Company:VKontakte

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VKontakte
VK.com-logo.svg
Screenshot
VK home page screenshot.png
Type of site
Social networking service
Available in80+ languages
OwnerVkontakte Ltd
Created byPavel Durov
Revenue42,751  million (2016)[1]
ParentMail.Ru Group
Websitevk.com
Alexa rankDecrease 17 ((As of July 2018))[2]
RegistrationRequired
Users500,000,000+ as of August 2018[3]
LaunchedOctober 10, 2006; 17 years ago (2006-10-10)
Current statusActive

VK (short for its original name VKontakte; Russian: ВКонта́кте, meaning InContact) is a Russian online social media and social networking service. It is available in several languages but it is especially used by Russian-speakers. VK allows users to message each other publicly or privately, to create groups, public pages and events, share and tag images, audio and video, and to play browser-based games.[4] It is based in Saint Petersburg, Russia.

(As of August 2018), VK had at least 500 million accounts.[5] VK is ranked 17 (as of August 2018)[6] in Alexa's global Top 500 sites. It is the most popular website in Russia .[7] According to SimilarWeb, VK is the 9th most visited website in the world.[8] As of March 2018, VK also ranked as the most popular social networking website in Belarus and Kazakhstan in addition to Russia .[9]

History

Number of Registered users on VKontakte between 2006 and 2012
Pavel Durov, the founder of VKontakte, on his 26th birthday, 10 October 2010.

2006–2008: Launch and rapid growth

VKontakte was incorporated on 19 January 2007 as a Russian limited liability company. Founder Pavel Durov launched VKontakte for beta testing in September 2006, shortly after his graduation from St Petersburg State University. The following month, the domain name vkontakte.ru was registered. User registration was initially limited to within university circles exclusively by invitation, but the site still grew quickly.

In February 2007 the site reached a user base of over 100,000 and was recognized as the second largest company in Russia's nascent social network market. In the same month, the site was subjected to a severe DDoS attack, which briefly put it offline. The user base reached 1 million in July 2007, and 10 million in April 2008. In December 2008 VK overtook rival Odnoklassniki as Russia's most popular social networking service.[10]

2009–2012: Public access

Founder and CEO Pavel Durov owned 20% of shares (although he had majority voting power through proxy votes), and a trio of Russian-Israeli investors, Vyacheslav Mirilashvili (Mikhael Mirilashvili's son) and Lev Leviev,[11] owned 60%, 10%, and 10% respectively.[12] The original founders then sold a stake of 39.99% to Mail.ru Group (formerly Digital Sky Technologies).[13][14]

On 29 May 2012, Mail.ru Group announced that it has decided to yield control of the company to Durov by offering him the voting rights on its shares. Combined with Durov's personal 12% stake, this gave him 52% of the votes.[15][16]

2013–present: Share changes, IPO cancellation, Mail.ru Group ownership

In April 2013, the Mirilashvili family sold its 40% share in VK to United Capital Partners for $1.12 billion,[17][18] while Lev Leviev sold his 8% share in the same deal, giving United Capital Partners 48% ownership. In January 2014, VK's founder Pavel Durov sold his 12% stake in the company to Ivan Tavrin, the CEO of MegaFon, which is controlled by Alisher Usmanov. Following the deal, Usmanov and his allies controlled around 52% of the company.[19] Shortly thereafter, the CEO of Megafon, sold his 12% stake to Mail.ru, thus allowing mail.ru to consolidate its controlling stake of 52% in VK.[20]

On 1 April 2014, Durov submitted his resignation to the board; at first, due to the fact the company confirmed he had resigned, it was believed to be related to the Ukrainian crisis which began in February of the same year.[21] However, Durov himself claimed it was an April Fool's Joke on 3 April 2014.[22] On 21 April 2014, Durov was dismissed as CEO, claiming he failed to withdraw his letter of resignation a month earlier.[23][24] Durov then claimed the company had been effectively taken over by Vladimir Putin's political faction,[23][25] suggesting his dismissal was the result of both his refusal to hand over personal details of users to federal law enforcement and his refusal to hand over the personal details of people who were members of a VKontakte group dedicated to the Euromaidan protest movement.[23][25] Durov then left Russia and stated that he had "no plans to go back"[25] and that "the country is incompatible with Internet business at the moment".[24]

