In
a show of confidence in the licensed music market that analysts
say may be unwarranted, a new music store calling itself Russia's
largest has opened in a restored Leninsky Prospekt building that
won the Stalin prize after it was built in 1949.
The
VseSOYUZny Tsentr Muzyki i Kino, or All-Union Center of Music
and Cinema, at 11 Leninsky Prospekt has 45,000 music and film
titles on compact disk, video and DVD, said Alexander Menn, vice
president of the Soyuz group, which owns the store.
"We
thought up the name using the idea that, in Soviet times, attaching
'Vsesoyuzny' to the name of anything meant that it was of special
importance," Menn said Monday in an interview.
Soyuz,
a vertically integrated holding that operates more than 50 stores
in Moscow and St. Petersburg, produces and holds the copyright
on a number of music labels and films. It restored the retail
area under an investment contract with City Hall, Menn said. He
declined to release details on the contract or say how much had
been spent on the six-month restoration.
The
building, designed by Soviet architect Ivan Zholtovsky, had a
connection with music in Soviet times as well, when it was an
outlet for state music monopoly Melodia. In more recent years,
it was sublet to other retailers.
Menn
said the new center, which opened Feb. 28, is Moscow's first music
store with a music cafe, which plans to hold almost daily performances
by local and Western artists. The center has 20 listening stations,
a computer database and an Internet station, he said.
One
of the reasons for opening the store was that the prospects for
sales of legal music, as opposed to bootleg copies, are improving,
Menn said.
"The
government's position on copyright issues has changed," he said.
"We hope that with government support, there will be more protection
of copyright and that we will be able to increase sales of legal
works."
The
store says it offers everything that is legally produced in Russia.
"We sell all the Russian stars, not just those that are signed
up to us," Menn said.
The
center will launch its first album next week, he added.
Yulia
Nikulicheva, research analyst at Jones Lang LaSalle, said
Soyuz is one of the biggest retail chains selling CDs in Russia.
"They
have stores throughout Moscow and a store in each shopping center
in Moscow," she said Monday.
However,
despite the several universities located near the new music center
and the building's prominence, there is little pedestrian traffic
near it, she said.
Soyuz
also faces strong competition from pirated music, she said.
"People
would prefer to buy pirate disks because their incomes are still
quite low," she said.
Igor
Pozhitkov, regional director of the International Federation of
the Phonographic Industry, said about 65 percent of music in Russia
is pirated.
"The
market for legal music was about $200 million last year and is
relatively stable," he said.
Piracy
does seem to be on the increase, however, after Ukraine shut down
some black market CD operations that have since shifted to Russia
and Belarus, he added.
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