In 2022, the Russian media industry experienced a contraction, decreasing by 2.5% to reach a market value of $18.7 billion. Despite these challenges, forecasts predict a recovery, with the industry expected to grow by 9.1% to a value of $20.4 billion by 2027. This growth reflects the evolving landscape of media consumption and advertising trends in Russia.

Advertising dominates the industry, accounting for 43.1% of the total market value, showcasing the pivotal role of digital marketing in driving the industry forward. Despite the dominance of state-owned entities and major corporations such as Gazprom in the broadcast sector, the media industry in Russia has managed to adapt to global trends, notably in the audiobook segment and through countermeasures against streaming giants like Netflix and Amazon.

The Russian media market, which represents 5.7% of the European industry, faced significant hurdles in 2022 due to the economic repercussions of the Russia-Ukraine war and the global pandemic. These factors contributed to a dip in consumer spending and a shift towards digital and subscription-based services. For instance, while traditional pay-TV subscriptions saw a marginal growth of 1.2%, subscription video-on-demand (SVoD) services witnessed a substantial increase of 25.6% over the previous year.

Inflation also played a critical role in shaping the industry’s trajectory in 2022, with consumer price inflation reaching 11.9% in December of that year. This inflationary pressure, coupled with reduced corporate marketing budgets due to the war, led to a temporary decline in the media sector. However, the shift towards digital advertising and the growing penetration of internet usage – which reached 128.5 million users, or 89.5% of the population in 2022 – are key factors driving future growth.

The industry is forecasted to expand at a compound annual growth rate (CAGR) of 1.8% from 2022 to 2027. This growth is largely attributed to the surge in online advertising and the consumer’s growing engagement with digital content. Russia’s strategic initiatives to enhance internet coverage and the anticipated economic recovery are expected to further fuel investment in media services and content creation.

Despite the ongoing geopolitical tensions and their potential impact on the industry, the Russian media sector is poised for gradual growth, driven by digital transformation and an increasing demand for personalized and high-quality content across various platforms.