Tag Archives: Budget

Income and expenditure, investments and an anniversary

A wide-ranging list of topics was on the agenda for discussion at the meetings of the SUISA Board on 28 and 29 September 2020. For the first time after the disruption caused by corona, a part of the meeting participants met in Lausanne while respecting the protective measures in person, while some members of the Board of Directors joined via videoconferencing from their home office. Report from the Board of Directors by Andreas Wegelin

Report from the Board: Income and expenditure, investments and an anniversary

Snapshot of the Label Suisse Festival 2020 in Lausanne. The rights management monopoly of SUISA has a central significance for the cultural development and promotion of music in its entire diversity in Switzerland; that is the persuasion of the SUISA Board of Directors. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

The Board of Directors took note of the fact that the situation regarding the collections in the crisis year have, so far, remained stable compared to the assumptions made in April. Expectations made in the corona budget that had been created in the spring during lockdown were even slightly exceeded on the collections side. Nevertheless, it is very likely that SUISA will close its 2020 financial year with a decrease in income of about 25% compared to the previous year. The expenditure so far is also within the economy budget, and at 12.7% less expenses even better than anticipated.

Christoph Trummer, Head of Political Projects at the Professional Association of Freelance Musicians, Sonoart, informed the Board members about the current state of affairs and the future development of the support measures for music creators. It shows that the cultural associations managed during the covid-19 crisis to take a joint and persistent stance vis-à-vis Parliament, but also offices and authorities, to speak with one voice and to obtain the support for creators and artists that is so urgently needed.

Expenses per tariff from collections to distribution

A rather pleasant result of the cost unit calculation was presented. Said calculation shows how high the expenditure per tariff is from collection to distribution. As a matter of fact, expenses are not the same for all tariffs, depending whether we must issue invoices to many individual customers or just a few, and whether the market survey and coverage is costly.

The costs for the collections and the distribution of copyright remuneration for concerts are, for example, lower than for events held by clubs or associations. In the former case, we often deal with professional event organisers and promoters who usually are aware of their duties when it comes to authors. In the case of events held by associations, sports clubs or office parties the people in charge organising these events often have to be made aware of their obligations.

Cost shares overall did, however, fall per tariff in the survey year 2019. This is because higher secondary income from securities income could be used to cover a large part of the costs. The SUISA Executive Committee is going to continue to explore all possibilities to process collections and distributions in a more cost-effective way. An important element for this shall be the continued automation of the licensing process: Event organisers and promoters shall be able to send online notifications for their events, in an uncomplicated manner. If they do not do so, the system is set to find events on the basis of key word searches and initiate the collection process.

Financial affairs

For the subsidiary Mint Digital Services, the SUISA Board of Directors approved the hypothecation of a securities depot as a guarantee, instead of the guarantee of surety planned for the summer for the licensing of large publishing catalogues.

The Board of Directors is, pursuant to the Articles of Association, responsible for the financial matters of SUISA. In general, the monies are supposed to be invested for the period which lies between the time of receipt of payment from the licensees until the distribution work has been finished and the payments have been made to rights owners. The investments are made on the basis of regulations. Due to the initiative of a member of the Board of Directors, this set of regulations including “security” and “reasonable return of investment” was extended by the criterion “sustainability”.

Past and future

SUISA turns 100 in 2023. The first preliminary preparations and planning work for the anniversary were launched. Inspired by a suggestion of the SUISA Communications Department, deliberations were made how the round birthday of the cooperative could be celebrated adequately. Possible jubilee projects are set to be worked on further.

Furthermore, the Board took note of a legal expert opinion on SUISA’s monopoly position and its future on a licensing market for copyright which has begun to open up. The rights management monopoly has already disappeared in the online rights sector. Latest developments show that SUISA is also facing increased competition in other rights management areas such as by foreign agencies which directly license concerts that take place in Switzerland. In the meantime, SUISA remains, due to the statutory provisions, obliged to a large degree to manage the rights belonging to its field of activity as comprehensively as possible, the expert opinion states.

