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Media Consumption in Russia – 2019 Deloitte CIS Research Center Moscow, September 2019 Contents

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Media Consumption in Russia – 2019 Deloitte CIS Research Center Moscow, September 2019 Contents Internet content monetization trends Media consumption in Russia – 2019 Deloitte CIS Research Center Moscow, September 2019 Contents 01 Foreword 01 Foreword 3 06 Technology and media consumption 33 02 Research methodology Attitudes towards new gadgets 34 Russian household ownership of media devices 35 03 Key findings Devices used to watch video 36 02 Research methodology 4 Popularity of smartphone features 38 04 Media consumption in Russia Messengers 39 Access to media by connection type 40 05 Data content and usage patterns Technology and media 03 Key findings 5 06 Attitudes towards advertising 41 consumption 07 Advertising tolerance and perceived usefulness 07 Attitudes towards advertising of various advertising channels 42 Media consumption in Russia 11 Adblockers 45 04 08 Media consumption in figures Media consumption by category 12 Russians as media users 15 Media consumption in figures 46 Media usage during the day 16 08 09 Contacts Media consumption practices 17 Changes in media consumption in 2015–2019 18 Video games 20 09 Contacts 48 Data content and usage patterns 21 05 News sources 22 News source ranking by trust level 23 Attitudes towards the media: Russian or foreign source? 24 The most popular content for each media 25 TV content 26 Reasons for using Internet 27 Paid online content 29 Video content 32 02 Media consumption in Russia – 2019 Foreword 01 Foreword 02 Research methodology We are pleased to present the results Moreover, Russians are still not entirely of our fifth, comprehensive study on board with the concept of paying 03 Key findings of media consumption in Russia. for copyrighted content online. Every year we look at media consumption This forces companies to be flexible 04 Media consumption in Russia across nine key channels, with the goal with their pricing strategies. At the same time, of identifying general trends and tackling Internet users are becoming increasingly 05 Data content and usage patterns critical developments. This report focuses intolerant of advertisements and are often Technology and media on the switchover to digital TV, gaming blocking them with special software, making 06 consumption in Russia, the consumption of online video generating advertising income ever more Olga Tabakova content and usage of paid content. difficult. Monetizing online content is therefore 07 Attitudes towards advertising Partner no easy task and requires innovative solutions. CIS TMT Industry Leader Russians are using the Internet more However, those who choose the right 09 Media consumption in figures Deloitte CIS extensively and more frequently, helping format for connecting with their audience it hold on its position as one of the most will reap the rewards in the long-term. 09 Contacts vibrant media channels in the country. The Internet is encroaching into almost Deloitte’s comprehensive approach every aspect of our daily lives, with more to monitoring new trends in media consumption, and more Russians saying they cannot in Russia and globally, allow us to forecast imagine a single day without it. upcoming media market shifts, thus enabling companies to better prepare for them. Expanding the user experience drives up expectations for improved content quality We hope that our findings will help companies and streaming formats. This encourages developing strategies to better the development of paid online content serve their existing and target customers. models and creates broad opportunities for content monetization. However, declining real incomes over the past few years have made Russians extremely cautious about where they spend their money. 03 Media consumption in Russia – 2019 Research methodology 01 Foreword 02 Research methodology Purpose Goals Data collection methods Legend To study Russian media consumption trends. • Look into how Russians’ media We used a qualitative data collection method, Men 03 Key findings consumption has changed over namely an online survey of 1,600 respondents, Target group the last five years (2015–2019); reflecting a representative socio-demographic Women Russian Internet users aged 16 or over portrait of the Russian population. 