Russian Creative Week Topics: Blockchain and the Development of the Creative Industries

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Valeria Brusnikina, General Director of the FONMIX music service and Sergey Baldin, General Producer of the Sound music streaming service, expressed their opinions at the Russian Creative Week on the prospects of Russia’s music industry.

In the course of the discussion on "Monetization. Genre, Age, Gender and Regional Balance of the Music Market," the speakers expressed different perspectives on the future of the industry, but reached an agreement on many of its aspects.

According to Brusnikina, blockchain technology is necessary for creators, because for the creative industries, copyright is considered to be the main asset. Securing the IP rights to such creative works as movies, books, music, design, etc. guarantees that creators will be able to monetize them. To do so, it is also important to effectively manage those rights. This can be guaranteed by blockchain infrastructure and services and tools that use blockchain technology, which unalterably records all information on the transaction of IP rights.

“The music industry needs blockchain so that every participant in the market has reliable and up-to-date information about IP rights to creative works and so that the creators themselves can monetize the results of their creative activities. There are several services which creators can use to protect and monetize their IP rights.

For example, creators can register the rights to their works via the n’RIS service; B2C services like Yandex.Music and Boom help creators monetize their works; in the B2B sector, FONMIX provides playlists with background music for commercial spaces. Such playlists are compiled using Big Data and AI which determine a listener’s psycho-emotional responses to different types of music. The FONMIX service automatically distributes royalties to music creators based on where and how many times their phonogram was played. Another blockchain-based IP rights service, IPEX, allows creators to sell their music for film or commercial use. Creators can also host media content and sell their IP rights on the platform from the comfort of their home from anywhere in the world. Another service called Co-Fi makes it possible for creators to search for and obtain loans secured by the IP rights to the content they create.

It is important that there are many different services to help rightsholders manage their IP rights, just as it is important for there to be a lot of different music for different types of businesses and uses,” Brusnikina said.

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