Eastern Europe will multiply the number of subscribers to SVOD services by six

This year, Russia will represent 44% of the region's SVOD contracts in 2016. However, companies like Netflix will clash with the demanding conditions of the Russian government with foreign media companies.

Eastern Europe (18 countries) will have 18.19 million subscribers to SVOD services in 2021, thus multiplying by six the figure corresponding to 2015 (3.33 million).

This year, Russia will already represent 44% of SVOD contracts in the region in 2016. Of the 12.61 million new subscriptions to the SVOD platform between 2016 and 2021, Russia will contribute 6.69 million.

In 2021, the top five SVOD platforms will account for half of the region's SVOD subscribers. Netflix (3.50 million subscribers) will be the leader, followed by the Russians Ivi (2.43 million), Megogo (1.32 million in Russia and Ukraine) and Okko (1.08 million), and the Polish Ipla ( 0.90 million).

Simon Murray, principal analyst at Digital TV Research, author of this report, maintains that “Netflix launched in the region in January 2016, with some success. However, many consider the platform to be expensive. Netflix requires customers to pay with credit cards in dollars or euros, despite low levels of credit card ownership in Eastern Europe. Additionally, most of Netflix's content is in English, with little local production. At launch, Netflix did not have any local partnerships regarding distribution.”

“However, the company has adapted its strategy during 2016. It now has non-exclusive distribution agreements with Liberty Global (owner of the UPC cable networks in the Czech Republic, Hungary, Poland, Romania and Slovakia) and Telia in the Baltics” says Murray.

The Digital TV Research report considers that Netflix will clash in its expansion plans with the Russian government hostile to foreign media companies. In addition, Russia has the most developed SVOD sector in the region, with several players that offer a lot of local content.

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