The Board of Directors holds the view that the rights management monopoly of SUISA needs to be strengthened because it has a central significance for the cultural development, the promotion of music in its entire diversity in Switzerland for authors, music promoters and for consumers. The Executive Committee was tasked to take the necessary measures to inform the authorities and the public.

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A wide-ranging list of topics was on the agenda for discussion at the meetings of the SUISA Board on 28 and 29 September 2020. For the first time after the disruption caused by corona, a part of the meeting participants met in Lausanne while respecting the protective measures in person, while some members of the Board of Directors joined via videoconferencing from their home office. Report from the Board of Directors by Andreas Wegelin

Report from the Board: Income and expenditure, investments and an anniversary

Snapshot of the Label Suisse Festival 2020 in Lausanne. The rights management monopoly of SUISA has a central significance for the cultural development and promotion of music in its entire diversity in Switzerland; that is the persuasion of the SUISA Board of Directors. (Photo: Tabea Hüberli & Dirk Hoogendoorn)

The Board of Directors took note of the fact that...read more

Report of the task force of the SUISA Board of Directors – end of June 2020

In April 2020, SUISA’s Board of Directors set up a working group to respond as quickly as possible to the negative financial impact of the Covid-19 crisis on SUISA and to identify cost-saving measures together with the Executive Committee.

Report of the task force of the SUISA Board of Directors - end of June 2020

In view of the expected negative economic consequences of the lockdown on SUISA, initial cost-saving measures were taken and a corona budget was drawn up. (Photo: Yuttapon Busu / Shutterstock.com)

Several meetings were held for this purpose, and we would like to share with all SUISA members the main points arising from these ongoing discussions.

The Executive Committee estimates that the losses in connection with the Covid-19 crisis currently amount to around 25% of budgeted revenues for 2020. Initial cost-cutting measures have already been taken to reduce costs, provided that negative impacts on SUISA’s regular operations and important development projects (e.g. online access to “My Account” for members, self-service portal for clients) are avoided.

The issue of short-time work was discussed as a possible solution to reduce costs. SUISA’s Executive Committee drew the attention of the task force to the fact that short-time work would currently have a negative impact on the collection of royalty income, especially in the area of smaller performances, and on SUISA’s regular operations. Although almost all concerts between the end of March and the end of May were cancelled, the work of SUISA’s staff has not yet decreased significantly, partly because additional services such as the emergency support fund are now being provided for members.

The Executive Committee drew up a corona budget, which now serves as a reference basis (the budget for 2020, which was adopted in autumn 2019, is no longer realistic due to the crisis). In the corona budget, the reduction in collections is offset by using the funds normally released for our supplementary distributions to cover costs. For this purpose, an upper limit was set for the use of the released totals. It is therefore unlikely that there will be any supplementary distribution next year.

The task force clearly spoke out against an increase of the current maximum deduction of costs of 15% in the distributions to members. The Executive Committee is therefore urged to undertake all reasonable cost savings.

The task force and the Executive Committee are well aware that the economic consequences of the lockdown and especially the ban on events in spring 2020 may linger on for longer and that they are not yet immediately visible: It will therefore examine all realistic savings measures not only in the short but also in the medium term. In this context, it is also important to consider which services could then no longer be provided to members for cost reasons.

All the above items were approved by the Committee for Finance and Controlling and the Board of Directors.

The task force will continue to meet monthly with the Executive Committee to discuss further developments. It will report to the full Board of Directors at every opportunity so that the latter can take decisions quickly if the situation so requires.

The task force:

Xavier Dayer
Marco Neeser
Rainer Bischof
Roman Camenzind

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In April 2020, SUISA’s Board of Directors set up a working group to respond as quickly as possible to the negative financial impact of the Covid-19 crisis on SUISA and to identify cost-saving measures together with the Executive Committee.