04 Media consumption in Russia • Take a detailed look at Russians’ media (data was collected through an online survey) High income behavior, the information channels [“Russians”] Research sample 05 Data content and usage patterns they use, what they are interested Medium income A multistage and stratified sample in, how much time they spend, etc.; Technology and media Low income 06 Limitations of research of the Russian population according to gender, consumption Considering the current level of Internet • Assess Russians’ level of trust age and settlement type – 1,600 people Cities (over 1 million people) penetration among Russians*, our sample in various information sources; from all eight federal districts, 46 regions, 07 Attitudes towards advertising tends to be biased towards Internet-users. and at least 250 settlements. • Analyze what devices are used Cities (500,000 – 1 million people) 08 Media consumption in figures to consume media content; Cities (less than 500,000 people) • Analyze the Russians’ attitude Secondary or incomplete secondary education 09 Contacts towards key developments on the media market; Higher education, academic degree • Assess the Russians’ tolerance for advertising, including by type of media activity; • Analyze online content consumption patterns; • Conduct a comparative analysis of the identified consumer profiles for different news sources. * According to VCIOM, Internet penetration among Russians over the age of 18 was 84% in May 2019. 04 Media consumption in Russia – 2019 Key findings 01 Foreword 02 Research methodology Top five movie streaming services, % Age ratings for TV content 03 Key findings Ivi 51 The most popular types of content Megogo 28 Science % % 04 Media consumption in Russia Movies News TV series and education 49 44 Amediateka 28 consider them necessary consider them unnecessary Kinopoisk 24 94% 86% 74 % 50% 05 Data content and usage patterns Okko 22 Technology and media 06 The most popular video streaming services Transition to digital TV consumption Movie streaming Interactive Paid services 07 Attitudes towards advertising services TV/IPTV E-stores from TV channels have switched over have watched from analogue to digital TV % 08 Media consumption in figures 86% 16 % 13 % 9% TV in the last 69 two weeks % 91 09 Contacts 53 % 16 % without difficulties with difficulties Connection Weekdays/weekends watching TV behaviour TV devices Major difficulties Internet TV I switch on the TV to find TV set I need to buy additional equipment something to watch. If there I do not have enough information 41% 31/36 % is nothing interesting, I just 95% about switching to digital TV leave it on in the background Personal cable Smartphone I need to retune my TV and/or watch the show that The additional equipment is expensive 35% seems the most interesting 61% Community antenna I turn on the TV to watch Desktop PC It is difficult to find the additional equipment a specific program It is difficult to install the additional equipment 27% 25/24 % 59% 05 Media consumption in Russia – 2019 Key findings 01 Foreword 02 Research methodology Top five podcast categories, % Average podcast listening time 03 Key findings Movies, music, art 74 Popular science and education 69 minutes 04 Media consumption in Russia News 69 40 per day Politics and society 64 05 Data content and usage patterns Theme programs 62 Technology and media 06 consumption Top categories Radio devices Radio listening 07 Attitudes towards advertising Russian music – 89% behaviour Car stereo Radio at home Smartphone 08 Media consumption in figures Foreign music – 88% 49% 29% 21% Almost every day 09 Contacts News – 81% 37 % Weekdays/weekends listening radio behaviour Four to five days a week 23 % I listen to the radio while driving 43/34 % Two to three days a week 22 % I listen to the radio One day a week and less % at home 25/45 18 % I listen to the radio 20/2 % at work have listened to the radio in the last 56 % two weeks 06 Media consumption in Russia – 2019 Key findings 01 Foreword 02 Research methodology Top 5 instant messengers, % Average number of instant messengers installed 03 Key findings WhatsApp 83 Most popular Viber 61 messengers smartphone function 04 Media consumption in Russia Skype 53 4 per smartphone Instant messengers Telegram 40 05 Data content and usage patterns Facebook Messenger 38 53% Technology and media 06 consumption Social network apps Devices for using Internet Ad-blocking on smartphones 07 Attitudes towards advertising 49% Smartphone Laptop Desktop PC 08 Media consumption in figures I have installed an ad-blocker Internet calls 13% 88% 74% 70% 09 Contacts 42% I use my browser’s ad-blocking 15% function Internet usage behaviour on smartphones I go online often 20% I plan to start blocking ads 62 % and for extended periods of time I neither block nor plan I go online often, 31% to block ads 26 % but for short periods of time I am not aware of ad-blocking I rarely go online, but do so 21% technology 3 % for extended periods of time I rarely go online, and do so 9 % for short periods of time have a smartphone 91 % 07 Media consumption in Russia – 2019 Key findings 01 Foreword 02 Research methodology Top five Internet resources, % User categories of content generators, % 03 Key findings Top five reasons for using the Internet Youtube 86 Friends 51 during business hours VKontakte 80 Celebrities 31 Information 04 Media consumption
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