The largest CIS online cinema for the first time will be engaged in film distribution

The largest CIS online cinema for the first time will be engaged in film distribution

The box office will be engaged in a specially created company — Megogo Distribution, is spoken in the message of the service. For “large screens” Megogo found a partner — the company Top Film Distribution, which distributes films since 2006. “We want to expand the business and attract development to his people, deeply familiar with the scope box office”, — explained the choice of partner General Director Megogo in Russia Victor Chekanov. Investment in the project Megogo not disclose.

Top Film, which deals with the purchase of the rights to the films in the CIS, Eastern Europe and the Baltic States, gave Megogo Distribution rights to distribute seven paintings, but this law only at the box office, and other types of rights (such as freeTV, payTV, etc.) remained the Top Film, told by its founder Vladimir Artemenko. While we are talking about seven major films, such as “Criminal”, “Mechanic 2” and “skyline 2”, their total projected box-office — about 1.5–2 billion rubles., says Artemenko. The first of the films, “Criminal”, will be released on April 14, the information on the website’s Top Film.

Megogo in further Distribution plans to buy all types of rights — for the display of movies in cinemas and online, said Chekanov. In addition, the film distribution unit of the video service is going to fill up your “portfolio” and new releases, without the participation of Top Film. The time difference of the release films in cinemas and on the Internet will be established “without prejudice to theatrical distribution”, in accordance with the contracts with the rights holders, the report says Megogo. The details of cooperation with partners and the representatives do not disclose Megogo.

Megogo and Top Film “tightly related” to the shareholder level, so they are possible “quality synergy”, said Vice-President for content online cinema Olga Filipuk. These companies “have always been affiliated structures, they have common roots, so we see no change of legal entity,” said Director of content online cinema Elena Khlebnikova.

Top Film company is not legally bound to Megogo, but Vladimir Artemenko is one of the shareholders online cinema, he explained himself . As Megogo wholly owned Distribution company Megogo, Artemenko automatically is co-owner and new Booker. Megogo is owned by a Cyprus company Senseira Trading Ltd, follows from base “SPARK-Interfax”, a complete list of the owners of the video service does not disclose.

Megogo Distribution while entering the market of film distribution in Russia, but later development plans for all Russian speaking CIS markets, added Chekanov. The end of the year Megogo Distribution plans to enter the top 10 independent distributors, he said. According to the magazine “film business” in 2015 it is Top Film took the tenth place in the ranking of the largest distributors of Russia: the company has produced 23 paintings, and the total fees amounted to 564 million rbl. the highest grossing film Top Film was the horror movie “Sinister 2”, earned 160 million rubles Headed by the top ten distributors company Walt Disney Studios Sony Pictures Releasing (WDSSPR): in 2015 it earned $ 11.4 billion rubles and released 21 films.

Other major online cinemas and not plan to engage in film distribution, announced their representatives. Service some of the premiere releases in cinemas in partnership with distributors (e.g., picture of “I spit on your grave 3”), told Filipuk. “Independent distributors are willing to go to the release of the movies as we bring the premiere when it is economically justified for us,” she explained, adding that there is no need to allocate in a separate film distribution business.

Megogo operates in 15 countries of the former Soviet Union. By own estimations of the company, the monthly audience of the site reaches 40 million unique users. Based on this evaluation, Megogo is the largest online cinema in the CIS. Audience of its nearest competitor, according to own data, was in December of 2015 to 26.8 million users, but this theater operates mainly in Russia expansion in CIS it began only at the end of 2015. The audience in Russia Megogo inferior — at the end of 2015, online cinema was 17,2 million unique users a month in the country. He concedes and revenue: if income by the end of 2015 exceeded 1 billion rubles, Megogo they have reached a total of 419.4 million rubles.

Followed by Tvigle and Average monthly audience of Tvigle in 2015 amounted to 23.4 million, and Tvzavr — more than 22 million users (according to companies). Tvigle does not disclose its revenue, income, Tvzavr in 2015 amounted to 180 million rubles.

The Russian film distribution market

48 billion rubles amounted to box office revenues of film distribution of Russia for 2015 (4% more than in 2014)

190,8 million tickets bought by the audience in Russia in 2015

252 rubles was the average price of a movie ticket in 2015

11 movies have grossed more than 1 billion rubles in theaters in 2015

15.7% of total box office in Russia and CIS in 2015, gathered Russian movies

8 domestic films
out of 129 released paid off or made a profit

13 distribution companies reached RUB 100 mln in box office receipts

Source: magazine “film business”