Report of the task force of the SUISA Board of Directors - end of June 2020

In view of the expected negative economic consequences of the lockdown on SUISA, initial cost-saving measures were taken and a corona budget was drawn up. (Photo: Yuttapon Busu / Shutterstock.com)

Several meetings were held for this purpose, and we would like to share with all SUISA members the main points arising from these ongoing discussions.

The Executive Committee estimates that the losses in connection with the Covid-19 crisis currently amount to around 25% of budgeted revenues for 2020. Initial cost-cutting measures have already been taken to reduce costs, provided that negative impacts on SUISA’s regular...read more

Corona budget up to the end of May has been met

For the second time, the Board of Directors had to hold its regular meetings as video conferences due to corona. Of course, the financial situation due to the pandemic was also the most important topic at these meetings. Report from the Board of Directors by Andreas Wegelin

Corona budget up to the end of May has been met

The impact of the corona crisis on the financial situation of the Cooperative was the main topic at the meetings of SUISA’s Board of Directors on 25 and 26 June 2020. (Photo: Bartolomiej Pietrzyk / Shutterstock.com)

The Board of Directors took note of the revenue figures up to the end of May 2020, which have fallen by 15.5% compared to the original budget for performing rights. In terms of total sales, the decline is still 7.7%. The Executive Committee therefore presented a corona budget as early as April. The budget could be met until the end of May. Revenues are even slightly higher (+3.1%).

It is important to know, however, that these revenues generated by the end of May originate from the time before the cancellation of all events. The impact on revenues due to the events that have been cancelled since mid-March will only be felt in the second half of the year. Savings were made on the cost side (–3%), but the current bonds and securities situation had a negative impact.

Audit report, Mint, PRS

The Board of Directors also acknowledged the comprehensive report of the auditors, BDO, and discussed various report points with the Executive Committee.

With regard to the joint venture Mint Digital Services with the American society SESAC, the Board of Directors was informed about the planning of licensing activities in the coming months and the roadmap 2020–24. It is planned to extend the direct licensing of our repertoire to India, Australasia and Africa. In this context, the Board of Directors decided to grant guarantees for the licensing of large publishing catalogues.

The renewal of the reciprocal representation agreement with the English sister society PRS was also a topic at the Board meeting. PRS is taking a critical stance regarding the deductions from revenues for social purposes as provided for in our Articles of Association. This could lead to a revision of the Articles of Association after further negotiations with the PRS.

Waiver of attendance fees in favour of emergency fund

In view of the difficult situation for many cultural performers and especially for SUISA members, the Board of Directors decided to waive its attendance fees in favour of SUISA’s recently established emergency fund. Executive Committee members also waive parts of their salaries in a similar amount in favour of a reduction in personnel costs.

Report of the task force of the SUISA Board of Directors – end of June 2020
In April 2020, SUISA’s Board of Directors set up a working group to respond as quickly as possible to the negative financial impact of the Covid-19 crisis on SUISA and to identify cost-saving measures together with the Executive Committee. Read more
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For the second time, the Board of Directors had to hold its regular meetings as video conferences due to corona. Of course, the financial situation due to the pandemic was also the most important topic at these meetings. Report from the Board of Directors by Andreas Wegelin

Corona budget up to the end of May has been met

The impact of the corona crisis on the financial situation of the Cooperative was the main topic at the meetings of SUISA’s Board of Directors on 25 and 26 June 2020. (Photo: Bartolomiej Pietrzyk / Shutterstock.com)

The Board of Directors took note of the revenue figures up to the end of May 2020, which have fallen by 15.5% compared to the original budget for performing rights. In terms of total sales, the decline is still 7.7%. The Executive Committee therefore presented a corona budget as early...read more

A Board Meeting focused on the coronavirus

To comply with coronavirus regulations, SUISA’s Board met for the first time by video conference on 28 and 29 April 2020. Board members were connected by sound and video from their respective home offices. After a short period of accustomation, the meeting proceeded apace without any significant communications problems. Even thorny issues were debated and decided in this way. Report from the Board by Andreas Wegelin

A Board Meeting focused on the coronavirus

Based on our current state of knowledge, we expect a 25% drop in total budgeted revenues owing to event cancellations and business shutdowns in the wake of the restrictions ordered by the public authorities to contain the corona pandemic. (Photo: RomeoLu / Shutterstock.com)

The main items on the Board’s spring agenda are the approval of the annual financial statements, status report and business report and their referral to the General Meeting, as well as the preparation of the agenda for the General Meeting.

SUISA’s 2019 financial statements show highly satisfactory results. Royalty revenues totaled CHF 155.25m, a 3% increase over the prior year. As a result, after deducting costs, CHF 129.34m will be distributed to beneficiaries in Switzerland and abroad in 2020. Moreover, thanks to significant investment income, an additional 7% can be distributed on all settlements.

Written vote instead of a 2020 General Meeting

The Board decided that, by way of exception, the business on the agenda for this year’s General Meeting will be put to a written vote since there is no assurance that the meeting scheduled for 26 June at the Bierhübeli in Bern will effectively be able to take place. The documentation for voting by correspondence will be sent to members at the end of May.

Two by-elections to the Committees are also on General Meeting’s agenda – and will be held this time in writing: the Board proposes Michael Hug to succeed Grégoire Liechti in the Distribution and Works Committee. Melanie Oesch is the designated candidate to succeed the late Reto Parolari as Member of the Board.

Course of business during the corona crisis: the Board establishes a task force

Apart from the usual items on the agenda for the spring meeting, discussions in the Board focused on corona-related threats, or rather, on the consequences of business shutdowns and the ban on events. Meanwhile, it is known that no large concerts will take place until the end of August at least, and that smaller events will only be allowed under stringent health and security measures liable to impact audience size. It is quite conceivable that these restrictions will remain in force for a longer period.

Under the circumstances, we expect SUISA’s budget for revenues from concerts, events and music entertainment in the hospitality industry to be cut by half. This translates into a reduction of 25%, or CHF 38m, in SUISA’s total budgeted revenues. A more accurate forecast cannot yet be made given the lack of visibility until the end of the year. The Board has established a task force to examine, together with the Executive Committee, how the loss in revenue will impact the course of business, and to identify the necessary cost-cutting measures.

Developments in the online licensing market

Another important topic in the context of SUISA’s consolidated annual financial statements was the development of the online licensing market. For three years now, SUISA Digital Licensing has been licensing the rights of SUISA members not only in Switzerland and Liechtenstein, but throughout Europe – and even worldwide where the agreements so allow – through Mint Digital Services, SUISA’s joint venture with SESAC, the US rights’ management organisation.

By pooling repertoires, SUISA has become an important provider of services in this field with Mint. The two start-up companies Mint and SUISA Digital Licensing are not yet profitable. The Board has therefore instructed the Executive Committee to prepare and present a detailed evaluation of the break-even prospects, calculated under various scenarios.

The next meetings of the Board, to be held in video conferencing again, are scheduled for 25 May and 25 June 2020.

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  1. Yannick Popesco says:

    Bonjour étant membre de la Suisa et artiste actif je me pose une question importante.

    Y’a-t-il actuellement une lutte en cours pour le statut suisse d’intermittent du spectacle ?
    Quel est le statut légal de l’artiste pour l’instant ?

    Salutations,
    Yannick Popesco (artiste indépendant)

Leave a Reply

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To comply with coronavirus regulations, SUISA’s Board met for the first time by video conference on 28 and 29 April 2020. Board members were connected by sound and video from their respective home offices. After a short period of accustomation, the meeting proceeded apace without any significant communications problems. Even thorny issues were debated and decided in this way. Report from the Board by Andreas Wegelin

A Board Meeting focused on the coronavirus

Based on our current state of knowledge, we expect a 25% drop in total budgeted revenues owing to event cancellations and business shutdowns in the wake of the restrictions ordered by the public authorities to contain the corona pandemic. (Photo: RomeoLu / Shutterstock.com)

The main items on the Board’s spring agenda are the approval of the annual financial statements, status report and business report and their referral...read more

Outlooks and insights

In its meetings on 10 and 11 December 2019, the Board focussed on the budget for 2020 and SUISA’s strategy for the next five years. Report from the Board by Andreas Wegelin

Report from the Board: Outlooks and insights

Advertising revenues have shifted from the TV towards the online sector. This shift has led to a negative impact on copyright collections. (Photo: Olivier Le Moal / Shutterstock.com)

The budget for the year 2020 had already been discussed in advance on 27 November 2019 at the meeting of the Executive Committee for Finance and Controlling. The Committee and the Board had to establish that the investment and staff requirements remain high. This is due to the fact that SUISA has taken on new tasks.

In the case of the new task fields which entail a higher demand for staff, it is particularly the collection of remuneration for background music and the reception of broadcasts in offices outside the domestic and private circle or home life that are affected. Said collections had been linked to the BILLAG collection of the fees for the reception of commercial broadcasts. Since 2019, SUISA has been carrying out this type of collection directly. Another sector where investments into additional staff resources need to be made is the IT sector. This is because self-service options for customers and members on the SUISA web platform “my account” are due for major enhancements. Expanding activities in terms of global licensing of online music distribution via the subsidiary, SUISA Digital Licensing AG and the Joint Venture for services with SESAC also require more staff.

Budget approved, future discussed

On the income side, the shift of the advertising revenue in the TV sector towards the online sector are noticeable. Revenues from broadcasting rights are stagnating while online usage does not increase proportionally. The Board has therefore approved a budget for 2020 which has a slightly worse cost/income ratio. Executive Management has also been asked to plan measures for 2021 to lower the cost/income ratio again.

The strategic alignment of the company has been discussed further on the basis of a re-defined strategy paper from the October meeting. Strategic focal points for the next years are described by keywords such as services, income/cost ratio, competition and innovation. To this end, the Board determined a roadmap for 2020 in its December meeting.

On top of that, the Board listened to updates on the personal changes at executive level of subsidiary SUISA Digital Licensing AG and Mint Digital Services, the Joint Venture with SESAC and discussed further development steps in the category of licensing of music in online services that is no longer limited per territory.

Distribution rules and by-elections

The Committee for Tariffs and Distribution and the entire Board subsequently decided on two changes to the distribution rules, namely an adaptation of the weighting of music in the case of sales broadcasts in advertising windows of foreign TV channels and the dissolution of distribution category 4A. These decisions are subject to the approval by the IGE (IPI), our supervisory authority. Furthermore, the Board determined the cost deductions for the distributions in 2020. They are to remain the same as in 2019.

After the election of Grégoire Liechti into the SUISA Board by the General Meeting in 2019, a seat in the Distribution and Works Committee has become available and needs to be filled. We are looking for a music publisher. The Board is going to propose Michael Hug, owner of the publishing house Ruh Musik AG, at its General Meeting in 2020.

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In its meetings on 10 and 11 December 2019, the Board focussed on the budget for 2020 and SUISA’s strategy for the next five years. Report from the Board by Andreas Wegelin

Report from the Board: Outlooks and insights

Advertising revenues have shifted from the TV towards the online sector. This shift has led to a negative impact on copyright collections. (Photo: Olivier Le Moal / Shutterstock.com)

The budget for the year 2020 had already been discussed in advance on 27 November 2019 at the meeting of the Executive Committee for Finance and Controlling. The Committee and the Board had to establish that the investment and staff requirements remain high. This is due to the fact that SUISA has taken on new tasks.

