How this Executive Director set out to build a tech startup and ended up leading a major international white label business and online cinema with almost $7M in revenue Two years ago, the innovative white-label interactive TV and Video on Demand (VoD) solution, Platform24, entered international markets, securing contracts in Kazakhstan, Azerbaijan, Uzbekistan, and Kyrgyzstan.

Two years ago, the innovative white-label interactive TV and Video on Demand (VoD) solution, Platform24, entered international markets, securing contracts in Kazakhstan, Azerbaijan, Uzbekistan, and Kyrgyzstan. This success can be attributed to the vision and dedication of Platform24's Executive Director, Dmitry Orekhov, who has been leading business development and content acquisition since 2016.

Big start

Dmitry Orekhov's first significant professional experience was with Dune HD, a company with roots in both Russia and Ukraine that specializes in high-quality digital media players. Between 2010 and 2011, Dune HD products received several accolades, including the ConnectedWorld.TV award for "Best Communication TV Device of the Year," and successfully established a strong international presence. Orekhov, who was in charge of sales, quickly advanced to become the head of the Russian part of the business.

Following his tenure at Dune HD, Dmitry Orekhov spent two years experimenting with a project not related to the high-tech sector. However, he soon realized his passion afterall lay in the tech sector. At the same time, he recognized the immense potential of interactive television and OTT streaming — delivering digital content (movies, series, music) over the internet, rather than traditional broadcasting or cable TV. This innovative model is opposed to the one with operators providing services to their subscribers exclusively while managing billing internally.

At that time, Orekhov had developed considerable expertise in the field. Dune HD provided not only consumer products but also commercial solutions for operators. For instance, MegaFon, a leader in the Russian telecom market, built its own OTT (streaming television) product with the technological support of Dune HD.

Later, an acquaintance from a national media group recognized Orekhov's expertise and asked him to prepare a presentation on OTT. This moment paved the way for future opportunities.

New challenges

Not long after, Orekhov discovered that two entrepreneurs were developing a service for internet providers and were looking to build a team. One of the founders owned the backbone operator iHome, which provided communication channels to internet providers before it was eventually sold to R-Telecom, another Russian internet provider. Therefore, both entrepreneurs had a solid understanding of the industry and its challenges. They recognized that Russia has over 2,000 providers eager to offer TV services to their customers. However, viable solutions were limited; they either had to choose expensive products from major integrators or rely on free products that sacrificed functionality.

The founders aimed to create an affordable, independent technology with a low entry barrier for internet providers worldwide. This would allow them to integrate and sell TV services under the 24TV brand. Dmitry Orekhov presented an OTT concept he had previously prepared for a national media group. Their visions aligned perfectly, and in 2016, Orekhov was appointed Executive Director of 24TV. He was tasked with bringing the existing prototype to market.

Under Orekhov's leadership, the team rapidly gained traction. 24TV focused on technological development and established a strong presence in the market. Operating under a B2B2C model, 24TV partnered with telecom operators to include its services in their packages for users. These providers collected payments through their billing systems and then compensated 24TV after deducting their commission.

After the successful launch of the B2B2C model, 24TV's next step was obtaining OTT (over-the-top television) rights and entering the B2C market. Previously, the B2B2C model operated under agreements with rights holders similar to IPTV (Internet protocol television) and cable television. With OTT rights, a range of innovative interactive TV features, and technical expertise, Orekhov attracted the interest of several TV manufacturers, including Xiaomi, which was preparing to launch Mi TV sales in Russia.

24TV became one of the first companies to integrate into the PatchWall interface on Mi TV (Xiaomi's brand). Such a partnership and unique user experience allowed the company to gain a significant share of the Russian streaming services market without substantial investments.

Aggregating content from various online cinemas and hundreds of TV channels into one product was an additional advantage. This way the company provided users with convenient access to an extensive library of national and international content through individual subscriptions, as well as super bundles that include all libraries in one subscription. To compensate rights holders, 24TV offers either a share of the subscription cost or a fixed cost per subscriber (CPS).

White label

Initially, the 24TV product primarily served small operators, as larger companies often had existing agreements with TV channels. These larger companies typically offered only basic cable TV or IPTV solutions, which provided live TV programming or on-demand video content via IP networks, but lacked advanced features. To fill this gap, Dmitry Orekhov launched a new business initiative aimed at providing large operators with a white-label platform. This platform enabled them to create their own customized products within a few months and at costs starting from several thousand dollars per month.

