French music company Believe continues to operate in russia, despite claims of “suspension of operations” after the start of a full-scale invasion. This was written by Billboard on September 20, 2022.
The Believe company, if you look at it, does not break the law by continuing to work in russia, but the decision to have an active working presence leads to a direct conflict with the top international music companies – Universal Music Group, Sony Music Entertainment and Warner Music Group. It was these leaders of the music market who officially declared their position and suspended their activities after the invasion of Ukraine in March 2022. Spotify, Amazon, Deezer and TikTok have also either closed their Russian offices or stopped trading in the market, which used to be 13th in the world in revenue from rights, right from the start of the war.
What does the work of Believe mean in russia now?
At best, that means recruiting new staff to fill vacated positions and striking multimillion-dollar deals to renew contracts with label partners. At worst, reliable sources said Believe is seizing the moment by “aggressively” signing russian record labels and artists to gain market share in the region, while major labels have pledged to cut off any new business in the territory .
Before the war with Ukraine, the music industry in russia was actively developing and was in the top 20 in 2021, receiving more than 300 million dollars in revenue from recorded music (according to IFPI).
But things changed dramatically, and in March it was Sony that became the first major record company to leave the country entirely, transferring its russian company and registry to a separate local independent label. Universal and Warner, which before the war were the largest in russia with about 100 employees, continue to provide financial support to their russian staff and maintain offices there, but say they have frozen all investment, advertising and production and new releases.
But Believe’s exit strategy was controversial. In March, the company said it had “suspended operations in russia,” including hiring new employees and investments, and had “terminated relations with all russian artists and labels subject to international sanctions.” At the same time, Denis Gorshkov, Believe’s manager in russia, sent a memo to local partners, which Billboard also reviewed, assuring them that Believe “continues to provide all services in russia” and offered advice to russian labels and artists with a bank because of the frozen or accounts are inaccessible due to economic sanctions, it has become impossible to receive payments legally.
In its article, Billboard provides convincing examples, referring to primary sources and publishing details of correspondence inside the Russian market with representatives of Bilieve:
In one Aug. 30 email reviewed by Billboard, a top Believe executive in russia offered the russian record label 3 million euros ($3 million) for the rights to his catalog and future releases. The email, written in russian, mentions an earlier, undated offer of €2 million ($2 million), “divided into two parts — €1 million after delivery of the catalog and a further payment of €1 million once the upfront amount is fully repaid.”
“We’re talking about a single account where we monetize both new releases and back catalog,” – the Believe executive wrote.
However, the company says that the russian management’s offer of 3 million euros to the independent russian label on August 30 – which appears to be related to a distribution deal – is not an attempt to increase Believe’s share of the currently fragmented Russian music market. Instead, the spokesperson says the memo covers standard “distribution activities over a multi-year relationship with an existing label partner.”
A Believe representative reiterated that since March, the company has stopped “new investments in (mergers and acquisitions) and expansion in russia” and has suspended “development and any further expansion” in the country. But sources in the region tell Billboard that’s not the case. Several music executives interviewed for this story said that since April, Believe has been actively reaching out to many local artists and labels — many of whom already have record or distribution deals with major labels.
“Believe is still very active in russia,” – the famous Moscow-based artist-manager and head of an independent label tells Billboard. They say they were approached by Believe about a russian-language list shortly after all major record studios and distributors suspended their work in russia in March. “They said they could help us with our back catalog and that they could help us release our music,” – says the executive.
Another russian music executive says Believe has “aggressively approached” all of its local customers, offering them an entry into the market after other options had disappeared. “They insist that our customers hand over catalogs to them, even though they know they have exclusive ongoing contracts with us,” – says an executive on condition of anonymity.
“Since the beginning of the conflict between russia and Ukraine, true to its values, Believe has pledged peace and decided to continue working with its local customers, artists and partners in the russian market in accordance with all applicable laws,” – the spokesperson said.
What does cooperation with Believe look like on the russian market in the current conditions
Believe continues to release new music in russia from both local and international artists (such as Placebo’s album Never Let Me Go, Instasamka’s single “Shake” and DJ Paul van Dyk’s single “But Not Tonight”).
Marketing is conducted through russian social media platforms such as VK. After the release of Spotify, Amazon and Deezer, the local streaming services Yandex Music and SberZvuk became the dominant music platforms in russia. Believe confirmed to Billboard that it receives royalties from Yandex and SberZvuk. Both have indirect ties to sanctioned businessmen or companies.
And since August, Believe reported its midyear earnings with revenue up 35.4% to 352.2 million euros ($369 million) in the first half of 2022.
KRUTЬ was able, and you still think?
Which of the Ukrainian artists works with Believe
Our Ukrainian stars are also published (and royalties) through the French Believe directly or through intermediaries (labels, publishing houses, etc.). What’s more, without researching this issue so thoroughly that only now, after almost a year of the invasion of russian troops into Ukraine, they began to be interested in where the interest left for mediation for Believe will go. After all, now the issue of integrity of partners is too acute not to worry about one’s reputation.
Among the Ukrainian star-partners is Believe: Макс Барських, DANTES, Анна Трінчер, Маша Кондратенко, SKYLERR, VovaZiLvova, LESAN, Wellboy, СХОЖА, 100лиця, Настя Балог, DEMCHUK, DOROFEEVA and others.
Of course, there are already many who are already thinking and looking for legal ways to terminate agreements, or, like the artist KRUTЬ, who left Believe recently, taking away even the released album.
We invite you to provide an answer to the main question: are your tracks published using Believe and is it OK for you in the situation that has developed in Ukraine? Check where and who monetizes your rights to works and organize not only the papers, but also your own principles.
