The National Federation of the Music Industry (NFMI) has asked Russia’s Minister of Digital Development Maksut Shadayev to include record labels in the list of companies that can receive benefits from IT. This will allow them to receive preferential loans, exemption from scheduled inspections, deferral of compulsory military service for employees, etc., Vedomosti writes.
The activity of music labels involves the creation, support, administration and other uses of computer programs and databases.
Each label has its own software that allows it to prepare tracks for release, upload them to streaming services, and process reports on the amount of music content being listened to.
As content consumption in the digital environment grows, “instruments related to stimulating the development of media and information technology industries are becoming the foundation for their development,” the letter says.
According to InterMedia, the music streaming market fell by 30-50% to RUB 5-7 billion in 2022. Part of foreign sites left the country. Last spring, the Spotify streaming service left Russia and YouTube disabled music monetization in the country.
Analysts doubt that record labels can even be included in the list of organizations for the accreditation of IT companies.
According to the logic of the NFMI, any company that uses its own software in its activities can claim benefits for the IT industry. However, support for IT companies affects only those organizations that receive revenue from the sale of their software to customers or develop it on behalf of customers.
- By the end of 2023, the value of the music streaming market will grow by 10-15%. With the departure of foreign services, ecosystems become a growth point: with their development, streaming subscriber statistics also increase. The growth of the market will be held back by pirated applications, with which you can listen to tracks that are not available in legal services, as well as services that allow you to subscribe to Spotify and Apple Music that have stopped working in Russia.
Author:
karina pardaeva
Source: RB
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