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Russia's cinemas exploit loophole to screen Hollywood films without licenses

A $83 million loophole kept Hollywood blockbusters in Russian cinemas. Now, Putin's crackdown threatens to shut it down for good.

The image shows a Russian propaganda poster for the Soviet Union featuring a cigarette and a box of...
The image shows a Russian propaganda poster for the Soviet Union featuring a cigarette and a box of cigarettes. The poster has text written on it, likely describing the contents of the box and the cigarette.

Russia's cinemas exploit loophole to screen Hollywood films without licenses

Russian cinemas have been showing Hollywood films without proper licensing for the past four years. The practice, known as pre-show service, has brought in millions while skirting legal restrictions. Now, authorities are taking steps to clamp down on foreign content in theatres. The scheme began in the summer of 2022, shortly after five major Hollywood studios left the Russian market. Without official distribution rights, cinemas started screening films under the guise of pre-show service—a legal loophole that avoided the need for distribution certificates. Since then, these unauthorised screenings have generated around 1.9 billion rubles ($21 million) each year, making up 4.5% of Russia’s total box office revenue.

Between March 2022 and March 2026, the recorded earnings from these films reached 7.6 billion rubles ($83 million). Hollywood productions now account for over 25% of box office takings for cinemas involved in the scheme. Yet, despite its profitability, the practice remains in a legal grey area. Regulators have struggled to challenge it because the films are technically not classified as full screenings. Most major Russian cinema chains have taken part, except for Cinema Park, Formula Kino, and Karo. The move came as revenue for the largest chains collapsed by nearly half in 2022, with losses running into billions of rubles. Meanwhile, a new law allows authorities to block films that *discredit or reject traditional Russian spiritual and moral values*, tightening control over foreign content. President Vladimir Putin has since ordered the removal of *completely stupid and unnecessary* foreign films from theatres, signalling a stricter approach to what appears on Russian screens.

The pre-show service scheme has kept Hollywood films in Russian cinemas despite the lack of official licensing. With new laws and presidential orders targeting foreign content, the industry now faces tighter restrictions. The financial gains from unauthorised screenings may soon come to an end as regulators move to enforce stricter controls.

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