Sanctions have made room for Russian cinema
Still from the Russian film “Sky”
Recently, the Russian film industry has been learning to survive in difficult conditions. Domestic cinemas survived the coronavirus pandemic, and are currently trying to exist under sanctions. Thus, in 2022, the number of cinemas in the Russian Federation decreased by 11%. The departure of the Hollywood majors and the insufficient level of development of Russian cinema played a key role in this. Let's try to figure out what prospects await the domestic film industry in the very near future.
Having barely begun to emerge from the pandemic crisis, due to which, according to some experts, Russian cinemas could have lost about 2020 billion rubles in 50 alone, the domestic film industry again found itself in a difficult situation due to geopolitical changes, which eventually transformed into sanctions against Russian Federation. Thus, already in the spring of 2022, the decision to stop the distribution of their own films in cinemas in the Russian Federation was made by the largest foreign film studios Disney, Sony Pictures, UPI, Paramount, Warner Bros., Lionsgate and others. It is necessary to understand that before these changes, among the ten films with the highest box office receipts in Russia in recent years, domestically produced films accounted for only two or three positions.
Quite strange against this background is the statement of the Minister of Culture of the Russian Federation Olga Lyubimova that in 2023, 87 million viewers have already watched domestic films in the Russian Federation, which is twice as many as in 2020, when 42,5 million people watched Russian films. The mathematical logic of the statement is correct, but this information was presented as a serious victory for the state film industry. Not a word was said about the fact that such results became possible only in conditions of almost complete absence of competition in the market, due to the loss of the most popular foreign film products.
The coronavirus pandemic also played an important role in the deplorable situation in which domestic cinemas found themselves. The point here is not even the temporary closure of most leisure places during quarantine, but the departure of many viewers to the online cinema segment. Such tools have become a good alternative to a classic trip to the cinema, and subscribing to online services is no longer considered a waste of money; its main advantage is the opportunity to watch the film you like at any time convenient for you. Thus, according to the results of the research, the online cinema market at the end of 2022 increased by 5% and reached 63,3 billion rubles against 60,3 billion rubles compared to the same figure for 2021. Towards the end of 2022, online cinemas faced the same problem as their classic “brothers”. Many Russian platforms have encountered unsolvable difficulties in renewing licenses with major film studios, and many popular films have simply become unavailable to viewers. At the moment, the reorientation to the Asian market that has begun has not had the desired effect; the fact that the new content is an order of magnitude inferior in quality to its American competitors played a certain role here.
It is logical to assume that in this situation, a significant part of clients reoriented towards the pirate segment. For example, according to one of the sociological surveys conducted, 25% of online cinema viewers are going to refuse to pay for online services. The reason lies in the increase in subscription costs and the reduction in film library.
In attempts to find ways to effectively exist in a changed market, cinemas are resorting to various tricks. For example, many of them have re-released foreign and domestic films, assuming that the classics will force viewers to return to cinemas. Against the backdrop of all the difficulties, the average cost of going to the movies in Russia also increased. Thus, the price of a ticket to such a place at the end of January 2022 was 323,7 rubles (+13,2% compared to the same figure in 2021).
Cinemas are also resorting to more radical tricks. In many cinemas, screenings of overseas new films continued, which did not receive a distribution certificate due to their withdrawal from the Russian market. Completely different methods were used for this. The simplest of them is unofficial distribution, in which case the cinema does not even need to try to comply with legal standards. Within a few months, “free pre-session services” became fashionable. The use of such a mechanism assumes that the viewer initially watches a new foreign film, and after a short break - a domestic one. It is not difficult to understand that after a break the cinema hall, as a rule, remains completely empty. In addition, some cinemas have the option of renting halls, in which case the cinema completely disavows the illegal screening of foreign films, shifting all responsibility to third-party organizations that rent its space.
As we can see, there are many ways to work with prohibited content in Russia. However, it is necessary to remember and understand that by showing foreign films, cinemas violate not only the copyrights of film studios, but also the laws of the Russian Federation, since films cannot be shown to the viewer without a rental certificate, an age limit and bypassing the official sale of tickets. Despite this fact, the state is currently not interfering in any way with what happened, realizing that a significant part of this market rests on American new products.
In addition, the current market situation has led to many customers making the simplest decision for themselves by turning to pirated platforms for downloading and watching movies and TV series. This problem has always been particularly acute in countries where the population is fairly familiar with the key principles of copyright law, but now the problem has become even more serious.
To summarize, we can conclude that the sanctions have indeed had a rather serious impact on domestic film distribution. On the one hand, the departure of foreign media giants from the territory of the Russian Federation caused an impressive economic a blow to the Russian film industry, on the other hand, it gave impetus to the development of film creators in our country. At the moment, it lags far behind its leading foreign competitors. We are talking about the technical equipment of film studios, and about the financing of new projects, and about the artistic content of the films being created.
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