MEGOGO summed up 5 years of operations and predicted future market trends
MEGOGO, the biggest OTT and video-on-demand service in Eastern Europe and the CIS countries, on its 5th anniversary summarized the major landmarks in the company development, presented data on the paying audience and highlighted the industry trends.
History. MEGOGO was launched in November 2011 in Ukraine, Russia and other countries of the former Soviet Union. In March 2012 the service reached an audience of 4.5 mln. unique users. In May of the same year, the company opened its offices in Belarus and Latvia. From June to November, applications for various Smart TV platforms, iOS, Android and Windows OS were released. By the end of 2012, the audience of the online cinema has grown to 13 mln. unique users, and the company opened representative office in Russia, Central Asia (Kazakhstan) and the Caucasus. The platform became available to subscribers from around the world.
In 2013 MEGOGO launched special sections for kids and musical clips, as well as the project “Watch the Sound” containing films and cartoons for the hearing impaired. Also it opened offices in Kyrgyzstan, Azerbaijan and Moldova. In March 2014 the company signed contracts with the Hollywood majors, and growed to 28 million monthly users in August. By the end of the year, MEGOGO launched fully functional TV product. During the consequent year, the TV service tops up channels and MEGOGO launches its own interactive channels. What is more, 4K movies and VR application were launched. Monthly audience reached more than 30 million unique users.
In the spring of 2016 the company presented an animated series of its own production, launched a new section of LIVE broadcasts and HDR technology support. Monthly audience extended to over 40 mln. users.
Today MEGOGO is the largest OTT and video-on-demand service in Eastern Europe and the CIS countries. Its catalogue consists of more than 80 thousand videos: movies and documentaries, cartoons and animations, TV series, programs and shows, sports and cultural events, and news. In total, in all the territories of operation, the TV service offers more than 300 channels, including 30 interactive channels created by MEGOGO. The company is dynamically developing its own production project – LIVE broadcasts of large-scale cultural and sporting events.
Content is available on a wide range of devices, MEGOGO applications are preinstalled on Smart TV, tablets and smartphones, multimedia players and set-top boxes. The company is engaged in more than 70 partnerships with leading telecom operators, retail and distribution networks, banks, and payment systems. Amongst the joint projects are integration of billing, selling bundles, special offers, integration of video catalogues etc.
Representative offices are operating in Kyiv, Moscow, Minsk, Riga, Almaty, Chisinau, Bishkek and Baku.
MEGOGO’s monetization models: AVOD, TVOD and SVOD.
Key figures. In 2016, the number of paying users is to reach 850 thousand users, which is 2.3 times more than in 2015 (360 thousand). Compared to the previous year, the number of transactions increased by 5 times. Today 40% of the revenue comes from the paid products, and 60% – from the sales of advertising inventory. 70% of MEGOGO’s traffic is consumed by Smart TV owners. They are the largest segment of the paid products users.
Market potential. Trends and innovative solutions. The company estimates that by 2025 the global VOD-content market will reach $105 billion, paid TV – more than $540 billion. By 2020 most of the streaming will be in 4K, HDR will become a standard format for entertainment, and 3D will be replaced by a new solution for dimensional video, VR will remain a niche format and will become more popular in the gaming industry. On the contrary, AR video market will explode and become revolutionary mass product, strengthening LIVE broadcast as a new format of content consumption. That’s why the service is so vigorously engaged in developing its own project MEGOGO LIVE, which is gaining top spot among the viewers.
“Watch the Sound”. The company cares about people with hearing impairment. Video service launched its own sign language translation studio, opened a special section on the site with thousands of movies and launched an interactive channel of the same name with 100% content with sign language interpretation. Also, MEGOGO organizes movie screenings for children from schools for hearing impaired in different countries of its operation.