Creative media - art, design, fashion, publishing, printing, television, and the internet
The printing industry
The Russian printing industry is still in development. Consumer requirements, competitive trends and modernisation of regulations mean that there is an increasing demand for high quality magazine, packaging and label printing. There is also a gap between traditional offset litho printing and new, short run technology.
Creative industries:
Film and video
The following article has been written by our cinema specialist. It is part of a longer report that has not been over-edited, so as to retain the flavour of the Russian language.
Film distribution and cinemasThe film distribution and exhibition market in Russia is now in its formative stage. Generally cinemas are the focus of development, but it is a slow process because in the epoch of primary capital accumulation in Russia in the 1990’s and early 2000’s, cultural needs of the population were low.
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At that time in Russia, there was barely any legal regulations surrounding property maintenance. As a result, many buildings constructed as cinemas in the Soviet time, were assigned to other owners and used for other purposes. Additionally, the film distribution and exhibition market in Russia was greatly affected by piracy. In spite of the Russian government introducing new legislation to combat this, nearly all new films in Russia were released at the same time as the film in the cinemas, or even before. As a result, investors did not want to invest money in the development of the Russian film, distribution and exhibition market. However, piracy has now greatly reduced and cinema has become profitable.
A typical city with a population of one million in Russia, will have three large modern cinemas showing major films and three small cinemas showing other films. In the past, few towns in Russia with 100,000 people or less had cinemas, but cinemas are now being built in these towns. By the end of December 2008, there were 1,864 modern screens in 736 cinemas in Russia. During 2008, the record-breaking year for the Russian film exhibition market, 349 screens in 87 cinemas were opened (in comparison to 265 showing rooms in 75 cinemas in the year 2007). In 2008, 34 screens in 24 cinemas were also closed (in comparison with 27 screens in 21 cinemas in 2007), and only two of them are being reconstructed for further operation. The closures were large city centre cinemas and 80% of them were linked to new shopping and entertainment centres. These closures occurred as multiplexes and mini cinemas are more profitable, and town centre sites are more attractive for other investments. .
The Russian film exhibition market is quite fragmented, with only 430 operators in the film distribution and exhibition market, but it is purposefully arranged in this way. There are several big film distributors (majors) who bring famous international premières to Russia by direct contracts with international film distributors from the Los-Angeles and Cannes market. These majors organise advertising campaigns, printing copies and film distribution in Russia.
Twice a year, in March and December, the operator Union Cinema Market Co. Ltd is held in
in Sochi and Moscow. Distributors present their films here, and directors of cinemas and cinema networks choose films for distribution.
There are two main pricing models for cinemas and film distribution: the scheme with fixed compensation and the scheme which splits ticket sales receipts 50/50 with the distributor. Using the second scheme, the distributor has the right to supervise the quantity of spectators.
The biggest Russian film distributors usually organise distribution (with the number of copies no less than 50 for film distribution management in Moscow and Saint-Petersburg), and an advertising budget no less than 1 million dollars. Majors prefer not to get involved with smaller projects because of the uncertainty of commercial prospects. However, films of limited distribution have some box-office receipts and attract distributor's attention. Sometimes it is connected with a certain repertoire strategy of separate cinemas, cinema networks or bonuses, which a big distributor can afford in relation to its partner cinemas successfully distributing its main films. Usually, cinemas advertise these films online.
With the 2008 film, There Will Be Blood (producer Paul Thomas Anderson, USA, Miramax), distributed by Russia's Buena Vista Sony Pictures, there is no advertising budget data on record. It was shown in twenty cinemas and collected $404,800. There is also no data on record about the advertising budget for the film Love in the Time of Cholera (producer Mike Newel, USA, New Line Cinema), distributed by Russia's Paradise. This film was shown in three cinemas in Moscow and collected $168,808.
There are no cinemas specialising in a specific genre, yet some big city cinemas show films of limited distribution, for spectators with specific interests. For example, in Moscow there is a “Pioneer” cinema, which regularly screens premières from world film festivals. The cinema specialises in film festival, retro classics and club films and they are shown without dubbing or subtitles.
The market of non-commercial club films in Russia is tough as big cinemas see them as a greater risk. Without advertising and famous names, these films risk smaller audiences and profits. So the market of non-commercial or club films, thrives with distribution on disks and festival distribution.
