Latest CISAC report shows record royalties for creators

Latest CISAC report shows record royalties for creators

Global royalties for creators have grown for the third year in a row to reach a record high of €8.6 billion (£7.35bn), according to a new publication.

The International Confederation Of  Societies Of Authors And Composers (CISAC) has today released its 2016 Global Collections Report, which aggregates financial data from the organisation’s 239 member societies. The report shows royalties were up 8.9% on 2014 figures, with music collections accounting for 86.8% of this figure (€7.5bn [£6.4bn]) – a year-on-year rise of 8.5%.

CISAC president and electronic music pioneer Jean-Michel Jarre said: “In 2015, CISAC member organisations collected over €8.6 billion, an all-time high in the history of the confederation. Such a positive report matters a lot to creators worldwide. Like everyone else, we rely on the health of the economy. However, unlike others, we truly depend on our societies to collect our royalties so that we can continue creating.

“We need effective systems that capture the value of our works and require those who benefit from them to pay us fairly. The positive health of the creative industries and the ability of creators to make a living from their work is of vital importance to culture as well as to the economy.” 

For the first time, the report also consolidates figures from leading music publishers on the digital music business in key markets. Collections from digital services jumped 21.4%, representing 7.2% of overall royalties collected around the world.

Subscription services is the prevailing model in terms of royalties paid to creators and music publishers in the US, UK, France and Sweden, while download services dominate digital income in Germany and Canada. Ad-supported services pay creators significantly less than other business models for online music, in all key markets, which drew criticism from CISAC director general Gadi Oron, who has called for government intervention.

“2015 saw an overall increase of 21.4% in our members’ collections from digital platforms and this is strongly encouraging. Yet, the share of digital income out of total royalties collected by our members is fairly low, at 7.2% only,” said Oron. “The main root of the problem remains legal loopholes and outdated laws which prevents our members from obtaining fair royalties from digital platforms in many countries. 

“The huge difference between collections from subscription services and ad-supported platforms is not only alarming, but also clear evidence that regulatory solutions are desperately needed. Some major online services generate huge profits from the use of creative content, but refuse to share them with the creators of that content. What we are witnessing is a transfer of value from those who create to those who disseminate; an unfair situation which requires urgent attention from governments and legislators.”

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