Known as Megogo Distribution, it is co-owned by the shareholders as Megogo, along with Vladimir Artemenko, also the owner of TopFilm Distribution.
Commenting on the development, Vladimir Borovik, CEO of Megogo, said: “(The) film distributing business is a fairly expected move for us, the largest online-cinema, as we’ve been in this market segment up to the hub and Megogo is a powerful brand with great financial figures in cinema business and this would be amiss not to extend the sphere of influence onto the traditional cinema business”.
He added: “As we go forward, maybe Megogo Distribution will acquire all types of rights. In case of sublicensing VOD rights Megogo Distribution is to be governed only by financial feasibility. Megogo Distribution is a film distributing company, thus, various types of rights are to be defined strictly according to the contracts with rights holders, and, in the first instance, without loss to film distribution. Moreover, (the) huge experience of Megogo in online-marketing is to contribute to cinema release promotion”.
Megogo made its debut in November 2011, initially as a legal VOD service available in the15 countries of the former Soviet Union.
It has been offered worldwide since the end of 2012.