Tag Archives: Broadcasting right

Changes in the distribution of revenues from radio uses

The classifications for radio broadcasting stations have been changed. Starting with the 2019 settlements, a uniform factor of 0.25 will be applied for level D uses (sound logos, jingles, background music, etc.), and a factor of 1.5 for level E (other music). In addition, calculations will be made on a per-second instead of a per-minute basis. Text by Irène Philipp Ziebold

Changes in the distribution of revenues from radio uses

The rules for the distribution of revenues from radio uses have been changed. (Photo: T.Dallas / Shutterstock.com)

In 2015, the factors for the distribution of revenues from television broadcasts were changed. The classifications for radio broadcasts have now been changed as well. The rules are set out in points 3.2 and 3.3 of SUISA’s Distribution Rules.

The new rules are based on an essential principle: radio classifications must be appropriate, and at the same time they must be proportionate with existing rules for TV broadcasts.

In practice, this has been achieved as follows: firstly, billing is now on a per-second basis for radio as well; secondly, in level D, degressive rates have also been abolished for radio and replaced by a uniform factor of 0.25; finally, a factor of 1.5 has been introduced for level E (other music) to bring it into a more appropriate relationship with level D.

The reasoning and main arguments for each point are outlined below:

Billing per second

Billing per second ensures more accurate distribution, and better reflects actual usage. Thanks to the Echolon monitoring system, this is now possible at no additional cost. The playing duration of works can now be determined in a uniform manner for radio and television.

Level D (sound logos, jingles, background music, etc.)

Hitherto, degressive rates were still applicable in level D for radio broadcasters although they had been abolished for television broadcasters. The three existing factors (1, 0.5 and 0.05) are relatively arbitrary and are likely to produce inappropriate results. This is more particularly true for the factor of 0.05 in the case of successful productions with over 52 broadcasts in a single distribution period. In other words: the beneficiaries concerned receive too little compared with the other degressive rates. By introducing a uniform rate of 0.25, an appropriate factor – one that is proportionate with the other levels – has been chosen for the music uses in level D. It is also the same factor as for television.

Level E (other music)

Once a uniform factor of 0.25 is introduced in level D, the existing factor of 1 for other music is no longer proportionate to the other factors, taking into account the television classifications. This was remedied by applying a new factor of 1.5. This factor is appropriate both with regard to TV broadcast classifications (“Concerts”: factor 2, “Music in films”: factor 1 and “Sound logos, jingles, background music, etc.”: factor 0.25) and with regard to the radio broadcast classifications (level D: now 0.25)

For further information:
www.suisa.ch/verteilungsreglement (in German)

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Revision of distribution categories 1C/1D and 2C/2DRevision of distribution categories 1C/1D and 2C/2D The rules for the distribution of licence fees for broadcast music in SRG TV programmes and in private TV broadcasters’ programmes are undergoing some partial changes. The relevant amendments in SUISA’s distribution rules affect distribution categories 1C, 1D, 2C and 2D. Read more
Invoicing licence fees for background music and TV reception in businesses as of 2019Invoicing licence fees for background music and TV reception in businesses as of 2019 Businesses that play background music on their premises or show broadcasts on screens are required to pay licence fees in accordance with Common Tariff 3a. As of 2019, SUISA will once again manage all customers under this Tariff directly. Read more
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The classifications for radio broadcasting stations have been changed. Starting with the 2019 settlements, a uniform factor of 0.25 will be applied for level D uses (sound logos, jingles, background music, etc.), and a factor of 1.5 for level E (other music). In addition, calculations will be made on a per-second instead of a per-minute basis. Text by Irène Philipp Ziebold

Changes in the distribution of revenues from radio uses

The rules for the distribution of revenues from radio uses have been changed. (Photo: T.Dallas / Shutterstock.com)

In 2015, the factors for the distribution of revenues from television broadcasts were changed. The classifications for radio broadcasts have now been changed as well. The rules are set out in points 3.2 and 3.3 of SUISA’s Distribution Rules.

