Although independent Russian online video services have seen a significant increase in revenues, most still remain unprofitable.
Quoting TMT Consulting and J’son & Partners, Vedomosti reports that Ivi, the market leader, saw its revenues increase by 45% to R1.06 billion (€14.57 million) in 2015. However, its losses, at R328.9 million, were almost at the same level as a year earlier.
It adds that while Ivi’s CEO Oleg Tumanov said its revenues in 2015 were R1.05 billion, he refused to discuss its profitability.
J’son & Partners put the value of the whole Russian online video market in 2015 at R5.9 billion, while TMT Consulting estimate that the legal video market grew in value by 34% to R3.4 billion in 2015.
Furthermore, online video is one of the fastest growing areas of Russia’s ad market, with revenues growiung by 20% to R2 billion in 2015. The remaining R1.4 billion, up 1.5 times on the previous year, came from paid access to content.