will be smart, and we are confident about platform’s potential»
Zoomby, Marketing Director
«We consider Smart TV and mobile devices shares in the total viewing structure on OTT-video services market will keep growing. Viewers get used to the fact that they can watch what they want and where they want. Especially, when professional quality video content is very comfortable to watch on big TV screen – device which is made for this. Exactly today the access to the Internet is not something impressive, more to this, it is conquering its popularity among users. We overview huge interest from viewers towards Smart TV. At the moment, Smart TV share in the total volume of video viewing Zoomy had reached 40% and still going up.
Tablet PCs as well have very good chances. Mobile devices are replacing PC on video viewing market. Day after day mobile devices are becoming more popular, especially among children. At the moment we can see the growth of children video content in the structure of mobile video consumption. To our mid, such tendency will remain in the nearest future»
MEGOGO, CEO of MEGOGO online cinema, Russia
«In 2015 we are expecting new ways and forms of platforms’ communication with end customers, such as re-broadcast of linear TV, expansion of interactive options and multiscreenity of the content - for paid and advertising models. This will become a driver for video services audience growth, and also main factor to increase volumes of video content consumption on connected devices in all regions of the country»
TVzavr, General Director of Internet Cinema
«Smart TV and mobile devices role will keep growing. Share of TV sets without Smart TV in sales of retail networks is decreasing. Penetration and speed of mobile internet are increasing; operators of cellular communication stimulate the demand on smartphones and tablets. That is why we invest in the development of apps for Smart TV and mobile devices»
Rutube, Deputy CEO
«Share of mobile users will keep growing. Especially because of not very expensive mobile devices – tablets and smartphones, which are very popular in regions. It means that OTT viewing share in small cities will soon be comparable to viewings in Moscow and other large cities. Key trend will be communication between smartphones, tablets and Smart TV. Today both, Android and iOS, have instruments and apps for such integration of mobile device and TV set»
Amediateka, Commercial Director Amedia TV
«We saw explosive activity of using devices for video streaming and Smart TV at the end of 2014. We can also see the growth of multiscreen importance for users. More and more households purchase several devices, supporting apps of video on demand services and prefer services, which suit the best in their home video viewing ecosystem.
We are expecting the growth of viewing level on mobile devices and SmartTV, as these two platforms are the most ready ones for legal video viewing under the paid model, from the point of customers – they are ready to pay for the content and to use suitable formats of content and several screens from one user.
Users start more often use several screens to view the content and this tendency will keep growing because of sales of such devices as Chromecast and AppleTV, and also growth of active Smart TV volumes»
Detailed Results of the Research are Presented in the Full Version of the Report: Atlas of the Professional OTT-Video Services Market in Russia, Results of 2014
Example of Report Content
2. Global OTT video services market, major indices 2012-2019 and place of Russian market 2.1. Major indices of the global OTT market, 2012-2019 and place of Russian market
2.2. Overview of Global OTT Pay TV and Mobile TV markets
2.3. Peculiarities of viewing on the global OTT market, role of UGC-content
2.3.1. Video viewing differences by categories of devices
2.3.2. Genre preferences in the sphere of video viewing
2.3.3. The role of UGC-content on OTT-video services market
2.4. The role of UGC-content on OTT-video services market
2.4.1. Independent OTT-video services
2.4.2. Telecom operators in OTT
2.4.3. OTT Pay TV Operators
2.5. Characteristics of the key market players’ strategies on the global OTT-video services market
3. Russian OTT video services market
3.1. Quantitative indices of the industry, 2012-2019 pcs. and $ (paid and advertising models)
3.2. Market structure by business-models, 2012-2019
3.3. Rating of market leaders by audience indices and revenue
3.4. OTT-video services market by federal regions: audience, market structure by operators and viewing devices
3.4.1. Central Federal District (CFD)
3.4.2. North-Western Federal District (NWFD)
3.4.3. Southern Federal District (SFD)
3.4.4. North-Caucasus Federal District (NCFD)
3.4.5. Volga Federal District (VFD)
3.4.6. Ural Federal District (UFD)
3.4.7. Siberian Federal District (SFD)
3.4.8. Far Eastern Federal District (FEFD)
3.5. Local OTT-Video services market: subscriber base, market structure by operators and viewing devices
3.6. Peculiarities of video viewing on OTT-Video services market
3.6.1. Structure of OTT-Video viewing by categories of devices
3.6.2. Linear and non-linear video viewing in OTT
3.6.3. Peculiarities of video viewing by categories of devices
3.6.4. Multiscreen and use of additional screen
3.7. Key tendencies of OTT-Video services market development
3.7.1. In the field of market development
3.7.2. In the field of devices distribution
3.7.3. In the field of content and communication with users
3.8. Profiles of main operators on OTT-Video services market (TOP 10)
3.9. SWOT analysis of market development
4. OTT-Viewing devices in Russia
4.1. Smart TV – sales indicators and market role, 2012-2019
4.2. STB – sales indicators and STB OTT development potential, 2012-2019
4.3. Smartphones – sales indicators and development potential, 2012-2019
4.4. Tablet PC – sales indicators and development potential, 2012-2019
5. OTT Market influence on content production and distribution in Russia
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.