Tag Archives: Associate members

Full speed ahead

The Corona pandemic continues to direct the course of SUISA’s business. This was clearly perceptible at the Board meeting in April. Which is why it is all the more important to set the course for the future. Report from the Board of Directors by Andreas Wegelin

Report from the Board of Directors: Full speed ahead

Despite adverse circumstances, the Cooperative Society SUISA stayed its course in the interest of its members and principals. (Photo: Lobroart / Shutterstock.com)

Business as usual – this expression may sound odd in Corona year 2. And yet, at the last spring meeting, much remained the (new) same. After one year of Corona, SUISA’s Board and Executive Committee have grown accustomed to meeting via videoconference. Just as they have become inured to the rolling budgeting rendered necessary by the uncertain situation in the cultural sector.

And yet, this year, the first Board meeting was special. After a bumper year in 2019, SUISA saw a downturn in revenues in 2020 – as was only to be expected given the pandemic. However, the decline was less steep than had been feared. Turnover dropped 12% overall. This was primarily due to the drastic fall in revenues from performance rights. Corona-related bans on events, and recurrent business shutdowns led to a 34% decline in revenues from this sector. The most affected were concert licence fees (–51%), restaurants (–46%), entertainment events (–47%) and cinemas (–59%).

Relatively good performance thanks to broadcasting rights and online uses

That total sales “only” declined by 12% was due to a slight increase in broadcasting rights and, above all, to the growth in revenues from online business. Good secondary income and strong cost awareness within SUISA also contributed.

It follows, therefore, that the amount distributable to authors and publishers also declined – by 10.5% overall. Moreover, the Board decided to allocate an unchanged additional distribution of 7% from the released settlement provisions on all uses of works to be settled in 2021.

The business activities of our subsidiary SUISA Digital Licensing, responsible for global online licensing, developed satisfactorily. In 2020, SUISA Digital Licensing generated about CHF 5.5m in revenues. The Board acknowledged the financial situation of SUISA Digital Licensing and the current status of the joint venture Mint Digital Services. Since both companies are still in development, the Board decided the necessary measures to ensure the equilibrium of SUISA Digital Licensing’s balance sheet. SUISA’s claims on Mint for business development costs (under del credere provisions) were extended for an additional year and the additional claim from 2020 was in its turn written off in the financial statements.

The 2021 General Meeting will take place by written correspondence again

In view of the continuing uncertainty with regard to indoor assemblies, the Board decided that the General Meeting would perforce be held for a second time by written correspondence. The Board nominated State Councillor (FDP/Freibourg) to succeed Géraldine Savary who was withdrawing. Video messages from Johanna Gapany, SUISA President Xavier Dayer, and CEO Andreas Wegelin, and information about the 2021 General Meeting to be held by written correspondence is available under www.suisa.ch/en/members/general-assembly.html and on the SUISAblog.

Status of 2021 budget with the ongoing Corona crisis

The uncertain situation in the cultural sector owing to the Corona crisis continues to cause concern. When and how performances will be able to be staged anew, and music halls and theatres will be able to open, is still unknown. As a result, rolling budget planning continues to be the order of the day as in past months. The Board’s Finance Committee will decide in early June 2021 whether the budget approved in December 2020 needs re-adjusting because of Corona.

Thanks to the emergency Corona fund, the Pension Fund for authors and publishers, and the extended rules on advances, SUISA has been able to support its members in these difficult times. In this regard, the Board decided to extend the time limit for the repayment or compensation of advances against current settlements until the end of June 2022.

Mint joint venture to be strengthened

Apart from music publishers – including BMG for Australia, Africa and India – Mint’s customers for online licensing now also include European sister societies. Mint offers their repertoires in bundles to online providers such as Spotify, Apple Music, or Youtube.

By bundling repertoires, Mint is strengthening its market position in online music rights. Despite the small Swiss repertoire, SUISA has become a serious negotiating partner thanks to Mint and SUISA Digital Licensing and the bundling of its repertoire. Depending on the country, its market share of the global repertoire varies between 4 and 10%. At the meeting, the Board defined the conditions to be applied to large European collecting societies wishing to participate in the Mint joint venture. This will further strengthen Mint’s market position in the constantly growing market for online music rights.

