German collection society GEMA generated revenue of €1.019 billion in 2018 – €55 million lower than in 2017.
According to GEMA. which published its results yesterday (April 16), the 2018 result was down on the previous year, “since considerable extraordinary income from 2017, among others, did not apply” and that when adjusted accordingly, the numbers actually show an increase of 10.3%.
GEMA passed the one billion Euro mark for the first time in 2016, when it collected €1,024.4bn, with collections that year seeing significant uplift from retroactive licence payments from YouTube dating back to 2009.
Of the total €1.019bn, GEMA will pay out €859.5m to approximately 74,000 members as well as rights owners all over the world.
In relation to the earnings, the total expenditure amounted to €159.7m compared to €160.7m in 2017.
Due to the decrease in income, the cost rate increased to 15.7% compared to 15% in 2017.
The source of growth was streaming providers’ income which increased by €35.5m compared to the previous year, reaching €105.5 in 2018.
Earnings from the physical sector of €81m were 15.7% lower than in the previous year (€96.1m).
All other collection categories remained generally stable: Regional Offices contributed to the income with €388.5m (compared to €380.5m in 2017, while Radio and Television revenue was €301.8m compared to €294.2m in 2017.
“With earnings of more than one billion Euros, we made an important contribution to composers and lyricists getting paid for the use of their creative performances.”
Dr. Harald Heker, GEMA
“With earnings of more than one billion Euros, we made an important contribution to composers and lyricists getting paid for the use of their creative performances”, stated GEMA CEO, Dr. Harald Heker (pictured).
“The very positive earnings trend in the online sector confirms that more music is used via the internet than ever before.
“This development must not distract from the fact that a huge gap still exists between the remuneration for music authors and the revenue of big online platforms which make profit with the use of works protected by copyright.”
Added Heker” “The current EU reform lays the foundation for a modern copyright which is adapted to the challenges of the digital age.
“The new EU regulations have the objective to finally create a legal basis for the conclusion of licence agreements between online platforms and creators. We therefore consider this to be a strengthening of the creative and cultural industries in Europe.”Music Business Worldwide