With Hollywood blockbusters absent from Russia due to sanctions, cinemas are filling the gap through unlicensed screenings of major films under the guise of local productions. While government crackdowns loom, the real winners of this shift appear to be Russia’s legal streaming platforms, which are reporting unprecedented revenue growth.
Hollywood’s Departure and Its Impact
The exodus of major studios like Disney, Warner Bros., and Universal in response to the war in Ukraine left a gaping void in Russia’s film industry. Optimists hoped this would lead to a renaissance in local filmmaking, but the reality has been starkly different.
The numbers tell the story. By the end of 2022, revenue for major cinema chains had dropped by nearly half, with billions of rubles in losses. Without access to Hollywood content, some theatres turned to piracy, taking advantage of their proximity to regions like Kazakhstan, where Hollywood films remained legally available.
The Rise of Shadow Distribution
Theatres initially tested the waters with private screenings of pirated films. As demand grew, so did the sophistication of their methods. Cinemas began offering “pre-screenings,” where patrons bought tickets for short local films but were treated to Hollywood blockbusters like Avatar: The Way of Water and Top Gun: Maverick as the main attraction.
By late 2023, analysts estimated that pirated Hollywood movies accounted for 20% to 30% of Russia’s total box office revenue. Despite their illegal status, these films performed well enough to be ranked alongside legally distributed movies in box office charts.
Mixed Messages from Moscow
Russia’s government has sent contradictory signals about its stance on piracy. Publicly, screening unlicensed films remains illegal, and movies must receive certification from the Ministry of Culture before distribution. Privately, the state appears to tolerate piracy as a workaround for sanctions, although officials occasionally hint at stricter enforcement.
In October 2024, Prime Minister Mikhail Mishustin promised intensified inspections of cinemas involved in uncertified screenings. However, no concrete actions have followed, leaving cinemas uncertain about the future of their pirated offerings.
Cinemas on the Brink
Russian theatres face a grim outlook. In the first half of 2024, ticket sales totalled just 73.1 million, a sharp decline from the 113.1 million tickets sold during the same period in 2019. Industry leaders describe the current landscape as dire, with limited quality content driving audiences away.
“Pirate screenings take viewers away from official distribution,” noted Olga Zinyakova, head of the Karo cinema chain. “Until this issue is resolved, legal content will be lost at the box office.”
Streaming Platforms Thrive Amid Turmoil
While cinemas struggle, Russia’s legal streaming services have flourished. Platforms like Kinopoisk, Ivi, and Wink saw revenue jump by over 42% in the first half of 2024 compared to the previous year. Collectively, they dominate 97% of the streaming market in monetary terms.
The rapid growth of these platforms suggests a shift in how Russian audiences consume media. With fewer options at the box office, viewers are increasingly turning to digital platforms for access to content, driving unprecedented demand.
The Road Ahead for Russian Entertainment
The absence of Hollywood movies in Russia is expected to continue for years if not decades. Some predict it may take a generation for U.S. studios to return, leaving Russian cinemas to grapple with dwindling revenues and an uncertain future.
Streaming services, on the other hand, are well-positioned to benefit from the current situation. With Hollywood content unlikely to return soon, these platforms have an opportunity to cement their dominance in the market.
For Russia’s struggling cinemas, the future looks far less certain. Reliance on pirated content provides a temporary lifeline but risks long-term damage to their reputation and sustainability. Whether the industry can adapt to these challenges—or succumb to them—will likely be determined in the coming years.
