Rutube fails even without competition and cuts staff
The video service rutube, which the russian authorities tried to position as a replacement for YouTube blocked in russia, is facing mass layoffs.
Employees were told that the service in its current form will not work, and the company has no funds to maintain its staff. The owner of the service – “gazprom-media” holding – confirmed plans for its reorganization.
▫️ Despite YouTube being blocked in russia and rutube effectively having no competitors, the service generates no revenue. This again proves that forced “import substitution” under isolation does not work.
▫️ For “gazprom”, maintaining unprofitable media projects is becoming an increasingly difficult task. Due to sanctions and the sharp decline in gas exports, the company has lost the lion’s share of its profits.
War and sanctions have destroyed the financial cushion that allowed the kremlin to sustain unprofitable media services for its domestic audience.
