EUR 51.6 million distributed to music authors and publishers in 2016 by Teosto
In 2016, music authors and publishers received EUR 51.6 million from Teosto as royalties for the use of their music. Of this sum, EUR 25.4 million was paid to Finnish and EUR 26.2 million to international music authors and publishers. Royalties paid to Finnish music authors grew by 17 per cent.
“Our goal is to be an efficient and reliable partner for music authors, ensuring that they are compensated for the use of their music. Last year was successful for us: the amount of music use royalties collected by us increased by EUR 6.4 million year on year and royalties paid to Finnish music authors grew by 17 per cent,” Teosto’s CEO Katri Sipilä says, summarising 2016.
Radio and TV the most significant sources of income
In 2016, Teosto collected EUR 59.4 million in royalties for music use in Finland. Of these royalties, 54 per cent came from music use in radio and TV, 14 per cent from the use of background music, 13 per cent from events and concerts and 11 per cent from online music and video services.
“When it comes to copyright royalties, radio and TV are still a significant source of income for music authors. Radio is especially important for Finnish music authors as radio stations play a lot of Finnish music. Consequently, a great deal of the royalties paid by radio stations are distributed to Finnish music authors,” Sipilä comments.
Royalties collected for online services have been growing for several years already. In 2016, online royalties grew to EUR 7 million. The increase in online royalties is explained by the fact that an increasing number of Finns have moved from free online services to music and video services that are subject to a charge (premium).
Foreign royalties increasing
Royalties paid to Finnish music authors and publishers for music performed abroad amounted to EUR 3.8 million. This is an increase of 27 per cent from the previous year. One of the factors behind this growth was the 150th jubilee of Jean Sibelius, which was celebrated with his music around the world.
Total copyright royalties paid to music authors and publishers through Teosto in 2016 were EUR 70.6 million. The amount includes royalties collected by Teosto and other copyright organisations as well as compensations for private copying paid to Teosto members. Teosto’s cost percentage in 2016 was 14.9.
The year 2016 for Teosto in a nutshell:
- Royalties paid by Teosto to music authors and publishers amounted to EUR 51.6 million in 2016.
- Distributions to Finnish music authors totalled EUR 25.4 million, showing an increase of 17 per cent.
- Distributions from abroad grew by 27 per cent, amounting to EUR 3.8 million.
- The total sum of copyright royalties was EUR 70.6 million.
- Radio and TV accounted for 54 per cent of royalties collected.
- Royalties for online services grew to EUR 7 million.
The Finnish Composers’ Copyright Society Teosto
Teosto represents 30,000 Finnish and around three million international composers, lyricists, arrangers and publishers of music. Royalties paid by Teosto to music authors and publishers amounted to EUR 59.4 million in 2016.