Summary

Over-the-top (OTT) refers to the delivery of video and audio content via the internet, bypassing traditional cable or satellite television. With the increasing penetration of high-speed internet and the availability of low-cost devices, the demand for OTT services in Russia has been growing in recent years.The OTT market in Russia is expected to continue to grow in the coming years, driven by increasing demand for high-quality video content, a growing middle class with disposable income, and a younger generation that is more tech-savvy and accustomed to consuming content online. To tap into this growing market, major international and local players have entered the Russian OTT market, offering a variety of services, including streaming video and music, online gaming, and cloud storage. The COVID-19 pandemic has further accelerated the trend, as more people turned to online video for entertainment and communication while social distancing measures were in place. The OTT market in Russia has become increasingly competitive in recent years, with both international and local players vying for market share. Local players such as IVI and Okko have emerged as strong competitors to international players such as Netflix and Amazon Prime Video. The Russian government has introduced several laws aimed at regulating online content, including restrictions on certain types of content and a requirement for domestic companies to store user data locally. These regulations have made it more difficult for international players to operate in the market and have created opportunities for local players.

According to the research report, "Russia over the Top (OTT) Market Overview, 2028," published by Bonafide Research, the market is anticipated to add USD 2.05 billion by the end of 2028. Due to the increase in the number of digital video consumers, media and entertainment dominated over-the-top market share during the forecast period. This will increase demand for OTT services in the media and entertainment industries. However, the communication industry is expected to grow at the fastest rate during the forecast period due to an increase in demand for over-the-top services in the telecommunications industry for video calling, voice, and messaging services. By device type, SmartTVs and set-top boxes dominated the market. Because of the larger screen and easy switching options between cable and OTT platforms. Furthermore, as smartphone penetration increased, smartphones became the second most popular device for streaming OTT platforms. They are also inexpensive, allowing people of all income levels to use smartphones and streaming platforms. During the forecasted period, subscription VOD is expected to manage the market. This is primarily due to an increase in the number of subscribers using over-the-top (OTT) platforms. Furthermore, due to the high demand for advertising videos for product and service promotion, advertisement-based VOD is steadily increasing. The market is divided into personal and commercial user types. The market is expected to be driven by the personal user segment. The growing use of smartphones and tablets, as well as the easily accessible internet, raises the market's perception of OTT services for personal entertainment and knowledge.

Russia’s total population was 145.9 million. In January 2022, Russia had more than 130 million internet users. At the start of 2022, Russia internet penetration rate was around 90% of the total population. In Russia, approximately 16 million people did not use the internet at the start of 2022, representing approximately 11 percent of the population. In January 2022, there were more than 106 million social media users in Russia. According to Meta's advertising resources, Facebook had 8.60 million users in Russia. According to Google's advertising resources, YouTube had 106 million users in Russia. According to Meta's advertising tools, Instagram had 63.00 million users in Russia. According to LinkedIn's advertising resources, the company has 7.20 million "members" in Russia. According to Snap's advertising resources, Snapchat had 6.95 million users in Russia. According to Twitter's advertising resources, the Russian language has 2.95 million users.

Developments in wired and wireless technologies and telecommunication standards, such as 3G, 4G, and 5G, are increasing the adoption of cloud streaming services across the world. Cloud streaming services help prevent the illegal downloading and sharing of video and audio files. Vendors are adopting push strategies by focusing on the freemium business model that aims at migrating free users to premium services while ensuring sustainability. This leads to an increase in the adoption of cloud streaming services. Several players, such as Spotify, offer premium services for a monthly subscription fee as well as free subscription services. Consumers are slowly shifting toward paid premium services to gain access to additional features, including shuffle play, advertisement-free, downloading, high-quality audio, and the skipping function. Consumers have shifted from the use of iPods and music systems to cloud-based streaming services, which allow users to store, download, stream, and share content. Cloud computing is rapidly being adopted by firms because it provides users legal access to online music, even from remote servers, irrespective of the device used. The growing Internet penetration, adoption of push strategies by market players, and better cloud streaming services will encourage consumers to adopt cloud streaming services during the forecast period. Slow internet speed and low coverage is anticipated to hinder the market growth in the forecasted period. The internet has still not penetrated all parts of the globe thus making it difficult for people to access the internet and services based on it. Moreover, data plans in most parts of the world are still costly thus making it difficult for people to purchase it. Such factors could hinder the market growth in the forecasted period.

Considered in this report
• Geography: Russia
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Russia Over The Top (OTT) market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:
• AVOD (Advertising-based Video On Demand)
• SVOD (Subscription Video on Demand)
• TVOD (Transactional Video on Demand)
• Others

By Device Type:
• Smartphones and Tablets
• Desktops and Laptops
• Smart TVs & Set-Top Box
• Gaming Consoles & Streaming Devices

By Content Type:
• Video Streaming
• Game Streaming
• Audio Streaming
• Communication

By Service Verticals:
• Media and Entertainment
• Education and Learning
• Gaming
• Service Utilities

By User Type:
• Personal
• Commercial

By Component Type:
• Solution
• Services

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Over The Top (OTT) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.