The new rules are based on an essential principle: radio classifications must be appropriate, and at the...read more

Replay TV: catching up with advertising revenues

Replay TV (also known as time-shift or catch-up TV) offers consumers the option of watching television broadcasts on a time-shifted basis instead of at the regular scheduled time. This function, which is very popular with viewers, is now jeopardised by an ongoing legal and political dispute. Text by Vincent Salvadé

Replay TV: catching up with advertising revenues

Replay TV: Thanks to digital technology, viewers can go back in time up to seven days and catch up on any programmes they may have missed. (Photo: Getty Images / Steve Lawrence)

Broadcasting companies, i.e. TV channels, are demanding veto rights on the time-shifted use of their programmes. What is at stake? Their advertising revenues. After all, who will watch commercials if you can skip them in replay? This dispute is of significance for SUISA and for musical rightholders too.

Current status

In past decisions, the Federal Arbitration Commission for copyright and neighbouring rights has equated subscription to a replay TV service with copying for private use, which is permitted by Article 19(2) FCA. In exchange, rightholders (including, in this case, broadcasting companies) are entitled to remuneration in accordance with Article 20(2) FCA, levied by the collecting societies in accordance with Common Tariff 12 (CT 12).

This has been the status since 2013, and broadcasters have not disputed it before the civil courts. This situation has several advantages: the distributors of the broadcasting programmes (Swisscom TV, UPC, Sunrise, etc) can offer their customers attractive services in exchange for a fee. And the collecting societies collect the fees and pass them on to the copyright and neighbouring rights rightholders.

However, in February 2018, the Federal Arbitration Commission responsible for reviewing the tariffs of the collecting societies approved the new CT 12, which provides for a slight increase in these fees, for the period 2017 to 2020. On 21 March 2018, 23 broadcasting companies appealed this decision before the Federal Administration Court. They argued that replay TV was not governed by the legal regime for private copying, and should be subject to their consent. On 12 September 2018, the Court ruled that the broadcasting companies were not entitled to appeal.

In parallel, however, turning to account the ongoing revision of the Telecommunications Act (TCA), the broadcasting companies had also demanded veto rights for replay TV in that context. In July 2018, the Transport and Telecommunications Committee of the National Council (TTC-N) followed their reasoning and introduced Article 12e TCA. This triggered a number of reactions from stakeholders opposed to the new provision. Finally, the Committee backed down and proposed that the issue be resolved in the framework of the copyright law revision.

The issue

SUISA appreciates that broadcasting companies should seek to safeguard their advertising income. This is also in the interest of the holders of musical rights, since the tariffs governing broadcasting rights (tariff A for the SSR and Common Tariff S for private broadcasters) are based on broadcasters’ revenues.

By way of reminder: based on tariff A and CT S, SUISA collected about CHF 16.8 million in remuneration from Swiss TV broadcasters in 2017, plus an additional CHF 1.3 million from the Swiss advertising windows of foreign broadcasters. By comparison, TC 12 generated slightly over CHF 3 million for musical rightholders. We should be careful not to lop off the branch on which musical rights are sitting.

Solutions

However, granting veto rights to broadcasting companies on replay TV seems unjustified. By refusing their consent, broadcasters would limit the offer available to consumers and, as a result, reduce CT 12 revenues for rightholders. By limiting private copying options, which is now regularly the case on the cloud, we would be sounding the death knell for a system that is the envy of our neighbours and has contributed to developing innovative digital services.

We feel that existing copyright law provides for a well-balanced system: under Articles 59 and 60 FCA, remuneration under CT 12 must be fair. That means on the one hand, that distributors must compensate the broadcasting companies commensurately with the significant revenues generated by replay TV. On the other hand, Articles 59 and 60 FCA are worded in sufficiently flexible terms to take into account, at least partially, the same distributors’ loss in earnings.

At the same time, the law could require distributors to obtain the broadcaster’s consent, not to their offering replay TV services to their customers, but to enabling their customers to skip the commercials. This means distributors would have to take the necessary technical measures to prevent viewers from skipping commercials when the broadcaster withholds its consent. Consumers may at first be reluctant to accept such solutions. But such measures would be the lesser evil compared with a broadcaster veto liable to significantly limit the current offer. And, for a number of stakeholders, it is a win-win solution:

  • providers who distribute the programmes could continue offering full replay TV, while consumers could continue subscribing to that option;
  • distribution companies would be able to preserve or increase their advertising revenues since they would have an additional audience of viewers who are unable to tune into programmes at the scheduled times;
  • other rightholders would continue to collect significant broadcasting distribution revenues (tariff A and CT S in the case of musical rights) while taking advantage of the booming revenue flows from CT 12.

Switzerland always favours balanced solutions. The legal regime for replay TV should be no exception to the rule; the interests of all stakeholders must be taken into account.

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Replay TV (also known as time-shift or catch-up TV) offers consumers the option of watching television broadcasts on a time-shifted basis instead of at the regular scheduled time. This function, which is very popular with viewers, is now jeopardised by an ongoing legal and political dispute. Text by Vincent Salvadé

Replay TV: catching up with advertising revenues

Replay TV: Thanks to digital technology, viewers can go back in time up to seven days and catch up on any programmes they may have missed. (Photo: Getty Images / Steve Lawrence)

Broadcasting companies, i.e. TV channels, are demanding veto rights on the time-shifted use of their programmes. What is at stake? Their advertising revenues. After all, who will watch commercials if you can skip them in replay? This dispute is of significance for SUISA and for musical rightholders too.

Current status

In past decisions,...read more

Swiss music lives thanks to SRG’s special interest stations

The Transport and Telecommunications Committee of the National Council has moved to close down six SRG special interest stations and has filed a motion in this sense. For Swiss music creators the consequences would be devastating. These stations are precisely those that play and promote local Swiss music. Sign the online petition “Hands off special interest stations” now! Text by Giorgio Tebaldi and Manu Leuenberger

Swiss music lives thanks to SRG's special interest stations

From the streets of Berne to the stage of the Kulturfabrik in Lyss: The band Troubas Kater performing in dialect appears during the 14th edition of “8×15.” in November 2015. At each of these concert evenings of SRF Virus, 8 Swiss bands can present their talent, and be discovered by the audience in a 15-minute slot. (Photo: SRF)

At the Swiss Music Awards in February 2017, the Zurich duo Dabu Fantastic and their co-composer Gianluca Giger were awarded prizes for the best hit and best composition. The Zurich band is currently one of Switzerland’s most successful pop acts. According to singer Dabu Bucher in a recent interview with SRG (Swiss Broadcasting Company), the band owes its popularity in great part to the SRG radio stations. SRF Virus first played its songs over 10 years’ ago, actively encouraging the band’s career.

The SRG youth station is important for other Swiss artists too. It serves as a springboard for young and (still) unknown musicians. The station provides an important platform for newcomers, through its “8×15.” concert broadcasts for example. 50% of the music broadcast by SRF Virus is Swiss music. Hardly any other station offers its audience so large a proportion of local music.

But if the Transport and Telecommunications Committee of the National Council has its way, that will soon be over. In Motion 17.3010 for a “Reduction in special interest radio stations”, the Committee asks for six SRG radio broadcasting stations to be closed: SRF Virus, SRF Musikwelle, Radio Swiss Classic, Radio Swiss Jazz, Radio Swiss Pop and the French-speaking station Option Musique. According to the motion, these stations “do not perform any true public service mission”.

Public service also means promoting Swiss cultural creation

In its “Report on the revision of the definition and provision of the SRG public service taking into account private digital media”, the Federal Council reviewed the meaning of public service in radio and television broadcasting. In its report, the Federal Council pointed out that the SRG provides “numerous unprofitable services in the interest of society”. These services include promoting Swiss films, Swiss music and Swiss literature. This would hardly be possible without reception fee revenues.

Special interest stations extensively promote Swiss music – pop and rock as well as jazz on SRF Virus, and classical and especially folk music on SRF Musikwelle. As SUISA claims on its website, altogether 22% of the music played on the six special interest stations is Swiss, as against 20% overall for all the SRG stations. By comparison, Swiss private broadcasters play less than 10% of Swiss music on average.

Special interest stations discover and promote Swiss music

Special interest stations are instrumental in discovering and promoting Swiss music. Their reporting about the current Swiss music scene is irreplaceable. It is difficult to imagine private broadcasters throwing themselves into the breach left by closing the special interest stations. Private broadcasters are guided by profit-making principles and are primarily financed by advertising. Therefore, they have to gear most of their programming to an audience which wants to hear hits. Swiss musicians hear this all the time in statements like:  “we don’t make the hits, we just play them”, says singer-songwriter Christoph Trummer, President of the association Musikschaffende Schweiz (Swiss Musicians), in an interview with Musikmarkt, the music magazine.

