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CINEMA-GOING

RUSSIA

prepared for

PROJECT DETAILS

RECRUITMENT METHOD:

Face to face

DATE AND TIME: Groups ran in three different cities:Yekaterinburg 15-16 May: Group 1: Mixed gender 16-19Group 2: Mixed gender 20-24Group 3: Mixed gender 25-34Group 4: Mixed gender 35-49St. Petersburg 18-19 May:

Group 5: Mixed gender 16-19Group 6: Mixed gender 20-24Group 7: Mixed gender 25-34Group 8: Mixed gender 35-49

Moscow 23-24 May 2006:

Group 9: Mixed gender 16-19Group 10: Mixed gender 20-24Group 11: Mixed gender 25-34Group 12: Mixed gender 35-49

LOCATION: The groups were held in three different regional cities: Yekaterinburg, St. Petersburg and Moscow

RECRUITMENT CONTROLS:

Cinema attendance at least once every 2 months, on average

No direct contact with the film industry and/or the field of journalism

F I R S T R E S E A R C H I N T E R N A T I O N A L2

EXECUTIVE SUMMARY

Are Russians very different from the rest of the world in their cinema-going habits and tastes? Are they closer to Americans than Europeans? Are they becoming more comfortable with their own culture? And just how do these two cinematic offerings sit in a market that has undergone extraordinary social, political, and economic upheaval within the last decade?

First Movies has been speaking with and studying the Russian cinema-going audience. Distributors and production companies know that Russia is the fastest growing film market in the world, both in terms of screen growth and box office / ticket admissions per capita. Will it continue to grow?

We consider that the answer to this question is YES.

Estimates for 2006 foresee another 30% growth in multiplex and new screens (mostly in shopping centres) alone. But where are the growth areas? Where should SONY be paying most attention?

Russia is a two season market: winter and summer. Cinema-going habits can vary due to seasonality as it is more difficult to get to certain cinemas during the harsh Russian winter. However, they do go, and surprisingly one of their key window (tent-pole) release periods locally is January (during the Russian Orthodox holidays). January 2006 saw DAY WATCH (the much anticipated sequel to NIGHT WATCH) shower the box office once again proving that Russian production and film marketing is a strong competitor for Hollywood.

More recently in early May 2006 the industry saw the animated box office records once again broken with ICE AGE 2. There were several reasons why ICE AGE 2 debuted strongly (in fact stronger than other key European markets such as Spain & Italy). Such reasons include good dubbing/translation, using local Russian talent (comedians) as well as the idea of an “ice-period” thawing out – perhaps akin to Russia’s own geographical and political thawing out in the rest of the world.

Shopping and cinema-going are becoming one and the same. Cinema owners and exhibitors are building more within shopping areas or creating shopping areas around the cinema. This trend of multiplex construction is common around the world because there is more space further outside the city centre, more opportunity for larger and greater amount of screens and the tie with shopping, eating and family outings. Thus the cinema-going experience in Russia is now more akin to the rest of the world.

This movement has been beneficial in particular for the family unit. Studios have been keen to push family product in Russia as there is less controversy and more opportunity to hit this growing segment of cinema going. But what about the situation for the remaining Russians?

Are segments such as Teens, young adults, single parents (growing segment) and the older quarters of the population still going to the cinema? Again, of course, the shopping mall / cinema layout enables the wife or girlfriend to shop while her husband or boyfriend goes to the cinema with friends to ‘kill time’. Hence cinema-going is not simply an experience, but also a passive action that can either engage or disengage (‘relax’ as most Russians call it) in a comfortable and structured environment.

Russian quality of film making is slowly improving with an influx of new talent. Wealthy Russian benefactors are also interested in attaching their name to a film project simply for ‘status.’ Status is very important in Russia, in particular for the fast growing noveau riche who look to material trimmings to brag to friends of their recent film or TV production. The product may not


necessarily be good or even watchable but the achievement of putting a new product on the screen can create friends and social circles not yet attained. Even down to younger social groups, status in Russia is a strong motivator towards purchase decision making.


How do Russians see American film product? As Russian films, from serious artisans and producers, are being released there is a growing sense of pressure on Russia to deliver better films as well as adhere to an established sense of patriotism. Russia is a very proud culture, rich in history and ideas. Some of the greatest poets and idealists of the world have hailed from Russia and there is a sense, even from the younger population, that Russians should not forget nor pass aside their past for banal or too simple storylines. Russians maintain a sense of intellectualism that may at times be overlooked by western society.

The older population, in particular, grew up reading many books (as film and TV were not so prevalent during Soviet times) and their minds were filled with great novels and stories from both Russia and elsewhere (piracy was first introduced during Soviet times with books!)

Russians see their history as their soul and Russian ways of behaviour as their path towards personal liberation. There is a strong sense of national identity when it comes to love, war, history and in some cases their job. However this is balanced very delicately on a pinnacle of all that is real life Russia, which is a myriad of politics, corruption, dysfunction, broken dreams and for most a future of uncertainty.

Our focus groups expressed a deep respect of Russian film history, actors and the people that paved the post -Soviet era in film. There is almost a sense of patriotic duty to continue to support local Russian film makers towards voicing the sentiment of the people.

With the impending change-over in government (Putin is finishing his term and will provide a Putin-esque predecessor in 2007) there is more of a growing sense of uncertainty. This uncertainty can be expressed in apathy, resistance, maintenance of the status quo and interestingly a certain acceptance of past Soviet culture. There is a sense of wanting the predictable, wanting more for less, and wanting a clear vision of what is to come. This may seem strange to Americans or any other free democracy where capitalism has been ticking along nicely but in Russia we are reminded that although their culture, economy and politics have moved dramatically forward, their heritage is the grandfather clock looming in the corner of their culture, always on cue to chime in the old manner in which is so comforting to know.

RUSSIAN FEDERATION

Country area: 17,075,400 sq.km (largest country in the world)Population: 143.5 million peopleCapital: MoscowKey cities: St. Petersburg, Yekaterinburg, Nizhniy Novgorod, Novosibirsk, Omsk,

Rostov-on-Don, Samara, Chelyabinsk, Kazan, Ufa (over 1m population)Volgorad, Perm

Local currency: Rubles (RUB)Official ruble/dollar exchange rate: 29 Russian roubles for one American dollar

GDP 2005 Y (Rb): Rb 21,665.0 BnGDP 2005 Y ($): $752.4 BnGDP Growth: +6.4%GDP per head: $5,243

Gross Cinema Box Office 2005Y: $316m (90.5% of CIS box office)

2005 year on year key figures:Incomes: +8.8%Consumer spending: +10.7%


Russia is a fascinating and fast-growing market: so fast that any research conducted in 2005 now seems out of date.

Russians represent a proud and intellectual culture, with an inherent sense of belonging yet unknowingness of where they are going. There is a strong sense of cultural pride in everything they do whether it is good or bad quality. Piracy is the norm and although there is discussion and knowledge that the practice is illegal it is looked at as a facet of entertainment based on economics and corruption.

Russian cinema-going is very similar to the cinema-going experience in North America and Europe. Concessions, comfortable seating, special services and a wide variety of cinemas and screens are now more prevalent than ever. Alcohol is still a widely available and popular concession and sold in most cinemas across Europe.

American film product still rules the box office however, local production is on the rise with internal support from investors and studios willing to support this hungry film market. Russians would prefer to see their own talent and their own themes of cultural identity promoted however, themes of purpose and complex relationships can overcome diversity within foreign product.

Russia is a very new media savvy market. Mobile penetration is one of the highest in the world (in comparison to per capita population) it is 86%. Most Russians utilize their phones for one or more applications other than communicating verbally however new media practices involving mechanics towards cinema-going are still new.

Media spending is up in Russia following Advertising rules changing creating a fierce and competitive landscape in Moscow for TV penetration. Trailers are still viewed as a positive cinema-going experience as well as the primary leader towards decision making or seeding for upcoming releases.

Russians are passionate, political, conservative and difficult. Many themes, sayings and expressions still echo from soviet times although Moscow gives the appearance of a modern European country.


