Russian Broadcasters Form New Film Company

AP Photo/Alexander Zemlianichenko, file
Yuri Kovalchuk

CTC Media, NMG and VGTRK expect the new company to become a leading content producer within three to five years

Three major Russian broadcasters, including CTC Media and the National Media Group (NMG), are joining forces to form a film and TV series production company.

CTC, NMG — controlled by Yuri Kovalchuk, an entrepreneur close to President Vladimir Putin, and affected by the Western sanctions against Russia — and the state-control broadcaster VGTRK are forming a company that they expect will make Russia's top five film companies within the next three to five years, reads a statement on NMG's web site.

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"Over the last few years, there have been major changes in the film industry, and while it is developing rapidly, content remains its main driving force," Vyacheslav Murugov, general producer of CTC Media and the new company's general director, said in the statement. "The new company's goal is to become a leading Russian producer of [film and TV] content."

Murugov, who also is general director of CTC Media's flagship channel, CTC, has produced several of the network's successful television series and shows.

The three broadcasters will have an equal 30 percent shares in the new company, while the remaining 10 percent will be distributed among the management.

In accordance with the statement, the new company will be looking to acquire smaller production companies that have been successful in collaborating with local networks.