CISAC members report record collections of €9.65 billion in 2018

By Emmanuel Legrand

Boosted by digital growth, global royalty collections for creators of music, audiovisual, visual arts, drama and literature reached a record €9.65 billion in 2018, up 1% year on year, according to the latest figures supplied by the International Confederation of Societies of Authors and Composers (CISAC) in its 2019 Global Collections Report. If not for the strength of the Euro, global collections would have posted a 4.4% growth rate in constant currency terms. Over the five years since 2014, global collections by CISAC member societies were up 25.4%. 

 

  The most significant figure in the report relates to royalties from digital sources, which jumped 29% to €1.64bn, and now account for 17% of collections compared to 7.5% in 2014. The increase in digital revenues collected by CISAC members reflects the global expansion of music and subscription video on-demand (SVOD) services.

  “Digital is our future and revenues to creators are rising fast,” wrote French electronic music artists Jean Michel Jarre and CISAC President in his foreword to the report. “The subscription model has brought wonderful benefits. As the report shows, in some territories, like Mexico, South Korea and Sweden, digital collections make up a large tranche of creators’ income. These digital 'champions' are a snapshot of future potential.”

  While major markets experienced significant growth in digital collections – notably the United States, France and Japan – the digital revolution impacted all countries and regions. The Asia-Pacific region has emerged as a digital leader, with a share of digital revenues of 26.3%, twice that of Europe at 13.3%. Countries like Brazil, Mexico or China have all seen a massive surge in digital income over the past five years with, respectively, 1800%, 1220% and 480% growth rate.

  “This Report provides many reasons for optimism about our sector,” said CISAC Director General Gadi Oron. “Digital revenues show an impressive increase, have nearly tripled in the last five years and have enormous potential for further growth. More markets are seeing digital income taking the top position of all revenue streams, which is an extremely positive sign. In a landscape of fragmenting income sources, the role of authors societies in generating monetary value for millions of creators has never been more vital.”

  For Marcelo Castello Branco, Chair of the CISAC Board and CEO of Brazil's society UBC, the 2019 Report bodes well for the future if CISAC members continue to harness the potential of the digital revolution. “Looking ahead,” he wrote in the report, “our mission is to leverage and license all sources of future growth, without giving up the traditional pillars of income. I firmly believe that we can drive collections to new records in the upcoming decade. Some territories are already showing spectacular digital growth, demonstrating the potential for others.”
  CISAC counts 232 member societies in 120 countries, representing over four million creators in all creative repertoires.

Other highlights from the report include: 

> Traditional income streams stay strong. 
  TV and radio remain the main source of income from CISAC members. Although revenues from broadcasters have declined 2.4% year-over-year, they still account for 39.2% of all revenues. Live and background rose 0.5% in 2018 and makes for 28.6% of all revenues. Income from CD and Video (mainly mechanical rights) was stable at 6.8% of total revenues, as was private copying (3.8%).  

> Music as the leading repertoire. 
  Music accounted for 88.0% of total collections, with a 1.8% growth in 2018 at €8.49bn. Audiovisual comes second with collections reaching €605m in 2018, followed by Literary (€199m), Dramatic (€186m) and Visual Arts (€168). All repertoires except drama have seen strong 5-year growth. According to CISAC, back payments made in 2017 led to downward adjustments in 2018.  

> Europe as a rights powerhouse. 
  Europe has confirmed its position as the largest region for collections, accounting for 56.4% of all collections, followed by Canada/USA (22.6%) and Asia-Pacific (14.8%). All regions posted growth in 2018 except Latin America, impacted by declines in Brazil and Argentina. With collections of €1.93bn in 2018, the USA is the largest market with a 20.1% share, ahead of France (€1.31bn, 13.6$ share). Six European countries (France, Germany, UK, Italy, Spain and the Netherlands) are among the top 10 markets for collections.  

  The strength of the European market can also be highlighted by the fact that 14 out of the top 15 countries in terms of collections per capita are European, lead by Denmark, Switzerland and France. Australasia is the only non-European in the Top 15.

  Europe is also dominant when taking into account collections as percentage of the GDP, with 13 out of 15 European countries in the Top 15, led by France, Denmark and Finland. Argentina and Saint Lucia are the only two non-European countries in the Top 15.

> Sweden as the digital champion. 
  Of all the countries, Sweden – home of music streaming service Spotify – is the one with the highest share of digital revenues, at 39.8%, followed by South Korea (33.4%). With Canada, Denmark and the UK, five countries collecting over a quarter of their income from digital sources. Of all the regions, Asia is the one with the largest digital share (26.3%), with Japan, China, Korea and Australasia all seeing rapid growth. Europe has the lowest digital share, at 13.3%.