INTERESTS AND HOBBIES

“Russia has entered the top 10 International territories in terms of revenue with a fivefold expansion of the market since the turn of the millennium - $65m gross box office in 2001 to $350m in 2005.” (Screen International, May 5, 2006)

“Russia and other former Soviet countries surged ahead last year with admissions up 20%”(Hollywood Reporter January 10, 2006)

Per capita admissions are 0.52, far below the European market: France = 2.9; UK = 2.8 and Germany 1.8

It should be noted that cinema going was introduced as the subject of discussion before respondents were asked about their interest and hobbies. Nevertheless, at least half of each group professed to enjoy going to the movies in their spare time, usually as a casual, time-filling exercise rather than a highly anticipated event:

“When I am free I meet with my friends in the centre of the city and we usually go to see some film.”

Yekaterinburg 25-34 YEAR OLD

Sports and fitness was also popular across all groups: the late teens spoke of fairly ‘mainstream’ activities such as soccer, basketball and tennis, whilst the young adults and 25-34s enjoyed more extreme and outdoor sports such as mountain climbing, cycling, skiing, roller-skating and hiking, especially outside of Moscow. Swimming, billiards and bowling were popular with all.

More cerebral and creative interests, such as reading and photography, lay with those aged 25 years and over. These individuals were also more prone to spending time with family.

Age had no bearing on the desire to socialise with friends during group member’s free time and there was widespread engagement with the theatre (an appreciation of Russian actors is likely to play a part here), taking walks and travelling out to the countryside. With such harsh winters, there was a real feeling that group members made the most of the warmer summer months for outside activities:

“I like to be outdoors in summer since I get bored being inside in winter.”

Moscow 16-19 YEAR OLD

Finally, the eldest groups were the only ones not to express an enjoyment of concerts, festivals, coffee houses and (for Yekaterinburg and Moscow), nightclubs and discos.


THE CINEMA GOING EXPERIENCE

I) PLANNED VERSUS IMPULSE

Generally, across all groups, there was a tendency to plan cinema visits and visit on a more spontaneous basis. One group member explained how, if advertising caught the eye for a well known movie (such AS ICE AGE 2), a trip to the cinema would be planned, however, the same respondent also explained:

“Sometimes, when we have nothing to do, we go and choose the most interesting movie we haven’t watched yet.”

St. Petersburg 21-24 YEAR OLD

Advertising helped drive planned visits, especially when hype had been created, the film looked interesting and there was a concern that seats might not be available if respondents just turned up over the opening weekend. Knowledge of the film being on limited release also contributed.

“It’s worth planning here because of huge public excitement, which causes a lack of tickets.”


The composition of the group also had a bearing: to avoid disappointment, our elder group members planned cinema trips for their children; the logistics behind a big group going to the cinema meant that planning was necessary.

The late teens were the most impulse-driven groups, where the extent of their planning appeared to be the decision to go to the movies, rather than booking tickets for a particular show. For many, a cinema visit was the result of being invited along when other friends were going. Spontaneity was more prevalent amongst visits with friends while people tended to plan trips to the cinema with girlfriends, boyfriends and partners, instead.

As expected, friends and partners were staple accompaniment for most group members. Additionally, it was clear that younger respondents (under 25 years) also went to the cinema by themselves:

“I sometimes go alone, when I need to seclude myself from the rest of the world for a couple of hours.”



In turn, the eldest respondents often went with their children (for animated films) and the family in general:

“My son usually suggests going to the cinema after reading ads, so I buy tickets … my husband works a lot therefore we usually choose weekends.”


On a similar theme, there were a few others who matched the party composition to the genre of film being watched, both to ensure they had suitable company with which to discuss the film afterwards and also to ensure their friends would not be disappointed:

“I choose a companion to go to the movies with – depending on the genre. I don’t want my companion to dislike the film that I watch.”


II) FACTORS AFFECTING FREQUENCY OF VISITS

The primary factor given by most focus groups, dictating the frequency with which cinema visits were made, was the amount of available free time. Members of the 35-49 year old groups equated this to family commitments. Work commitments and home study (for the late teens) also impacted this.

The amount, quality and range of films being shown at the cinema was also considered to be a determining factor, clearly being driven to the cinema more by appealing fare. Once again, the exclusivity or limited availability of films also proved a draw:

“I like Dom Kino and Rodina because they show films that are not shown anywhere else – exclusive European or old movies.”

St. Petersburg2

21-24 YEAR OLD

This was especially the case outside of Moscow, where there was a sense that respondents did not have the same choice as those living in the capital:

“Most cinemas show high-budget blockbusters, but not such intellectual films. We have 7 cinemas and each of them buys an action movie, a melodrama – but not a film for a narrow audience [they’d only get] 300 viewers and not 3000 [as they would in Moscow].”

Yekaterinburg2

35-49 YEAR OLD


To a lesser extent, the price of the tickets, the discounts available and the promotions being offered played a part in the frequency with which cinema visits occurred (and related to this, the amount of money at one’s disposal). It was also an important factor in the choice of cinema visited:

“For the price of one ticket at Kaluzhsky I can watch three films ay Vityaz … so the price does effect the frequency of my going to the movies.”

Moscow2

35-49 YEAR OLD

“I mainly go to Yugo-Zapadny, their tickets are less expensive – the same films, same schedule, but cheaper.”

Yekaterinburg2

35-49 YEAR OLD

This price / value consciousness was particularly evident in Yekaterinburg where disposable income is almost certainly less compared to Moscow.

Among the more minor factors were: the cinema’s location (especially in Moscow and St Petersburg); one’s mood (when thinking of spontaneous visits); the actions of those due to accompany you to the cinema; the amount of advertising seen for films (specified only by those in Moscow), and the seasons/weather (for those in St Petersburg and Moscow):

“I go to the cinema most frequently in winter as my friends do not want to go out.”

Moscow2

16-19 YEAR OLD

III) BAITS TO CINEMA ATTENDANCE

Echoing back to the primary benefits of big screen viewing, most focus groups declared screen size and good sound quality as the key benefits of watching a film at a cinema (certainly in comparison to at home):

“I have a nice home cinema in my flat and when I switch it on my neighbours start knocking at my door – in the cinema such things are allowed!.”

St. Petersburg2

35-49 YEAR OLD

At a secondary level, the location of the cinema had a direct bearing on encouraging a cinema visit and the convenience of this location was deemed especially important if a group outing to the cinema was being organised. Groups in Yekaterinburg were those most likely to have given this response:

“If we get together in a group, it’s more convenient for everybody to go to the centre.”

Yekaterinburg2

25-34 YEAR OLD

“I want to be able to walk there.”

Yekaterinburg2

35-49 YEAR OLD



Price was also understandably important to many, with a desire for affordable ticket prices, promotions and discounts for matinee performances, students and pensioners.

The atmosphere was clearly important to all but the eldest group members, where soft couches in the lobby, comfortable seats in the auditorium and a cosy ambience were viewed as an advantage of theatrical viewings (especially in relation to cinemas in busy, hectic shopping malls). Related to this, those in Moscow and those under 35 years (who enjoy spending time with friends in coffee houses) were drawn more to theatres that had cafés. Those that saw cinema viewing as a time-filler for when they were bored were particularly likely to be drawn:

“If there’s nothing to do, I suggest we go to the cinema or a café. Normally, there’s a café in every cinema, so you may eat first and then go and watch [a film].”

St. Petersburg2

16-19 YEAR OLD

The provision of a café also meant there was food beyond the usual standard concessions:

“Pobeda is very good – they’ve got a very good café there with a good food stock – I mean they don’t just sell chips and popcorn.”

Moscow2

16-19 YEAR OLD

A café also enabled those who did not want to see the film to still catch up with friends:

“Those of us who have decided not to see the film also often meet in a café there. The atmosphere is very good and it’s very convenient.”

St. Petersburg2

25-34 YEAR OLD

Late teens also demanded good service and polite staff – even if some were rather over-demanding in this aspect:

“I want to just press a button for the waiter to appear to bring me food and snacks!”

Yekaterinburg2

16-19 YEAR OLD

As price is paramount in Yekaterinburg, the inclusion of added-value services is unlikely to be as well received as it would in Moscow where the experience is one of the key attractions (remember price and value are different things, hence as long as the value is attached to the extra service, price is not a factor (especially in Moscow).

Individual mentions were also made about the importance of cloakrooms, the provision of cup holders in arm rests and the desire to be up-to-date with film releases


Whilst there will inevitably be mixed standards within Russian exhibition, there was an overriding feeling in the groups that standards have invariably improved, with high standards now becoming the norm. The mission, therefore, is to maintain and build upon this level of theatrical offering, especially in the fight against piracy:

“Lately we’ve got accustomed to the fact that a cinema must be well-equipped, have good sound, comfortable seating and a decent audience.”

