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Business News (more headlines) 02-08-2014

SACEM: Royalty Collections In 2013: Diverging Trends

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In 2013, 3,706 authors and composers, along with 226 publishers, became members of SACEM (Society of Authors, Composers and Publishers of Music, i.e., over ten new members a day. 27 authors and composers resigned without joining another society and 15 switched to another authors' society.

Among these authors and composers, 450 (12%) are foreign nationals, representing 69 different countries, mostly from Italy, Luxembourg, Congo, Belgium and the United Kingdom. Among publishers, 5% of new members are from outside France.

The steady high influx of new members to SACEM in recent years and the large number of international members attest to the undiminished appeal of the collective management model in general and SACEM's efficiency in particular.

SACEM is a very global authors' society with 149,263 members at present from 164 different nationalities.
SACEM launches online reporting

From now on, reporting is completely dematerialised, while also guaranteeing a high level of security equivalent to that of hard copy reporting. To authenticate the report and its content (audio files, contracts, scores…), SACEM calls on trusted third partie1 for electronic archiving of data as reported in a digital "locker".
This procedure is safe and simple for authors, composers and publishers.

A range of services available since July 2013.

All data on the exploitation of works provided by television channels, radio stations, discotheques, suppliers of musical programming for shops, download and streaming sites are available to members. This application enables them to search the exploitation of their works in detail.

To facilitate members' access to applications at all times, an optimised version for tablets is available.

The free programme SACEM Plus, accessible on the Internet, gives all members —authors, composers and publishers— access to services and other advantages linked to the SACEM card. 23 companies already joined Sacem Plus. Several families of services are available: IT and musical instruments (Apple, Paul Beuscher…), transport and accommodation (Sixt, Kyriad, Taxis G7…), training and career kits (Irma, Ulule…), media, trade fairs and festivals.

First estimations of collections in 2013

The first estimation of royalties collected by SACEM for economic activity in 2013 is €810m (+1.7%).

The year 2013 was characterised by an increase in royalties from concerts, background music (general licensing) and streaming on the Internet. There were also many adjustments for previous years (totalling €24.8m).

Live performance and background music pull up general licensing.
With €281.7m, concerts, shows, tours, discotheques, background music... increased by 3.1% over 2012, representing SACEM members' top revenue sector (34%).
Live performance —concerts, tours, festivals— are up 16.6%, representing alone 11% of all revenue in 2013.

The growth of streaming on the Internet is being confirmed.
With €24.7m, the lnternet represents 3% of royalties collected by SACEM, up 20.5% over 2012. These royalties are linked to the main uses of music online: downloading (Qobuz, Itunes...), streaming funded by advertising or by subscription, with or without video (Deezer, Spotify, YouTube...).

Streaming now represents over 50% of all Internet revenue. The many contracts signed in 2013 with the main players in the market contribute to the significant progression of this revenue stream.

Other trends by sector.

With €236.7m, audiovisual media (radio/television) are stable (-0.1%), ranking second in terms of revenue for SACEM authors, composers and publishers. Radio progressed very slightly (+0.8%) and television is holding up (-0.3%) despite the drop in daily viewing time (-4 minutes - Source: Médiamétrie) and a still waning advertising market, especially for private channels.

The distribution of television programmes on digital networks via ADSL, TV on PC, TV on mobile, satellite and cable represents €79.3 m, progressing thanks to strong adjustments.

With €80m, international collections dropped compared to 2012 (-2.3%) largely due to the strong Euro, although it is part of a positive trend in the past 5 years (+3%). This result shows the dynamism of SACEM repertoire abroad, second for export after the Anglo-American repertoire. More and more members are enjoying international careers and many foreign creators join SACEM (12% foreign nationals).

Private copying is progressing to €67m thanks to an increase in both the sale of multimedia devices and large adjustments of the sums due by equipment importers in previous years.

With €65.4m, the phono-video sector continues to drop. The decline in the market affects results with a drop in royalties collected (-7.3%). Because of piracy, in competition with video on demand and catch-up television, video is pursuing its downward trend. As for phono, representing two-thirds of royalties collected on physical media, the slowdown of the decline of this market observed since 2009 was once again confirmed in 2013 thanks to the fine performance of French artists.

SACEM cultural initiatives (estimations for 2013)

SACEM has, for 50 years, deployed a policy of supporting musical creation, one of the most ambitious for all authors' societies worldwide. In 2013, €14.9m were invested in Creation to support 1,630 projects (1,537 in 2012, +6%) in all musical genres.

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