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News |  31 Jan 2012 20:07 |  By RnMTeam

Royalty collections climbed 5.5% to Ôé¼7.545 bn: CISAC

MUMBAI: Royalty collections has climbed 5.5% reaching to a total growth of €7.545 billion, according to Global Economic Survey released by CISAC.

It was a second consecutive year of significant growth, following a 1.7% rise in 2009 with the slight dip in 2008.

Emphasizing the contribution authors' rights can make to global economic development, the overall rate of growth for royalty collections during 2010 slightly exceeded that of world GDP (5.1%, according to IMF figures). The growth came across the globe, with particularly dynamic performances in the Latin America-Caribbean (+21%) and Asia-Pacific (+12%) regions. North America saw growth of 5.7%, although Europe remained somewhat muted, at 2.3%.

The year also saw an unexpected recovery in mechanical reproduction royalties for recorded works, driven by results in North America, Asia and Latin America and by the digital sector.

However, public performance continued to provide the lion's share of revenues for creators and music publishers, climbing 7.5% to €5.5 billion, or 73% of all revenues. With 56% of public performance revenues accounted by broadcasters, radio and television remain the predominant royalty source (39.8% of all collections).

Revenues from the phonographic industry accounted for 23.4% of all collections, representing the second major source of royalty collections. But collections from the digital sector rose 22% in 2010, while the decline in royalties from physical sales generated limited source of revenues (1.7% of collections).

The revenues from the digital sector continues to increase and growth rates for streaming and downloads were very high, reflecting the expansion of licensing contracts for these two types of music use.

CISAC director general Olivier Hinnewinkel said, These positive results show the solidity and efficiency of the international network of authors' societies represented by CISAC. The growth has been delivered through the hard work of CISAC members who are constantly looking into improving their costs, expanding coverage of their own territories and adapting to the constantly-changing ways their repertoire is used, especially in the digital sector....

IFPI recently reported that major international digital music services such as iTunes, Spotify and Deezer are now present in 58 countries,... said Hinnewinkel, compared to only 23 at the start of 2011. CISAC members are now well placed to develop this market as it expands....

The annual survey was based on data provided by the International Confederation of Societies of Authors and Composers(CISAC) members—232 authors' societies in 121 countries, representing more than three million creators and publishers of all artistic genres.

 

Key figures for global collections in 2010

€7.545 billion—total gross collections from CISAC member societies

+5.5%—worldwide year-on-year growth (in current €).

61% of global collections were generated in Europe (€4.6 bn)

73% of collections were from public performance royalties

86% of collections were accounted for by musical repertoire

+15%—growth for audiovisual repertoire.

 

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