CISAC reports low digital royalties, but growing performing rights in 2013

Royalties from digital music and related content remain too small a portion to counter the slump in physical-music and media sales, according to the latest revenue report from CISAC, the global copyright collecting societies’ umbrella organization.

The 2015 Global Collections Report states that digital royalties grew a healthy 25% to reach €380 million in 2013, the year covered by the report. However, that is only about 5% of the €7.8 billion amassed in total income collected on behalf of creators globally.

In a statement issued with the report, CISAC’s director general Gadi Oron does not hide his concern about the underdeveloped state of digital revenues and the accompanying challenges.

“Royalty collections from digital services sharply increased in 2013 and we are extremely pleased with this result. Yet, they are still low and the potential for further growth is significant,” he says.” In a world that is becoming increasingly digital, it remains a key priority for CISAC members to ensure that creators around the world receive a more equitable share in the online market.”

However, he was pleased to see total royalties collected in 2013 remain stable at €7.8 billion, a 4.6% growth when measured in constant euros currency. But when currency fluctuations are measured in current euros, total collection decreased slightly at -0.8%.

Performing rights collections grew 2.4%, breaking the €6 billion mark for the first time in rights collection’s history. Yet, that only partially offset the decline in reproduction rights (by 13% in 2013).

The report also showed that music repertoire accounted for the majority of the royalties collected (87% of total) in 2013, while audiovisual royalties leaped 8% from the previous year.

In geographic terms, Europe remains the largest single region for collections, accounting for 60.6% of total royalties with year-on-year growth of 2.3%. That might also explain the slight fall in total revenues’ value because the euro currency has been hurt by the economic slump in the eurozone in recent years.

Legendary French singer-songwriter Jean Michel Jarre is CISAC's president and a full copy of the report can be found here.

[Juliana Koranteng]