In the case of the new task fields which entail a higher demand for staff, it is particularly...read more

Income from performing rights set to rise in 2019

SUISA’s December Board meetings usually focus on the figures for the coming year. Budgets, staffing plans and cost coverage deductions for business year 2019 were thus the central discussion point. Report from the Board by Dora Zeller

Report from the Board: Income from performing rights set to rise in 2019

Neuchâtel Reggae band Moonraisers, shown on the main stage of the Label Suisse Festival in Lausanne in September 2018; the event is co-supported by SUISA. Regarding the income from performing rights, including concerts, SUISA expects an increase during business year 2019. (Photo: Anne Bichsel / Label Suisse)

For the second time in SUISA’s history, the Board inspected the group budget of SUISA on top of its regular inspection of the budget of SUISA, the Cooperative Society and parent company. The latter comprises the numbers of the parent company, the 100% subsidiary company SUISA Digital Licensing (SUISA Digital) and the 50% share in the Joint Venture Mint Digital Services AG. The budgets of SUISA Digital and Mint are approved by the respective administrative boards of the two companies; the relevant numbers are then incorporated into the group accounts.

Increase in income thanks to performing rights

SUISA’s budget for 2019 provides for an increase of the income from the exploitation of copyright in Switzerland and Liechtenstein, especially due to the income from performing rights (more events, higher admission charges). The decline in mechanical/reproduction rights is set to continue. In the case of compensation claims, growth is expected; the same applies to online usage income. Foreign income has been calculated analogously to 2018, secondary income has been set higher.

For business year 2019, a total turnover of CHF 166.5m has been budgeted (2018: CHF 152m). Costs are expected to rise from CHF 29.5m in the previous year to CHF 32.5m. This is due to higher staff costs required for collections regarding Tariff CT 3a (background entertainment) and additional positions in the IT department.

Cost deductions, Articles of Association, Regulations

With respect to the cost deductions, the Board sets a percentage each year in relation to the distribution of the income that is to be deducted in the following year. For 2019, the percentages of the previous year will be retained in the offline sector. Cost deductions in the online business, however, are subject to change; the reason for this is the outsourcing of licensing and partially distribution activities to the subsidiary companies.

SUISA members had agreed to various changes to the Articles of Association at the General Assembly in June 2018. The revision of the Articles of Association also took place in the context of the alignment with the Liechtenstein Collecting Societies Act and the EU Directive on Collective Rights Management (CRM Directive). As a consequence, the division of powers and the organisational policies had to be adapted, and rules of procedure for the newly created Complaints Committee had to be drawn up. The Board has ratified all of these policies.

FONDATION SUISA and Revision of the Swiss Copyright Act

The SUISA Board Committee for Organisation and Communication and the responsible parties of the FONDATION SUISA have established an “annual dialogue” which takes place at the end of the year. This time, Marc Savary, President of the Foundation Board of the FONDATION SUISA reported on the amendments in the respective Statutes and regulations/policies. He also provided an overview on the activities of SUISA’s foundation for music promotion and answered questions of the Committee members.

Furthermore, the Board was concerned about the news that the National Council intends not to adhere to the compromise by the Working Group on Copyright (AGUR12) in its deliberations on the Copyright Revision and plans to provide for an exception regarding TV reception in guest rooms in the law. As a consequence, the new law would be worse than the previous one. The Board has instructed Management to undertake measures so that the Council of States corrects the decision of the National Council.

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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.

