CISAC, the trade group for performance rights and mechanical collection societies, reported today that member revenues from 229 authors' societies were 7.15 billion Euros ($9.734 billion) in 2009, up 1.7% from 2008's total of 7.04 billion Euros. However, the organization added that most of the growth could be attributed to exchange-rate fluctuations.
Within that total, music accounts for 86%, or 6.14 billion Euros, of the total, while the remaining non-musical repertoire grew 11% to achieve 1 billion Euros for the first time, and overall accounted for 14% of royalty collections.
Particularly disappointing is that digital services still account for a paltry 1.7% of revenue, which demonstrates that legitimate digital services are still not generating significant revenues, according to the study.
Looking at royalty revenue by type of rights, the report noted that performance royalties grew 3.4% to 5.13 billion Euros from 4.97 billion Euros in 2008, and now represent and 71.6% of total annual royalties; while mechanical royalties fell 8.7% to 1.4 billion Euros from 2008's total 1.7 billion Euros, and now comprise 19.6% of all royalties.
Other royalties, which mainly apply to non-musical copyrights like resale rights, lending, and multimedia grew 37.1% to 389 million Euros, or 5.4% of total collections; while private copying royalties from sales of blank discs and tapes and electronic equipments that facilitates copying music dropped 9% to 231 million Euros from 254 million Euros in 2008, and now comprise 3.2% of collections.
Breaking out revenue by geography, Europe comprised 62.7% of royalty collections, or 4.48 billion Euros; the U.S. accounted for 19.1%, or 1.37 billion Euros; Asia-Pacific region comprised 14.1% or, 1.007 billion Euros and Latin America and the Caribbean comprised 250 million eros, or 3.5%, while Africa was 42 million Euros. In analyzing the difference between mechanical and performance royalties by region, mechanical licensing only accounts for 5.7% of royalty collections in Latin American while public performance rights in that market are nearly 94%. On the flipside, mechanical royalties are strongest in the Asian-Pacific market, where that category comprises 29.8% of royalties, while public performance royalties account for nearly 55%.
Within public performance royalties, TV was the largest generator, comprising 20.5% of 2009's total royalty collection, followed by phono public performance royalties at 17.5%, radio at 15.7%; live music at 11.8% and cable at 12.5%. Also, the remaining royalty collections were comprised of the other category at 9.3%; satellite at 3.3%; movie theaters at 2.6%; cinema at 1.4% and digital/multimedia at 1.4%.
Moving over to mechanical royalties, CD and other physical formats comprised 57.5% of mechanical royalties; video was at 12.8%; TV at 11.3%; other at 8.9%; radio at 5.3%; digital/media at 3%; and synchronization at 1.2%. But in many instances, the overall numbers exclude synchronization revenue since often those funds are paid directly to the publishers, by passing the collection societies.
Neighboring rights, which are not included in the total collections and are only collected in certain territories, accounted for 42.6 million Euros in 2009.