New-style OTT service for Russia
March 5, 2018 11.51 Europe/London By Chris Dziadul
Russia will shortly see the launch of an OTT platform employing a unique business model.
According to Kommersant, it will be known as Cinezen and effectively cut out local distributors, with movie rights holder receiving payments directly from users and VOD services.
Cinezen is owned by the film producer and distributor Sam Klebanov and Igor Ryabenky’s AltaIR fund. It has already teamed up with the Danish distributor Level K and the UK’s Celsius Entertainment.
In addition, it is negotiating with more than 250 rights holders, including Russian companies and by year’s end it is planned to connect 150-200 new partners to the platform.
The project will work on a transactional basis, with users paying for each viewing or buying titles.
Significantly, the licence for BVOD (Blockchain Video On Demand) rights was developed by the US law firm Harris Tulchin & Associates. This, according to Cinezen, is the first such agreement in the world.
In the long term, the operators of Cinezen plan to enter the ICO, after which users will be able to pay for titles using tokens.
In the testing phase, Cinezen will run on Ethereum.