Problems of digital transformation of film distribution

The article provides a brief overview of the emergence of the legal market of online cinemas in Russia. The paper reveals that the Governments of many countries have a national policy that is aimed at maintaining internal programming on traditional video platforms. Such policies range from licensing, which requires serving the “public interest” and defines rules for the distribution of certain types of content produced domestically, to requiring content distributors to contribute to the financing of the production of domestic content. The authors investigate that during the implementation of these rules, the Russian government decided on the allocation of limited resources. There was also regulation on whether platforms can solely decide what content to offer their users, or whether viewers should also participate directly. The study concludes that the transition from traditional platforms to online distribution can reduce the effectiveness of existing regulatory regimes and deprive traditional platforms of audience and revenue.

The world and Russian experiences of using the Internet prove that today modern information and telecommunications technologies can contain real threats to the violation of fundamental rights and freedoms of citizens, as well as to question the security of society and the state. The only exceptions are progressive or innovative areas related to the provision of new services and the expansion of opportunities for socio-economic development.

As a result of the study, the paper identified four problems of Russian film distribution on digital platforms. The authors chose piracy as the first problem of online cinemas. Pirate sites not only illegally copy content from online movie theaters, but they also create copies of their own services to transfer their servers to another platform in case of blocking. The second problem was highlighted by the requirement for foreign owners. The third problem was highlighted by the high cost of online movie theater subscriptions. The authors consider the fourth problem the lack of financial support from the state.

1. Akopyan A.R, Arakelyan A.M, Vorontsova Yu.V. and Krysov V.V. (2021), “Study of the influence of factors on the content of Russian federal channels in the context of digitalization”, Vestnik universiteta, no. 1, pp. 134–141. (In Russian). https://doi.org/10.26425/1816-4277-2021-1-134-141

2. Alekseev G.V. (2011), “Modernization of the system of legal regulation of international film distribution”, Vremya i pravo, no. 2, pp. 31–35. (In Russian).

3. Gribanov A. (2017), “The Law on Online Cinemas: an overview of the main provisions”, Business and Law Journal, no. 8 (487), pp. 77–91. (In Russian).

4. Kharitonov V.V. (2014), “Copyright: the problem of economic efficiency”, Vestnik Gumanitarnogo universiteta, no. 1 (4), pp. 52–62. (In Russian).

5. Kolobova E.Yu. (2019), “Integration of the Russian film industry into the global film business in the context of globalization”, Saint Petersburg Economic Journal, no. 4, pp. 76–87. (In Russian). https://doi.org/10.25631/PEJ.2019.4.76.87

6. Sakharova I.N. and Tyutryumov A.A. (2017), “Development of predictive scenarios of the impact of digitalization on the development of the film industry”, European Social Science Journal, no. 12-2, pp. 39–47. (In Russian).

7. Sakharova I.N. and Tyutryumov A.A. (2019), “Market analysis of on-demand video services in Russia and abroad”, Saint Petersburg Economic Journal, no. 1, pp. 118–124. (In Russian).

8. Shatskaya A.D. (2019), “Content of Russian TV channels on the Internet: placement and monetization technologies”, Vestnik Moskovskogo universiteta. Seriya 10: Zhurnalistika, no. 6, pp. 129–154. (In Russian). https://doi.org/10.30547/vestnik.journ.6.2019.129154

9. Shepilova G.G. and Lagoiskaya E.O. (2019), “OTT services in Instagram (for example, the online version of the STS TV channel and the online cinema AMEDIATEKA)”, MediaAl’manah, no. 6 (95), pp. 48–56. (In Russian). https://doi.org/10.30547/mediaalmanah.6.2019.4856

10. Vedenina D. (2017), “The Law on Online Cinemas: review of innovations for audiovisual services”, Intelleсtual Property. Copyright and related rights, no. 10, pp. 53–58. (In Russian).