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Why broadcasters are not happy with mobile operators in Russia?

First channel and MTS resolved the “dispute” about what content can be broadcasted in internet. MTS will stream only that content which is intended for internet. First Channel will also have access to statistics of views. But what about the others? One executive from “Grand Three” revealed some reasons of dispute. First of all, the quality of First Channel’s OTT stream is not appropriate. Customer is not ready to miss some content in stream, customer require streaming the same content as traditionally broadcasted.

There is also problem with integration of advertisement and statistic standards. Currently there is no single and unified standard for statistics, replacement of advertisement, agreed by all broadcasters. First Channel requires operators to make expensive integration under their protocol and to bear all subsequent costs connected with its maintaining and support. If the First channel will “get satisfaction” with it, all other channels will require the same – integration under their own protocols.

“It would be right to set up a single and unified standard applying by all broadcasters, because it is impossible to comply with requirements of each of them” – explained one executive of mobile operator. The First Channel is ready to raise quality of its online broadcasting up to Full HD, but only after the services, streaming First Channel broadcast, integrate Channel’s advertisement.

Other major state channel also admits problem with online broadcasting. People more often watch channel in internet. It is more conveniently for them. So the audience of OTT services raises stable and broadcasters think what to do with it. First of all they believe it is necessary to make clear what to do with their advertisement. To find out how OTT services provide channels’ content in order to find out whether there is copyright infringement. There is also technology issue, how to count statistic. But these issues are matter of time. They will not be resolved in court, as executives of some channels believe. But there is also problem with online piracy. Broadcaster loses “dozens millions of roubles in a year” thanks to piracy.

But it is not all with OTT services and broadcasters. There is also one thing. Television companies finally collectively decided that the content is not cheap. So they want to receive more money for their content streamed online by OTT services. For them it is not acceptable when subscriber for 100-150 roubles in a month receives everything, including premium content produced or acquired by broadcaster for huge money. It also should be decided whether it is reasonable to separate premium content from usual and in a case of positive decision – how to do it.

What the operators think of? Representative from Beeline stated that content, including premium, is getting widespread, it is inevitably. The question is – cooperation model acceptable for producers of content, media companies and distributors of content. Representative from MTS stated that all marketing actions, including temporarily free access to premium content is negotiated with right holders and under licensing agreements. MegaFon underlined profitable side of cooperation in distribution chain – right holders make their audience widespread and receive additional revenues and wean the audience from pirate services.