Adapting the range of services for members and principals

In the Report on the December meeting, we mentioned that the Board was looking to reorganise the services provided to members and principals with a view to saving costs. As of 2022, principals will only be able to access SUISA’s extended range of services through the online service portal. Comprehensive information on revenues and invoicing will be even easier for principals to find on the portal thanks to the new functionalities. Instead of time-consuming inquiries by phone, letter or email, principals will be able to call up all the data on their relationship with SUISA online through their individual “My account” access. Voting members will have access to these same services via the online service portal; in addition, however, they will continue to be entitled to personal advisory services.

As the above-mentioned Report says, in December 2020, the Board decided that authors and publishers would be admitted as members with full voting rights once they have been principals for at least one year and have received over CHF 3000 (previously 2000) in settlements since first registering as principals. Moreover, members who have received distributions totalling less than CHF 3000 over the last ten years would revert back to the status of principal. This change is in accordance with Article 5.5.4 of SUISA’s Articles of Association. Principals do not have voting rights in the Society, but they are entitled to the same licensing and distribution of revenues from the use of their works; principals have no financial disadvantage over voting members.

These measures – especially the upgrading of services through the members portal – are designed to further enhance SUISA’s efficiency. And, as a result, to distribute a higher share of revenues to authors and publishers.

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The Corona pandemic continues to direct the course of SUISA’s business. This was clearly perceptible at the Board meeting in April. Which is why it is all the more important to set the course for the future. Report from the Board of Directors by Andreas Wegelin

Report from the Board of Directors: Full speed ahead

Despite adverse circumstances, the Cooperative Society SUISA stayed its course in the interest of its members and principals. (Photo: Lobroart / Shutterstock.com)

Business as usual – this expression may sound odd in Corona year 2. And yet, at the last spring meeting, much remained the (new) same. After one year of Corona, SUISA’s Board and Executive Committee have grown accustomed to meeting via videoconference. Just as they have become inured to the rolling budgeting rendered necessary by the uncertain situation in the cultural sector.

And yet, this year,...read more

Planning ahead in a crisis situation

Advance planning is particularly important in times of crisis. During the December 2020 meetings of the Board, SUISA looked at the key issue, budgetting, and other relevant topics for the future. Report from the Board of Directors by Andreas Wegelin

Report from the Board of Directors: Planning ahead in a crisis situation

Despite a bleak budget forecast, SUISA makes music possible, also in 2021. The photo shows a snapshot of last year’s Label Suisse where SUISA contributed as a sponsoring partner. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

The SUISA Board of Directors dedicated its December meetings mainly to the 2021 budget. During the current crisis situation due to the pandemic, the projections are even more difficult, compared to 2019. It is possible that there may be major deviations regarding the degree of how the budget is met. In addition, the 2020 budget was revised last year at the end of April during the running financial year and the Executive Committee worked on the basis of a corona budget with new targets for the remaining eight months.

In December, the Board of Directors approved the following cornerstones for the 2021 budget:

2021 income has been budgeted at 20.7% less than the results from 2019, i.e. the financial year before the start of the crisis. Compared to the very cautious corona budget for 2020, however, it is 6.7% higher. The income from performing rights is set at 37% below the 2019 figures. This is due to the event bans resulting from corona ordinances and regulations.

The 2021 costs were budgeted at about 5% less than those for 2019. They are, however, 20% lower than the figure provided in the revised corona budget 2020.

Several factors play a role when it comes to how cost is developing: Apart from savings in terms of personnel, there are significant cost segments in the IT and securities expenses. Savings are planned for personnel costs, on the one hand due to retirements and associated restructuring, and on the other hand due to the outsourcing of 11 staff into the subsidiary Mint Digital Services AG.

When it comes to the IT segment, the Board of Directors thinks it is more important to maintain innovation and to partially expand on it in order to retain competitiveness than to just implement mere saving measures. Efforts to save money which are too strict often backfire and lead to an unwanted slowing down of the development of our service ranges.

Finally, the securities expenses are a budget item which is very hard to estimate per se. Luckily, the Board of Directors could establish that the financial markets have meanwhile recovered from their collapse in March 2020 and that financial investments are thus again back on the levels of last year. For 2021, the Board has budgeted a much lower finance expenditure than in the 2020 corona budget.

Despite the bleak budget outlook, the Board of Directors decided that the cost deductions for the 2021 distributions should remain unchanged. Executive Committee and Board of Directors expect that the amounts from released liabilities can compensate for the decrease in revenue and thus for an increase in the cost to revenue ratio.

