After two years of negative results, the German collection society GEMA has made the turnaround.

Following a decline of 3.1% in 2008 and a fall of 2.8% in 2007, GEMA now reports an income of €841 million ($1.13 billion) in 2009 - up 2.2% from €823 million ($1.11 billion) in 2008.

For 2009 the society paid a sum of €713 million ($961.9 million) to its members, an increase of 1.8% compared to 2008. Expenses rose from €122.4 million ($165.1 million) in 2008 to €128 million ($172.7 million) in 2009, an increase of 4.6%. The proportion of income going on costs increased to 15.2% from 14.9%.

But GEMA's CEO Dr. Harald Heker predicted a tough year ahead.

"In the music industry, a continuation of the trend of the previous years is expected, with an ongoing decline in sales and turnover from sound recordings and a good outlook for live music," he said. "The increasing usage of music in the Internet and online markets will continue to result in authors receiving an insufficient share of the economic benefits. The increase from physical sound recordings to online and mobile still cannot compensate the decrease of the traditional market. For 2010 we expect a decrease of income."

Mechanical revenue from physical sales dipped slightly to €149.4 million ($201.6 million) in 2009, a decrease of 0.6%.

Downloads, streaming and ringtones amounted to €10.6 million ($14.3 million), an increase of 45% on the prior year.

The local offices that take care of local public performances also increased their income by 3% in 2009 with revenue of €294.6 million ($397.5 million).

The performing and broadcasting rights income increased from €402.2 million ($542.6 million) in 2008 to €408.7 million ($551.4 million) in 2009. Included in this sum are €85.6 million ($115.5 million) for live music, compared with €80.9 million ($109.2 million) in 2008.

In Germany, GEMA represents the copyrights of more than 60,000 members (composers, lyricists, and music publishers), and GEMA also represents over 1 million copyright owners all over the world.