St. Petersburg2

35-49 YEAR OLD

IV) BARRIERS TO CINEMA ATTENDANCE

Uncomfortable (and non-raked) seats, plus noise from other audience members were seen as the key factors in discouraging cinema attendance, with the main culprit for the latter being concessions:

“The positioning of seats is a bit low. There is always someone’s head in front of you.”

Yekaterinburg2

21-24 YEAR OLD

“I hate it when people are chomping!”

St. Petersburg2

16-19 YEAR OLD

“It’s quite nasty when people behind you are chewing or crunching.”

Moscow2

16-19 YEAR OLD

“It irks me when people sit in a cinema and rustle with packs of food.”Moscow 2

25-34 YEAR OLD

The use of cell phones during a performance also irritated a few group members.

A stifling atmosphere (created by poor air conditioning and cramped conditions), technical problems (such as the film being played at too loud a volume) and crowds/long queues at the concessions stand were deemed to be more minor barriers to attendance.

Furthermore, a couple of group members blamed the disappointment caused by high expectations (part-attributed to the marketing campaign) as factors which prevented them from attending the cinema more often.


V) TYPE OF CINEMA

Number of cinemas Russia (2005): 545 sites / 1036 screens66 sites / 317 screens in shopping centres)Annual screen growth in 2005: +30%

Moscow sites: 84 screens: 280 market share by the number of screens: 27.0%St. Petersburg sites: 23 screens 87 market share by the number of screens: 8.4%Yekaterinburg sites: 11 screens 32 market share by the number of screens: 3.1%

”Rising Star Media, Russia's developer and operator of cinemas, has broken ground on Russia's largest cinema and entertainment complex, KinoStar City. The first of its kind in St. Petersburg, it will occupy 108,000 square feet in the Piter Raduga shopping center.” (Variety June 20, 2006)

Where asked, multiplexes were embraced as a means of delivering a wider choice of movies and for providing bigger screens to watch them on. The improved comfort and technical quality was also appreciated.

Interesting demographic and geographic differences emerged when asking respondents about cinemas housed within shopping malls (as opposed to entertainment centres, which was welcomed): the eldest groups had mixed reactions, appreciating the opportunities they lent to socialise with friends and the ability to ‘multi-task’, but expressing concern that these were two very different activities and couldn’t easily be placed alongside one another:

“It’s suitable for me because my child (aged 11) doesn’t like shopping, so he could watch a film while I make the round of shops.”

St. Petersburg2

35-49 YEAR OLD

“If I go to a cinema I want to see a film – not to shop.”

Yekaterinburg2

35-49 YEAR OLD

Those in Yekaterinburg tended not to like the idea, mainly due to the inconvenience of taking shopping bags into the theatre and due to the desire to sit and relax, then discuss a film after seeing it – rather than be plunged into the frenetic energy of shopping:

“It’s your emotional condition – you go to the cinema to have a rest.”

Yekaterinburg2

25-34 YEAR OLD

Others welcomed the combination of cinema going and shopping – especially in the freedom it gave them for a last minute change of mind:

“There can be situations when you change your mind and decide not to go to the cinema, because one of your friends didn’t come or there’s something wrong with your ticket.”

St. Petersburg2

25-34 YEAR OLD



VI) THE COST OF CINEMA

Views differed slightly across the groups, but the cost of a cinema ticket was declared as 150-200 Roubles in Y, 200-250 Roubles in Saint Petersburg and 250-300 Roubles in Moscow. However, across all locations, morning and matinee tickets were sold for 50 Roubles. One group member also claimed that the price was affected by how long the film in question had been playing for.

The younger respondents were generally warmer to the idea of a higher price for the provision of more/better facilities, though no group member would pay more than 50 Roubles above the current ticket price.

Where there was some leniency, there was a feeling that this improved offering might be tried once out of curiosity, but that overall, the comfort of seats and picture/sound quality were the only things of any real importance when going to the cinema. This reflects the common theme that, at the heart of cinema going, is the desire to watch a movie.

THE VALUE OF CINEMA

For many group members, a trip to the cinema was an opportunity to sit down, relax and escape from the daily routine and problems:

“You can’t help getting into the atmosphere of a film and forgetting about reality for a while.”

Moscow2

35-49 YEAR OLD

Reflecting the desire to spend time with friends, cinema was also seen as a means of socialising, with activities often planned both before and after the film too:

“After the film, I don’t usually go home, I prefer having a snack at some café … it’s a chance to go out and socialize.”

Yekaterinburg2

25-34 YEAR OLD

For many cinema provoked thought, inspired and educated, and some described how they actively sought out more challenging films to serve this purpose:

“For me, the most important thing is to watch a film and then discuss it with friends. We need a subject to talk about.”

Yekaterinburg2

16-19 YEAR OLD

“You can experience some new emotions if you try to identify yourself with the main character and to live through all the situations in the film with this person – especially if nothing like this has happened in your life.”

Yekaterinburg2

25-34 YEAR OLD


Finally, for a handful of respondents, the appeal of cinema was designed: to see films as they were intended to be shown, among an audience of others, on a big screen.

CONCESSIONS

The range of concessions bought by focus group members encompassed the following:

Popcorn (also bought for the children, by those over 25 years):

“Kids like popcorn and we always buy it for them.”

Yekaterinburg2

35-49 YEAR OLD

Soft drinks such as Coca-Cola, coffee and mineral water Snacks such as ice cream, chips, nuts, chocolate and candy To a lesser extent, alcoholic beverages such as beer, cocktails, cognac and even

champagne:

“Aurora Cinema have a VIP-zone with a bar offering cocktails, so you may take a seat and order at the same time. It’s cool!”

St. Petersburg2

21-24 YEAR OLD

A handful of individuals even brought in their own food, such as takeaway KFC, hamburgers and sushi.

Reflecting earlier findings in this report, group members went on to explain how cafés within a cinema environment (as opposed to concession stands) can draw people into the cinema, ultimately leading to a stronger box office. Especially for those who enjoy socialising with friends in their spare time, it was felt to be integral to the cinema going experience.

However, there was also a stronger wave of negativity towards cafés and concessions. It was felt that most cafés offered a limited choice of food, that queues and a lack of time would quash the desire to buy something to eat/drink and that concessions are a blatant moneymaking opportunity (especially in Saint Petersburg and Moscow, where prices could be as much as 30% higher than outside vendors):

“I would sooner go to some cafe outside the cinema after the film – they offer nothing but beer and chips – how can one eat there?”

Yekaterinburg2

25-34 YEAR OLD

“I have read the movie makers get half their earnings from films and the other half from selling popcorn, beer and cola.”

Yekaterinburg2

35-49 YEAR OLD

“No one wants to pay for a pizza which is three times less expensive at a supermarket.”


Yekaterinburg2

35-49 YEAR OLD


Moreover (and as previously discovered), some saw movies as the sole purpose of going to a cinema and that the noise made by other audience members eating could often ruin this recreational activity.

“I don’t go to the cinema in order to eat. I don’t eat or drink anything, I watch the film.”

Yekaterinburg2

25-34 YEAR OLD

“I don’t like it – sitting, chewing and scattering it all – one comes to the cinema for something other than that.”

St. Petersburg2

25-34 YEAR OLD

Advertising results for 2005

Source: TNS Gallup Media, TNS Gallup AdFact, TNS MIC

The biggest advertisers and categories that spent on advertising most of all in 2005 were singled out.

Time: 2005 Region: Moscow Mass media: TV, radio, press, outdoor advertising, cinema Statistics: Advertising volume

CinemaUSD$

REFRESHMENT DRINKS 4 102 615CELLULAR COMMUNICATION EQUIPMENT 2 572 770CELLULAR COMMUNICATION SERVICES 1 241 610TELEVISION 908 370BEER 851 520SPORTS EQUIPMENT 803 550CHOCOLATE PRODUCTS 759 480TV AND VIDEO EQUIPMENT 706 200INTERNET INFORMATION RESOURSES 575 760COFFEE AND COCOA 526 920

Category


Top in-cinema advertisers (Moscow 2005)

CinemaUSD$

COCA-COLA 3 507 115SAMSUNG ELECTRONICS 1 652 520LG ELECTRONICS 969 030РОССИЯ (ТЕЛЕКАНАЛ) 845 910MARS-RUSSIA 691 200Bee Line 621 690МОБИЛЬНЫЕ ТЕЛЕСИСТЕМЫ 537 210MAIL.RU 443 910HEINEKEN 422 190PEPSI CO 395 910

Advertiser


SOURCES OF INFORMATION

When asked where they found out about forthcoming product, all focus groups cited television (adverts and programmes) and the Internet (websites with specific content, plus adverts such as banners).

