In early May, record labels turned to the head of the Ministry of Digital Development Maksut Shadayev with a request to include them in the list of IT companies for profit.
The Music Industry Association told RB.RU that instead it would be more logical to raise the issue of preferential taxation of music companies in analogies with movies or books. This will give music content creators additional opportunities for growth, including aggregators.
According to the association’s executive director, Dmitry Konnov, the largest international founding companies of the NFMI (Sony Music, Warner Music, Universal Music) deliver digital content to streaming platforms using relevant structures that are not part of the music label.
Therefore, they do not carry out the process of working with the end user and do not bear the burden of creating software products for these purposes. The maximum that they can afford is to keep a representative office of a system administrator on their Russian staff to ensure the operation of computer networks, mail, etc. within the company,” said Dmitry Konnov.
Russian market players, on the other hand, turn to the services of aggregators, which are primarily a technical “middleman” for delivery and, most importantly, monetization of content. It is these companies that provide copyright holders with all the necessary information about the distribution of their phonograms, generate reports and statistics for analysis, and provide all the technical requirements of streaming sites.
To perform these tasks, aggregators need to maintain a large staff of IT specialists to develop and maintain databases with information on intellectual property objects, “personal account” work, etc.
Dmitry Konnov added that there are now three aggregators active on the domestic market: the Russian company Zvonko digital and two foreign companies Believe and OneRPM.
According to him, the founding members of NFMI have stopped all activities in Russia, so AMI does not understand how it is possible to ask for benefits from those who left the market and, moreover, do not create or deliver content.
Dmitry Konnov believes that it would be more logical to raise the question of preferential taxation of music companies in analogies with movies or books. This will give music content creators additional opportunities for growth, including aggregators.
- The National Federation of the Music Industry (NFMI) in early May 2023 turned to the head of the Ministry of Digital Development of Russia Maksut Shadayev with a request to include record labels in the list of companies that can receive benefits from YOU. Analysts doubt that record labels can even be included in the list of organizations for the accreditation of IT companies.
- In 2022, the First Musical label, the Velvet Music production center and the gazgolder creative association created the Music Industry Association (AMI). The organization was founded due to the trend in the professional community towards consolidation in the context of the economic crisis. In particular, against the background of the exit of the main record labels from the Russian market and the reduction in the number of the main content distribution channels.
Author:
karina pardaeva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
