Page 133 - RusRPTOct20

9.1.7​ TMT sector news
The share of creative industries in Russia are estimated at 4.4% of GDP, or RUB4.8 trillion ($64bn) ​by the Agency of Strategic Initiatives, and at 6.3% of GDP in Moscow alone, as estimated by the Higher School of Economics, Kommersant d​ aily reported on September 14. This is much higher than the 2.5% of GDP global average and is linked to the strong development of the IT sector by the study "Creative Industries in Russian cities" prepared by the ASI. Notably, creative industries already beat the contribution to GDP of such segments as healthcare (4.2%) and agriculture (4%). At the same time, the study suggests a strong disparity between big Russian cities and the regions. Moscow showed the highest contribution per GDP (19.8%), followed by Saint Petersburg, (12.6%). Moscow employs about 0.3mn people in creative industries, that in the survey included culture and arts, digital technologies, entertainment, media, communication, design, and education.
The advertising market in Russia in 2Q20 declined by 22% year on year to RUB91bn​ ($1.2bn), ​Kommersant ​daily reported citing the data by the Association of Communication Agencies of Russia (AKAR). Overall in 1H20 the ad market declined by 9% y/y to RUB205bn ($2.7bn). As previously expected, internet was the most resilient advertising segment during the coronavirus (COVID-19) lockdown, showing the smallest 9% y/y decline. Internet remained the largest segment of Russian ad market with RUB53bn. TV ad market was down by 22% y/y to RUB31bn in 2Q20, radio down by 58% to RUB1.7bn, press by 67% to RUB1.3bn, and the out-of-home segment by 61% to RUB3.9bn. Analysts surveyed by ​Kommersant d​ aily note the resilience of internet advertisers and platforms, that managed to keep the revenues almost flat y/y in 1H20 overall, showing a decline of only 1%.
The development of the Russian microchip industry would require investment of RUB800bn ($10.5bn) until 2024​, ​Vedomosti d​ aily reported on September 7 citing the roadmap prepared by state technology agency Rostec. Reportedly, the roadmap prepared for the Ministries of Communication, Finance, Economic Development, and Industry and Trade eyes development of 65, 55, 28, and 14 nanometre microchips, the like of which have been used in smartphones and other electronics since 2015 (latest Apple smartphones use 7nm chips). Other technologies reportedly proposed to be targeted by Rostec include memory microchips with their own processors of 25-30nm. Rostec does not intend to acquire components from foreign companies, and plans to develop domestically integrated supply chains. The targeted exports of micro-electronics are RUB20.4bn by 2024 and RUB48.8bn by 2030, with the supplies to the domestic market reaching RUB466bn by 2024. The Ministry of Economic Development estimated that the total domestic electronics market stood at RUB2.9 trillion in 2019, but domestic capacities are mostly oriented towards the military and industrial complex, and not consumer electronics.
133 ​RUSSIA Country Report​ October 2020 ​ ​www.intellinews.com