The Internet investment company ru-Net II has acquired content distribution platform Digital Access from initial investor and major music labels, reported business daily newspaper Kommersant. According to the paper, ru-Net II will utilize the platform for online video distribution business.
Digital Access was formed in June 2007 by industrial investment group Access Industries and recorded music companies Warner Music Group Corp., Sony BMG Music Entertainment as well as by the Russian music labels Soyuz and Nikitin Records in order to facilitate distribution of music content to digital service providers and mobile operators. The content includes full-track audio downloads, ringtones, ring-back tones, video clips and full color images.
The recorded music sales via mobile operators in Russia was valued at more than $600 million in 2008. About 40 percent share of those sales go to mobile operators. The rest is divided among distributors, content providers, and right owners.
ru-Net II is run by Leonid Boguslavsky and Dmitry Alimov, who worked as head of media investments in Access Industries in 2004-2005. ru-Net II has invested in online advertising agencies iConText and MobileDirect. ru-Net II also invested in online travel distribution platform NEXGEN Travel Distribution.