CISAC: Annual Royalty Collections Reach Almost $10B

Musician playing the drums on brick wall backgroundRoyalty collections worldwide increased almost 6% to $9.65 billion compared to 2016, despite YouTube “paying mere crumbs to authors,” according to Jean-Michel Jarre, president of International Confederation of Societies of Authors and Composers (CISAC).

CISAC based its findings on 239 collection management organizations in 123 countries. Its data showed that revenue from music publishing also rose 6.8% to $8.435 billion.

Music Business

Recording artists, songwriters, composers, and publishers should seek professional advice on how to calculate royalties, especially since digital resources have become more pervasive. Jarre said that royalty collection could have grown much higher, if not for major industries that use creative content. As a result, this affects the “value of our works,” he added.

Jarre cited a “transfer of value” in the digital market as an example. He urged governments to find a solution to this trend. Despite certain challenges, CISAC believes that the 2017 report reflected a successful collective management system.

Regional Royalties

In North America, television and radio royalties accounted for 58.1% of $2.08 billion in revenue, or $1.21 billion. Digital royalties comprised $292.9 million, while live and background revenues amounted to $344.5 million.

Sweden emerged as the European market’s bright spot with a total revenue of $110.02 million, according to the CISAC report. Digital revenues only accounted for around 10% worldwide, yet the country posted a slightly higher revenue than television and radio. Spotify started in the country, and this helped in recording $39.04 million digital revenues compared to broadcast media’s $38.8 million. CISAC director general Gadi Oron said that digital royalties continue to increase, while the segment has surpassed other income sources in some markets.

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Revenue from royalties remains an important source of income for authors, composers and musicians among other professionals. For this reason, it is important that you prioritize an efficient royalty management process.