Today, the market features several IPTV and OTT platforms, including mobile operators that have launched VOD platforms. However, given that pirate resources prevent the growth of subscriber bases, many players are still unable to allocate budgets for content acquisition, dubbing, and production.

Active platforms in the market include CityNet, Kontakt TV, Metaflix, KinOn, Kinobox, and TvSeans. The leaders in local content production are Metaflix and Kinobox. Ecosystem platforms CityNet and KinOn, alongside TV broadcasting, offer fiber-optic and 5G internet connections, as well as bonus points from partner mobile operators.

Subscriptions to all major foreign online cinemas and OTT platforms are also available in Azerbaijan, with Netflix, Megogo, Kinopoisk, and Setanta leading. However, note that subscribing to foreign platforms (not licensed to broadcast in Azerbaijan) incurs an additional VAT on the subscription fee.

To date, about 9 million manats have been invested in creating local OTT and VOD platforms, but content production requires annual reinvestment of at least 3 million manats (for acquisition, dubbing, and production of local film and series content). A platform needs about 50,000 subscribers to sustain itself and achieve payback. The subscription model remains the primary revenue driver, with the average subscription price in the industry at 5 manats. Monetization from advertising and content distribution to foreign markets can cover about 20% of total costs.

Online cinemas need to develop joint projects with local production studios and collaborate with TV channels. The co-production business model becomes a tool for cost optimization, allowing for investment distribution, risk reduction, and the pooling of marketing and creative resources.

The number of active subscribers to streaming platforms, IPTV, and OTT services in Azerbaijan has exceeded 350,000, of which 220,000 use various pirate resources to watch sports broadcasts and audiovisual content. Given that the official Pay TV market does not exceed 130,000 subscribers, the number of users of pirate internet platforms and sites exceeds the official number of subscribers, including those to local cable TV services.

Given the growing penetration of high-speed internet in the country, urgent protective measures against pirate broadcasters are needed to preserve and develop the PAY TV and advertising market. Eliminating the pirate TV broadcasting market will expand the legal media consumption market and attract investment for platform development. Cleaning the market of illegal services will inevitably convert pirate media consumption into legal consumption.

Considering that by the end of 2025, legal PAY TV operators earned about 7.8 million manats, eliminating pirates could boost legal media consumption to 15 million manats annually. Audiovisual piracy causes over 7.2 million manats in annual losses to broadcasters' economies. This figure does not include losses from users of pirate online cinemas and sites, which damage film distribution and official online cinemas, as well as lost tax revenue for the state.

The structure of pirate content consumption in Azerbaijan: films - 33%, series - 48%, TV programs - 5%, sports broadcasts - 14%. Pirate sites host advertising (mainly for bookmakers banned in Azerbaijan) and unlicensed services, exposing users to cyber threats ranging from malware to data theft.

In 2027, launches of BVOD platforms by media holdings İTV and Xezer TV are planned. Unlike operator platforms, media holdings produce or commission film, series, and TV program production themselves, giving them an advantage.

TV channels have an advantage in obtaining state grants for content production from various agencies and industry regulators (Media Development Agency of Azerbaijan (MEDİA), Ministry of Culture (State Film Fund, ARKA, Creative Industry Center, Azerbaijanfilm), Ministry of Youth and Sports).

Content consumption from online platforms exceeds 3 hours per day, competing with viewing of national TV channels. In addition to subscription revenue, launches of AVOD and FAST TV channels monetizing advertising revenue are expected. Market participants associate positive growth dynamics with an increase in active users.

Despite the exit of partner projects with Russian platforms (ivi, Megogo), the Kinopoisk project is expected to enter the market as part of ecosystem subscriptions on Yandex+ (Yango, Yandex Music, Kinopoisk). In the absence of eco-platforms and partner subscriptions in the market, Kinopoisk has a chance to lead in the region. A limitation is the language barrier: Russian-speaking population accounts for only 18% of the country's total population.

Discussions are underway on a project to create an OTT platform based on the AZCON holding (which includes Azercell, Aztelekom, TeleRadio, and Azerkosmos). It is proposed to combine TV broadcasting services from the Azerkosmos satellite, the Kinon platform, and terrestrial digital broadcasting by TeleRadio with centralized authorized broadcasting of national TV channels from a single digital platform.

The system would give rights holders and broadcasters new monetization opportunities with advertising during streaming (pre-roll, placing ads before viewing, or replacing some ad blocks).

The OTT project acts as a unified player for streaming TV channels, allowing broadcasters to control their broadcast, analyze audiences, and manage ad insertions, creating new opportunities for small and medium-sized businesses.

The main strategic objectives addressed by broadcasting TV channels via an OTT platform: