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Self-Regulation vs. State Control. How to Stimulate the Consumption of Legal Content?
7 June 2019
10:00—11:15
KEY CONCLUSIONS
Piracy causes huge losses for copyright holders

On the one hand, the Russian market of paid media content is growing: the amount of payments for 2018 exceeded 100 billion roubles. On the other hand, we all understand that illegal consumption is one of the key growth-limiting factors for this market sector — Mikhail Demin, President, Media Communication Union (MKS).

Gazprom-Media annually produces 22,000 hours of content. It is evident that by fighting piracy we protect investments: 10 billion roubles per year slip through a crack in the Internet — Alexey Krasnov, Deputy General Director, Gazprom-Media Holding.

Losses of content producers caused by piracy are estimated to reach trillions of dollars. It is a big business, and many want to line their pockets. Given the fast-developing digitalization, content distribution is becoming easier, as is the sale of pirated content. This is becoming an easy source of income — Igor Poletaev, Anchor, NTV.

Fight against piracy in Russia is starting to yield results

We have 540 final decisions of the Moscow City Court on permanent blocking of pirates. Based on these decisions, 2,300 pirated sites have been blocked forever. Their total audience is over 100 million people, which exceeds the Runet audience — Alexander Zharov, Head, Federal Service for Supervision of Communications, Information Technology, and Mass Media (Roskomnadzor) .

For the first time in the history of the Russian Federation, the total amount of pirated traffic is decreasing: this year it has been 10% of the growth, last year – 12%, before – 20% etc. This means that it is the first year when, thanks to the efforts of Roskomnadzor, the Memorandum [Memorandum of Cooperation in the Field of Protection of Exclusive Rights in the Era of Digital Technology Development, – Ed.] and the industry, the amount of pirated traffic is going down — Ilya Sachkov, Founder, General Director, Group-IB .

As a stage of Memorandum development, we can see a lively constructive discussion between the Internet business and copyright holders on various ways to make pirated content inaccessible and to prevent pirates from reaching the users — Leonid Agronov, Head, National Federation of the Music Industry (NFMI) .

The fact that now there is some self-regulation indicates that mature players have come to the market — Vyacheslav Nikolaev, Member of the Management Board, Vice President for Marketing, MTS.

ISSUES
Lack of effective methods of fighting pirated online broadcasts

During the FIFA World Cup, we identified 27 pirated broadcast distribution points — Mikhail Demin, President, Media Communication Union (MKS).

The main challenge is sporting broadcasts. And this is a topical matter for us. Unfortunately, the norms of the acting Memorandum do not provide us with any options. Two or three hours needed to react mean that the game is already over, and we are still searching for the pirates. Almost all more or less civilized countries have a mechanism for automatic blocking for such situations — Ekaterina Lapshina, Member of the Management Committee, Rambler Group; Independent Member of the Board of Directors, RT-Business Development.

There are no tools for protecting live broadcasts. Copyright holders spend huge sums, for example, on sporting content, but it is broadcast by pirates. So far, this issue has not been agreed on by Internet platforms — Konstantin Ernst, General Director, Channel One Russia.

Integration of illegal casinos and pirated resources

One of the key problems today is the integration within the black sector, the integration between illegal Internet casinos and pirated resources. This is a huge business, they nurture each other — Mikhail Demin, President, Media Communication Union (MKS).

In order to actually defeat pirates, it is not enough to cut them off the search engine traffic – we need to cut their financing. Now their main source of income is casino ads. We need to block websites that feature such ads. There are draft amendments to Federal Law No. 149 ‘On Information’ implying prohibition of casino advertisements on the territory of the Russian Federation — Konstantin Ernst, General Director, Channel One Russia.

SOLUTIONS
Optimization of access to legal products

We ourselves make efforts to fight streaming piracy. There is a number of tools here: search optimization and creation of more comfortable conditions. For example, mobile apps of CTC and Domashniy now feature streaming — Vyacheslav Murugov, General Director, CTC Media.

Our holding and the whole industry are now working to build a habit to pay for content. New convenient and relatively cheap services are launched. Our TNT-PREMIER has 600,000 regular subscribers and 134 million views — Alexey Krasnov, Deputy General Director, Gazprom-Media Holding.

Forming the culture of legal content consumption

[South, – Ed.] Korean state agencies regularly inform the population on the importance of using legal content and licensed software so that people see content as a material asset — Koh Jean, President, Korea Mobile Internet Business Association (MOIBA).

We need to involve users, to explain to them that they must use legal content. I sincerely believe that content should be paid. We need to support those who produce it: it is not an easy job, and it should be compensated — Gregory Abovsky, Chief Operating Officer, Chief Financial Officer, Yandex.

We need to nurture the idea that content is not just art that belongs to the public, rather it is a product that has a price because it took efforts and time to make — Igor Poletaev, Anchor, NTV.

Strengthening measures against piracy market participants

I suggest focusing on consumers, on users. As we all know, Germany is the most successful country in terms of fighting piracy, because their responsibility rests with the end user — Sergey Selyanov, Chairman of Board, Association of Film and Television Producers (AFTP); Head, STV Film Company .

Control of CDN, full clean-up of websites and removal of a whole website are among drastic measures that we need to support. Criminal action against habitual pirates would also be helpful — Oleg Tumanov, Chief Executive Officer, IVI.ru .

The material was prepared by the Russian news agency TASS