The vast majority of groups also cited newspapers (listings or articles), recommendations from friends, family and colleagues, some form of point of sale material at cinemas and magazines (especially those in Moscow). Finally, no more than half the groups spoke of billboards (especially in Moscow), posters and the radio.

Once sources of information had been listed, group members were asked how influential each media was in attracting them to see films at the cinema.

TRAILERSDeemed highly influential, though slightly less by those in Saint Petersburg

PROS CONS

Enticing, appealing and impressive content, grabbing attention and creating high impact

“The movie might be poor but you may clip four shots and it will look fantastic.”

St. Petersburg2

20-24s

“Couple of times I’ve come across articles about any famous actor containing information of a new movie with his involvement. For example, I like the actor Aleksei Barabash. He has just been filmed in a new movie ‘Piter FM.’ Recently I’ve been reading an article about him in ‘Panorama TV’ and his plans to renovate his apartment, and it is great if there are a lot of photos!”

St. Petersburg2

21-24s

Can be easily shown to a captive audience, within the right environment and deemed to be part of the cinema going experience

Perceived as being potentially misleading

“Even if the movie is not good, they choose most spectacular moments and show them.”

St. Petersburg2

35-49s

“It may sometimes happen that the trailer shows some very vivid episodes, while the film turns out rather trivial.”

Yekaterinburg2

25-34s

Felt by some to be shown too early and too often

“For example, in case of ‘Night Watch’ they have been releasing adverts 6 months in advance in parts and everybody has seen almost the whole movie by then. It was not interesting anymore!”

St. Petersburg2

20-24s


“You just sit and wait for the movie to start. You can’t watch anything else, so you watch these trailers.”

St. Petersburg2

16-19s

“When you come to the cinema you’ve already prepared to watch the film. And If you see an interesting trailer you note this film ad won’t miss it.”

St. Petersburg2

35-49s

“We see them every time before films and can choose a good movie to watch in the future.”

Yekaterinburg2

35-49s

“People even get used to see trailers before a film and feel discomfort when there are no trailers at all.”

Yekaterinburg2

35-49s

To a lesser extent, is a visual media and provides sufficient information to tempt audience members into viewing; one of the most informative sources

“They are the most informative. You can see and hear everything.”

Yekaterinburg2

25-34s

TELEVISIONDeemed highly influential, especially by those in Yekaterinburg

PROS CONS

Has a mass audience and is therefore unavoidable, with messages going in subconsciously

Movie adverts are enjoyed and stand out from other non-film adverts

A few also see it as simply a shorter version of a trailer and therefore as possessing similar benefits, such as telling you all you need to know and

As with trailers, can easily mislead

“Sometimes advertising doesn’t justify the film. For example, I didn’t like ‘Peter FM.’ But remember its advertising! Now I’m afraid of being misinformed by some other film’s commercial.”


being a visual media

“An ad can help you find out whether the film is interesting for you and get the general idea.”

Moscow2

20-24s

Moscow2

20-24s

“Sometimes they show the most interesting moments in the advert and it looks spectacular. But after you see the film, you are often disappointed.”Moscow 2

20-24s

Viewers are prone to switching channels

“I start zapping or leave the room when I see adverts. Normally they announce advertising break or show any caption and you automatically switch to another channel.”

St. Petersburg2

20-24s

Every Russian household owns a TV, with 59% of households having one only TV, 31% having two and 10% with three or more

Average daily viewing is 3 hours and 33 minutes TV is increasingly becoming an entertainment medium, with 48% using it for this

purpose in 2005, compared to 35% on 2000. It is used less as an information source with now only 30% using it for this, compared to 47% in 2000

Preferred format for females: Light talk show; Foreign serials; Reality; Music; Lifestyle Preferred format for males: Sports; Crime; Documentaries; Current affairs; News

Video International, 2005

National Reach of Russian Television stationsREACH

CHANNEL 1 85%ROSSIA 82%NTV 72%REN TV 56%TVS 54%CTC 53%TNT 45%TVC 35%KULTURA 32%TV3 28%MTV RUSSIA 24%

European Audiovisual Observatory, 2003


A quarter of the population living in rural areas only receive 2 national channels. The majority of Russians can receive from 6 free terrestrial channels in small towns, to 15 in large metropolitan areas.Roughly 75% of the population was TV on a regular basis

European Audiovisual Observatory, 2003


WORD OF MOUTHDeemed highly influential, although less so by the 35-49 year olds

PROS CONS

Opinions from friends are a trusted source of reviews. Unlike some forms of communication there is less evident bias (nor reason to be biased)

“If you ask your friend you can find out what a film is like.”

Moscow2

20-24s

“You trust their opinions.”

Moscow2

20-24s

Talking about movies is a common point of conversation, and given the number of releases a readily up-dated piece of information - Seen to create discussion

“At least there is something to discuss after all.”

Moscow2

25-34s

“Yes, there’s something for further disputes.”

Moscow2

25-34s

Even within groups of friends, tastes differ meaning that word of mouth is often subjective

“They often only express their emotions and all this is purely subjective.”

Yekaterinburg2

25-34s

“I will listen to them but it is in no way necessary that I will follow them.”

Yekaterinburg2

25-34s

“It is very exciting to discuss films with your friends.”

Yekaterinburg2

25-34s

“Friends can have different opinions. That was the case with ‘Peter FM.’ One of my friends said that it was a cool film, but another said that it is not worth watching, and I followed the advice of the latter one.”

Yekaterinburg2

25-34s

As a result, friends could hype something up beyond its worth

“Very often my friends exaggerate the value of a movie. They praise it too much that I hope to watch something special and it is disappointing.”

Moscow2

16-19s


THE INTERNETDeemed influential, mostly by those in Yekaterinburg and supported by fewer than half of each group elsewhere

PROS CONS

Provides the most detailed information and is therefore considered to be a highly comprehensive informative source

“There is much interesting information and you are free to choose the field you like, it’s not that you are imposed the information.”

Yekaterinburg2

20-24s

“If you want to get precise information about the movie, I go to the site of the movie.”

St. Petersburg2

16-19s

Access is high among this audience and hence it high convenient to use

“It’s convenient … if we think where to go to watch a movie we use the internet and decided based on the show time information.”

Yekaterinburg2

20-24s

A wide range of information is sought, from generic talent news to more film-specific reviews and show times

Many felt that the advertising placed on websites is too imposing

Felt to be too expensive to use on a regular basis

Tends to be used as a supporting source of information, more so than a primary source, used more for specific information than general browsing


Top online consumer sites in RussiaTop 5 online consumer sites in Russia 2005

№ Name Gross income, mln. USD.

1 003.ru 31.12 foto.ru * 25.13 mvideo.ru 24.04 ultracomp.ru 21.35 ozon.ru 19.36 dostavka.ru * 18.07 porta.ru * 17.0

8 techhome.ru * 16.0

9 m3x.ru * 13.010

megashop.ru * 13.0

11

palmshop.ru * 13.0

12

diditalshop.ru * 12.7

13 sotino.ru * 11.8

14 21vek.ru * 10.2

15

sendflowers.ru * 9.5

16

holodilnik.ru * 8.2

17 tehnosila.ru * 7.0

18 parter.ru 7.0

19 fotocam.ru * 6.6

20 softkey.ru 5.2

* — source CNews Analytics

Across the majority of groups, Yandex, Rambler and Afisha emerged as the most used search engines for information about movies. Additionally, group members spoke of using film’s official sites and cinema sites (such as www.kino.ru).


POSTERSDeemed somewhat influential, mostly by those in under 25 years

PROS CONS

Due to their size (especially billboards) and wide coverage, posters are seen as aiding the advertising campaign by creating high awareness

“Often travel outside the city during the working day, so I mostly get to see the posters in different places.”

Yekaterinburg2

20-24s

“’Cards, Money, Two Barrels’ by Guy Ritchie. It looks a bit stupid, though in fact it is very sophisticated.”

Moscow2

35-49s

“I see a picture of Zhanna Friske, two weeks of driving and looking at it. I’ve already learnt her face by heart, I bet.”

