OTT Video - Russia | Statista Market Forecast

In Russia, revenue in the OTT Video market market is projected to reach US$2.42bn in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.23%, leading to a projected market volume of US$3.44bn by 2029.
The most significant market within this market is Video Streaming (SVoD), which is anticipated to have a market volume of US$1.17bn in 2024.
Comparatively, the highest revenue is expected to be generated the United States, totaling US$133.70bn in 2024.
Within the OTT Video market market, the number of users in Russia is expected to reach 132.9m users by 2029.
User penetration is projected to be 71.4% in 2024 and is anticipated to increase to 93.7% by 2029.
The average revenue per user (ARPU) in Russia's OTT Video market market is projected to be US$23.58 in 2024.
Additionally, the usage share of RUTUBE is estimated to represent 14.0% of the Videostreaming (SVoD) market in the selected region for 2023.
In Russia, the OTT video market is evolving rapidly, driven by a growing demand for localized content and innovative streaming services.

Definition:

OTT Video refers to a digital media distribution model where users can access and watch video content at their convenience, usually through an online platform or service. With VoD, users have the flexibility to choose what content they want to watch, when they want to watch it, and how they want to consume it. This allows users to stream or download video content on demand, without the need for traditional broadcasting schedules or physical media. VoD platforms typically offer a wide range of content, including movies, TV shows, documentaries, and other video content, which can be accessed and viewed instantly or stored for later viewing. VoD has become increasingly popular in recent years, offering convenience, flexibility, and a personalized viewing experience for users.

Structure:

The market consists of several markets, namely Video Streaming (SVoD), which is streaming on a subscription basis, Pay-per-View (TVoD), which is paying for digital video content and watch it online, Video Downloads (EST), which is the download of digital video content and OTT Video Advertising, which is the advertising in video streaming.

Additional Information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through purchases and subscriptions. Market numbers for OTT Video can also be found in the video-on-demand market. Key players in the market are companies, such as Netflix, Amazon or Disney+.

Rentals as single transaction or pay-per-view (transactional VoD or TVoD)
Subscription-based services (subscription VoD or SVoD)
Digital purchases via download or permanent cloud storage (electronic-sell-through or EST)
OTT Video Advertising
Free ad-supported streaming TV (FAST) services, such as Pluto TV or Freevee

Pay-TV subscriptions (cable TV, satellite TV, IPTV, DTTV)
Physical home video (DVD & Blu-ray)
Traditional TV advertising

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.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Online video streaming has visibly transformed the global media landscape and impacted viewing behavior around the world. Driven by rapid leaps in internet adoption, widespread availability of mobile devices, and the ever-increasing popularity of online video content, the global video streaming market has experienced unprecedented growth in the last decade. In 2023, the over-the-top (OTT) video revenue reached an estimated 288 billion U.S. dollars, with the United States accounting for the largest share of revenue worldwide. Considering that the list of international streaming services and the catalog of online video content continue to expand at a rapid pace, the number of OTT users worldwide is expected to reach new heights in the future.