Market Insights Advertising & Media Media TV & Video

OTT Video - Russia

Russia

Revenue in the OTT Video market is projected to reach US$2.42bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.72%, resulting in a projected market volume of US$3.35bn by 2029.
The largest market is Video Streaming (SVoD) with a market volume of US$1.17bn in 2024.
In global comparison, most revenue will be generated in the United States (US$132,900.00m in 2024).
In the OTT Video market, the number of users is expected to amount to 194.3m users by 2029.
User penetration will be 107.7% in 2024 and is expected to hit 136.9% by 2029.
The average revenue per user (ARPU) in the OTT Video market is projected to amount to US$15.58 in 2024.
The usage share of YouTube amounts to an estimated 16% of the Videostreaming (SVoD) segment and the selected region in 2020.

Key regions: United Kingdom, Germany, South Korea, Asia, India

Market

Region

Region comparison

Currency

Analyst Opinion

The OTT Video market in Russia has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing availability of high-speed internet.

Customer preferences: Russian consumers are increasingly turning to OTT video platforms for their entertainment needs. This shift in preference can be attributed to several factors. Firstly, the convenience and flexibility offered by OTT services allow users to watch their favorite content anytime, anywhere, and on any device. This aligns with the growing trend of on-demand viewing and personalized content consumption. Additionally, the wide range of content available on OTT platforms, including local and international movies, TV shows, and original productions, caters to the diverse interests of Russian viewers.

Trends in the market: The OTT Video market in Russia is characterized by the dominance of both local and international players. While global giants like Netflix and Amazon Prime Video have gained a significant presence in the market, local platforms such as ivi. ru and Okko are also popular among Russian consumers. This competition has led to an increase in the production of original content by both local and international players, further fueling the growth of the market. Additionally, the introduction of advanced technologies like 4K streaming and virtual reality (VR) content has enhanced the viewing experience and attracted more users to OTT platforms.

Local special circumstances: Russia has a unique media landscape, with a strong emphasis on local content and cultural preferences. This has led to the emergence of several local OTT platforms that cater specifically to the Russian audience. These platforms not only offer a wide selection of local movies and TV shows but also provide a platform for local content creators to showcase their work. This localization strategy has helped local platforms gain a competitive edge in the market and attract a loyal user base.

Underlying macroeconomic factors: The growth of the OTT Video market in Russia can be attributed to several macroeconomic factors. Firstly, the increasing penetration of high-speed internet and the proliferation of smartphones have made OTT platforms more accessible to a larger population. Additionally, the rising disposable income of Russian consumers has enabled them to afford subscription-based OTT services. Furthermore, the COVID-19 pandemic has accelerated the adoption of OTT platforms as people spent more time at home and sought entertainment options online. This has further boosted the growth of the market. In conclusion, the OTT Video market in Russia is witnessing significant growth due to changing customer preferences, the presence of both local and international players, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected that the demand for OTT video services will continue to rise, driven by the increasing availability of high-speed internet and the growing popularity of on-demand content consumption.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.