Closing down the special interest stations would also affect Swiss music creators financially. Between them, the six stations played about 550,000 minutes of music by Swiss authors in 2015. According to SUISA’s 2015 annual report, the licence fees for SRG radio stations average CHF 2.70 per minute of playing time. Thus, broadcasting royalties for the works of Swiss composers, lyricists and publishers on the six SRG special interest stations totalled about CHF 1.5 million. This money does not only go to well-established stars, it also goes to unknown Swiss artists.

Favorable framework conditions for Swiss culture

The motion of the Transport and Telecommunications Committee if accepted would have serious implications for the Swiss music scene. Not only would Switzerland lose these important platforms for showcasing the broad diversity of Swiss musical creation, closing down the special interest stations would have significant financial consequences for artists.

Moreover, one substantive question remains to be answered: is it truly Parliament’s role to decide on broadcasting content? Should the legislative not confine itself to setting the framework conditions for radio and television broadcasters? The proposed motion seeks to decide the fate of individual SRG stations. This goes far beyond setting framework conditions. Swiss music creators have more than deserved favorable framework conditions in their own country.

SRG has been operating «mx3 – The Swiss Music Portal» since 2006. Musicians can use the portal www.mx3.ch to present their music to the public; the SRG stations use the portal for their programming. SRF 3, SRF Virus, Couleur 3, Rete Tre and Radio Rumantsch include songs that musicians have uploaded onto mx3 in their broadcast programming. In 2015, about 22,900 bands showcased their music on the mx3 portal.

Petition: Hands off special interest radios!

The purpose of this petition is to ask the competent parliamentary bodies not to close SRG’s special interest stations.

Sign the online petition “Hands off special interest stations” at www.petitionen24.com

Sie können die Petition auch auf dem Unterschriftenbogen unterzeichnen (PDF).

The petition is sponsored by a broad interest group representing the Swiss music scene. Among others, the following stakeholders support the petition: Schweizer Musikrat, Musikschaffende Schweiz, Schweizer Musiksyndikat, Schweizer Tonkünstlerverein, Schweizerischer Musikerverband SMV, Helvetia Rockt, IndieSuisse, IFPI, Schweizer Interpretengenossenschaft SIG, Orchester.ch, Eidgenössischer Jodlerverband EJV, Schweizerischer Blasmusikverband SBV, Schweizerische Chorvereinigung SCV, Verband Schweizer Volksmusik VSV.

Every single signature counts and is important to ensure that radio stations like Radio Swiss Pop, Radio Swiss Classic, Radio Swiss Jazz, Radio SRF Virus, Radio SRF Musikwelle and Radio RTS Option Musique can continue to broadcast and help audiences discover Swiss music. Further information is available on the petition initiators’ website: www.prospartenradio.ch

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SUISA settlement dates 2017 – an overviewSUISA settlement dates 2017 – an overview SUISA members whose works are performed, broadcast, reproduced or used online a lot can look forward to receiving remuneration at least four times per year for their work on lyrics or compositions or their publishing activities. In 2017, SUISA will continue with its quarterly distributions that it had successfully introduced previously. Minor modifications serve the purpose of distributing the income swiftly and cost-effectively. Read more

 

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The Transport and Telecommunications Committee of the National Council has moved to close down six SRG special interest stations and has filed a motion in this sense. For Swiss music creators the consequences would be devastating. These stations are precisely those that play and promote local Swiss music. Sign the online petition “Hands off special interest stations” now! Text by Giorgio Tebaldi and Manu Leuenberger

Swiss music lives thanks to SRG's special interest stations

From the streets of Berne to the stage of the Kulturfabrik in Lyss: The band Troubas Kater performing in dialect appears during the 14th edition of “8×15.” in November 2015. At each of these concert evenings of SRF Virus, 8 Swiss bands can present their talent, and be discovered by the audience in a 15-minute slot. (Photo: SRF)

