| 28 Feb 2024
Digital royalties grew 25 per cent but represented only 5 per cent of total royalties collected

MUMBAI: In the latest report released by the International Confederation of Societies of Authors and Composers (CISAC) on the global collection, it stated that Asia-Pacific, USA- Canada and Africa contributed 15.8 per cent, 16.3 per cent and 0.7 per cent respectively, to the overall global collection.  Meanwhile, Europe contributed a huge share of 60.3 per cent of the total royalties of €7.8billion collected in the year 2013 on behalf of over three million creators worldwide.

The report stated that in floating exchange rates there was a fall of 0.8 per cent in 2013 compared to 2012, whereas in fixed exchange rates it registered an increase of 4.6 per cent in 2013 as compared to the previous year. If the fixed exchange rates are considered, global royalty collections would have been €8.2billion in 2013. The figures have been revealed at the backdrop of continued economic uncertainty.

CISAC director general Gadi Oron said, "In 2013, CISAC member societies proved once again the importance of collective management of rights for creators around the world. Despite challenging economic conditions in many markets, total royalties collected by CISAC members remained stable. Excluding the impact of foreign exchange, the underlying growth trend of +4.6 per cent in global collections is very encouraging for the future of the creative industries globally. Other positive reports include a jump of 17 per cent in royalty collections in the Latin American and Caribbean regions, and a sharp increase of 8 per cent in collections for audiovisual repertoire. The BRICS markets continue to show great promise, leaping 30 per cent over the previous year. These countries still have huge untapped potential, with a mere €0.12 of collections per capita, as compared to the €1.30 world average."

Asia-Pacific collected around €1.2 billion in terms of royalties for artistes. In 2010, the region collected €1.4 billion in royalties. According to the report, CISAC’s Asia-Pacific region was impacted by exchange rates. It mentioned that Japan’s currency fall of 21 per cent against Euro, had a wider impact.

BRICS (Brazil, Russia, India, China and South Africa) countries reported a total collection of €365 million in 2013, up by 30 per cent from €281m in 2012. The societies in these regions collected €334million from the use of musical repertoire in 2013, growing 32.7 per cent from the €252million collected in 2012. In 2013, the biggest source of collections in BRICS was TV and Radio, with a collection of €177.1million in 2013, which is up 29.5 per cent from €136.7million in 2012.It now generates €1million per day, but still has much lower collections per head of population (€0.12) than the world average (€1.30 per head).

For the first time, performing rights collections broke the €6billion mark by growing 2.4 per cent. Decline in reproduction rights by 13 per cent was covered up by an increase in performing rights. Performing rights accounted to €6 025million in 2013 which is 78 per cent of the total royalties. In 2013, 18 per cent of CISAC society collections came from reproduction rights. Royalty collections from reproduction rights fell to €1,392m in 2013, a significant decline of 13.4per cent compared to royalty collections of €1,607m in 2012. Other collections came through rental/lending, private copying levies and income from the visual artist’s resale right. Collections from other rights increased by 3.8 per cent in 2013 compared to 2012.

The total collection from the music repertoire was €6,765 million in 2013 which was 0.6 per cent less than 2012.

Collection per head of population in 2013 was highest in Denmark.

The live music industry will continue to grow according to CISAC, with the growing popularity of gigs and festivals, as the infrastructure is now built around events.

However, digital royalties grew 25 per cent even though it represented only 5 per cent of total collections worldwide. It stated that revenue through digital advertising is important for creators. Royalty collections from digital services are still relatively underdeveloped for authors.  The report mentioned YouTube and Spotify’s free offerings. Oron added, "Royalty collections from digital services sharply increased in 2013 and we are extremely pleased with this result."

The global ad revenue is predicted to grow by 5.3 per cent in 2014. Over 50 per cent growth is predicated in mobile advertising between 2013 and 2016. The report also agreed with the predication on mobile market. It stated that India will take first place in 2015, as it accounts for more than a sixth of the world’s population and is set to be the most populated country by 2025.