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Teoston taloudellinen vastuu
Financial Responsibility

Financial responsibility at Teosto means ensuring the efficiency and competitiveness of our operations as well as protecting the financial interests of our members. This allows us to be a reliable partner, employer and corporate citizen. Thanks to its financial stability, Teosto is able to meet the needs of its stakeholders, take care of its environment and strengthen the position of creative musical art in society.

Teosto protects its rightholder members’ interests by negotiating with parties that use music, from Finnish media companies to international online platforms. We make agreements on the use of music and the amount of royalties, collect royalties and distribute them to our members.

In 2022, COVID-19 restrictions were lifted early in the year and the music industry was able to recover. Thanks to the positive development in late 2022, we were able to collect the largest ever amount of royalties for composers, lyricists, arrangers and music publisher, a total of EUR 80.7 million. The amount was 15% larger compared to the previous year (EUR 70.1 million in 2021).

The good result was made possible first and foremost by the strong growth in online revenue and the recovery of events, concerts and festivals after the COVID-19 years.

Distributions to music authors and publishers

We make distributions to our rightholder members according to the Distribution Rules valid at the time of distribution. The Distribution Rules are approved by Teosto’s voting members at the General Meeting.

In 2022, we paid composers, lyricists, arrangers and music publishers EUR 67 million (EUR 53.4 million in 2021) in royalties for the use of their music. Of this sum, EUR 29.5 million was paid to Finnish music authors and publishers and EUR 37.5 million to foreign music authors and publishers. In Finland, royalties were distributed to 12,148 composers, lyricists, arrangers and music publishers.

We always seek to operate as cost-efficiently as possible, while ensuring the quality of our services and optimising the distributions made to our members. Our goal is to increase the royalties paid to rightholders for the use of their music. We are continuously exploring opportunities to operate more efficiently.

A key financial indicator of our operations’ efficiency is the expense percentage. We aim to provide high-quality, reliable copyright services with a reasonable expense percentage. As we were able to significantly increase our accumulated royalties in 2022 while keeping our expenses under control, we achieved a record low expense percentage at 12.6% (13.7% in 2021). The expenses of Teosto’s own operations amounted to EUR 10.45 million (EUR 9.88 million in 2021).

A competitive expense percentage is important in the competition for the management of rightholders’ rights.  The total costs of a collective management organisation’s management services for rightholders consist of the administrative expense percentage and the withholding of cultural contributions. Based on a decision by its members, Teosto’s withholding percentage for cultural contributions is 6% of the net royalties, which is a moderate rate when compared internationally.

The Teosto Fund was established for the purpose of promoting Finnish music and improving the conditions for it. The purpose of the Fund is to maintain and secure the continuity of the funding of these promotion activities in a situation where previous sources of funding are reduced or eliminated.

The Fund’s primary funding source is cultural contributions, which Teosto withholds on the basis of decisions by its members and in accordance with the agreements it has made with its rightholders and foreign copyright societies.  In 2022, the share of cultural contributions withheld from collected royalties was 6.0% (2021: 6.0%) after the deduction of costs, i.e. about EUR 3.5 million. Some of the cultural contributions are used directly to promote music (see the section “Cultural responsibility”). The Fund has also grown through increases in the value of assets as well as private copying compensation paid from the state budget.

Teosto carries out investing activities in two separate investment portfolios:

  • The activities and investing principles of Teosto ry’s portfolio comply with the Act on the Collective Management of Copyright and are confirmed by the General Meeting. The portfolio consists of funds that are waiting for distribution to rightholders.
  • The Teosto Fund’s portfolio is a self-financed fund, the capital of which is intended for the promotion of Finnish creative music. The use and investing principles of the portfolio have been confirmed by the General Meeting.

Our investment activities are based on an investment policy built around the central principles of a long-term investment horizon and diversification. Thanks to these principles, our portfolios are resilient to short-term changes in value. We require asset managers who take part in our investing activities to commit to the UN Principles for Responsible Investment (PRI). We examine our asset managers’ performance from this perspective annually and expect active reporting on ESG matters.

It was a weak year for investment activities: as a result of the substantial decline in stock prices and the rise in interest rates, the return on both investment portfolios was slightly negative when measured by market value.At the end of 2022, the market value of the Teosto Fund’s investments was about EUR 41.7 million and the rate of return was about -2.3% p.a. (2021: EUR 41.7 million and 21.1% p.a.).  At the end of 2022, the capital in Teosto ry’s fund, calculated on the basis of market value, was about EUR 40.9 million and the rate of return was about -5.1% p.a. (2021: EUR 45.1 million and 15.9% p.a.).

The state pays private copying compensation from its budget to music authors for the copies made of their works for private use. In 2015–2022, the amount of private copying compensation was EUR 11 million a year. The compensation was set up to compensate for the losses caused by making copies of works for private use.

For 2022, Teosto received a total of EUR 2.2 million of private copying compensation (2021: EUR 2.3 million). Of this amount, we paid about EUR 1.0 million to Teosto’s rightholders as distributions and allocated about EUR 1.1 million to music authors’ common goals through the Teosto Fund.

The state also pays lending compensation through Teosto for the library loans of sheet music, scores and recordings. The lending compensation is based on the EU Rental and Lending Directive and the Copyright Act. The compensation is paid from the state budget and the Ministry of Education and Culture is responsible for paying it. In 2022, EUR 0.49 million in lending compensation (2021: EUR 0.54 million) was paid to Teosto, of which we distributed EUR 0.43 million to composers, lyricists and arrangers.

Teosto’s budget and financial statements are approved annually by the General Meeting. In addition, we also prepare a transparency report on our operations in accordance with the Act on the Collective Management of Copyright. In the report, we examine our financial indicators from a wider perspective than in our financial statements.

Teosto’s financial added value

We produce immediate financial impacts mainly for our rightholder members. Teosto’s most important financial added value is its distributions to rightholders. In 2022, we withheld a total of EUR 5.1 million from distributions as taxes and contributions.


We increase efficiency by managing the financial rights of composers, lyricists, arrangers and music publishers globally.


We employ about 70 people. The wages and salaries paid by Teosto in 2022 amounted to a total of about EUR 4.2 million, of which about EUR 1.3 million was withheld as taxes and contributions. Our goal is to be a desirable workplace where employees like to work and feel that their work is meaningful.


In 2022, we spent a total of about EUR 3.4 million on services and supplies. This includes outsourcing to various joint ventures and service providers, IT production and development costs and other external procurement.

The overhaul of the distribution and reporting system increases efficiency

In 2023–2024, Teosto will be overhauling its business-critical systems, which are used to report use of music and distribute royalties to music authors and publishers. The overhaul is carried out as a joint Nordic project and its goal is to automate the processing of reports and make it more efficient.

Read more about the project


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