RAO was the owner of the "Union"

Russian Authors' Society (RAO) was the principal owner of one of Russia's oldest record label "Union". Control over their author payer organization in exchange for help get affected in the revival of the business by the fall in demand for CDs: The transaction is not required by RW equity. The fact that the waste acquired a controlling stake in the club, "Union", "b" tells two people on the recording market. This information is from the "SPARK-Interfax", which provides that the "studio" Union "", previously of the Cyprus Soyuso Holdings Limited, now 80% RAO, 20%-owned property - in the studio. CEO Alexander Bochkova Chairman of the Board of Directors of concern "Union" Alexander Menn confirmed the record sales of companies. RAO CEO Sergei Fedotov said that receive a share in the "Union" RAO "virtually no cost" due to the difficult financial situation of the studio at the time of the transaction. "The studio is large enough to pay payer waste, and of course we have an interest in their conservation were the founders decided to formally drop and try to revive the company again", - he said. According to Mr. Fedotov, RW, particularly successful for the studio special price negotiate credit lines "that saved the day." He stressed that the waste is not involved in the management of the company and has no plans to do so. Business Studio "Union" focuses primarily on the physical sales and depends on the retailer, which is part of the group "Union", reminded the participants of the market. But last year, almost all shops "Union" closed: of more than 50 points, depending on the location network there are only nine. Studio "Union" was founded in 1988. Russian singer released albums Firs, the "Disco Crash" and hope Kadysheva Ensemble "Golden Ring", The Rasmus, scooters, etc. RW - Russia's largest organization for collective management of copyright. Founded in 1993, Yuri Antonov, Andrei Voznesensky and other prominent cultural life. In 2010, RAO charges amounted to 2.7 billion rubles., Which were retained by some 0.5 billion to cover its costs to society. PricewaterhouseCoopers estimated that sales of music content in Russia was in 2011 353.000.000 $, of which $ 132 million came from online sales, and another $ 221 million - sales to the physical disk. The share of the "Union" in the market can be up to 5%, the source estimates near the studios. Two other entrants consider this assessment exaggerated. Source in one of the record companies, the conflict of interest stated in the transaction, but it looks and logic: physical music sales are declining, and concentrates the large amount of money in the rules governing waste and its affiliated National Intellectual Property Organization (WIPO) . Owning the studio can help control, and increase the cash flow from, he says. RAO itself not owned an asset, even though his head Sergei Fedotov is a co-investor in the company, the Russian edition of the magazine Entertainment The Hollywood Reporter and Billboard, as well as newspaper "Culture" to manufacture. Was also last year led a top manager of waste and WIPO Andrew Krichevsky FSUE "" Tune "," business under the previous management Chamber held ineffective, despite the extensive library. In the future it will be possible to speak joint activities "Union" and "Melody", said Mr. Fedotov: Under the name "Melody" will be releasing some modern albums from the "Union".