Russia Market Briefing 2014

russia_russia 16/01/2014 10:56 Page 1 Russia Advanced Television Market Briefing 2013 UTair expands satellite connectivity lobal Eagle Entertainment, an international provider of satellite-based in-flight Wi-Fi and device-based entertainment for airlines around the world, and UTair Aviation, the fastest growing airline in the Russian Federation, have confirmed that the airline has expanded its contract for connectivity services by 60 aircraft, bringing the total to 69 aircraft to be installed with Global Eagle’s satellite connectivity solution. The additional installations will encompass 20 A321-200′s and 40 B737NG aircraft. UTair passengers will benefit from Global Eagle’s satellite-driven, broadband web access and leading edge inflight G Russian political party launches channel Russia’s Liberal Democratic Party (LDPR) is taking its political message onto TV with a new channel, which went live on New Year’s Day. Russia’s Interfax News Agency says that LDPR’s deputy leader Andrey Svintsov, said that the party had been waiting a year for a transmission licence. Svintsov told journalists that the new channel would be “Normal and honest... We know that many media outlets edit out or misrepresent our party's activity, that is why we have taken this decision and created a full-fledged TV entertainment and media content. “UTair is an innovative airline aggressively building significant traffic in Russia, Central Asia, and Europe and we are honoured to be a part of that international growth,” said John LaValle, chief executive officer of Global Eagle Entertainment. “As a global provider, these markets represent key growth areas for our company as we capitalise on our Kuband satellite technology and industry- channel. We have been broadcasting for a year on the Internet, on the LDPR.TV website, and from 1 January we are present in cable and satellite channel packages," he said. Young Russians favour ad-supported video Russia's VK social media platform has five times the unique users of Facebook, which could be a result of its access to pirated movies. Although Facebook may be the world’s largest social media platform with more than a billion unique users, in Russia the website boasts just 20% of the unique users afforded the country’s preferred social media leading media content resources. We look forward to delivering a robust content and connectivity platform to UTair’s passengers, helping to differentiate the airline and build new revenue streams.” According to several polls conducted earlier this year, Internet usage in Russia has grown in the last decade and quite significantly in the past few years. Levada Center’s poll found that over 80% of students, senior managers, directors and leading specialists regularly surf the Web. UTair recognises the desire by travellers to be connected and entertained inflight and wishes to provide their passengers with an unparalleled in-flight connectivity and entertainment experience. platform, VK, with a reported 50m users. VK reportedly turns a blind eye to pirated movies, while coveting online dating — both major draws to the targeted youth demo. VK’s catalogue of pirated movies (especially new releases) is huge, according to Jamie Bartlett, director of the centre for the analysis of social media at the think tank Demos. The Motion Picture Association of America has long included Russia on its list of piracy havens — notably for pirated DVDs, a situation that hasn’t changed with digital distribution. The MPAA considers Russia a “notorious market,” where illegally downloaded US movies are reported to be in excess of 31mcopies annually. According to the International Intellectual Property Alliance Indeed, there wasn’t a single Internet piracy criminal case filed in Russia in 2012. in mid-2013, President Putin signed a law making it harder for Russian websites to offer pirated movies and TV shows. That move has helped Ivi.ru become viewed as the 'Netflix of Russia'. The service claims to have 17 million members who largely opt for free, adsupported video similar to Hulu. Just 10% of its members use the subscription streaming service, a disincentive for companies such as Netflix, Amazon.com or Hulu to expand their Internet entertainment streaming services there. Published by Advanced Television Ltd, www.advanced-television.com