At the Swiss Music Awards in February 2017, the Zurich...read more

SUISA expects significant rise in streaming collections

At the top of the agenda for the SUISA Board meeting in December 2016 was the budget for the following financial year. It was with satisfaction that the Board established a continuation of the positive developments from the past years in relation to the collections (+3.2%). Expenditure remains stable and the distributable amount increases slightly (+2.91%). Report from the Board by Dora Zeller

SUISA expects significant rise in streaming collections

The remuneration pot for streaming exploitations is expected to fill up for authors and publishers even more: In its budget for financial year 2017, SUISA expects an increase in the online sector income of +13.4% compared to the previous year. (Photo: Manu Leuenberger)

The budget for financial year 2017 includes higher collections arising from broadcast and performing rights as well as compensation claims. An increase of approx. 11% is expected from tariffs CT 4i (smart phones) and CT 12 (set top boxes rental). A significant rise is also expected in the online sector, especially streaming (+13.4%). Due to the market developments, it is expected that reproduction rights are due to decrease (-3.8%). Regarding income from abroad, the amounts in the budget are also lower than previously (-4.5%).

Board and Management of SUISA also plan long-term: Apart from the roadmap for 2017, financial planning and strategy until 2020 were discussed. The Board discussed and ratified the drafts presented by Management.

Cost deductions stay the same

Another recurring agenda item for the end of the year are the cost deductions. The Board resolves which deductions will be taken in the subsequent year from collections in the current year. For Switzerland and the online sector, the percentages are between 10 and 15% just like in the previous year. An exception are the cost rates for the reproduction sector, in particular tariffs PI and VI which are subject to the Cannes Agreement (7.025% and 9.025%).

Furthermore, the percentage deducted from income from abroad in the last few years on the basis of reciprocal representation agreements was examined. Since various sister societies apply higher deductions, the pros and cons of an increase were thoroughly considered. The Board members decided, however, to keep deduction levels at 4%.

Benvenuti a Lugano

For the autumn meetings 2017, the Board members of SUISA will not travel to Lausanne, as they did before, but to Lugano instead. Why not hold the General Assembly in the Italian-speaking part of Switzerland? In line with SUISA’s planning it could happen in 2021.

By-elections in the Distribution and Works Committee

Alex Kirschner, composer for advertising and film music, steps back from his post in the Distribution and Works Committee (VWK) in summer 2017. Jonas Zellweger – SUISA member since 2009 – applies for the vacant seat; he is active in the same music category. The Board is going to unanimously propose his candidature to the General Assembly for election.

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At the top of the agenda for the SUISA Board meeting in December 2016 was the budget for the following financial year. It was with satisfaction that the Board established a continuation of the positive developments from the past years in relation to the collections (+3.2%). Expenditure remains stable and the distributable amount increases slightly (+2.91%). Report from the Board by Dora Zeller

SUISA expects significant rise in streaming collections

The remuneration pot for streaming exploitations is expected to fill up for authors and publishers even more: In its budget for financial year 2017, SUISA expects an increase in the online sector income of +13.4% compared to the previous year. (Photo: Manu Leuenberger)

The budget for financial year 2017 includes higher collections arising from broadcast and performing rights as well as compensation claims. An increase of approx. 11% is expected...read more

New distribution key for performing and broadcasting rights

The SUISA distribution key for performing and broadcasting rights will be changed from 01 January 2017 onwards. For works with an original publisher, the share of the author shall be 66.67% and that of the publisher 33.33%. The distribution rules are thus adapted to the CISAC key which is applied at international level. Text by Irène Philipp Ziebold

8/12 for authors, 4/12 for publishers: SUISA will adapt its distribution key for performing and broadcasting rights to European standards again. (Photo: Manu Leuenberger)

The majority of SUISA’s European sister societies apply the so-called “CISAC key” when it comes to originally published works in the performing and broadcasting rights sector. CISAC is the international umbrella for collective management organisations (Confédération Internationale des Sociétés d’Auteurs et Compositeurs). The shares of the distribution key recommended by the umbrella organisation for performances and broadcasts amount to 66.67% for authors and 33.33% for publishers.

SUISA’s distribution key

SUISA’s distribution key had deviated from the internationally established CISAC standard in the past. Up to now, SUISA distribution rules provided that the shares for originally published works for performing and broadcasting rights was 65% for authors and a maximum of 35% for publishers. Regarding the production of sound and audio-visual recordings, the composers receive 60% and the publishers 40%.

