On Wednesday, the business daily RBK reported that according to its official documents, the Russian Author’s Society (RAO) saw the royalty payments it made to foreign creators of music in 2022 reach the lowest level seen in a half-decade.
In 2022, foreign royalty payments added up to 20.7 million rubles (more than $207,000), the least amount seen since 2017, and one sixth of what had been paid out the previous year, when the royalties in total were $1.32 million.
Even during the 2020 pandemic, when Russia was forced to close the restaurants, cafes and cinemas which would normally have played music for customers, and paid royalties, total royalties paid to foreign rights holders amounted to $1.25 million.
RAO was created by Russian artists and copyright holders as a non-governmental, not-for-profit collective organization which would be able to protect their rights.
According to data from the Russian Ministry for Culture, TV channels, radio stations, cinemas, and cafes, collectively paid roughly $32 million of royalties to RAO for both Russian and foreign creators in 2022. In 2021, they had paid roughly $33 million.
RAO says the massive drop in royalty payments for foreign artists is primarily due to Russian citizens shying away from foreign artists, and exhibiting a much greater demand for Russian music.
RAO said to RBK, “The trend, in particular, is clearly seen from the statistics reflecting the use of music as soundtracks for commercial spaces, such as restaurants, shops and hotels,” adding that the popularity of playlists featuring Russian music by Russian artists has increased recently by almost 30%.