Russian content providers are reporting that the amount of royalties they’re paying out for mobile music has soared, “as many mobile users now want to get music actually recorded in a studio and not only a song imitation, the daily reported”. The article reports content providers “estimating that about 10%-15% of ring tone sales revenue is paid to authors and 25%-40% now goes to record studios”.
I have some problems with this…first, covertones are normally cheaper than ringtones from the original artist because they don’t require those royalties, so it’s the consumer who pays the extra dough. Because this is a report on another article in Russian I can’t tell if the content providers are complaining or merely reporting a trend. The percentages given also seem a little on the exaggerated side, and I’m pretty sure that the money going to the record studios includes that which passes to the band which recorded the “realtone”. Copyright laws and royalties change from country to country, but I was under the impression copyright laws were less restrictive in Russia — at least, that’s what I picked up from the furor over AllofMP3.com.
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