In this Industry Report

In the past decade a strong, legitimate video industry had begun to emerge in Russia, substantial enough to counter the traditional domination of the market by counterfeit product. But Screen Digest research shows that the recent international economic downturn has severely curtailed the sector's long-term growth potential.

Based on extensive research into the Russian video sector, our latest market analysis builds on comprehensive feedback from representatives of all six major studios and other key local players.

This report brings together granular Video Intelligence data and insightful analyst commentary to examine trends in Blu-ray and DVD hardware and software purchasing, distribution strategies and the prevailing retail environment for all formats.

Highlights:

• Despite boasting the fourth largest installed base of DVD households worldwide and the largest in Europe, Russia ranks eighteenth in terms of global video software spending
• Until recently, rising buy rates showed Russian consumers were increasingly turning to legitimate product
• However, the immediate effect of recession was to bring the legitimate market to a complete stand-still, making 2009 the first year of decline for the DVD format since launch in 2000
• The economic climate has also resulted in an increase in piracy and file sharing
• All major studios and many local distributors are releasing on Blu-ray Discs, although consumer take-up so far has been slower than expected
• Consumer spending on software is expected to return to growth in 2010, but Screen Digest believes that the recession has significantly reduced the Russian market's longer-term prospects

In this report:

• Distributor level video market overview
• Video hardware landscape
• Blu-ray Disc hardware trends
• Retail DVD software market
• Retail Blu-ray Disc software market
• Local distribution relationships
• Studio release strategies
• Independent and local product
• Retail environment for legitimate and pirated product

List of tables and charts:

Video Intelligence

Author/s

Tony Gunnarsson

Territories covered

Central and Eastern Europe

Russia,