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Business News (more headlines) 03-29-2014

GEMA Posts Positive Result For 2013

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2013 was a successful fiscal year for GEMA bringing in around €852.4 million in revenue for copyright holders around the world. This marked a 3.9 percent or €32.2 million increase on the previous year. One reason for the increase was the new rates schedules that GEMA agreed with broadcasters and that apply retrospectively from January 1, 2009.

In 2013 the operative cost rate fell by 3.2 percent to 14.9 percent (2012: 15.4 percent).

GEMA also made several strategic investments last year to better fulfil its task of managing copyrights on behalf of composers and lyricists, and of providing an important prerequisite for the success of their creative work, both now and in the future. The general cost rate of 15.6 percent in 2012 increased slightly by a proportion of 1.9 percent to 15.9 percent in 2013.

Both positive and negative developments could be seen in GEMA's different sources of income, and these reflected general developments in the music industry.

Overview of GEMA'S most important sources of revenue

Recordings
For several years now, there has been a decline in business in traditional recording media and an increasing tendency to use music online. That trend remained in place in 2013, with income from the recordings business continuing its sharp decline. In the last business year, revenue from this source totaled around €110.4 million. Compared with the previous year, this constitutes a reduction of €6.6 million or 5.6 percent. (2012: €117.0 million, 2011: €126.6 million, 2010: €161.5 million, 2009: €164.5 million, 2008: €171.6 million).

Online
GEMA's online business developed positively in 2013. Compared to last year, total revenue increased by €9.5 million, or 56.2 percent, to a total of €26.4 million. The reasons for this were new contracts and a general increase in invoicing volume as a result of higher demand for online services such as downloads and streaming. (2012: €16.9 million, 2011: €21.2 million, 2010: €13.3 million, 2009: €10.6 million, 2008: €7.3 million).

Radio and television
Thanks to the conclusion of contract negotiations with German public broadcasters ARD and ZDF on tariffs from 2009 onwards, GEMA was able to generate total revenue of €292.2 million from radio and television. This constitutes an increase of €31.4 million or 12 percent compared to the previous year (2012: €260.8 million, 2011: €257.4 million, 2010: €257.1 million, 2009: €283 million, 2008: €237.5 million).

Regional offices
Proceeds from the regional offices remain high. In 2013, these posted a significant increase in income once again, improving by €3.2 million, or one percent, compared to the previous year, to a total of €326.6 million. With this result, the regional offices remain GEMA's most important source of income, as has been the case for several years now. (2012: €323.4 million, 2011: €312.0 million, 2010: €299.1 million, 2009: €294.6 million, 2008: €286.1 million).

The share of mandates for collection on total income amounted to €162.1 million.

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