Record Result For Norwegian Collection Society TONO In 2014
The Norwegian collection society TONO experienced yet another record year in 2014, posting a result of EUR 45,56 million. This is a strong performance considering the society’s small domestic market of five million inhabitants. The result corresponds to roughly a doubling in the course of 10 years. Streaming revenues accounted for the strongest growth in 2014, but foreign revenues also increased significantly for the society in 2014.
TONO, which was founded by Norwegian composers in 1928, saw a rise in total revenues once again in 2014, making it yet another record year for the society. Gross income climbed to no less than EUR 55,89 million. After losses and mandatory deductions for the Norwegian Composers’ Fund (managed by the Ministry of Cultural Affairs), the organisation’s disposable net income totalled EUR 54,63 million. That corresponds to an increase from the previous year of 5,26 per cent. The result less operating expenses came to EUR 45,56 million. Ten years ago, in 2005, the comparable figure was EUR 24,3 million.
“We are proud to report that TONO reached a major milestone in 2014 when it booked total revenues in excess of half a billion Norwegian kroners, which equals EUR 55,89 million. To us, this is confirmation that we are doing a good job of licencing rights and facilitating the use of music in the public space, while ensuring that those who create and own works of music receive the remuneration to which they are entitled,” comments Cato Strøm, CEO of TONO.
Most rapid growth online
Streaming accounted for the bulk of TONO’s income growth in 2014, with revenues which climbed from EUR 8,18 million in 2013 to EUR 10,3 million in 2014, an increase of approximately 25 per cent.
“TONO is one of the rights management companies in the world that has seen the steepest rise in revenues derived from streaming services. This is mainly due to agreements with major services such as TIDAL and Spotify, but we are also seeing growth from film streaming services like Netflix”, remarks Cato Strøm.
More from abroad
Once again in 2014, the largest business area for TONO was broadcasting with revenues of EUR 18,57 million, but also the background music segment (hotels, restaurants, shops, etc.), with revenues of EUR 6,54 million, and concerts, generating EUR 6,26 million, generated significant revenues for the company.
TONO’s revenues from abroad climbed to EUR 3,90 million, up from EUR 3,35 million in 2013, an unusually large increase. The most significant foreign revenues came from the Danish society KODA, the Swedish society STIM and German GEMA.
The company to which TONO distributed the largest amounts in 2014 was STIM, with EUR 5,80 million (largely due to Anglo-American music with Swedish sub-publishers). Second was PRS for Music with EUR 5,26 million, and thirdly ASCAP with EUR 1,84 million.
In 2014, TONO concluded 1552 rights management contracts with rightsholders, seven of which were music publishers. At the end of 2014, TONO represented a total of 26 181 rightsholders.
Source: TONO
