Russian industry lobbies and lawmakers are preparing changes to the legislation on online video content. According to an advanced draft bill analyzed by Kommersant, the owners of independent online streaming companies with over 100,000 daily views will be required to reduce the share of foreign capital to 20% or less by March 1, 2017. A similar requirement already applies to Russian mass media under a law adopted recently.
If confirmed, the new legislation would affect the ownership of such online video services as ivi, Amediateka, Megogo and Netflix, while Tvzavr and Okko will preserve the status quo.
Meanwhile, the request to reduce the share of foreign capital is unlikely to apply to services displaying mainly user-generated content, or to mobile embedded apps. Thus major social networks, including Vkontakte, search engines, video hosting platform YouTube, as well as Google Play and iTunes would not be affected by the law under preparation.
The draft bill prepared by Russia’s Media Communication Association (MKS in Russian), which comprises a number of leading Russian media holdings (Gazprom-Media, CTC Media, National Media Group and others) and major telecom operators.
If confirmed, the new legislation would affect such online video services as Megogo
“MKS members will benefit from such rules since they have launched or will launch their own online video services this year. It seems they are tailoring the legislation to their needs,” Kommersant quoted Tvzavr’s CEO Marina Surygina as saying.
“Major independent players with a big share of foreign capital will be forced to restructure their companies. At the same time the investment appeal of online video services will be reduced,” she added.
Onlive video vs TV channels
In Russia, the monthly audience of online video services already matches that of TV channels, according to a recent report by Russian media agency Initiative.
In H1 2016 69.3 million Russians (47% of the population) watched online videos. In June, Russians spent 20.2 million minutes watching videos on YouTube, putting it among the top ten Russian TV channels and video resources and the first among online video resources by monthly audience.
The US video hosting giant is followed by two major Russian social networks, Odnoklassniki (8.08 million minutes) and Vkontakte (4.38 million), as well as by Rutube (1.56 million).
According to ТМТ Consulting, such online streaming services as ivi, Okko and Megogo are the biggest ones by revenue. This consultancy has estimated the Russian online video market at 3.4 billion rubles (approximately $55 million at the average exchange rate) in 2015.
Source: Kommersant
