Will Netflix be able to press down competitors after entering the Russian market in 2016?

From 2016, the American streaming service Netflix will enter the Russian media market. It will be available to Smart TV users and owners of some set-top boxes. Information was confirmed by LG Electronics Development Manager Smart TV in Russia Vitaly Svistunov.

According to him, in January, the service will start working on LG Electronics smart TVs. “We hope that there will be more licensed content in Russia, and with the advent of Netflix, people will start to get used to the subscription consumption model,” he said.

Source "Izvestia" claims that Netflix has entered into an agreement with "Rostelecom". According to him, on the set-top boxes of this operator the cinema will be available from next year. However, no one has yet officially confirmed his statements.
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In Russia, services operating on a subscription model are already in operation, such as Amediatek and Ivi . In Ivi noted that "the growth of supply in the segment of paid legal video contributes to the development of the market."

“We have our own idea of ​​the strengths and weaknesses of this service. Together with our own product and content development plan, this gives us confidence that we can successfully compete with Netflix, as well as strengthen our position, ”said Irina Grandel, Director of Business Development, Partnerships and Paid Model for Ivi Online Cinema.

Chairman of the Board of the Association of Film and Television Producers Alexander Akopov doubts that the American service will be able to press the Russian players. He clarified that the success of Netflix in Russia will depend on the content they acquire from the copyright holders.

In February 2015, Netflix Vice President Joris Evers announced that the service will be launched in Russia "within two years." He also noted that "the current development plans provide for the launch of the service in Russia only along with the rest of the major world markets."

Netflix provides access to its database of movies and TV shows for a monthly subscription. The Netflix catalog contains movies and TV shows from many studios, as well as its own content. In particular, the service releases the series "House of Cards", "Orange - the hit of the season" and "The Unbending Kimmy Schmidt."

Netflix online cinema was founded in 1997. He currently works in the United States, Latin America and some European countries. According to Sandvine, in the US, Netflix accounts for 33% of broadband Internet traffic.

According to 2014 data, watching TV shows via Smart TV and set-top boxes was a success for less than half of Russians. The most popular device remained the usual computer.

According to TMT-Consulting, in 2014, more than 20 legal OTT video services operated in Russia. For six players, the market share exceeded 5%. Okko and ivi.ru kept half the market for two.

Last year, the popularity of different types of OTT services in Russia was distributed as follows:


Sources: J'son & Partners Consulting