Cinema networks have to pay 0.8% instead of 1%, stock cinema - 0.75% instead of 0.8%
The Russian Authors Society (RAS) has announced a reduction in rates of deductions for cinemas. The maximum remuneration rate is kept at 1.2% of the gross collection, the rate for network cinemas decreased from 1% to 0.8%, for open-air cinema venues, which are functioning with the Cinema Foundation’s investments, - from 0.8% to 0.75%. The message of the organization says that RAS is going to meet the needs of cinemas owners, understanding the tendency of cinema profit to fall.
In February, the Cinema Owners Association (COA) proposed to reduce the rates of copyright fees and make the mechanism of their determination transparent. The head of the working group on RAS issues in COA, Sergey Pirozhkov, views the current rate reduction “as a mockery and a reverence to large chain cinemas, which are already doing quite well.” “The cinema networks have an unofficial agreement with distributors that the latter compensate half of the payments in RAS,” suggests Sergey Pirozhkov. “And for us, whose profitability is already the lowest of the low, they left the usual rate.” According to Pirozhkov, this is an expected decision, since the last meeting of COA with the RAS administration and film composers showed different views on the situation: “Composers want more money, and cinemas have a minimum program: it's good if we transfer some money to Russian authors but what do Americans have to do with it?” “Considering the fact that the entire burden of payments in RAS falls on the shoulders of cinemas, and distributors refuse to take part in these expenses, the proposed rates look too high and do not correspond to the possibilities of cinemas”, - he said.
RAS does not disclose the total amount of fees from cinemas. Cash fees for 2018 in the Russian release amounted to 50.491 billion rubles, of which 13.900 billion rubles accounted for Russian releases and 36.591 billion rubles - for foreign releases.