In the case of works with a sub-publisher, the author has an entitlement as per the distribution rules to receive 50%, and the publisher and sub-publisher to claim the remaining 50% for performances and broadcasts. Regarding the production of sound and audio-visual recordings, the composers receive 40% and the publisher and sub-publisher share the remaining 60%. In this context, it is worth mentioning that SUISA usually adopts the contractually agreed split between the publisher and the sub-publisher in the case of sub-published works. Only in the absence of such agreed splits will SUISA apply the keys established by the distribution rules.

Alignment with the European CISAC standard

The distribution keys by SUISA will now be adapted in the case of originally published works in the performing and broadcasting rights to European standards. The keys relating to the production of sound and audio-visual recordings (mechanical reproduction rights) shall remain unchanged in the distribution rules. Strictly speaking, the application of the CISAC key of 67% for authors and 33.33% for publishers is nothing new, but rather a re-introduction of a previous provision.

The key applied on a Europe-wide level is actually expressed in fractions 8/12 (author’s share) resp. 4/12 (publisher’s share). When SUISA began working with IT systems back in 1962, the aim was to avoid decimal places after the decimal point. As a consequence, SUISA changed the key, and rounded it to 65%, resp. 35%. The majority of the other European societies kept the translated fractions i.e. 66.67% and 33.33%.

Effects of the changed distribution rules

Thanks to the adaptation of the distribution keys, authors will be remunerated with the share that is deemed as standard in the European area. While the publisher share will be decreased by 1.67%, they will, together with the authors, benefit from positive effects which the changes bring about.

Apart from the harmonisation with other European societies, the (re)introduction of the CISAC key for originally published works entails further significant advantages:

  • Important increase in efficiency during work registration: Processing of SUISA works with international contributors will become simpler. Difficult conversions in the case of joint productions with international authors become redundant.
  • Processing distributions of the sister societies will be significantly simplified: The matching distribution keys will facilitate the processing of distributions by international sister societies to a great extent.

Validity of the changes to the distribution rules

Both the SUISA Board of Directors as well as the Swiss Federal Institute of Intellectual Property (IPI) have agreed to this change. The new distribution keys will come into force from 01 January 2017 without any retroactivity. This means, that all works declared after 01 January 2017 will be registered with the new distribution key. In the case of works that had been registered before that date, the distribution key in place shall remain valid. These works will not be changed.

The decision of the IPI dated 28 July 2016 is published at the SUISA website.

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The SUISA distribution key for performing and broadcasting rights will be changed from 01 January 2017 onwards. For works with an original publisher, the share of the author shall be 66.67% and that of the publisher 33.33%. The distribution rules are thus adapted to the CISAC key which is applied at international level. Text by Irène Philipp Ziebold

8/12 for authors, 4/12 for publishers: SUISA will adapt its distribution key for performing and broadcasting rights to European standards again. (Photo: Manu Leuenberger)

The majority of SUISA’s European sister societies apply the so-called “CISAC key” when it comes to originally published works in the performing and broadcasting rights sector. CISAC is the international umbrella for collective management organisations (Confédération Internationale des Sociétés d’Auteurs et Compositeurs). The shares of the distribution key recommended by the...read more

Revision of distribution categories 1C/1D and 2C/2D

The rules for the distribution of licence fees for broadcast music in SRG TV programmes and in private TV broadcasters’ programmes are undergoing some partial changes. The relevant amendments in SUISA’s distribution rules affect distribution categories 1C, 1D, 2C and 2D.

Revision of distribution categories 1C/1D and 2C/2D

The winner of the talent show, Tiziana, presents the song “Hold Me” during a TV programme. She is accompanied by SUISA member Marc Sway (r.), who composed the piece together with Sekou Neblett. Both song writers receive royalties for the broadcast of their music on TV via SUISA. (Photo: Manu Leuenberger)

When Swiss TV stations transmit music, composers and lyricists of the broadcast music subsequently receive money from SUISA for it. Tariff A for SRG broadcasts and CT S for the other (private) broadcasters determine how much broadcasters have to pay in order to be able to play music. There are also rules determining how the money is distributed: They are laid out in SUISA’s distribution rules.

