Skip to content

Teosto collected EUR 65.6 million in royalties for the use of music in 2020

Sources of revenue 2020
14.05.2021

Teosto collected EUR 65.6 million in royalties for composers, lyricists, arrangers and music publishers in 2020. The amount includes royalties collected by Teosto and other collective management organisations as well as compensation for lending and private copying. The global COVID-19 pandemic caused a significant decline, approximately 9.1%, in Teosto’s remuneration.

Concerts were the category in which royalties distributed by Teosto declined the most due to COVID-19: last year, royalties in this category amounted to only EUR 850,000, compared to EUR 5.2 million in 2019. Royalties in the concert category decreased by approximately 84 per cent.

Concerts and festivals

Online services represented the largest source of growth with an increase of 22 per cent. Teosto collected EUR 11.6 million in royalties for the use of music in online services. The growth in royalties was largely due to music services such as Spotify, and video on demand services such as Netflix and HBO.

Online revenue

Radio and TV were the most significant sources of revenue

Revenue related to commercial TV and radio and background music also decreased significantly compared to the previous year. In spite of the changes that have shaken up the industry, radio and TV continue to be the most important sources of revenue for music authors and publishers. Last year, 55 per cent of the royalties collected by Teosto came from music played on the radio and TV. 

According to foreign royalties paid by Teosto, Finnish music is most frequently played abroad in Germany and Sweden. Performing right royalties collected by Teosto from abroad grew by 13 per cent and amounted to EUR 3.8 million. The impacts of the COVID-19 pandemic are expected to be reflected in international revenue in 2021. 

The impacts of COVID-19 are continuing in 2021

Teosto distributed EUR 51.5 million based on the royalties it collected last year. Of this amount, EUR 26.6 million was distributed to Finnish composers, music authors and publishers, and EUR 24.9 million was distributed to composers, music authors and publishers abroad. The amount was higher than in 2019 because the impacts of the pandemic extend to 2021 due to the payment and revenue generation models involved in royalties.

The circumstances created by COVID-19 also forced Teosto to evaluate the costs and structures of its operations. For example, during the latter part of the year, Teosto carried out statutory cooperation negotiations concerning all of its personnel. Teosto reduced its operating expenses by 9.6 per cent in 2020. Teosto’s cost percentage was 15.6 per cent.

Cost savings are also derived from Teosto relocating from Helsinki to new premises in Keilaniemi, Espoo. Several other music industry organisations moved to the same address in spring 2021. This proximity provides improved opportunities for developing cooperation. 

COVID-19 financial support for Teosto’s rightsholders

In December, Teosto distributed COVID-19 financial support to its customers – including composers, lyricists, arrangers and music publishers – to mitigate the financial impacts of the pandemic. The total amount of COVID-19 financial support granted was EUR 542,500. COVID-19 financial support will also be distributed in 2021.

Read more:

Teosto’s annual report, transparency report and financial statements

Share on social media
Give us feedback!

Feedback from users is important when we develop our web services. Let us know your experiences of our service!

Change cookie settings

A cookie is a small text file that is stored on your computer or other device and records information about your visit to the Website. Teosto uses cookies to improve the usability of its services.

Information collected by cookies is not usually connected with the personal data of an identified person, but some information collected by cookies may be indirectly connected with the personal data of an identified person.

Learn more by reading our Privacy Policy and Cookie Policy

Cookie categories
Strictly necessary cookies

These cookies are strictly necessary to ensure the availability of our website. They do things such as load some of our website’s functions in advance to make the website load faster. Strictly necessary cookies are also used to determine and remember your settings. You can disable strictly necessary cookies in your browser settings, but please note that all of the website’s functions and parts may not work properly after that.
More information about cookies

Analytics cookies

We use analytics cookies to improve the functioning of our website. Analytics cookies collect information about things such as how visitors use our website and how they navigate from one page to another. The information is used in anonymous form.
More information: Privacy Policy and Cookie Policy

Functionality cookies

Functionality cookies allow us to offer various functions, such as playlists and a live chat service, on our website. If you disable functionality cookies, some or all of these functions may not work properly. More information about cookies

Marketing cookies

Marketing cookies help us tailor marketing and offer the users of our website more personalised services in the future. We use marketing cookies to collect information about the user’s behaviour and preferences on our website.
More information about cookies

On this website, we use our own cookies and cookies by third parties to provide the basic functions of the website, perform analyses and track the use of our services as well as to offer the best possible user experience and more personalised services. You can accept all cookies by clicking on “accept all” or change your cookie settings by clicking on “change cookie settings”. Learn more about our cookies.