St. Petersburg2

35-49s

On the contrary, to be effective, mass coverage is required for a media that is felt to contain little information

A few thought there were often too many of them and that they went unnoticed

“People can’t see what’s in this poster. Nowadays there very many billboards and people don’t have time to read all of them, especially when driving a car. They just fly past unnoticed.”

Yekaterinburg2

16-19s

Some of the 25-34s felt that billboards would distract driver


THE RADIODeemed to have little impact across the vast majority of groups

PROS CONS

Felt to work better when the information is folded into review programmes, quizzes and general discussions from the DJ

Considered to yield mass coverage Deemed more effective for those who

listen to the radio while they drive

As film is a visual medium and radio is perceived as being predominantly designed for music, there was felt to be a discrepancy between the two

“Now all cinemas are planned as entertainment centres and the film itself is just part of the entertainment process.”

St. Petersburg2

35-49s

“It’s important for a film advert to be visual. If you see it, you want to go to the cinema, but if you just listen to it...”

St. Petersburg2

25-34s

953 radio stations in Russia61 million radio receivers - more than one per household (52 million households)

Radio (top 15 daily reach)Reach (000)

Reach % Dly

Russkoe Radio Moscow 1067.3 11.2Mayak Moscow 980.3 10.3Retro FM Moscow 920.1 9.7Evropa Plyus Moscow 907 9.5Avtoradio Moscow 831.7 8.7Radio Shanson Moscow 801.9 8.4Radio Rossii Moscow 749.7 7.9`Eho Moskvy Moscow 654.8 6.9Radio 7 - na semi holmah Moscow 576.4 6.1Yumor FM Moscow 532.1 5.6Milicejskaya Volna Moscow 525.4 5.5Love Radio Moscow 478.2 5Maximum Moscow 436.6 4.6Nashe Radio Moscow 433.7 4.6Serebryanyj Dozhd' Moscow 377.2 4

TNS, 2005


MAGAZINESDeemed to have little impact, especially by those aged 35-49

PROS CONS

Most respondents claimed to enjoy reading interviews with stars, reviews and behind-the-scene features

“Couple of times I’ve come across articles about any famous actor containing information movie with his involvement. For example, I like actor Aleksei Barabash. He has just been filmed in a new movie ‘Peter FM.’ Recently I’ve been reading an article about him in ‘Panorama TV’ and his plans to renovate his apartment”

St. Petersburg2

16-19s

“If I see something on the cover or if I open it by chance and see a name that interests me, I’ll definitely read the publication.”

Moscow2

20-24s

“For example, ‘Gde?’ In such magazines, they very often offer detailed information about films, where they are on, sessions, actors starring, and a mark.”

Moscow2

20-40s

Performance times were sometimes listed (more so in TV magazines, such as PANORAMA)

“Almost all the TV-programmes, if I can call them magazines. They are issued once a week and they all promote a certain film. There is a special column devoted to new films, which is written by their own reviewers who give their estimates.”

St. Petersburg2

25-34s

Due to the (generally) monthly issue dates, the media is not seen to be that up-to-date and therefore has little bearing on decisions

“Glossies are monthly periodicals, then even if they write about some premier, they’ll come to us too late anyway.”

St. Petersburg2

35-49s

The subjective nature of reviews meant that some didn’t trust them

“Journalists express their personal views and nobody knows whether you will concur with them.”

St. Petersburg2

35-49s


“It usually contains no information on what is on at the cinema, but it prints just the descriptions of new films. We’ve mentioned several newspapers, but I think that only Panorama magazine gives some information on films and not only about latest ones.”

St. Petersburg2

35-49s

Weekly magazinesCirculation

'000 AIR, %7 Dnej Moscow 2395.6 26.5TV-Park Moscow 827.2 9.2Zyatek Moscow 738.5 8.2Liza Moscow 712.8 7.9Otdohni! Moscow 698.3 7.7MK-Bul'var Moscow 622.8 6.9Rabota i zarplata Moscow 579 6.4Razgadaj! Moscow 436.2 4.8Avtomir Moscow 427.9 4.7Iz ruk v ruki Avto Moscow 357 4oTVet'! Moscow 352.7 3.9Itogi Moscow 329.3 3.6Dosug i razvlecheniya Moscow 272.2 3Vot tak! Moscow 259.7 2.9Vash dosug Moscow 229.1 2.5Hello! Moscow 165.6 1.8Den'gi Moscow 158 1.7Upgrade Moscow 157.1 1.7Kommersant` Vlast' Moscow 155.5 1.7Dasha Moscow 145.8 1.6Ogonek Moscow 144.7 1.6Profil' Moscow 113.6 1.3Cool Moscow 102.9 1.1

TNS, 2005


NEWSPAPERSDeemed to have very little impact, across the board (though note, this is just for these focus group members)

PROS CONS

Listings and schedules were considered useful However, focus group respondents

declared little readership of newspapers and therefore, this media has very little impact on them (though some recognised that many people do buy newspapers or read free ones)

Daily newspapersCirculation

'000 REACH , %Moskovskij Komsomolec Moscow 822 9.1Komsomol'skaya pravda Moscow 433.9 4.8Iz ruk v ruki Moscow 381.5 4.2Zhizn' Moscow 349.5 3.9Sport-`Ekspress Moscow 317.2 3.5Metro Moscow 280.4 3.1Sovetskij sport Moscow 207.8 2.3Kommersant` Moscow 158.8 1.8Izvestiya Moscow 136.2 1.5Vedomosti Moscow 114.7 1.3

TNS, 2005

Those respondents focussing on the overall effect of advertising were of the opinion that the greater the exposure, the better. Trailers, television advertisements (on federal channels) and outdoor posters featured in their ‘ultimate campaign’, with it necessary to teasing and intriguing the public with its content. Newspapers were also suggested; although not effective for respondents, the idea of wide coverage and of spreading the message to the masses was of prime importance.

“I would deploy all media I could. Papers, magazines, radio, TV, Web, posters around the city.”

St. Petersburg2

15-19 YEAR OLD

“They can use hype factor-an event to rouse curiosity.”

Yekaterinburg2

35-49 YEAR OLD

“Make obtrusive ads in every possible way-any kind of information to appear everywhere.”

Yekaterinburg2

35-49 YEAR OLD

“I think in this country people reject aggressive advertising.”

St. Petersburg2

35-49 YEAR OLD


In contrast, talk of niche marketing didn’t feature beyond advertising around television movie review shows and on entertainment channels.

Focus group member’s response to advertising can possibly best be summed up by the following:

“The Da Vinci Code had great [advertising] and I decided to watch it, although I didn’t want to. I’m a religious person, [but] I watched it because of its PR and advertising.”

St. Petersburg2

35-49 YEAR OLD


NATIONAL FILM INDUSTRIES

I) TALENT

Especially among the younger respondents, Johnny Depp and Brad Pitt were the most popular American actors, followed by Bruce Willis, Tom Hanks, Jean Reno, Keanu Reeves (more so for the under 25s) and Tom Cruise (for those aged 25 and over). This clearly demonstrates the effect of star power among Russian audiences.

Older (non-teen) respondents cited older, more ‘classical’ actors such as Robert De Niro; Al Pacino; Harrison Ford and Jack Nicholson. Individual mentions were also made of Charlie Chaplin; Humphrey Bogart; John Wayne; Sean Connery in addition to Julia Roberts; Nicole Kidman; Sharon Stone; Angelina Jolie; Antonio Banderas; Eddie Murphy; Gerard Depardieu; Meryl Streep and Susan Sarandon.

Jim Carrey proved particularly popular, across the board, when asked to focus on popular comedy actors

“Jim Carrey is a great comedy actor. His gags are a bit stupid, but he plays them very well.”

Yekaterinburg2

16-19 YEAR OLD

Individual mentions were made of George Clooney; Ben Stiller; Mel Gibson; Matt Damon; Matthew Perry; Audrey Tautou; Whoopi Goldberg and Steve Martin, among the older respondents.

The most popular Russian actors were Mashkov, Khabensky and Mironov, with single mentions also made of Kutsenko; Lachina; Baluev; Churikova; Livanov; Mikhalkov; Nagiev; Domogarov; Vdovitchenko; Bezrukov, and Shirvindt.

II) RECENTLY VIEWED MOVIES

Across all age bands, the majority of respondents had most recently seen ICE AGE 2; SILENT HILL and M:i:III.

