SAMRO: Artists to receive SABC royalties

SAMRO said the SABC had fallen behind payments amid financial challenges and owed SAMRO about R160m, as of 30 September. In early October, the South African government handed the state-owned SABC a R2.1bn bailout and it seems like a portion of that money will go to SAMRO.

“The SABC has paid 35% towards reducing this long outstanding debt to SAMRO, which is responsible for collecting royalty fees and distributing them to more than 19 000 SAMRO members, who rely on royalties to sustain their livelihoods,” SAMRO said.

“The public broadcaster has committed to honouring monthly payments as agreed with SAMRO and by April 2020, the outstanding debt will be settled in full and current financial year invoices will be up to date.”

SAMRO interim CEO Ditebogo Modiba thanked the SABC for prioritising the payment of its debt.

“Honouring their commitment to us reflects their understanding of the importance of paying for their licence, which ultimately benefits our members," she said.

"This is still a challenge when dealing with some other licensees, and the SABC, despite its financial challenges, has proven to be a positive example in complying with this.

On October 9, Music In Africa reported that SAMRO would place a number of measures to cut expenses at the collective management organisation (CMO), including the reduction of temporary staff.

At the time it seemed like SAMRO was not betting on getting a portion of the SABC bailout, and it was assumed that part of the money would go towards operational costs.

But Modiba said all SABC funds would go towards royalty payments.

“All the money received from the SABC will be used to secure the payment of royalties to our members, which is our primary and core function," she said.