Global Royalties For Creators Reach Record High Of €8.6 Billion
The International Confederation of Societies of Authors and Composers (CISAC) has released its 2016 Global Collections Report providing insight into the remuneration of creators in the year 2015. This unique publication aggregates financial data from the organisation’s 239 member societies, which represent over four million creators of music, audiovisual works, drama, literature and visual arts in 123 countries. For the first time, the report also consolidates CISAC members’ data with figures from leading music publishers on the digital music business in key markets. The report shows that total royalties have grown for the third year in a row to €8.6 billion, up 8.9% from 2014 and breaking the €8 billion mark for the first time. Music collections accounted for nearly 90% of this figure (€7.5 billion) and increased 8.5% year on year. Other repertoires also experienced strong growth with audiovisual royalties up 15.1% and royalties for visual art increasing 27.4%.
Collections from digital services jumped 21.4%, representing 7.2% of overall royalties collected around the world. The new edition of CISAC’s Global Collections Report provides in-depth analysis of market trends with a first look at collections by societies and music publishers from digital music platforms in the US, Canada, UK, France, Germany and Sweden.
Key trends:
* Global royalty collections in 2015 totalled over €8.6 billion, rising 8.9% from 2014 collections.
* By region, Europe continues to lead the world in royalty collections with 58.4% of the total (€5.0 billion), experiencing a year-on-year growth of 3.6%.
* By repertoire, music accounts for the vast majority of collections (86.8% of the total). Audiovisual (+15.1%) and Visual Arts (+27.4%) posted strong year-on-year growth.
* Collections from digital services jumped 21.4% but account for only 7.2% of total royalties collected worldwide.
Digital Music
The new CISAC report includes a special focus on the online market and, for the first time, provides analysis by industry expert Susan Butler on the digital music business. It brings consolidated data from societies and music publishers in six key markets (US, Canada, UK, France, Germany and Sweden) on collections from ad-supported digital audio and video platforms, subscription digital audio services and paid download services.
The report shows that subscription services is the prevailing model in terms of royalties paid to creators and music publishers in the US, UK, France and Sweden, while download services dominate digital income in Germany and Canada. Ad-supported services pay creators significantly less than other business models for online music, in all key markets.
Global figures in further detail
Collections by region
* Growth was driven globally, in all regions of the world.
* North America posted the strongest growth with a 33% increase in collections year on year. This jump is partly attributable to exchange rate fluctuations and the income from the Harry Fox Agency (now part of the SESAC group), added to CISAC’s data for the first time.
* Africa saw encouraging increase of 14.9% in collections between 2014 and 2015.
* Asia-Pacific collections went up 5.6%.
* Latin America & the Caribbean saw a 3.7% growth.
* Europe had a 3.6% growth year on year.
Collections by repertoire
* Generating the lion’s share of global collections at 86.8%, music collections grew in 2015 by 8.5%.
* Audiovisual collections went up 15.1% from 2014 to 2015 reaching €574 million, with the overwhelming majority of these royalties (90%) collected in Europe.
* Visual arts, the smallest sector in terms of royalty collections (€181 million) showed the strongest growth (+27.4%).
Collections by type of right
* Royalties for public performance rights posted a growth rate of 9.1%, climbing to €6.8 billion and accounting for 78.8% of overall collections.
Source: CISAC
