Another record year for Teosto
Royalties paid by Teosto to Finnish and international rightholders amounted to EUR 48 million in 2015. Royalties collected by Teosto for using music in Finland and distributed to composers, lyricists, arrangers and publishers amounted to EUR 53 million. The amount was EUR 1.1 million higher than in the previous year.
Total royalties amounted to EUR 64 million, including performing right royalties and mechanical reproduction royalties collected through other organisations as well as remunerations for public lending and compensation for private copying. Other organisations collecting royalties that are subsequently distributed to rightholders by Teosto include NCB, which collects mechanical reproduction royalties, Kopiosto, and copyright societies outside Finland.
In 2015, Teosto distributed royalties to more than 10,000 Finnish music authors and publishers. EUR 21.6 million of the royalties were paid to Finnish rightholders. The performing rights royalties paid by Teosto abroad through its international sister organisations amounted to EUR 26.4 million.
In 2015, Teosto received notifications of 31,562 new works.
Foreign distributions grew
The income from abroad of music authors and publishers who are represented by Teosto amounted to EUR 3 million in 2015, which is 22 per cent higher than in the previous year. The growth is partly explained by the 150th jubilee of master composer Jean Sibelius, which was celebrated around the world in numerous performances.
The growth came from nearly all the continents, but the growth percentage was the highest in North America. A total of 80 per cent of the foreign income of Teosto’s customers originated in European countries.
Finnish music was particularly popular in German-speaking countries, and distribution from this area was notably higher than in the previous year. Germany, Switzerland and Austria were the most important target countries in the Aus Finnland project by Music Finland in 2015–2016.
EUR 1.8 million to promote Finnish music
Teosto awarded a total of EUR 1.8 million from its Teosto Fund to promote Finnish music. For example, support to Music Finland and the Finnish Music Foundation (MES) amounted to EUR 730,000. The Finnish Music Foundation promotes Finnish music, including research, education and export, by allocating grants and other financial assistance.
Other beneficiaries included Teosto member organisations and associated foundations, such as the Georg Malmstén Foundation, the Sibelius Fund and the fund of the Finnish Music Publishers Association.
The Teosto fund was established in 2009 for the purpose of securing operations that are in line with Teosto’s mission and the continuity of music promotion work.
Finnish music still plays an important role on radio and TV
From the point of view of royalties, the radio and TV continue to be major channels for music use. They covered 59 per cent of all performing right royalties paid in 2015, including online royalties from radio and television companies.
Royalties for online services grew by approximately 20 per cent from the previous year—this category represented the highest growth rate in music royalties in 2015. Online royalties collected by Teosto amounted to EUR 4 million. Teosto’s largest online clients in 2015 were Spotify, Netflix and YouTube.
According to the Polaris Nordic survey by Teosto (released in 2015), almost one in four of music users aged 15–65 in the Nordic countries pay for digital music. The share of users who pay for the music was 14 per cent among Finnish respondents.
Wide range of music festivals activated the Finns
Royalties for live music grew by 11.1 per cent in 2015. The reasons for this growth included the diverse music festivals which attracted large audiences. Finnish music was extremely popular, and a number of international stars also performed in Finland. Furthermore, many events and festivals became larger or longer in 2015, including Kotka Maritime Festival and Provinssirock.
There was a slight increase in the number of stadium concerts in 2015. For example, AC/DC performed in Hämeenlinna in the summer. Even more large-scale concert tours are expected to feature in Finland in 2016.
Teosto’s Board of Directors
Teosto’s General Meeting elected the following members to the Teosto board in its spring meeting on 13 April, 2016: Kim Kuusi, composer, Kaija Kärkinen, lyricist, Tommi Tuomainen, publisher, Kimmo Hakola, composer, Ari Nieminen, publisher and Markus Nordenstreng, songwriter/composer. Kim Kuusi continues to chair the Teosto board.
Esa Korvenmaa continues as an external adviser to the board.
Teosto’s annual report online
Our online annual report illustrates the integration of Teosto and Gramex into GT Music Licences Ltd and the effects of the legislation on the collective management of copyright on Teosto’s operations. In addition to financial statements, figures for 2015 are available as infographics.
Read more: Teosto’s annual report and financial statements online