Ice Age 2 opened earlier this month in Russia grossing over £8 MM box office (surpassing Fox Spain’s opening of Ice Age 2). Ice Age 2 is now the biggest animated opening ever in Russia. Ice Age 2 currently holds the records for the 3rd biggest opening ever in Russia as well as being the biggest non-Russian movie ever.

BASIC INSTINCT 2; THE DA VINCI CODE and V FOR VENDETTA also proved popular American fare among a couple of groups, with individual mentions also being made of SCARY MOVIE 4; THE WILD; THE BROTHERS GRIMM and BROKEBACK MOUNTAIN.

In terms of Russian product, all focus groups had seen PETER FM. Respondents in half the groups had seen PIRANHA HUNT, with almost as many having seen BOOMER 2 and 9TH COMPANY. NIGHT


WATCH; DAY WATCH and SVOLOCHI (BASTARDS) featured among a few with individuals citing MAD MONEY; ESCAPE; ZHMURKI; THE FIRST AFTER GOD and DOBRYNYA NIKITICH.

That so many had seen PETER FM and that there were comparatively few individual title mentions suggests a weight of support for local product. This is especially true given the imbalance between local and foreign films, as discussed later.

III) PREFERRED GENRES

Comedies were the preferred genre across most of the groups, with a tendency to be mentioned outside of Moscow more. Where mentioned, group members were keen to dismiss American comedies and express a dislike of “silly gags”.

“Our life is not good, but we need to laugh and to keep the spirits high.”

St. Petersburg2

20-24 YEAR OLD

“I like comedies, but not the ones with silly gags…Not the ‘Pink Panther.’ ‘Pink Panther’ is an awful one. I think it is meant for some imbeciles or something.”

Yekaterinburg2

25-34 YEAR OLD

“We come there to have a rest rather than to reflect too much….”

St. Petersburg2

25-34 YEAR OLD

“I like all genres, besides films with specific American humour.”

Yekaterinburg2

35-49 YEAR OLD

Action / adventure movies and horrors were popular among the under 35s (especially in Yekaterinburg for the former) and more sporadic mention was made of animations (in St. Petersburg); sci-fi; dramas; fantasy and romance (for the under 25s).

However, there was also the recognition that genre preferences change according to moods:

“If this is a romantic date, it’s clear that you won’t choose a fantasy film.”

St. Petersburg2

35-49 YEAR OLD

Perhaps unsurprisingly, films containing special effects were deemed to especially worthy of theatrical presentation, though fantasy movies (such as THE LORD OF THE RINGS), catastrophes (such as THE DAY AFTER TOMORROW) and historical epics/battles (such as TROY) were also felt to be the kind of films that warranted theatrical viewing.

“The idea of cinema theatre is to watch large-scale movies and melodramas might be watched with a friend at home.”

Moscow2

16-19 YEAR OLD


“It’s absolutely different to watch a film on wide screen and sitting on couch at home.”

Yekaterinburg2

16-19 YEAR OLD

COMEDIES

Despite being one of their preferred genres, the vast majority of groups claimed that the genre was on the decline, theatrically, certainly in terms of ‘decent’ comedies. American comedies were consistently resisted (see later) and older respondents harked back to comedies of old, citing such movies as OPERATION Y, IVAN VASILEVICH SWAPS PROFESSION as examples of strong Russian comedies that were rarely matched.

“In most cases people have to watch something of middle quality. I wish there were more comedies with new and better jokes.”

Yekaterinburg2

16-19 YEAR OLD

“That’s right, but we have to watch American comedies because there’s nothing else.”

Moscow2

21-24 YEAR OLD

“Western comedies are on the decline. They lost their position, I could probably remember one I liked, but the rest are just awful.”

St. Petersburg2

35-49 YEAR OLD

Further, it was felt that the quality of Russian actors did not lend itself to comedy performances.

“Well, take the old Russian comedies; they are much wiser than American ones.”

Yekaterinburg2

21-24 YEAR OLD

“I’d like to take Peter FM for example; it is a very easy film, with Russian psychology and humour.”

Yekaterinburg2

21-24 YEAR OLD

“We mostly have tragedian actors.”

Yekaterinburg2

21-24 YEAR OLD

Consequently, there was a feeling that comedies were becoming less theatrical fare. F I R S T R E S E A R C H I N T E R N A T I O N A L

36

“What they produce now under the name of comedy can’t be called comedies as these films form a separate genre up to Clara Nokivkoa’s standard.”St. Petersburg

2

35-49 YEAR OLD


Understandably, “good jokes” were felt to be a key ingredient to a successful comedy. Some group members expanded upon this further, by specifying that the jokes should be non-American, original and witty. As such, group members expressed an appetite for intellectual comedy, free of innuendo.

“This is why animated cartoons become more and more popular since they let both kids and adults laugh.”St. Petersburg

2

21-24 YEAR OLD

Strong comedy performers were also felt to be important; as already seen, Jim Carrey was perceived as an actor capable of delivering.

“Actors who perform freely and easily.”St. Petersburg

2

35-49 YEAR OLD

Finally, a good script and plot, that provides the feel-good factor, was considered important to a successful comedy.

“There should be plot development. It shouldn’t be developed out of a single funny situation.”Moscow

2

21-24 YEAR OLD

“There should be a plot rather than a mere sequence of jokes.”Moscow

2

21-24 YEAR OLD

AMERICAN COMEDIES

HITCH

With regard to American comedies, group members were asked for their response to HITCH.

The majority of feedback was positive. The appeal of Will Smith was to the fore, with an appreciation of the way he delivers the humour.

“He’s charming.”St. Petersburg

2

21-24 YEAR OLD

“He’s not a typical American and he’s got a good type.”St. Petersburg

2

21-24 YEAR OLD


There was also the feeling that HITCH was different from other recent American comedies; it has originality to it, thereby making it a unique case of an American comedy that worked.

“This is a rare example of good and kind American humour.”Yekaterinburg

2

35-49 YEAR OLD

“This is a kind film, it says people should be kind, to overcome themselves, be free and happy. I recommend this film to all people who dislike American movies.”Yekaterinburg

2

35-49 YEAR OLD

To a lesser extent, the strength of humour and the relatable plot was felt to work, ultimately creating a feel-good movie that was easy to watch

“It was funny to watch him dancing.”St. Petersburg

2

21-24 YEAR OLD

“When I was watching it all the people in the hall got up. Everyone felt like dancing and we were all very excited.”

Yekaterinburg2

25-34 YEAR OLD

Although HITCH possessed these positive qualities, there were those for whom the ‘American comedy’ label proved too repellent for them to consider giving the film a chance

“It’s just an American comedy. That’s the only reason I didn’t want to see it.”St. Petersburg

2

35-49 YEAR OLD

Overall the majority of the groups voiced that Russian storylines, production, visual effects, sound and overall quality of film making in Russia is getting better. However, some voiced that although quality is improving with the release of newer product there is still an abundance of poor product.

“(Russian) films have improved in terms of sound, special effects and cinematography, but content and story are still so-so”Yekaterinburg

2

35-49 YEAR OLD


Russian films are more relatable, often have better local humour and are more in touch with Russian way of thinking, sentiment and real life situations. It was interesting that most groups eagerly conceded that Russian actors are far superior in acting – in particular drama or serious roles compared to American actors who are mostly trained for Hollywood action films.

“Our actors are taught for playing in theatres and their (American) actors are taught to play in movies.”St. Petersburg

2

16-19 YEAR OLD

There was also sentiment expressed in Russian films carrying more historical perspective even with modern Russian films where small nuisances are created to reflect Russian historical importance of either politics or culture. Russian films seem to be perceived as expressing more positive values such as kindness, loyalty, honesty and friendship – the valuing of key relationships in ones life.

“Our films are more kind and American movies are more vulgar.”

St. Petersburg2

21-24 YEAR OLD

RUSSIAN FILMS

Russian films are being recognized for being marketed and promoted more sophisticatedly, advanced and overall more aggressively due to government and local support. Russian cinema-goers do sense a difference of the way American films are being promoted vs. local Russian films being promoted.

Most groups felt that Russian film makers and up and coming young artists lack experience, budget, technology and mentorship compared to American film makers.