An important rule for the distribution of the income from TV broadcast programmes is set out in item 3.3 of the SUISA distribution rules. Said item covers the “classification of the SRG broadcast programmes (advertising excluded) and the private broadcasters (advertising excluded)”. The second paragraph of item 3.3 specifically deals with TV broadcasts and the relevant distribution categories 1C, 1D, 2C and 2D.

Aims of the changes to the distribution rules

Said distribution categories, which govern the distribution of income from the SRG TV broadcasts and private TV stations, have now been revised. The main aims of these changes were:

  • When it comes to the remuneration for music in films, the new regulations provide that only the duration of the music itself, not the duration of the film are instrumental.
  • Remuneration for music serving the purpose of recognising stations, station networks or broadcasts – in short: jingles – respectively the purpose of providing a background or backdrop, shall be determined by a standard factor. What’s new is that this distribution now also includes opening and end titles’ music for series and logos.

Music duration instead of film duration

By changing the distribution rules, the significance of the music in films is established independently of the duration of a film. A distinction is no longer made by film duration as it had been the case previously (longer or shorter than 60 minutes). As this relates to the calculation of authors’ remuneration for music, it is only the duration of the music that should be instrumental. By taking the music duration into consideration, a film with more music automatically obtains more money than a film with less music.

A comparison with sister societies abroad has shown that they also use the duration of the music, not the film, as connecting factor for the distribution. The falling away of the 60-minute-limits constitutes a simplification of the distribution process and leads to a neutral weighting of the film score – as it will be independent of the film duration.

Standard factor for music with repetitive character

The term “jingle” shall be defined as follows, in line with SUISA’ distribution rules: Music which serves the recognition of broadcasters, station networks and programmes or the provision of a background or backdrop. Idents, loops, trailers, billboards etc., background music, e.g. for information programmes, sport and quiz shows, music for test cards, audiotexts and still images, and now also opening and end titles for series and logos also fall under this category.

Such “jingles” often serve the purpose of spectator retention and are intensively repeated during the TV transmissions. The repetitive character of jingles is taken into account in terms of the distribution by separately allocating the significance of this music in broadcast programmes.

The weighting of jingles for the distribution shall now be based on a standard factor of 0.25. Compared to the previous regulations, the factor does not decrease proportionally to how often the jingle is broadcast. The new standard factor corresponds to the previous level for the 13th to 52nd broadcast. Compared to the old tiered model, the new factor is lower than previously for the 1st to the 12th broadcast. However, it is higher for all repetitions beyond the 53rd broadcast. By changing the distribution rules, the multiple usage of music such as is the case for idents to daily broadcast news programmes will be weighted more heavily.

Impact on the distribution and settlements

These distribution rules changes can entail shifts in the pay-outs to composers and publishers. Stage or tiered models, as were previously applicable with the respective changing factors per number of broadcasts or film duration in minutes, are always subject to a certain arbitrariness and might have to be constantly adapted as a consequence. The new weightings that have now been introduced with standard weighting rates allow a linear development of the remuneration and therefore lead to a fairer overall distribution result.

The change of item 3.3 paragraph 2 of the distribution rules has been approved by the IPI with its decisions dated 19 November 2015 as well as 15 December 2015. It applies to the income from 2016 and shall have an influence in the distributions from 15/12/2016 onwards for the first time.

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The rules for the distribution of licence fees for broadcast music in SRG TV programmes and in private TV broadcasters’ programmes are undergoing some partial changes. The relevant amendments in SUISA’s distribution rules affect distribution categories 1C, 1D, 2C and 2D.

Revision of distribution categories 1C/1D and 2C/2D

The winner of the talent show, Tiziana, presents the song “Hold Me” during a TV programme. She is accompanied by SUISA member Marc Sway (r.), who composed the piece together with Sekou Neblett. Both song writers receive royalties for the broadcast of their music on TV via SUISA. (Photo: Manu Leuenberger)

When Swiss TV stations transmit music, composers and lyricists of the broadcast music subsequently receive money from SUISA for it. Tariff A for SRG broadcasts and CT S for the other (private) broadcasters determine how much broadcasters have to pay in order...read more