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Licensed video content in Ukraine: What's going on with Ukrainian services?

Author : Nina Hlushchenko

22:34, 30 October 2017
Licensed video content in Ukraine: What's going on with Ukrainian services?

Author : Nina Hlushchenko

Despite the fact that Ukraine is one of the most pirate countries in the world, its own services with licensed video content have appeared, developed and entered other markets

22:34, 30 October 2017

Read original article at 112.ua

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The audience of pirate streaming video services is growing

According to the Ukrainian anti-piracy association, in the 1st quarter of 2017 the popularity of streaming pirate services continued to grow, while in the second quarter of 2017 the audience of the top three resources decreased by 13.2% as a whole. A 1.9% drop registered in the number of unique visitors on sites that offer content downloads, and 13.7% - on sites with cyberlocks. In general, 2nd quarter became less successful for pirates. Also there are no more recent studies so far.

The most preferred way to access pirated content is streaming. Torrents take second place.

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The most popular site with online video is Kinogo.club.

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Among the sites with cyberlocks, the situation is different.

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Data is collected from all over the world.

Audience and average check grow, but not because of pirates

The audience of Ukrainian services with legal video is growing or remains stable. After blocking, users of pirated content moved to other pirate sites, in particular Russian kinogo.club and seasonwar.ru.

In Divan.TV, both the growth of the audience (by 10-15%) and the growth of the average check (by 20%) are noted. However, revenue growth is attributed not to the absence of pirates, but to the rise in price of all services in the country in principle. "By and large, there have been no significant changes in the market, due to a number of obstacles that prevent paid television from reaching a new level. Analog, digital and satellite TV are free types of television that users are not yet ready to refuse. Paid TV can’t fully develop, while there is free content in the market," says Artur Borysenko, PR-manager of the service.

The same tendency is also noted in Kyivstar: the company did not notice any significant changes in consumer behavior after the closure of the largest pirate sites.

In Megogo managers note that the audience as a whole is stable, but there are seasonal fluctuations. When pirate services closed, it did not change - there was not even a hesitation. But the company sees that the number of viewers that are willing to pay increases. The dynamics is the same as the year before, when the part of paying audience grew by 3.5 times.

Oll.TV refused to provide comments on this issue.

Your own content in addition to the purchased

The cost of licensed content, especially foreign content, is growing, and the cost of production is decreasing. Therefore, both classic television and services are now thinking about their own content. Such site content is harder to steal. In addition, an important driver of piracy in Ukraine is the delay between the release of content and its appearance on licensed services. It forces people to look for it in pirates’ sites. In the case of own content, there is no such problem.

"There are people who do not get the content they want on TV or VOD platforms, the content should get shorter, more niche, interesting for a certain group of people. If we cannot find this content anywhere, we have to produce it ourselves," says director for marketing and strategy of Megogo Ivan Shestakov, “ Megogo now has professional live broadcasts of concerts, festivals, shows, lectures and educational classes are planned, our production costs are cheaper than on television. We will overtake the top programs and films on our platform."

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The company has its own production and partner projects with bloggers. In addition, Megogo is thinking about reality shows (there are no restrictions on the air in Internet), as well as its own off-line events, as there are not enough events in Ukraine. Another potentially interesting area is audio podcasts. The background consumption of audio content will also increase the average time spent on the service. In addition, this year podcasts have become especially popular, although they exist for many years. But serials and films are too expensive in production and will not pay off on the Internet with the level of solvency of our country.

Video on demand and advisory services are becoming more popular

Licensed online video services, in addition to films and TV shows, offer their viewers a standard line television, which for many years was the main source of entertainment in the house. The line television has advantages and disadvantages. The advantage is that you do not have to choose what to watch. A peculiar system of recommendations are channels - both broad profile and niche. Disadvantages - it's the need to adjust to the time, the inability to rewind, if you are late for a show or distracted. Video on Demand (VOD) solves this problem.

"We noticed that people are mostly watching some shows on TV, and they thought that it could become our niche on the Internet. In fact, the division between TV and VOD is irrational. "The reason for it lies in technical sphere. VOD is the same entertainment content that you can also want to watch at home. We began to think about how to cross these two approaches and we seem to be getting it, we crossed our TV and VOD programs from our library, "says Ivan Shestakov, director of marketing for Megogo.

Divan.TV also says that the audience begins to watch the TV archive with great interest. There the video can be paused, you can skip advertising and return at any moment. Also, the audience of this service relies more and more on the recommendatory system.

By and large, the shifting of tastes from line TV to VOD, as well as recommendatory services, are two sides of the same coin. People are not ready to give up help to choose entertainment (let it be not a channel editor, but mathematical algorithms), but they want more freedom in choosing time and content.

Partnership with operators is an additional source of the audience

"In the summer, Divan.TV subscribers are more likely to watch movies and programs on mobile devices (smartphones, tabs) sing 3G at no additional cost for traffic in specialized packages," Divan.TV said.

Megogo says that since Kyivstar operator first offered free traffic to the service at its top rate, they noticed a big increase (it's about hundreds of thousands of tariff users, about 80% of which visit Megogo).
 
Talking about the future

A single subscription to all services is almost utopian. According to Ivan Shestakov, all services will be transferred to different types of subscriptions. If companies would try to fit all the content into one subscription, it will be insanely expensive - $ 60- $ 80 per month, which is not the limit for content, but too much for the user. Now there is no such option regarding VOD, only in television sphere.

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