New service range catalogue and minimum fee for SUISA membership

The Board of Directors also covered the service range offered to members and principals in its December meeting. SUISA now holds more than 12,600 members who are entitled to vote and 26,700 principals. Unfortunately, of the 40,000 rights holders, only 60% generate significant income. More than a third of all entitled rights holders never receive a distribution because their works are neither performed, recorded, broadcast nor used online. All rights holders were able to use all of SUISA’s service ranges in the past. The digitisation led to the creation of online services (“My account” portal). Self-service options available in the portal for rights holders are going to be further expanded.

The Executive Committee thus worked out proposals how costs could be saved by offering service ranges to principals only via online features. This measure would save working time and thus staff costs. As a consequence, the Board of Directors now decided to adopt the conditions for membership. From now on persons who have been principals with SUISA for at least one year and have been paid out a minimum of CHF 3,000 (previously CHF 2,000) will become members of SUISA. Principals shall, from 2022 onwards, only be able to access SUISA’s range of services via the online portal “my account”.

Changes in the distribution and investment rules

Further business discussed at Board level was the approval of new distribution rules, among other for the collections from blank media levies and the change of the investment rules regarding the criterion of sustainability of financial investments.

Flexible management in times of crisis

Finally, the Board of Directors decided to create a conference of Presidents which is meant to replace the previous corona task force. Based on the reporting of the Executive Committee, it is scheduled to determine the impact of the ordinances and regulations by the authorities on SUISA’s business on a monthly basis and highlight need for action to the Board of Directors. Members of the conference of Presidents are Géraldine Savary, Roman Camenzind, Rainer Bischof, Marco Neeser and Xavier Dayer.

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  1. hermann says:

    Sehr geehrte Damen und Herren
    ich habe ihren Artikel mit Aufmerksamkeit gelesen und ich habe absolut Verständnis für die Aussagen und Denkweisen. Sie haben die Aufgabe ihre Mitglieder und Auftraggeber bestmöglich zu versorgen.
    Meine Sicht der Dinge ist etwas differenzierter. Die vielen Betriebe und Vereine die durch Covid 19 stark eingeschränkt wurden, von Bundesgeldern und auch von rückzahlbaren Krediten (Covid19-Krediten) belastet sind, sollen den Jahresbeitrag ohne Berücksichtigung der aktuellen Situation bezahlen.
    Das sehe ich auf keinen Fall so, denn der FC Ebikon ist einer der betroffenen Fussballvereine in der Schweiz, die ihren Betrieb einstellen musste. Das heisst, das der Trainingsbetrieb und aber auch der Betrieb unseres Clubhauses eingestellt werden musste, dies wurde so angeordnet. Somit hatten wir nicht die Möglichkeit das gesellschaftliche Leben, den Clubbetrieb mit Musik, Filmen, Videos etc zu nützen. Das heisst konkret, dass wir die Rechnung nicht in diesem Umfange bezahlen werden, sondern im Umfange der Nutzungsmöglichkeiten die staatlich verordnet sind.
    Falls der Trainingsbetrieb per 1.3. oder dann hoffentlich per 1.4.21 wieder gestartet werden kann, erwarte ich eine angepasste Rechnung von Ihnen. Weiter hätte ich erwartet, dass sie der aktuellen Corona Situation Rechnung tragen und sie eine partnerschaftliche und faire Rechnung versenden.
    Für eine Stellungnahme bitte ich sie und grüsse Sie freundlich
    Sebastian Hermann
    Finanzchef FC Ebikon

    • Sehr geehrter Herr Hermann

      Danke für Ihre Nachricht.

      Die SUISA ist sich bewusst, dass viele Betriebe und auch Sportvereine wie der FC Ebikon unter den Folgen der behördlichen Massnahmen zur Eindämmung der Corona-Pandemie leiden. Denn den Musikschaffenden, den Mitgliedern der SUISA, ergeht es in diesen schwierigen Zeiten gleich.

      Damit verbunden hält die SUISA ihre Dienstleistung aufrecht, öffentliche Musiknutzungen zu erlauben, aber hat schon im Frühling 2020 zugunsten der Lizenznehmerinnen und -nehmer einige ihrer Modalitäten den ausserordentlichen Umständen angepasst.

      Die Kundinnen und Kunden der SUISA sind in den verschiedensten Wirtschaftszweigen tätig. Teilweise sind und waren aufgrund der behördlichen Verordnungen die Musiknutzungen sogar regional unterschiedlich verunmöglicht. Für die nachweislich nicht erfolgten Nutzungen entfallen die Vergütungen für die Urheberrechte.

