CISAC is the largest global network for creators, representing 239 authors societies in over 120 countries. CISAC champions the rights and interests of millions of creators, lobbying for legislation across the world, providing licensing and technology services to societies and ensuring best practice and good governance. As CISAC today releases its flagship annual Global Collections Report, the Confederation’s Director-General Gadi Oron sums up what the Report says about state of the global collective management sector going into 2020.
This week marks the release of CISAC’s annual Global Collections Report, the definitive source of data and analysis on authors’ royalties collections. The Report shows royalties generated for millions of creators of music, audiovisual, visual arts, literature and drama, throughout the world.
Creators are not just the source of our culture: they are the single most important driver of the creative economy. Our member societies are dedicated to securing fair rights and royalties for creators. Our new report shows that last year global royalties hit a new record of €9.7 billion. It is the fifth consecutive year of growth in our sector and over that period, collections have grown in total by more than one quarter. This is good news in particular for music authors and their societies, which collect the vast majority – almost 90% – the global total.
Our market is rapidly changing and, with it, the sources of income for creators. As shown in the Report, the main driver of growth is the sector’s rapid and sustained shift to digital. There is no doubt that the traditional income streams of radio, TV broadcasting, live and background music are still vital to the livelihoods of authors. But digital is now taking off – up 29% in 2018 and more than tripling over the last five years.
A few fascinating indicators show the potential for further growth. In the music sector, three years ago, among the top 20 markets none had digital royalties as the biggest collections source. Today there are five countries where the largest income stream is digital. The list is led by Mexico with an impressive 49% of the country’s collections coming from digital uses. The others are Sweden, Australia, South Korea and Canada. This year’s Report also spotlights the markets of China and India, where digital licensing deals are powering growth.
Also telling is the marked difference between regions: in Asia/Pacific, digital’s share of total collections is 26%, twice that of Europe. A similar percentage in the far larger European market would add more than €1.5 billion euros to global royalties. Of course, Asia’s high digital share is also a reflection of the fragility of the traditional income streams in that region – something CISAC is helping societies in Asia change, in the face of powerful broadcasters resistant to paying a fair value for creative works.
The sustained digital growth of our sector is a hard-fought achievement by CISAC’s member societies which have transformed their licensing operations to monetise every possible use of creators works online. At the heart of this transformation has been new investment in data tools and technology. These handle the many trillions of digital performances processed by societies, which are growing exponentially.
CMOs’ licensing deals have tracked each new link in the evolutionary chain, from music subscription services to social media sites. In 2018, video-on-demand platforms like Netflix and Amazon are boosting growth, with societies ensuring their member creators get maximum benefit from the much-heralded “golden age” of TV.
Finally, our Report shows the most critical element needed to ensure this growth is sustained – fair rights for the authors themselves.
Despite societies’ efforts, authors across the world are still seeing their work massively undervalued. Even fast-growing digital music collections still only account for only 19% of the total.
CISAC’s members are facing daily battles to negotiate fair rates with commercial users, or to secure legislative rights for authors in territories where they do not even exist. Our Report focuses especially on Europe, because the EU Directive on Copyright in the Digital Single Market, adopted earlier this year, has already set an example of what a fair balance between creators and digital platforms can look like. The Directive sets a new benchmark for creators’ rights, and it is now time for governments worldwide to heed the lesson from Europe.
Sustained digital growth; innovation and adaptation by societies; and fighting for a fair legal environment – these are key themes of our 2019 Global Collections Report, and reasons to be optimistic about the current state, and the future, of our sector.
Download the report here!