Yalta, June 4, 2015. — Ministry of Telecom and Mass Communications is finalizing elaboration of strategy on development of television in Russia till 2025. Alexey Volin mentioned this topic on the second national branch “Conference of cable and media industry” in Crimea. Key goal of the document is to define key orienting points and development patterns and specify list of problems, requiring solution.
Alexey Volin told that this document will be introduced for consideration to experts and members of the market. Theses of his speech, defining 16 points of television development strategy in Russia are presented below.
1.Content is a key element of television development. Company, producing high-quality and interesting films and television programs will have leading position on the market. Such content will be highly demanded by viewers.
2.Production of such content is expensive, that’s why just a few companies will be able to produce it. Five-six largest market players, able to spend billions of rubles on content will ensure market development. They are leaders of the industry. There will be no national television in Russia without large market players.
3.Volume of content will also increase. It concerns professional as well as semi-professional and user-generated content. It will result in development of niche television channels and strengthening of competition on the market.
4.There will be no exclusive way of television reception. Viewer will use over-the-air reception, cable and satellite networks, mobile platforms and IPTV. There will be no one dominating screen. It can be TV set, tablet or smartphone.
Television is becoming multiscreen and multi-format. It is also affecting goals of public policy. Previous goal of the Government implied creation of digital broadcasting, providing every citizen with 20 standard television channels. We’ve almost reached this goal today.
Program on introduction of digital television is being finalized now. According to the new goal every citizen should be able to watch desired channels of high quality on various devices.
5.Offer is defining demand on the market of television technologies today. Technical solutions are being developed and than introduced to customer. Customers and developers are thinking about the use of these solutions. Very often technical solutions become marketing instruments and are used for change of TV sets, antennas and decoding units.
6.Demand for multiscreen format and interactivity will grow. That’s why viewer feedback will be very important.
7.Television channels have their own assignation. They are concentrating on production of content and large multi-filed corporation are being formed. They posses their own production and media libraries, some of them are entering cable and satellite services markets.
8.Changes in television industry are behind key tendencies in the industry. That’s why it’s necessary to take into consideration full spectrum of such changes.
9.Network partnership is breaking down. Regional channels should increase amount of their own production, expand purchases in libraries and move on to syndication.
Frequencies should be considered separately. Today partnership of Federal and local channels has this license. But what will happen in case the Federal partner leaves this partnership? In such cases over-the-air frequencies are being transferred to the Government and put up for tender. We think that it can result in contradiction between law and justice.
10.We think that the Government shouldn’t deactivate analogue broadcasting. It is still demanded. Analogue broadcasting will become extinct naturally.
Termination of public financing of analogue signal of national television channels in small inhabited localities with population less than 100 thousand people by 2018 will be the first step towards this process. Citizens will switch to multiplexes, difference between digital and analogue image will become obvious. Analogue broadcasting will probably disappear in two years.
11.The Government is creating infrastructure that will provide broad opportunities for off-the-air cable broadcasting. I mean constructing of fiber-optic communication bands and covering small inhabited localities with population over 250 people with broadband Internet access. This program will significantly affect media consumption.
12.The industry lacks qualified personnel. The industry should contribute to education and training of professionals. University gives basic education and further development and training of professional depends on TV channels. Only television employees can train required personnel.
13.Import substitution is one of our primary goals today. Share of equipment can be average, share of software — high and share of optical communication channels — low. A variety of telecom equipment will be produced in Russia. Demand for internal content will be very high. According to the law off-the-air television channels have right to sell advertisement in case 75% of their production is domestic.
14.Sustainability of signal transmission system is very important today, because the user wants high-quality and guaranteed service. It requires additional resources.
15.Share of paid services will increase. All market members, delivering high-quality services will have to reduce number of free services.
16.Advertisement will be the key source of income. It will also undergo some changes. Advertiser will use targeting of television advertising.