CISAC Reports Global Publishing Grew 6% to $9.4B in 2017, Smaller Regions Showing Greatest Gains

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CISAC, the International Confederation of Societies of Authors and Composers, which collects data from 239 collection management organizations in 121 countries, reports that music publishing collections grew 6 percent to €8.336 billion ($9.4 billion) in 2017 from €7.863 billion ($8.87 billion) in 2016.

Member organizations help to secure the best remuneration for millions of creators around the globe, according to the CISAC leadership, as the fight carries on to get fair payments from large tech companies that enjoy massive traffic from user generated content using music but pay below par rates to right holders.

"CISAC is at the heart of a battle for the future of over 4 million creators worldwide," CISAC President Jean-Michel Jarre said in his introduction to the report. "It is a fight over whether legislation can continue to allow the value of creators' works to be taken from them to fund the business empires of global tech companies. As an artist and composer, I am passionately involved in this struggle."

Breaking out music revenue by channel, television and radio royalties was the largest provider of royalties once again in 2017 with €3.398 billion ($3.81 billion), a 3.3 percent increase from €3.29 billion in 2016. Meanwhile, concerts and background music in stores, hotels and elsewhere grew 3.2 percent to €2.542 billion ($2.853 billion) from 2016's total of €2.463 billion.

Whereas digital continues to lag in music publishing when compared with recorded music revenues, it still enjoyed a healthy 23.1 percent jump in royalties to €1.248 billion from last year's restated amount of €1.013 billion, Billboard calculates.

Most of the numbers in CISCAC's report for 2017 restate previous years totals for 2016 on backward to provide consistency for currency fluctuations, and where those prior year revenue totals weren't provided, Billboard calculated them using the percentage increase provided in the report, as well as their dollar equivalent. This report appears to use a conversion rate of €1 to $1.1227. As well, the music publishing total doesn’t include royalties paid directly to publishers.

Private copying assessments on blank media provided the music industry with €342 million ($386 million) in 2017, a 28.4 percent increase from the €266 million garnered in 2016, to enjoy the biggest percentage increase. As for the categories losing ground, as expected, physical musical formats, including DVDs, dropped to €692 million ($777 million) from €712 million, a 2.8 percent decline, while other income streams fell 1.4 percent to €114 million ($128 million) from €118.3 million in 2016.

As percentages, that breaks out to 40.8 percent from TV and radio; 30.5 percent from concerts and background music; 15 percent from digital; 8.3 percent from physical carriers, 4.1 percent from blank media and 1.4 percent from other fields for 2017. In 2016 those percentages were 41.8 percent for TV and radio, 31.3 percent for concerts and background music, 12.9 percent for digital, 9.1 percent for physical formats, 3 percent from blank media and 1.5 percent from other.

Breaking out music revenue by licensing, performance rights grew 6 percent to €6.61 billion ($7.42 billion) from €6.234 billion in 2016, while mechanical grew 2.6 percent to €1.323 billion ($1.485 billion) from €1.289 billion. Other rights grew to €405 million ($455 million) from €338 million.

Looking at music publishing collection contribution by continents, Europe is the largest region with €4.349 billion ($4.912 billion), which is a 5.2 percent increase from the €4.124 billion the collection organizations in that area gathered in 2016. Breaking that out by channel, live and background music was €1.683 billion ($1.889 billion), a 3.1 percent increase over €1.632 billion; while TV and radio collections totaled €1.544 billion ($1.744 billion), a 1.9 percent increase over €1.515 billion; and digital totaled €515 million ($578 million), an 18.4 percent increase over €435 million in 2016. That leaves other channels with €607 million ($681 million) in 2017, a 12 percent increase from €542 million.

The U.S. and Canada was second largest with €2.123 billion ($2.4 billion), a 7.2 percent increase from the €1.98 billion provided in the prior year. Within the North American total, TV and radio provided €1.165 billion ($1.308 billion), up 1.7 percent from €1.145 billion, while digital provided €363 million ($407 million), up 27.5 percent from €284.7 million; and live and background music provided €338 million ($379 million), up 7.2 percent from €315 million. That leaves other channels with €257 million  ($315 million), up 9.4 percent from €235 million.

Meanwhile, the Asian-Pacific region contributed €1.257 billion ($1.411 billion) in music publishing royalty collections, a slight increase from the €1.256 billion garnered in the prior year. Breaking that out by channel, TV and radio provided €408 million ($458 million), flat from the prior year, while digital royalties contributed €307 million ($345 million), which represented 23.7 percent growth from the prior period's total of €248 million; and live and background came in at €293 million ($329 million), down 2 percent from €299 million. Other music publishing income streams provided €250 million ($280 million), down 15.7 percent from €300 million in 2016.

The smaller regions produced the greatest percentage increases. Latin America and the Caribbean collections grew to €538 million ($607 million), up 23.6 percent from €435 million. And Africa grew to €69 million ($78 million), up 15.7 percent from €59.6 million .

"We are starting to see a new dynamic in countries that, historically, were almost non-existent in terms of collections," said CISAC chairperson of the board Eric Baptiste in his preview to the report. "In Africa, Latin America and, as far as Asia is concerned, in China and India, we are seeing new business practices, steadily improving copyright frameworks, increased digital consumption and a more efficient network of collective management organizations."

As for country-by-country royalty collection comparisons, the U.S. societies garnered €1.884 billion ($2.115 billion) in 2017, a 7 percent increase from the €1.76 billion gathered in 2016. Next largest was France with €886 million ($995 million), up 2.1 percent from the €868 million in the prior year. As well, Germany grew 7.2 percent to €806 million ($905 million) from €752 million.

Japan, the No. 4 country on that list and previously the third largest collector of music publishing revenue, fell 6.8 percent to €799 million ($897 million) from €857 million. That fall is due to the fact that physical formats are still larger than digital revenue in that country. So with physical formats falling 17.3 percent and digital only growing 15 percent but from a smaller base, that led to an overall decline, but the report didn't break out the specific revenue numbers.

Rounding out the top five, the U.K. grew 5 percent to €678 million ($761 million) from €646 million.

Finally, the report illustrated the extremely complex environment that collections management organizations around the world have to deal with by noting that BMI processed 1.4 billion micro-transactions in 2017, while SACAM handled even more with 2.1 trillion and PRS for Music at 6.6 trillion uses processed.

"In the face of extraordinary changes and challenges in our landscape, CISAC members are constantly adapting, innovating and improving their operations," said CISAC's Director General Gadi Oren in his report overview.

He added in a statement, "This impressive performance proves that authors' societies are delivering value to the millions of creators they represent around the world. They have responded to rapidly changing technology, licensing digital services in new flexible ways and handling trillions of data transactions. And they are fighting for the best licensing terms and the highest royalties possible in a world where powerful users are determined to avoid, or minimize, paying a fair return for their work."

Overall revenue reported by CISAC totaled €9.58 billion ($10.8 billion), up 6.3 percent percent from €9 billion. Besides music, that 2016 total includes collections of €611 million ($689 million) for audio visual; €227 million ($255 million) for literary works; €196 million ($221 million) for dramatic works and €208 million ($234 million) for visual arts. CISAC notes that this represents the fifth year in a row of growth.


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