GEMA's collections up 5% in 2019 thanks to 'robust' live sector

By Emmanuel Legrand

GEMA's Harald Heker (Credit: Jonathan Linder)

German rights society GEMA collected €1.069 billion on behalf of its members (authors, composers and music publishers) in 2019, a 5% increase compared to 2018, while distributions reached €905.6m. Although total expenses grew year-on-year to €163.7m from €159.7m in 2018, GEMA's expense ratio in 2019 was 15.3% compared to 15.7% in 2018.  

  "Income from music events, which continued to grow due to a robust concert year in 2019, again made the strongest contribution to business results," said the Berlin-based society. 

Online is a significant source of income

  Commenting on the results, GEMA CEO Harald Heker said the society's "very good 2019 financial year will form a 'crisis airbag' for our members. For many of them, the regular distributions on 1 April and 1 June 2020 provide much-needed financial support. Especially in these difficult economic times, GEMA’s distributions may even secure people’s livelihoods."

  Online revenues rose by over 72% to €181.9m, thanks in particular to new contracts concluded with digital service providers. In contrast, income declined in the areas of mechanical and remuneration claims.

Need to transpose EU's Copyright Directive

  "Collection from internet and streaming services has now become a significant source of income for music authors," said Heker. "This makes it all the more important that the legislator in Germany now transposes the reform of copyright law adopted by the EU in 2019 into German law. More than ever, composers and lyricists need a reliable legal foundation so that they can participate fully in the digital value creation of their works."

  Other highlights include: 

- Revenues from public performances of music, collected by GEMA's Regional Offices, were again the strongest revenue sector in 2019, with collections reaching €407.4m, up 4.9%, thanks to good live music performances.

- Income from music usage on television and radio fell slightly by 2.2% to €295.2m, due to declining advertising revenues from private television stations. 

- Mechanical revenues were down by almost 25% compared to the previous year, at €61.1m. Sales of CDs continued their downward spiral, while vinyl delivered positive market trends.