In the last two years, there was a significant growth in online video services, coinciding with a shift away from traditional television. TV channels experienced a decline in advertising revenue as large audiences moved to online streaming platforms. According to TMT Consulting, the total audience for OTT (Over-The-Top) video services grew by 8%, reaching 68 million by the end of 2021. In response to this trend, Russian lawmakers proposed a requirement for online streaming services to broadcast 20 national television channels.

During this period, major services like Start, Premier, and Okko primarily focused on video-on-demand (VOD) services. They needed to implement new functionality quickly, and Start, one of 24TV's clients, emerged as a pioneer in this effort. The company partnered with 24TV to utilize its API, which streamlined the integration of TV broadcasting capabilities into external services. As a result, they successfully provided access to TV channels within just 2 to 3 months.

Currently, the white-label business demonstrates the most impressive revenue growth. Dmitry Orekhov notes that 24TV has launched a platform version that competes with global streaming services in terms of technology and user interface, significantly enhancing the company's competitive edge in tenders.

Outpacing rivals

Today, in Russia, 24TV's main competitor is the Smotreshka (known also as a Lifestream), which was the first to enter the market in 2012 and implemented an aggressive marketing strategy from the beginning. However, 24TV excelled technologically by prioritizing innovation and research and development (R&D) over marketing, as noted by Dmitry Orekhov.

A significant advantage of 24TV was the introduction of a cataloged archive of TV programs in 2016. This made the company the first in the CIS to offer a new model of consuming TV content. Previously, users had to navigate through the EPG (Electronic Program Guide), sifting through programs from hundreds of TV channels to find, for example, a family comedy for the weekend or a thriller to watch with friends. The 24TV team successfully combined all catch-up content into a single catalog structured by genres, which dramatically increased the value of subscribing to a TV package. This required considerable work with rights holders, but it was worth it, and now the fruits of this labor are used by many products in the industry.

As the number of online cinemas grew and integration with them increased, a new problem emerged—the search for that same family comedy required sifting through each library separately. This became a complex technical task, and 24TV was the first in 2022 to launch a new version of the platform in which content from all libraries of integrated streaming services became available to users in personalized collections, recommendations, interactive content showcases, and so on. Additional advantages include broadcasting the original, non-transcoded stream without delays, which is extremely important for sports events and live broadcasts, personalization capabilities, and a special kids' profile.

International expansion

In 2022, Dmitry Orekhov began focusing on international expansion. For this purpose, the company launched a new separated organization Platform24 and quickly became a resident of Uzbekistan's IT park, which provides favorable business conditions and tax benefits. Within two years, the new project has formed partnerships with Beeline Uzbekistan, one of the largest telecom providers in the country, and the financial super-app Click, which boasts over 16 million users, to launch the Click TV service. This service combines movies, series, and shows from the TV archive.

In Kazakhstan, Platform24 has already partnered with Alma+, the country's second-largest telecom operator, to develop the Alma TV internet television platform. They successfully migrated from Lifestream to the streaming platform Platform24 and are now actively utilizing its capabilities. They are also developing their own features based on it, such as karaoke. Local Birge.tv and Q-Film online cinemas are also built on the Platform24' product. In addition, the company collaborates with clients in Kyrgyzstan and Azerbaijan. Orekhov notes that the Azerbaijani market is particularly intriguing because it lacks large local online cinemas and streaming services from major operators.

The business plans to continue its international development, which currently contributes about 10% of its revenue. According to Orekhov, the Platform24 is on track to achieve approximately $6M) in revenue in the Russian market in 2024, and an additional $1M from international markets, representing a year-over-year growth of more than 70%.

About the company:

Platform24 is a cutting-edge white-label interactive television and VoD platform that integrates leading CIS online cinemas, including Amediateka, Premier, START, more.tv, Megogo, IVI, Nonfiction, QFilm, Birge.TV, and others. This innovative solution allows users with a single subscription to access a vast array of partner content, seamlessly enjoying shows and movies through one app. The company operates under B2B2C and B2B models, offering its technological platform to telecom providers and media companies. Since its inception, the 24TV user base has surpassed 15 million. Currently, around 500 internet providers are utilizing its solutions. Its white-label platform is used by 31 companies from 8 countries.