      Damit der Nachlass korrekt dem individuellen Einzelfall entsprechend in Abzug gebracht werden kann, kommen aus administrativ-technischen Gründen differenzierte Verfahren zur Anwendung. Speziell bei Lizenznehmerinnen und -nehmern des Gemeinsamen Tarifs 3a (GT 3a) für Hintergrundunterhaltung können die Termine der Betriebsschliessungen von Unternehmen zu Unternehmen sehr stark variieren.

      Die konkreten Daten der Betriebsschliessung können deshalb über ein elektronisches Kontaktformular gemeldet werden. Nach Prüfung der Angaben erfolgt eine Gutschrift gemäss dem Gemeinsamen Tarif 3a. Der Wert dieser Gutschrift kann je nach behördlich verordneten Schliessungen wegen Covid-19 variieren.Die Gutschrift wird in der folgenden Jahresrechnung abgezogen.

      Das Kontaktformular steht zur Verfügung unter: http://www.suisa.ch/3a. Dort sind auch weitere Informationen zu finden, wie die SUISA ihren Kundinnen und Kunden entgegenkommt: http://www.suisa.ch/de/suisa/massnahmen-der-suisa-bezueglich-der-corona-pandemie/informationen-fuer-kunden.html

      Für Fragen stehen wir Ihnen selbstverständlich gerne zur Verfügung.
      Freundliche Grüsse
      Kundendienst GT 3a

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Advance planning is particularly important in times of crisis. During the December 2020 meetings of the Board, SUISA looked at the key issue, budgetting, and other relevant topics for the future. Report from the Board of Directors by Andreas Wegelin

Report from the Board of Directors: Planning ahead in a crisis situation

Despite a bleak budget forecast, SUISA makes music possible, also in 2021. The photo shows a snapshot of last year’s Label Suisse where SUISA contributed as a sponsoring partner. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

The SUISA Board of Directors dedicated its December meetings mainly to the 2021 budget. During the current crisis situation due to the pandemic, the projections are even more difficult, compared to 2019. It is possible that there may be major deviations regarding the degree of how the budget is met. In addition, the 2020 budget was revised last...read more

SUISA membership in numbers

More than 38,000 authors and publishers have instructed SUISA with the management of their rights. Where are they from, how old are they and are there more men or women who are composers? The figures and graphics below provide an insight into SUISA’s membership structure. Text by Claudia Kempf

SUISA membership in numbers

(Graphics: Crafft Communication)

Age distribution

The majority of members is between 31 and 60 years old. This is due to the fact that authors have an average age of 33 years when they join SUISA and that there has been a steep increase in new members over the last 20 years.

Age distribution

Gender

The overwhelming majority of active members are men. There is, however, a slight notable change: 45% of active female authors have joined SUISA in the last ten years.

Gender

Language composition

The language composition within SUISA roughly correspond with the linguistic distribution within Switzerland, except for the fact that French-speaking authors are represented in slightly higher numbers.

Language composition

Residence

Unfortunately, notifications on the change of address to SUISA sometimes gets forgotten. As a consequence, SUISA does not know the address of around 15% of its members. In the case where SUISA does not hold a valid correspondence address during a period of five years, the respective Rights Administration Agreement and membership lapse at the end of that year. The rights then fall back to the author and are no longer managed by SUISA.

Residence

Associate members, full members

Music creators and publishers are, first of all, accepted asassociate members. Once they have been registered for at least one year with SUISA and have reached the minimum threshold of CHF 2,000 in revenue from authors’ rights, they become full members with voting and election rights. Subsidiary publishing entities can never attain full membership status; this explains the high share of publishers that do not have voting rights.

Associate members, full members

Membership years

The graphics provide an impressive insight into the strong growth of new member numbers over the last few years, especially among authors. Compared to that, new memberships among publishers have remained constant for quite a few years now.

Membership years

All information correct as of April 2018.

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All comments will be moderated. This may take some time and we reserve the right not to publish comments that contradict the conditions of use.

Your email address will not be published.

More than 38,000 authors and publishers have instructed SUISA with the management of their rights. Where are they from, how old are they and are there more men or women who are composers? The figures and graphics below provide an insight into SUISA’s membership structure. Text by Claudia Kempf

SUISA membership in numbers

(Graphics: Crafft Communication)

Age distribution

The majority of members is between 31 and 60 years old. This is due to the fact that authors have an average age of 33 years when they join SUISA and that there has been a steep increase in new members over the last 20 years.

Age distribution

Gender

The overwhelming majority of active members are men. There is, however, a slight notable change: 45% of active female authors have joined SUISA in the last ten years.

Gender

Language composition

The language composition within SUISA roughly...read more