Germany's GVL Collected $260 Million for Rights Holders in 2018

Berlin, Germany
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Berlin, Germany

GVL, the German society for administering neighbouring rights, collected approximately €230 million euro ($261 million) for artists, producers and event organizers in 2018, a 25.9 percent decline of income compared to the previous year's high of €310 million euro ($352 million) due to high payments in the private copying sector in 2017.   

"All in all, we are satisfied with our year-end results for 2018," declared GVL managing directors Guido Evers and Dr. Tilo Gerlach in Berlin. "The result has turned out to be significantly higher than we had originally anticipated. It is far above average collections of the previous ten years and noticeably above the 200-million-Euro threshold."

Gerlach: "After having benefited from back payments and adjustments in the private copying sector in the previous years ZPÜ, the joint collection centre of the collective management organisations for private copying levies, such one-off financial items were missing in 2018 to a great extent."

The organization said it paid out a total of €287 million ($326 million) to producers and artists in 2018, using a new system for distributions

Those who render artistic performances or create the respective financial basis for the latter must receive money for the exploitation of their performances. GVL captures and manages such exploitations.

GVL pays the fees it collects on a fiduciary basis from radio and TV stations and for the communication to the public (in restaurants or cafés, etc) to its members in the form of a remuneration each year. More than 154,000 performing artists, producers of sound recordings and audiovisual recordings, music and music video clip producers, as well as event organisers, work with GVL.

Reproduction rights resulted in income of €83.9m in 2018 compared to €169.3m in the previous year. This is mainly tied to private copying. In this sector, GVL benefited in the previous years from one-off financial items based on comprehensive adjustment payments. The highest revenues yielded by GVL in 2018 occurred in the broadcasting revenue sector (about €92.1m in 2018 compared to €87m in the previous year). A noticeable increase in income by more than 41 per cent were reached by GVL in the international rights sector. They amounted to €5.6m in 2018 compared to approx. €4m in 2017.

GVL’s own administrative expenses dipped about 3 percent to € 22.1m compared to the previous year (€ 22.8m in the previous year).

Slight reductions were also felt by GVL in the public communications sector (down €1.1m) and in collecting of rental and lending (now at €2.1m).

Income from cable re-transmission of artistic performances remained relatively stable with € 2.1m compared to the previous year (€ 2.2m). GVL paid about € 3.6m in total for the promotion of cultural projects in the course of allocations in 2018.


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