“I expect good special effects from American and good actors’ performance from Russian.”Yekaterinburg

2

16-19 YEAR OLD

“It’s hard to say but these (Russian) blockbusters that are trying to reach the level of Hollywood films without their schooling … light and makeup and all this should be done in a different way…”St. Petersburg

2

25-34 YEAR OLD

Russian promotion and marketing of Russian made films has grown strong and Russian media spends on recent Russian blockbusters (NIGHTWATCH & DAYWATCH) proved to outweigh any foreign product being advertised in-market however, Russian cinema-goers believe there has been too much advertising towards these films.

“Advertisements of our films often do not meet peoples’ expectations.”Yekaterinburg

2

21-24 YEAR OLD


PERCEPTION OF AMERICAN FILMS

In general Russian cinema-goers believe that American films still hold better attributes of glamour, beauty, richer quality, sound, quality, special effects, production values and (when compared to Russian films). American films are perceived to be entertaining and professional yet American family values and morals are easily seen through with Russian audiences. Most groups felt that American films are made for American or International audiences (non-Russian specific) so they don’t hit as close to home as Russian made films.Remakes of classic films or foreign films are seemed to be a stereotypical genre of American films.The positive attributes of American films are better scripts, writing, plots, better love scenes (more sensual) However, the less positive attributes of American films are that they are very predictable and they always have a happy ending. or America always ‘wins’.

“Americans vulgarize everything with their re-makes”Yekaterinburg

2

25-34 YEAR OLD

“I think they (Americans) try to impose their culture to other countries. I do not like that.”Yekaterinburg

2

21-24 YEAR OLD

“They can have a simple plot, but they can make such a film on the basis of this plot, that it will be very thrilling. We (Russians) can’t do this yet.”Moscow

2

21-24 YEAR OLD

PR AND PROMOTIONAL TOURS IN RUSSIA

Most respondents were open to the idea of Hollywood talent coming to Russia to promote a new blockbuster film however there was pessimism expressed at Hollywood allowing talent to come to Russia or if they did they would only visit Moscow where most Russians would not have access to attend premiere events.Actors they cited as favourites were Johnny Depp, Bruce Willis, Brad Pitt, Angelina Jolie, Tom Cruise, Milla Jovonich and Arnold Schwarzenegger.

“They (American actors) may come to Moscow, but not in this city. They believe there’s no civilisation in this country beyond Moscow.”

Yekaterinburg2

16-19 YEAR OLD

DIFFERENCE BETWEEN AMERICAN AND BRITISH FILMS

British movies are perceived to be more serious and linked to stereotypically period dramas or classic films. English actors are less attractive than their American counterparts but they are perceived to be better or more serious actors. Regarding British comedies, Brit humour is perceived to be more conservative and more ironic and more subtle. British plots are more developed and intellectual based.Some films cited as being most recently popular by Russian cinema-goers are the Bridget Jones films and any film by Guy Ritchie.


“LOCK, STOCK AND TWO SMOKING BARRELS is full of excellent humour comprehensive for everybody.”St. Petersburg

2

21-24 YEAR OLD

CO-PRODUCTIONS IN RUSSIA

There was a general positive outlook on the idea of co-productions as it would mean young Russian film producers and directors would have more access to bigger budgets and special effects however there was the sentiment towards securing good Russian talent to lead or star in local Russian productions.

PIRACY - LICENSED VS. UNLICENSED FILM PRODUCTS

In the largest retail chains it is estimated that 10% of CDs and 30%-40% of DVDs are counterfeitUS producers lost an estimated $266m to piracy during 2005

www.sptimesrussia.com

Russians do not feel guilt or shame in participating in or supporting piracy as it is considered a normal part of daily life. Most focus group participants have purchased pirate copies or know people who buy them on a regular basis. Licensed DVDs are purchased mainly for home collections, favourite films or rare films not found through pirates. There is a sense that the government, police and authorities do not care or punish piracy so until it is carried through, piracy will continue to be a main part of Russian film going. There are no visible repercussions for either the pirates or consumers. Illegality of piracy was easily dismissed or not mentioned in all the groups.

Pirate DVDs (‘unlicensed’ as they are referred to in Russia) are widely available in most cities and can be purchased in subways, train stations, kiosks, airports and stores that are ‘video’ stores but in reality all product is unlicensed. Pirate DVDs will on occasion have special stamps to give an extra level of authenticity to the duplication or approval of copy. These stamps are not condoned by the distributors but give a false perception to the consumer that they are ‘licensed.’

Russian movies however are now given special release windows as producers/distributors of big budget Russian films (such as NIGHTWATCH/ DAYWATCH) made a deal with the pirates to not release their films on DVD until 2-3 weeks following theatrical release thus allowing more revenue towards the Russian box office. Unfortunately Hollywood films are not given special windows to pirates. Most films are released on the street within 2-3 days of theatrical release in Russia and/or US.

LICENSED DVDS – PROS & CONS

PROS CONS

Quality both sound & picture were cited Better availability of rare or hard to find

DVDs Better availability in-store DVD extras

Might still be a pirate copy (most sited) Farther to purchase them at licensed

stores More expensive


Money back options if DVD is not good Having a film that is dubbed

Poor customer service at store – clerks not knowledgeable about non-modern films


DOWNLOADING FILMS– PROS & CONS

PROS CONS

They are free Low quality They take a while to download and thus

risking being disconnected

BUYING UNLICENSED DVDS – PROS & CONS

PROS CONS

The Price Earlier release than licensed copies Satisfy desire to see before theatrical

release Opportunity to review film before

seeing in cinema Several movies on one disc Ability to swap films with friends Avail of otherwise unavil product (older

Russian films) To discuss with friends before seeing in

cinema An aversion to going to cinema Convenience of buying in a subway vs.

going out of the way to a store Quality can be high (in particular after

theatrical release) Available everywhere – kiosks,

subways, stores Many people can watch it instead of

purchasing one ticket to the cinema

Low quality – risk of ruining hardware (PC or DVD)

They take a while to download and thus risking being disconnected

Money goes to pirates not new film makers

Supports criminal activity Poor dubbing and translation No extras Risk of wrong disc or none at all in box

“It happens that here in Yekaterinburg we don’t have some films in cinemas but can buy them on pirate DVD.”Yekaterinburg

2

25-34 YEAR OLD

“I buy non-licensed copies of old films because there are no licensed copies at all.”Yekaterinburg 2

25-34 YEAR OLD


“They don’t care bout the quality at all. They need to see a film first of all to tell other people they have seen that already.”Yekaterinburg

2

25-34 YEAR OLD

“Quality DVDs can be watched several times, while pirated discs may crack after a couple of views.”Moscow

2

25-39 YEAR OLD

“After all our resources of the nation were stolen by private groups, piracy is such a mere trifle.”Moscow

2

35-49 YEAR OLD

Overall piracy is unlikely to be curtailed anytime soon in Russia. DVDs are not the only things to be counterfeited and in some groups piracy was viewed as helping to start develop the Russian video/DVD market by offering the product to supply the market.

PIRACY SOLUTIONS

A strong change in politics, legislation or a government crack down with punitive damages and/or personal punishment (e.g. jail) would have to be incurred to begin to make a change in piracy. It is viewed as impossible to monitor, control or difficult to uphold laws when police and other arms of law enforcement in Russia do not take notice.Most groups agreed that some kind of ‘punishment’ would have to be instilled to make a dent in the criminal behaviour around producing and selling piracy but with a very cynical viewpoint that realistically nothing will be done. (An everyday expression in Russian best expressing this sentiment is “Nevoz mozhno” which means “it is impossible”)Solutions offered to help curb piracy were the following:

equate prices of licensed to unlicensed DVD product (make it unprofitable for pirates) promote the quality factor giveaway gifts as a promotion (t-shirt, hat, sticker, poster, balloon, collectors item) release licensed films sooner shut down the stores that sell pirate copies before hitting street vendors

Overall it is perceived to be very difficult to cease in light of current politics, corruption, prices (economy of scale in regards to piracy) and the wide accessibility of piracy. Small steps can be taken but it is perceived to take a long time for serious change to take affect.

“Everyone knows that no one will be punished for this, because if there were punishment for buying a pirated film, 95 percent of people would be in jail.”St. Petersburg

2

25-34 YEAR OLD

Interesting note: During Soviet time administrative law allowed the militia (police) to place under arrest for a minimum of 15 days anyone who behaved really badly but did not commit any serious crime (e.g. street fighting especially when drunk, pedalling goods, domestic violence, etc.). A couple of group participants (35-49 YEAR OLDS) referenced this old Soviet law that does not exist anymore to assist in curbing piracy.