For distribution on disks, it's best to use one of the main video production distributors as they have a well organised network, established advertising relationships and their own positions on shop shelves. But the video distribution market in Russia is quite risky because all disk production is quickly replicated with good quality pirates, and these quickly spread through the pirated market.
A typical city with a population of one million in Russia, will have three large modern cinemas showing major films and three small cinemas showing other films. In the past, few towns in Russia with 100,000 people or less had cinemas, but cinemas are now being built in these towns. By the end of December 2008, there were 1,864 modern screens in 736 cinemas in Russia. During 2008, the record-breaking year for the Russian film exhibition market, 349 screens in 87 cinemas were opened (in comparison to 265 showing rooms in 75 cinemas in the year 2007). In 2008, 34 screens in 24 cinemas were also closed (in comparison with 27 screens in 21 cinemas in 2007), and only two of them are being reconstructed for further operation. The closures were large city centre cinemas and 80% of them were linked to new shopping and entertainment centres. These closures occurred as multiplexes and mini cinemas are more profitable, and town centre sites are more attractive for other investments. .
The Russian film exhibition market is quite fragmented, with only 430 operators in the film distribution and exhibition market, but it is purposefully arranged in this way. There are several big film distributors (majors) who bring famous international premières to Russia by direct contracts with international film distributors from the Los-Angeles and Cannes market. These majors organise advertising campaigns, printing copies and film distribution in Russia.
Twice a year, in March and December, the operator Union Cinema Market Co. Ltd is held in
in Sochi and Moscow. Distributors present their films here, and directors of cinemas and cinema networks choose films for distribution.
There are two main pricing models for cinemas and film distribution: the scheme with fixed compensation and the scheme which splits ticket sales receipts 50/50 with the distributor. Using the second scheme, the distributor has the right to supervise the quantity of spectators.
The biggest Russian film distributors usually organise distribution (with the number of copies no less than 50 for film distribution management in Moscow and Saint-Petersburg), and an advertising budget no less than 1 million dollars. Majors prefer not to get involved with smaller projects because of the uncertainty of commercial prospects. However, films of limited distribution have some box-office receipts and attract distributor's attention. Sometimes it is connected with a certain repertoire strategy of separate cinemas, cinema networks or bonuses, which a big distributor can afford in relation to its partner cinemas successfully distributing its main films. Usually, cinemas advertise these films online.
With the 2008 film, There Will Be Blood (producer Paul Thomas Anderson, USA, Miramax), distributed by Russia's Buena Vista Sony Pictures, there is no advertising budget data on record. It was shown in twenty cinemas and collected $404,800. There is also no data on record about the advertising budget for the film Love in the Time of Cholera (producer Mike Newel, USA, New Line Cinema), distributed by Russia's Paradise. This film was shown in three cinemas in Moscow and collected $168,808.
There are no cinemas specialising in a specific genre, yet some big city cinemas show films of limited distribution, for spectators with specific interests. For example, in Moscow there is a “Pioneer” cinema, which regularly screens premières from world film festivals. The cinema specialises in film festival, retro classics and club films and they are shown without dubbing or subtitles.
The market of non-commercial club films in Russia is tough as big cinemas see them as a greater risk. Without advertising and famous names, these films risk smaller audiences and profits. So the market of non-commercial or club films, thrives with distribution on disks and festival distribution.
For distribution on disks, it's best to use one of the main video production distributors as they have a well organised network, established advertising relationships and their own positions on shop shelves. But the video distribution market in Russia is quite risky because all disk production is quickly replicated with good quality pirates, and these quickly spread through the pirated market.
Video production
Russia has developed a culture of consuming pirate copies and the market in audio, video and soft pirate products is worth an estimated 3 billion dollars. Films with a limited distribution, like club films, tend to not be copied as there is less demand, so they can be successfully distributed legally.
Currently, there is only one company in Russia that successfully distributes non-commercial films. They specialise in distributing non-traditional, arthouse club films in Russian cinemas and on discs, and are very successful. They are open to all new contracts, but give preference to films with some USA, Canada, Europe and/or Asia festival success, awards and positive feedback.
If you would like to enter the Russian market and distribute films on disc, you will need to find an appropriate distributor. The level of investment needed will depend on concrete negotiations with Russian partners and as trade and specialised networks, as well as the web, can be quite different in Russia, your route to market and financing needs to take this and the interests of all parties involved, in to account.
