Royalty collections climb to new peak at €7.5 Billion

The annual Global Economic Survey released by CISAC, the International Confederation of Societies of Authors and Composers, shows gross royalty collections climbed 5.5% year-on-year. That was a second consecutive year of significant growth, following a 1.7% rise in 2009, with the slight dip seen in 2008 failing to halt the steady climb of collections over the last 7 years—in striking contrast to the performance of other cultural sectors.

“These positive results show the solidity and efficiency of the international network of authors’ societies represented by CISAC,” said the confederation’s Director General Olivier Hinnewinkel.

“Here is proof,” he added, “that collective management is the solution for today and tomorrow, generating wealth for creators while withstanding economic changes and supporting digital music markets.”

Key figures for global collections in 2010

– €7.545 billion—total gross collections from CISAC member societies
– +5.5%—worldwide year-on-year growth (in current €).
– 61% of global collections were generated in Europe (€4.6 bn)
– 73% of collections were from public performance royalties
– 86% of collections were accounted for by musical repertoire
– +15%—growth for audiovisual repertoire.

The Survey was based on data provided by CISAC members—232 authors’ societies in 121 countries, representing more than 3 million creators and publishers of all artistic genres.

Mr Hinnewinkel said that, “The growth has been delivered through the hard work of CISAC members who are constantly looking into improving their costs, expanding coverage of their own territories and adapting to the constantly-changing ways their repertoire is used, especially in the digital sector.”

Emphasizing the contribution authors’ rights can make to global economic development, the overall rate of growth for royalty collections during 2010 slightly exceeded that of world GDP (5.1%, according to IMF figures).

That growth came across the globe, with particularly dynamic performances in the Latin America-Caribbean (+21%) and Asia-Pacific (+12%) regions. North America saw growth of 5.7%, although Europe remained somewhat muted, at 2.3%.

The year also saw an unexpected recovery in mechanical reproduction royalties for recorded works, driven by results in North America, Asia and Latin America and by the digital sector.

However, public performance continued to provide the lion’s share of revenues for creators and music publishers, climbing 7.5% to €5.5 billion, or 73% of all revenues. With the advertising market predicting growth through to 2014, those figures are expected to climb further.

With 56% of public performance revenues accounted by broadcasters, radio and television remain the predominant royalty source (39.8% of all collections). Revenues from the phonographic industry accounted for 23.4% of all collections, representing the second major source of royalty collections. But while collections from the digital sector rose 22% in 2010, they have still not offset the decline in royalties from physical sales and remain a very limited source of revenues (1.7% of collections).