“The consumers as well as the sellers would be sentenced to 15-day imprisonment as it was before…”St. Petersburg

2

25-34 YEAR OLD


NEW MEDIA

Fixed telephone lines in Russia:

Russia – 30%

Moscow – 60%

Mobile communication:

Russia – 85%

Moscow – 134%

Pay-TV:

Russia – 5-9%

Moscow – about 10% (but a lot of this business is grey, so if fact the real figure could be two-three times of that)

Top 3 mobile companies in Russia (providers) MTS Bee Line Magafon

New media devices are one of the fastest moving commodities in Russia. Most people turn off their phone when going into cinemas or turn it on to “vibro-ring” (silent) so as not to disturb other cinema-goers. (16-19 yr olds) Most actively download ringtones, games and books.

Mobiles are a part of every day Russian life and most people own a phone for more than just communication. Most popular applications were:

Radio MP3 player SMS (text messaging) MMS (photo messaging) Bluetooth downloading books games ringtones (both receiving and forwarding on to friends) to learn something new internet access GRPS WAP

“I watch and shoot short videos (on my phone).”Moscow

2

16-19 YEAR OLD


The Internet is widely used where available but cost is still a prohibitor or limiting factor to access and amount of usage. Most group participants use the internet for personal use as well as work and mainly use search engines to search for film information. Often wap or GRPS connections are preferred on mobile due to pricing structure of some mobile service plans. There is strong interest from the younger groups to download “free” film content such as film trailers through mobile applications however hesitation through Bluetooth application as mobile viruses are now very common in Russia. The feeling is that trailers are being downloaded for free on the internet so there is no need to pay for trailers on mobile.

“It’s cheaper (mobile internet access) than some other operators offer.”Yekaterinburg

2

25-34 YEAR OLD

“I use the internet for education, communication and information.”

Yekaterinburg2

21-24 YEAR OLD

MARKETING AND 3RD PARTY PROMOTIONS

There was little understanding by the group participants about exactly what a third party promotion was. However, when prompted, most people did understand the relationship that certain event films have with key brand partners. The marketing of film products (outside licensing) is becoming more prevalent and the norm in Russia with key category products increasing their ATL & BTL spends towards the cinema-going audience.

Several good examples were cited as strong or memorable promotions, such as

Nestle (CPW) and the Chronicles of Narnia Coca Cola and Harry Potter Pepsi and Star Wars Chupa Chups and Star Wars McDonalds and the Chronicles of Narnia Licensed t-shirts and children products associated with Spider Man 2 Nescafe and Nightwatch Nokia and Samsung phones product placed and promoted with Matrix franchise Mercedes and Jurassic Park

There is an understanding of product placement in both American and Russian film product with Russian film product taking on more and more product placements with larger budget films. Our participants felt that product placement had more of a media impact on the connection between the brand and the film and outdoor advertising (3rd party ATL support) did little impact in purchasing behaviour toward that brand or product being co-promoted. However, everyone had strong recall (in particular Moscow groups) in regards to film awareness in particular citing Da Vinci Code / Sony Ericsson as a strong example of a film being promoted with a brand.

“The film is primary and advertising is secondary.”Moscow 2

21-24 YEAR OLD


“Matrix. I can remember they showed a Nokia. Many people bought such phone after the film.”

Yekaterinburg2

25-34 YEAR OLD

When prompted about what products would be good and acceptable tie-ins to big event films the groups responded favourably towards the following:

Beer Cigarettes Snickers & mars Chips (crisps) McDonalds Coke or Pepsi (soft drinks) Energy drinks Ritter sport chocolate Kinder surprise Cheetos Chewing gum Candies in general Water Groceries in general Yogurts (Danone) Frozen vegetables Juice

“(Cigarettes) almost everyone smokes. The pack surface allows it and cigarette packs are always floating before the eyes.”Moscow

2

21-24 YEAR OLD

“Preferably on something connected with the cinema.”Moscow

2

21-24 YEAR OLD

“One can judge about a film by the sponsors of this movie.”

Yekaterinburg2

35-49 YEAR OLD


ACTIONABLE POINTS

GENERAL CINEMA EXPERIENCE Create more café environments within cinema Create seasonal 3rd party promotions or events with concessions – e.g. coffee during

winter / beer during summer Create mobile experiences or engagement (WiFi, Bluetooth – no cost to consumer) Address seasonal concessions for Russian cinema-goers

CINEMA CONCESSIONS Provide a wider selection of snacks and drinks Provide a choice (possibly include healthier snacks where possible) Encourage cinema-goers to be mindful and respectful of other cinema-goers when

eating snacks

COST OF GOING TO CINEMA Provide incentives for students during school breaks

ADVERTISTING & MEDIA EXPOSURE Create longer TV spots where possible Lessen media spread to be within a 2-4 week period Focus on free press (Metro) and free transport publications Focus less on paid printed press Radio has impact within Moscow but less in outer regions Empower local office /media agency to create more exclusive deals with local search

engines and websites Decline on global deals with Yahoo, MSN, etc. Provide more exclusive (local when possible) material for online

FILM TASTES Thriller, action, fantasy, epic and big event films deliver Produce more films with Russian “soul” whether they be Russian produced or

American/Russian produced

AMERICAN FILMS Less “banal” US comedies (American Pie, John Tucker Must Die, etc.) More US comedies with heart More US comedies /films with favourite actors (Jim Carrey, Bruce Willis, Will Smith)

PROMOTING AMERICAN & ENGLISH FILMS IN RUSSIA Do pay attention to localisation from dubbing talent to all printed materials (including

talent names)

RUSSIAN FILMS Market Russian talent better by promoting their strengths in and outside of Russia Lessen advertising and media windows (less than 4 weeks)


HOME ENTERTAINMENT – DVD PURCHASING (LICENSED) Promote quality, sound and bonus features more Offer 3rd party promotional incentives for purchase Offer free promotional goods with purchase Improve selection of back catalogue (in particular Russian films)

PIRACY Equate licensed DVDs to unlicensed DVDs Offer more content, free promotional goods with purchase of licensed DVDs Release licensed DVDs sooner

NEW MEDIA & TECHNOLOGY (MOBILE, INTERNET) Create more local 3rd party promotions with mobile networks and mobile handsets Provide free content via mobile to promote films Focus on localisation rather than global or pan-European deals that could possibly

hinder local brand empowerment and spend

PROMOTIONS & MARKETING Empower local office to create 3-5 key 3rd party promotions or media promotions

using local brands or services Offer exclusive or specially created Russian language content for media and 3rd party

promotional opportunities Focus on seasonal brands such as drinks, foods, clothing and outdoor activities where

appropriate


AppendixRUSSIAN FILM EDUCATION

TV and Cinema Specialized Institutions of Higher Education1. The Boris Schukin Theatre Institute 2. The Mikhail Schepkin Higher Theatre School 3. The Studio School affiliated with the Anton Chekhov Moscow Art Academic 4. The Studio School of Moscow Art Academic Theatre affiliate in Yakutsk 5. The Russian Drama School Theatre Institute 6. St. Petersburg State Theatre Arts Academy 7. The Ekaterinburg State Theatre Institute 8. The Yaroslavl State Theatre Institute 9. The Russian Academy of Theatre Arts 10. The Sergey Gherasimov Russian State Institute of Cinematography

Acting Arts Faculties Altai State Institute of Arts and Culture The Far Eastern State Arts Institute The Voronezh State Arts Academy The Krasnodar State Academy of Culture and Arts The Orlov State Institute of Arts The Perm State Institute of Arts and Culture The affiliate of St.Petersburg State Theatre Arts Academy in The Samara State Academy of Culture and Arts The Khabarovsk State Institute of Arts and Culture The Chelyabinsk State Institute of Arts and Culture The faculty of Eastern Siberian State Academy of Culture and Arts in Chita

Concomitant specialties1. The faculty of the St. Petersburg Institute of Cinema and Television in Moscow 2. The St. Petersburg Institute of Cinema and Television 3. The “Ostankino” Moscow Institute of Television and Radio Broadcasting 4. The Mikhail Litovchin Humanitarian Institute of Television and Radio Broadcasting


Documents

SLACKERS - WikiLeaks N T... · Web viewThe marketing of film products (outside licensing) is becoming more prevalent and the norm in Russia with key category products increasing their