Russia is seeing a loss of all forms of entertainment and social media as companies withdraw following their invasion of Ukraine.
Film studios, social media and streaming services are all taking aim at the Russian economy as a means to denounce the military assault on Ukraine and the actions of Russian President Vladimir Putin.
Among the first big companies to penalize the Russian entertainment circuit was the Walt Disney Company which announced that its upcoming movie slate will not screen in Russian theatres.
“Given the unprovoked invasion of Ukraine and the tragic humanitarian crisis, we are pausing the release of theatrical films in Russia, including the upcoming Turning Red from Pixar,” a statement from the Walt Disney Company said.
“We will make future business decisions based on the evolving situation. In the meantime, given the scale of the emerging refugee crisis, we are working with our NGO partners to provide urgent aid and other humanitarian assistance to refugees,” the company said.
Disney’s cancellations also extend to the May 5 release of Doctor Strange in the Multiverse of Madness and the June 16 release of PIXAR’s Lightyear.
While Disney is looking ahead, Warner Bros. is focusing on the now and announced that its new superhero film, The Batman, will also not see a theatrical release. A WarnerMedia spokesperson said that it “will continue to monitor the situation as it evolves.”
To date, Batman movies have grossed over US$5 billion at the global box office.
Sony Pictures have similarly announced a delayed release to its new film Morbius starring Jared Leto and set in their Spider-Man villain universe alongside Tom Hardy’s Venom movies.
“The loss of Hollywood blockbusters will likely significantly reduce the impact of the Russian box office and probably reduce the number of tickets sold,” Jessica Bay, a postdoctoral candidate in communication and cultural studies at York University, told Humber News.
Bay said that once the current blockbusters Uncharted and Death on the Nile run their course, it will leave a large absence at the Russian box office.
“The loss of these films could open up a space for more Russian (possibly propaganda) films to get screen time and filmgoing could be then marketed as patriotic which could help the domestic market,” she said.
But, she added, “this depends on what is complete or coming up that meets the new Russian censorship laws.”
According to the website Statista, with 90 million cinema tickets sold in 2020, Russia is the fourth-largest film market in the world.
Marvin G. Ryder, an associate professor of marketing at McMaster University, said that the films being pulled won’t affect the studios’ earnings all that much but will put pressure on the people of Russia.
“For people like Sony and Disney and Warner Brothers, the amount of money they made with these films in Russia wasn’t all that much in the first place,” Ryder told Humber News.
“In terms of global distribution, the amount of money they get out of the rest of Europe is far more important than what they would get out of Russia. Financially, it’s not going to really affect any of those companies all that much,” he said.
“What it does mean however, is that the Russian people don’t get to see these films and don’t get to experience these things. And this is why they’re doing this. They’re hoping that this will upset the Russian people who were looking forward to seeing The Batman or seeing whatever the next Marvel adventure is coming out, and that they’re going to be unhappy that the world is isolating them,” Ryder said.
On top of the withdrawal of upcoming blockbuster films, all of which could impact the Russian theatrical circuit, social media giant TikTok announced it was suspending livestreaming and new content creation in Russia.
“TikTok is an outlet for creativity and entertainment that can provide a source of relief and human connection during a time of war when people are facing immense tragedy and isolation,” TikTok said in a release.
TikTok reaffirmed that its priority remains the safety of employees and users and that the suspension of service was in reaction to Russia’s “fake news” law, during which they will be reviewing the safety implications of the law.
“We will continue to evaluate the evolving circumstances in Russia to determine when we might fully resume our services with safety as our top priority,” the statement said.
Under Russia’s fake news law, anyone who is found guilty of passing false information is subject to up to 15 years in prison and a fine of 1.5 million Rubles which is equivalent to CAD$12,680.
Beyond social media are the tech companies who are leaving Russia’s business front as well. Apple and Microsoft have been among the two tech giants to abandon the country, with Apple reportedly losing around USD$3 million per day, news sites were reporting.
The company has halted the sale of iPhones and other Mac products in the country alongside limiting Apple Pay services.
Netflix on Sunday also announced it would be pulling out of Russia, despite only hosting one million subscribers of its 222 million subscribers globally.
It’s currently expected that more companies will continue to pull their business from Russia as a means to penalize the country for the unjustified attack.
VISA, Mastercard and American Express have also removed their services from the country.