Online Strategies of the Largest Broadcasters in the Times of Uncertainty. The Case of Russia

ABSTRACT The digital transformation of traditional broadcasting is of particular interest to media scholars worldwide. In Russia, terrestrial broadcasting that has in recent decades dominated the national media system with large audiences and attracting the major advertisers has been affected by digitalization of the national media industry, the rapid growth of the internet and the shift of young audiences to social media. This has resulted in new tensions and growing uncertainties in the Russian broadcast market forcing broadcasters to reshape traditional strategies under pressures of digitalization. The study analyses visions of online strategies for Russian broadcasting companies in the context of ongoing industrial changes. Based on the data from semi-structured interviews with senior managers of the leading Russian broadcasting companies, who discussed the digital practices of their companies. The authors argue that Russia’s audiovisual media companies are currently going through the initial stage of digital transformation. The transformation process has slowed, because media managers have to make decisions under extremely high market uncertainty resulting from changes in the advertising market and in media regulation. Also, broadcasters continue to view the state as an important source of financial support, especially during the digital switchover in 2009–2019. The high level of the state control in the Russian media business has resulted in the high market concentration rate and deceleration of the technological development thus threatening traditional business model, especially in the television market. Yet, digital products created and disseminated by Russian broadcasters on the digital platforms are still perceived by television managers as supplements to traditional broadcasting. The same is true of the internal working processes in broadcasting companies in which digital departments often remain small and are not fully integrated in the corporate managerial system. Moreover direct financial effects of the digitalization are estimated as low. But many broadcast managers consider digitalization and creation of new business models are inevitable, though companies have still not elaborated holistic online strategies and continue to develop online activities under their own momentum.