Set and point – Newspaper Kommersant No. 154 (7355) of 08/24/2022
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The satellite operator Tricolor asks to expand the number of online cinemas pre-installed on Smart TVs imported into Russia to at least 15. The current list, according to the company, has a negative impact on competition. The authorities have already expanded the list to 13 TV apps, including Rutube and VK Video. But these platforms are focused on short videos that are watched mainly on smartphones, experts say.
The National Satellite Company (Tricolor brand) proposed to the Ministry of Digital Development to expand the list of applications required for pre-installation on TVs with the Smart TV function from 10 to 15. This follows from the response to the draft government decree of November 18, 2020, developed by the Ministry of Digital Development. The document was published for public comment on July 21 and should come into force on October 1, 2023. The project concerns the mandatory pre-installation of the RuStore (VK) application store on gadgets imported into the Russian Federation. The law on the pre-installation of domestic software was adopted in November 2019. It provides for the installation by manufacturers of smartphones, tablets, computers and Smart TVs of various classes of Russian software.
Tricolor explains its position by the fact that now the list of presets for TV includes the most demanded services or resources of companies with state participation: “This leads to a violation of healthy competition.” Vladimir Trunov, Director for Government Relations at Tricolor, explained to Kommersant that the criteria for selecting applications for pre-installation are not transparent. In his opinion, during the crisis, the preset “should be a tool to support private companies, and not strengthen the already dominant position of large players.” Increasing the number of positions to at least 15 will allow players to “compete for the right to receive an additional incentive for the development of services,” Mr. Trunov believes. The Ministry of Digital Transformation noted that Tricolor’s proposal was “considered and taken into account when finalizing the act.”
The list of applications required for pre-installation on Smart TV has already been expanded from 10 to 13 services from 2021 by government decree dated August 22. In addition to the previously mandatory Yandex, online cinemas ivi, Premier, KinoPoisk, Wink, Okko, more.tv, Start, Channel One, NTV applications, Rutube, VK Video and Watching were included in it (VGTRK). The Tricolor application was not included in the list. The online cinema of the satellite operator, according to TelecomDaly, ranks 13th in the market in terms of revenue (excluding Netflix and Megogo that left the Russian Federation) with a share of 0.8%.
For Rutube, getting on the list is an opportunity for quick and even easier access to all Russian users who the platform is aimed at, the company’s press service responded. VK declined to comment. In “Amediatek”, “STS media” (did not get into the preset) did not answer “Kommersant”. TelecomDaily CEO Denis Kuskov considers it illogical to include VK Video and Rutube in the register, but not Tricolor: Smart TV won’t help.”
The previous experience of application presets shows that for the vast majority of services this is a good start and a small increase in the audience, but no more, according to a Kommersant source in one of the streaming platforms. Konstantin Ankilov, General Director of TMT Consulting, disagrees with him: “The preset helps in promotion, especially when it comes to a new resource. “Tricolor” began to actively develop the service only last year. According to the expert, despite the departure of foreign services, competition in the market remains fierce. According to TelecomDaily, the revenue of legal online video services in Russia for the first half of the year amounted to 25.9 billion rubles, which is only 5% higher than a year earlier.
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