Source An operator launches a music label. MTS, whose structures are already engaged in promotional, concert and ticketing activities, will launch its own music label. Foreign Warner Music, Universal Music and Sony Music stopped entering into new contracts in Russia after the outbreak of hostilities in Ukraine, and new players, such as VK, have already appeared in the segment. Experts note that in order to attract artists, they need to provide demanded services and reasonable advance payments.
MTS will launch its own music label in the spring, Kommersant was told in the company. The new line of business will include distribution of tracks to all music streaming platforms, marketing support, promo and PR, concert and ticketing activities, and other services. Also, the artists of the MTS label will be able to “fill the concert venues under the control of MTS Live with content.” The direction was headed by Nadezhda Boychevsky, ex-general director of the Russian division of the American distributor ONErpm Eastern. She was also the executive producer of the Respect Production label (Casta, Max Korzh, etc.) and worked at Universal Music Russia. Investments in the project at MTS are not disclosed.
MTS will offer artists and their managers work on two models – Premium (full support in rights management and monetization, as well as marketing, advances, working with catalogs and creating new works) and DIY (do it yourself – a format in which an artist or his the manager is mainly engaged in promotion independently).
As part of the DIY, the artist will be able to use MTS as an aggregator for uploading tracks to streaming for subsequent monetization.
The company clarified that the download will take place through partners providing software, their names are not disclosed. Now the largest participant in the digital music distribution market in the Russian Federation is the Zvonko Group (which unites Pervoye Muzykalnoe, the National Music Publishing House, the Soyuz studio, Soyuz Music), the French Believe Digital, ONErpm and a number of small companies continue to work. In September, VK Records, which will create its own music labels, launched VK. The holding also plans to distribute content. To download music to foreign streaming sites, including Apple Music and Spotify, VK, according to Kommersant, is considering buying Multiza, which has offices abroad (see Kommersant on December 20, 2022).
MTS has been present on the music market for several years, including developing the MTS Music streaming service based on Yandex Music technologies, and MTS Live, which is engaged in promotional, concert, ticketing activities, and invests in creating a network of concert venues (see “Kommersant” September 23, 2022). In such a situation, creating your own label is a logical step, says Sergei Babich, director of the Colisium International Music Industry Forum:
“Thanks to international connections and the presence of offices abroad, MTS will be able to provide artists with more opportunities for monetization.”
After leaving Russia, Apple Music, Spotify, YouTube Music will enter into direct contracts with these sites and make payments to artists became difficult, says Mr. Babich. In his opinion, entering the VK and MTS segment contributes to increased competition after the shutdown of foreign major labels. Warner Music, Universal Music and Sony Music stopped making new contracts with artists in Russia after the start of the military operation in Ukraine (see “Kommersant” on March 15, 2022).
But the music market is quite conservative, much personal connections play a role, notes the interlocutor of “Kommersant” in the music streaming segment: “Therefore, MTS will have to earn a reputation and the trust of the audience, but given the fact that the segment is greatly redistributed, new artists appear who previously did not do much promotion, the company will be able to take a noticeable share subject to the offer of demanded services and reasonable advance payment.
Источник