VK will distribute music to streaming platforms. The company will also put the tracks of Russian artists on foreign platforms. A digital distributor will be created on the basis of the United Media Agency (UMA, part of VK).
VK is already working on creating its own music label. Investments are not disclosed, but the project team is expanding, Kommersant learns.
Now the largest digital music distributors in Russia are Zvonko Group, French Believe Digital, American ONErpm. The latter pointed out that there is high competition in the segment: “distributors compete with the volume of catalogs, their quality and services for members, coverage of territories.”
The interlocutors of the publication in the market believe that it will be difficult for VK to work in this segment: for example, Yandex Music has direct contracts with large copyright holders.
It’s still important for artists to have a presence on YouTube Music, Spotify, Apple Music and Amazon, experts say. To work on these platforms it is important to settle in foreign currency and have a non-resident partner. This will affect the amount of payment to copyright holders.
In July, the National Federation of the Music Industry (NFMI) asked State Duma deputies to develop a mechanism to block payments to pirates. Such resources receive more than 5 billion rubles a year from the sale of illegal copies.
Author:
karina pardaeva
Source: RB
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