Museekster.com has interviewed one of the people behind MP3Search.ru, a controversial website selling music for $0.10a track, without DRM. The company is based in Russia, and this article spells out their opinion of Russian law as it applies to online music stores and services. There is mention of the Russian collective agencies RAO and ROMS, who apparently can collect fees without obtaining such rights from the copyright holders. So how does the cost of doing business stack up, according to Sergei Arsentiev, director of MP3Search.ru:
We pay 10 % of our full income (not of the net income only). ROMS's tariffs will increase beginning from the 1st of January 2005. We do not know yet how far they will increase.
Many Russian and foreign copyright holders were displeased with such low prices ($0.03 - $0.05 USD) per song, and the price of $0.10 USD satisfies them. Also this change is to make calculations with our clients much more clear and transparent. In fact, bitrate and size of a file are unimportant both to our clients and copyright holders. That is why it is not reasonable to take money for megabytes. Besides that, there are a lot of beginners in the Internet, and they do not understand units of quantity of the information at all.
Crazy stuff.








1. Who would have predicted this? A price war between two Russian music services: MP3Search, which uses a middling bitrate for 10 cents per track, and AllofMP3, which in which the user chooses bitrate and music is sold by the megabyte. I have found that AllofMP3 generally comes in at 5-6 cents per track, encoding at 192k fixed.
Posted at 4:23AM on Dec 19th 2005 by Brad Hill