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World suffers dramatic royalty collection losses – CISAC 2020 report
Global royalty collections for creators of music, audio-visual works, visual arts, drama and literature are expected to decline by up to 35%, representing €3.5bn ($4.1bn) in lost income.
- South African musician and CISAC vice-president Yvonne Chaka Chaka.
This is according to the International Confederation of Societies of Authors and Composers' (CISAC's) 2020 Global Collections Report released on 28 October. The report is titled ‘COVID-19: Crisis, Resilience, Recovery’ and shows how the pandemic has impacted creators while providing an analysis of the continuing effects on their income into 2021. It is based on data collected from the body's 232 member collective management organisations (CMOs) in 120 countries and five regions and presents data from the five aforementioned repertoires.
Societies and creators in Africa are experiencing significant losses in royalty collections due to the COVID-19 pandemic, with CISAC’s 37 African member CMOs reporting a 1.1% increase in total collections to reach €79.3m. The losses follow a modest growth of 0.7% to €78m in 2018. However, currency fluctuations negatively impacted the reported growth rate during that period, with the strengthening of the Euro significantly reducing growth from what would have been a 5.8% increase.
Music topped all income categories, reaching €73m and indicating 1.1% growth. Africa contributed 0.8% to the total collections of €8.96bn in the category globally. The continent remains big on traditional platforms, with TV and radio producing the biggest income at 36.4% of total collections, but royalty income growth is still limited by big broadcasters resisting copyright payments. Live and background revenue accounted for 22.4%, indicating a 2.8% increase in 2019.
Much like other regions, Africa will also see royalties decrease this year due to the cancellation of events and the closure of venues. The fastest growing sector on the continent is still digital, which climbed by €1.2m to contribute 15.6% of total collections. However, more than 80% of this was collected just in South Africa and Algeria.
Private copying income grew by 9.8% in 2019. Legislation and enforcement of this revenue stream could be a key factor for its income growth in the future. In Malawi, income grew five-fold to €1m in 2019 following the adoption of a new law in 2018. Eight African markets currently report private copying collections. CISAC says the prospects for expansion are also encouraging: “UEMOA, the West African Economic and Monetary Union, proposed in 2020 a directive to implement levies across the union’s eight member countries. If adopted by the UEMOA Council of Ministers, the directive will be transposed into the national legislations of member states.”
Digital music revenues increased by 27.2% in 2019 compared to 32.5% in the previous reporting year, and have shown a strong upward trajectory over the past five years. The growth was driven by increased music subscriptions and new deals with platforms globally, according to the report. “A study by Counterpoint Research reported a 32% increase in music subscription. New and renewed licensing deals by societies, with YouTube, Facebook, TikTok, Amazon, Twitch and others, helped drive digital growth. However, creators’ digital revenues remain a disproportionately small share of total collections at only 22.5%.”
South Africa makes up for almost half of the continent’s royalty collections. TV and radio accounted for 57.6% with live and background use at 21.7%. Digital soared 37.7% to constitute 10.2% of South Africa’s total. Algeria, meanwhile, accounts for about 20% of the regional earnings with Morocco and Ivory Coast contributing 8% and 5.6% respectively.
Elsewhere, Europe collected the most for creators for all repertoires with more than half of the world’s collections generated on the continent last year. Canada and the US also showed strong growth, while in Latin America and the Caribbean exchange rate effects influence Euro currency growth. Asia-Pacific has a handful of large markets leading revenue collections in the region.
Download the full CISAC Global Collections Report 2020 here.
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