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SUISA’s December Board meetings usually focus on the figures for the coming year. Budgets, staffing plans and cost coverage deductions for business year 2019 were thus the central discussion point. Report from the Board by Dora Zeller

Report from the Board: Income from performing rights set to rise in 2019

Neuchâtel Reggae band Moonraisers, shown on the main stage of the Label Suisse Festival in Lausanne in September 2018; the event is co-supported by SUISA. Regarding the income from performing rights, including concerts, SUISA expects an increase during business year 2019. (Photo: Anne Bichsel / Label Suisse)

For the second time in SUISA’s history, the Board inspected the group budget of SUISA on top of its regular inspection of the budget of SUISA, the Cooperative Society and parent company. The latter comprises the numbers of the parent company, the 100% subsidiary company SUISA Digital Licensing (SUISA...read more

SUISA’s financial year 2018: an outlook

In the Committee and Board meetings towards the end of the year, framework conditions for the following financial year are set. As such, the meetings of the SUISA Board in December 2017 continued to be characterised by budgets, cost rates, staffing plans, roadmaps, politics and quite a bit more. Report from the Board by Dora Zeller

SUISA’s financial year 2018: an outlook

During the meetings of the SUISA Board in December 2017, the focus was on the figures for the next financial year. (Photo: Kemal Taner / Shutterstock.com)

For the first time in the history of SUISA, the Board presented two budgets in the December meeting: that of the Cooperative Society SUISA and that of the group of companies. The group of companies includes – apart from the parent company – the subsidiary company SUISA Digital Licensing (headquartered in the Principality of Liechtenstein). Furthermore, the group of companies holds a 50% share in the Joint Venture Mint Digital Licensing AG (headquartered in Zurich).

The Board members were given access to the budgeted figures of the affiliated companies. The definitive decision on their business lies, however, with the committees in charge of each society. A new point is therefore added to SUISA’s competency rules in terms of rights and obligations of the Board.

SUISA budget 2018

Back to the numbers: A modest increase is expected for performing and broadcasting rights and a continuation of the downward trend among the reproduction rights. The compensation claims, however, might see a steep rise compared to the 2017 budget (thanks to higher collections from the blank media levy, internal networks in businesses and the rental of set top boxes). Part of the online collections will be allocated to the subsidiary company for accounting purposes. Collections from online use for music on Swiss websites, online advertising campaigns and video on demand services remain in the SUISA budget.

SUISA’s overall turnover budgeted for financial year 2018 amounts to CHF 151.9m. Collections from the use of copyright in Switzerland are budgeted to reach CHF 136.6m. On top of that, net revenues of CHF 11m are expected from abroad. Furthermore, secondary income of CHF 4.3m shall contribute to the overall results.

Expenditure is probably going to increase compared to the previous year, mainly because of the collections of CT 3a (background entertainment). From mid-July, additional staff positions are budgeted to take over this business. The Board has approved the budget for 2018 knowing that it is based on the rejection of the No-Billag-Initiative. Should the voting populace reject the fee for the reception of broadcasts, the changed situation would be met with adapted scenarios.

Regulations and statutory provisions

The auditors regularly supply the governing bodies of SUISA a questionnaire on potential unlawful actions. With this statutory provision, the level of awareness among governing bodies for unlawful acts shall be determined. By way of their answers, management and Board estimate the risk levels and comment on the control procedures. The results were approved and passed on to BDO.

Cost coverage deductions

The Board also decided that the deductions in the off-line sector correspond to those of the previous year. For the online sector it approved slightly changed rates for domestic and international application.

Changes at Board level

Due to the limitation of the period in office, two members of the Board will step down in June 2019. The knowledge acquired over many years in office by the Board members who are now stepping down needs to be replaced and SUISA needs to prepare for future challenges. As early as autumn 2017, a working group has begun with a situational analysis regarding the imminent Board retirements. The Board was informed about the results and the next steps of this analysis.

Copyright Act Review

In November, the Federal Council has passed the message regarding the Copyright Act review together with the legislative proposal on to Swiss parliament. The matter is initially going to be dealt with at National Council level by the Legal Affairs Committee (LAC), and subsequently in the States Council’s Science, Education and Culture Committee (SECC).

The Board was informed about the developments by G. Savary, member of the Board and the SECC. At the same time, he learned from the Executive Committee that the collective management organisations are satisfied with the draft by and large. It corresponds to the compromise developed by the AGUR12-II.

