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Sony BMG

Major Label Ready To Venture Into Russian Digital-Music Tundra

cover.jpgThe murky underground of Russian MP3 sites has always seemed a little scary to us; there's something that just feels weird and wrong about paying only $2.06 for t.A.T.u.'s first record. Which is why we got slightly interested when we heard that Sony BMG announced its plans to put its entire back catalog on select Russian sites, making it the first major label to sanction its songs' presence there. There is, naturally, a catch: the tracks will be priced at around 60 cents each. Sure, it's 33% lower than the standard U.S. per-track charge, but it's almost 300% higher than what those sites—including the legal ones like Yanga—are charging now. Given that these sites are open to other countries—and they deal in unprotected MP3s—this seems like an odd move. Are we missing something?

Sony BMG to sell entire back catalogue online in Russia [CBS MarketWatch, via Coolfer]

1:15 PM on Wed Oct 4 2006
By mjohnston
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  • Though I don't know for sure, my guess is foreigners will not be eligible to download. Companies want to price goods competitively in particular markets, but they also want to prevent arbitrage. I find it unlikely Sony BMG would allow Americans, for example, to set up accounts and access cheaper downloads from Russian sites. Perhaps this will materialize when the ink is dry.

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