Page 6 - bne_Tech_03_2020

Top Stories
March 2020 www.intellinews.com I Page 6
the last couple of years are increasing numbers of users paying for online video content, higher penetration of smartphones and smart TVs, as well as licensing deals between Russian studios and Hollywood majors. The Russian government's recent efforts aimed at fighting online piracy are apparently paying off, as well.
A recent study by Telecom Daily consulting group reveals that up to 6.5mn of Russians paid for using online video services in 2019. This signifies a major trend of switching from pirated sources of online video to legitimate online streaming services.
Tough competition
Meanwhile, as the online video streaming segment grows, competition is also becoming tougher, especially among smaller players fighting for their piece of the pie.
Last year, the largest online video service, ivi.ru, was followed by Okko, part of the Rambler & Co media group (in which Sberbank holds a 46.5%
Cloud services take off in Russia
The cloud service segment is growing in Russia, but some companies haven't yet realized its potential value for their business, while others might be put off by security issues.
According to IDC consulting group, in 2019, the segment grew by about a quarter year-on-year, as companies used cloud services to save on deploying their own IT infrastructures.
Still, Russia's penetration of this type of services is very low, with cloud services responsible only
stake), with a market share of 24%, Megogo (12%), Amediateka (8%) and Tvzavr (5%).
One possible way to stand out among the competitor is by following in the footsteps of Netflix and producing their own content. So far, the list of online video services that have launched or plan producing original content includes START, a relatively new player in the segment, as well as ivi.ru and Okko.
Interest from major techs
Major players in the Russian tech industry have recently established or stepped up their presence in the video streaming segment.
Telecom giant Rostelecom recently launched its own service, Wink. Gazprom Media, the media arm of the natural gas behemoth Gazprom, also runs a streaming service, Gazprom.
Experts say that these services have good potential for growth thanks to their parent companies' resources, but so far, they are still lagging behind the older, independent players.
for 4% of the total IT infrastructure, compared with a global average of roughly 45%.
Similarly, Russia is lagging behind in the proportion of companies using cloud services. While globally, roughly one half of all companies use cloud-based solutions, for Russia, the figure is just under 20%, according to data from Softline.
Growth potential
The local cloud service segment is developing slower than most advanced markets, but the