On 16 September 2014, the Mail.ru group bought the remaining 48% stake of VK from United Capital Partners (UCP)[26] for $1.5 billion,[26] thus becoming the sole proprietor of the social network.[27]

In May 2017, Ukrainian President Petro Poroshenko signed a decree to impose a ban on Mail.ru and its widely used social networks including VKontakte and Odnoklassniki as part of its continued sanctions on Russia for its annexation of Crimea and involvement in the War in Donbass.[28][29][30] Reporters Without Borders condemned the ban, calling it a "disproportionate measure that seriously undermines the Ukrainian people’s right to information and freedom of expression."[31] VK closed its office in Ukraine's capital Kiev mid-June 2017.[32]

Website

VK logo before 2015

As with most social networks, the site's core functionality is based around private messaging and sharing photos, status updates and links with friends. VK also has tools for managing online communities and celebrity pages. The site allows its users to upload, search and stream media content, such as videos and music. VK features an advanced search engine, that allows complex queries for finding friends, as well as a real-time news search. VK updated its features and design on April 2016.[33]

Features

  • Messaging. VK Private Messages can be exchanged between groups of 2 to 500 people. An email address can also be specified as the recipient. Each message may contain up to 10 attachments: Photos, Videos, Audio Files, Maps (an embedded map with a manually placed marker), and Documents.[34]
  • News. VK users can post on their profile walls, each post may contain up to 10 attachments – media files, maps, and documents (see above). User mentions and hashtags are supported. In case of multiple photo-attachments the previews are automatically scaled and arranged in a magazine-style layout. The news feed can be switched between all news (default) and most interesting modes. The site features a news-recommendation engine, global real-time search and individual search for posts and comments on specific users' walls.
  • Communities. VK features three types of communities. Groups are better suited for decentralised communities (discussion-boards, wiki-style articles, editable by all members, etc.). Public pages is a news feed orientated broadcasting tool for celebrities and businesses. The two types are largely interchangeable, the main difference being in the default settings. The third type of community is called Events, which are used for organizing concerts and events in an appropriate way.[35]
Like button on VK (Russian version)
  • Like buttons. VK like buttons for posts, comments, media and external sites operate in a different way from Facebook. Liked content doesn't get automatically pushed to the user's wall, but is saved in the private Favorites section instead. The user has to press a second 'share with friends' button to share an item on their wall or send it via private message to a friend.
  • Privacy. Users can control the availability of their content within the network and on the Internet. Blanket and granular privacy settings are available for pages and individual content.
  • Synchronization with other social networks. Any news published on the VK wall will appear on Facebook or Twitter. Certain news may not published by clicking on the logo next to the "Send" button. Editing post in VK does not change the post in Facebook or Twitter and vice versa. However, removing the news in VK will remove it from other social networks.
  • SMS service. Russian users can receive and reply to a private messages or leave a comments for community news using SMS.
  • Music. Users have access to the audio files uploaded by other users. In addition, users are able to upload the audio files themselves, create playlists and share audios with others by attaching to messages and wall posts. The uploaded audio files cannot violate copyright laws.[36]

Popularity

Most popular social networking site as of 8 November 2015
  Twitter
  VKontakte
  Qzone
  Facenama
  no data

As of May 2017, according to Alexa Internet ranking, VK is one of the most visited websites in some Eurasian countries. It is:

It was the fourth most viewed site in Ukraine until, in May 2017, the Ukrainian government banned the use of VK in Ukraine.[28] According to a study for May 2018 conducted by Factum Group Ukraine VK remained the fourth most viewed site in Ukraine, but Facebook was twice as much visited.[44]

Languages

As of May 2018 the site is available in 86 languages, while advertisements are only shown in the Russian and Ukrainian versions. Russian-speaking users can choose between the standard Russian version and two extras: a Soviet version and a Pre-Revolutionary version. Other than language tweaks (e.g. telegrams for messages and comrades for friends), these versions contain other easter eggs. For example, all private messages in the Soviet version have a stamp saying 'passed server censorship'. The pre-revolutionary version uses old-style Russian orthography. Both extra versions are also ad-free.

