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2008: Royalty Collections Topped 7BN Despite Dismal Economy February 1, 2010

Posted by David W. King in Uncategorized.
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Authors’ societies across the world collected 7.035 billion Euros in royalties in 2008. After 4 consecutive years of growth, collection figures were down 1.5%, reflecting the impact of the economic crisis on creators’ revenues.

CISAC, the International Confederation of Societies of Authors and Composers, has released its annual Global Economic Survey that uses royalty collections data provided by its members—over 220 authors’ societies in 118 countries—to identify trends affecting the 2.5 million creators and publishers they represent. Out of the 2008 report’s figures and analysis emerges a story of authors’ societies working hard to counter a weakening economy and declining record sales to bring in revenues of €7.035bn for creators and publishers.

“This report shows that creators have benefitted from the resilience of their societies,” said CISAC Director General Eric Baptiste. “Authors’ societies’ efforts to develop new revenue streams, extend licensing, improve territorial coverage and cut costs kept incomes for creators relatively stable in 2008.”

The Key Figures for 2008 worldwide royalty collections for authors’ rights:

7.035 billion Euros – total collections of 222 authors’ societies members of CISAC in 2008

– 1.5% from 2007 to 2008 in current EUR

The average ratio of collection per inhabitant remained stable with EUR1.34

64% of collections (4.51bn EUR) were made in Europe

71% (+3 pts) of collections were derived from Public Performance royalties (4.97bn EUR)

Mechanical Reproduction royalties continued to decline (-12%) while Public Performance royalties continued to grow (+2.3%)

87% of collections (6.12bn EUR) came from the musical repertoire

Non-musical repertoires (audiovisual, visual arts, drama and literature) grew by +11%

While total collection figures were down 1.5% in 2008, this was due principally to major losses by a handful of societies who deal principally with mechanical rights, which are associated with recorded works. The majority of CISAC’s members (60%) experienced growth in 2008. This was particularly true in developing regions such as Africa, Asia and Latin America and for societies collecting royalties for the audiovisual and visual arts repertoires (both +23%).

There was also a 2.3% increase in collections of public performance royalties, which are collected when a work is “communicated” to the public, for example on radio, television or the Internet. This attests to successful efforts that authors’ societies are making to boost their licensing activities and expand coverage to new territories. Television, cable, satellite and radio paid 55.9% of public performance royalties, demonstrating the critical importance of creative works to the broadcasting industry. Collections for digital uses lagged far behind at 1%. Despite widespread speculation that live performance would compensate for losses in record sales, royalties collected for live performance remained unchanged at 11.8%.

“It is clear that creators are an integral part of the greater global economy and that their well- being impacts a great many industries.” said CISAC Director General Eric Baptiste. “Decision- makers need to keep this in mind. To play a positive role in the economy, creators need effective legislation, a functional framework for collective management and licensing, proper tools to fight piracy, and copyright awareness.”

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