On February 25, 2021, an online discussion on the state of the creative industry and possible options for its development in the CIS countries and Russia was organized by the Confederation of Rightholders' Societies of Europe and Asia (CRSEA). The participants of Creative Global Talks discussed ways to rebuild the creative industries after the pandemic.
At the end of 2020, the creative industries market in the offline segment decreased by more than 2.5 times, according to the study carried out by the InterMedia agency. At the same time, the online sector continued to grow steadily due to the peculiarities of forced isolation during the fight against the virus.
Participants drew attention to the fact that the pandemic has practically halted the development of creative industries. It’s impossible to accurately assess the commensurability of losses due to the fact that both budgetary and commercial aspects suffered a lot, despite the relatively stable state of the latter.
Nevertheless, it was noted that over the past year, the attractiveness of the Internet segment for the creative industries players has grown. Thus, in 2020, the revenue of companies from the use of music works on the Internet increased by an average of 40%. At the same time, royalties from “live” concerts, as well as for the use of music works in public places, cafes, bars and restaurants have been cut three times.
“The increase in revenues from online distribution was associated with the rapid growth of streaming – people in isolation listened to music, watched videos, so activity in this direction increased,” explained one of the experts.
It was also noted that economic development is impossible without solving legal issues based on the search for a balance of interests between market participants. Irina Vidova-Molchan, a singer, author, right holder, acting Chairman of the Authors' Council of NCIP and a member of the Presidium of CRSEA, also agreed with the position on the need for legislative revision. According to her, clear mechanisms for remuneration payment by digital services are needed.
At the end of the discussion, Creative Global Talks concluded that in 2020, despite a significant reduction in the activity of the offline segment of the creative industries, the key market players – theaters, museums, festivals, etc. – were able to adjust to the online format. However, for the effective monetization of income from digital platforms, legislative amendments are needed, as the growth rates of creative industries in the future depend on this.
The discussion was posted on the official Creative Global Talks YouTubechannel.
Based on the CRSEA materials.