The most obvious way to enter the Russian market is via so-called festival distribution, which is easier to organise and economically more predictable. Festival distribution is a one-time event, where a film is shown in one or several cinemas, within one city and over a short period of time. This event is aimed at a target audience whom are trying to diversify their cultural leisure time by watching non-mass films.
Currently, there is only one company in Russia that successfully distributes non-commercial films. They specialise in distributing non-traditional, arthouse club films in Russian cinemas and on discs, and are very successful. They are open to all new contracts, but give preference to films with some USA, Canada, Europe and/or Asia festival success, awards and positive feedback.
If you would like to enter the Russian market and distribute films on disc, you will need to find an appropriate distributor. The level of investment needed will depend on concrete negotiations with Russian partners and as trade and specialised networks, as well as the web, can be quite different in Russia, your route to market and financing needs to take this and the interests of all parties involved, in to account.
The most obvious way to enter the Russian market is via so-called festival distribution, which is easier to organise and economically more predictable. Festival distribution is a one-time event, where a film is shown in one or several cinemas, within one city and over a short period of time. This event is aimed at a target audience whom are trying to diversify their cultural leisure time by watching non-mass films.
Television
Television is also an effective way to distribute films. Russia has two major state influenced television stations: Channel One and VGTRK (with 5 channels). Channel One shows international programmes, particularly locally-produced versions of international shows. Brazilian soap opera used to be very popular. RTR focuses on Russian culture and tends to avoid directly imported material.
Russia also has private television stations for particular areas that are organised by national networks of local city based operators. Some stations are run by the oligarchy, some have state contract and others or are run for profit alone.
STS, the fourth largest channel, shows a lot of animations. REN TV, TNT TV and NTV Russia are other major examples. Late at night, the local operators air low quality foreign programmes as they do not have the audience for advertising and to pay for better quality shows.
The opportunity to sell budget material is, in volume terms, very substantial. At peak viewing times, the local operators will buy from the network. The networks will buy foreign material, typically of a higher quality than that purchased by the local operators, although the bigger ones such as STS buy the rights to foreign formats and remake them as Russian shows.
The stations focus on different demographic profiles. STS targets 18 to 45 year olds with families, and TNT targets 18 to 30 year olds who do not have children.
Russia also has private television stations for particular areas that are organised by national networks of local city based operators. Some stations are run by the oligarchy, some have state contract and others or are run for profit alone.
STS, the fourth largest channel, shows a lot of animations. REN TV, TNT TV and NTV Russia are other major examples. Late at night, the local operators air low quality foreign programmes as they do not have the audience for advertising and to pay for better quality shows.
The opportunity to sell budget material is, in volume terms, very substantial. At peak viewing times, the local operators will buy from the network. The networks will buy foreign material, typically of a higher quality than that purchased by the local operators, although the bigger ones such as STS buy the rights to foreign formats and remake them as Russian shows.
The stations focus on different demographic profiles. STS targets 18 to 45 year olds with families, and TNT targets 18 to 30 year olds who do not have children.
Animation
Animation in Russia tends to be for TV advertising and printed media. As it is almost impossible to get a proper education for it in Russia (especially for those who work as designers), collaboration with a UK company is very attractive. Comissioned animation production in Russia is a challenge and a great opportunity.
Education and training
Besides the scores of commercial institution establishments, Moscow's The British School of Design has a fantastic reputation and attracts attention. Built on a close partnership with the Hertfordshire University’s faculty of creative industry, the school opened in 2003. English and Russian specialists (notably famous designers, art-directors and the video art specialists), teach at the School. Along with further education for professionals, the school offers higher education of the British Higher Institution Establishment, with an issue of the international diploma. They also offer specialist training in animation. In order to study there, students need to have English as a language skill.
The situation is less optimistic in regional areas of Russia as professional designers lack professional interaction and further training. As a result, there is a great demand for any type of professional training in video graphics and popular software. There are many opportunities for those wishing to offer training (in animation in particular), and it is recommended that this could take the form of short day time workshops across Russia.
The situation is less optimistic in regional areas of Russia as professional designers lack professional interaction and further training. As a result, there is a great demand for any type of professional training in video graphics and popular software. There are many opportunities for those wishing to offer training (in animation in particular), and it is recommended that this could take the form of short day time workshops across Russia.
Museums
There are currently museums in 52 regions of Russia, with many of them in Moscow and St. Petersburg. There are also museums at universities for students.