Promotional use by bands and musicians

Musicians that use VK for promotion often upload their own tracks to their official VK pages. Notable examples include the international celebrities like Tiësto,[45] Shakira,[46] Paul van Dyk,[47] The Prodigy,[48] Dan Balan,[49][50] Limp Bizkit,[51] Eros Ramazzotti,[52] Marilyn Manson,[53] Moby,[54] and The Offspring.[55]

Issues and controversies

The headquarters of VK on the Nevsky Avenue in Saint Petersburg (aka Singer House)

Copyright issues

Litigation

In 2008, the leading Russian television channel TV Russia (tvchannel name RTR used in 1991-2002 years) (then Russia 1) and television company VGTRK sued VKontakte (then VK) over unlicensed copies of two of its films which had been uploaded by VK users. In 2010, this dispute was settled by the Russian Supreme Arbitration Court in favour of the social network. The court ruled that VK is not responsible for its users’ copyright violations, taking into account that both parties agreed with the technical possibility to identify the user who posted illegal content and who, consequently, must incur the liability.[56] Another ruling early in 2012 went partially in favor of Gala Records (now Warner Music Russia), a recording studio, when the same court ordered VK to pay $7000 for not being active enough in regard to copyrighted materials.[57]

Efforts against copyright infringement

VK offers a content removal tool for copyright holders.[58][59] Large-scale copyright holders may gain access to bulk content removal tools.[60]

Since 2010, VK has also entered several partnerships with legal content providers such as television networks[61] and streaming providers.[62] Most notably, the Video on Demand provider IVI.ru that has secured licensing rights with all of Hollywood majors in 2012.[63] These partnerships allow providers to remove user-uploaded content from VK and substitute it with legal embedded copies from the provider's site.[64] This legal content can be either ad-sponsored, subscription based, or free, depending on the provider's choices. VK does not display its own advertising in the site's music or video sections, nor in the videos themselves. On October 2013, VKontakte was cleared of copyright infringement charges by a court in Saint Petersburg. The judge ruled that the social network is not responsible for the content uploaded by its users.[65]

In November 2014, the head of The Federal Service for Supervision of Communications, Information Technology and Mass Media, Maxim Ksenzov, said that Vkontakte will complete the process of legalization of the content at the beginning of 2015. At that time (November, 2014), negotiations between major labels companies and the social network Vkontakte were ongoing.[66]

DDoS attacks on sites

Because the social network is the one most popular and highloaded sites in runet, its visits can be used to make DDoS attacks on smaller sites. VK performed DDOS attacks on certain sites, making users' browsers send multiple requests to the target site without their consent. The targets were the Runet Prize voting page in 2008[67] and the CAPTCHA-solving service antigate.com in 2012.[68][69] It was done by inserting an iframe and a piece of JavaScript code which periodically reloaded the iframe. As a countermeasure, antigate was detecting whether iframe was loaded from VK and if it were antigate had redirected request to xHamster, a pornography website. VK needed to cease the attack due to the site's use by children. VK tried to use XMLHttpRequest to solve this problem, but had forgotten about the same-origin policy. They succeeded in stopping the attack, though there were many ways to solve the problem with redirect[original research?].

Blacklisted

On 24 May 2013, it was reported in the media that the site had been mistakenly put on a list of websites banned by the Russian government.[70]

Some critics have accused the blacklist of being simply the latest in a series of suspicious incidents to have happened to the website in recent months, as the Russian government look to increase their stake in, and control of the site.[71]

Italian controversy

On 18 November 2013, following an order from the Court of Rome, VK was blocked in Italy after a complaint from Medusa Film stating that it was hosting an illegal copy of one of its films.[72] However, as of April 2015, the site has been reopened for Italian users and its mobile app is available on both App Store and Google Play.

Founder Pavel Durov's dismissal

Founder Pavel Durov was dismissed as CEO in April 2014 after he had failed to retract a (according to himself) prank April fools letter of resignation.[23] Durov then claimed the company had been effectively taken over by Vladimir Putin's allies[23][25][73] and suggested his ousting was the result of his refusal to hand over personal details of users to the Russian Federal Security Service and his refusal to shut down a VK group dedicated to anti-corruption activist Alexei Navalny.[23][25]

China Controversy

In January 2016, China banned VKontakte, accusing that it was manipulating web content and cooperating with the Kremlin. According to Russia's media watchdog, the network estimates around 300,000 users based in China.[74] As of 14 February 2018, China authorities unblocked VKontakte and it was fully accessible in the country.[75]

See also

References

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