Need for action continues to exist in the sector concerning the online usage of music. In the EU there has been a discussion on the transfer of value on the internet for quite some time. It is high time that this discussion also takes place in Switzerland and that measures are implemented to stop the shift of the value creation away from authors towards internet technology companies.

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In the Committee and Board meetings towards the end of the year, framework conditions for the following financial year are set. As such, the meetings of the SUISA Board in December 2017 continued to be characterised by budgets, cost rates, staffing plans, roadmaps, politics and quite a bit more. Report from the Board by Dora Zeller

SUISA’s financial year 2018: an outlook

During the meetings of the SUISA Board in December 2017, the focus was on the figures for the next financial year. (Photo: Kemal Taner / Shutterstock.com)

For the first time in the history of SUISA, the Board presented two budgets in the December meeting: that of the Cooperative Society SUISA and that of the group of companies. The group of companies includes – apart from the parent company – the subsidiary company SUISA Digital Licensing (headquartered in...read more

SUISA Board meeting: Collections, budget and sponsoring for classical music

Four times each year, SUISA Board members gather in committee and plenary meetings. Some of the agenda items are recurring at a set date each year: In spring, the annual accounts for the past financial year is an important issue. In December, the budget for the following year is set. Additional topics arise from the course of business such as changes to the distribution rules, details on tariff negotiations or the cooperation with other organisations. Report from the Board by Dora Zeller and Manu Leuenberger

SUISA Board meeting: Collections, budget and sponsoring for classical music

Snapshot of a concert with works by Claude Vivier and Karlheinz Stockhausen during the last Archipel festival in Geneva: In 2017, SUISA is going to carry out a sponsoring project together with the festival organisers. (Photo: Raphaëlle Mueller)

Budget control is one of the fixed items on the agenda for the Committee for Finance and Controlling. A review of the figures relating to the current financial year during the October 2016 Board meetings showed a positive trend: As at 31 August 2016, collections were higher than budgeted figures, and expenses stayed within the budget.

The Chairman of the Board Committee in charge expressed his satisfaction at the positive development of the total domestic collections and the fact that they surpassed both the budget and the income from the previous year. Said trend had already emerged in the report on the current financial year presented to the General Assembly in June.

Current financial year satisfactory so far

With regards to broadcasting rights (CHF 44.6m), the new Tariff S (private broadcasters) had a favourable effect. As to performing rights (CHF 33.4m), it was mainly due to Tariff E (cinemas) and CT 3a (background entertainment) that such good results were achieved. Reproduction rights, however, failed to meet expectations (CHF 4.2m), and thus reflected the respective market conditions.

Compensation claims increased (CHF 5.3m) – also due to the blank media levy for smartphones (Tariff CT 4e). While less devices were actually sold, bigger data storage capacities contributed to the increase of collections. The relevant trend in the online sector (CHF 4.6m) also matches the marketplace tendency: Income from streaming usage increased while that from downloads decreased.

However, the year hasn’t come to an end yet. Irregular payment receipts, appeals regarding tariff negotiation processes or market trends are factors that SUISA can hardly influence. Nevertheless, Board Directors and Management are confident that the budgeted numbers will be reached, maybe even exceeded by the end of 2016.

Sponsoring involvement planned for the classical music sector

During the Board Committee for Organisation and Communication, SUISA’s sponsoring involvement for 2017 were discussed. SUISA usually does not participate in many sponsoring opportunities as a rule. SUISA usually pursues a specific purpose when getting involved.

The main intention is to raise awareness for composers’ creations and to anchor cultural and economic values of such creative work into public perception. Furthermore, sharing copyright knowledge and informing the public about SUISA’s activities are primary purposes of sponsoring involvements. In such cases, specific projects are usually chosen where compositions, SUISA and copyright can be used as concrete topics for discussion at events and special occasions.

As such, a new SUISA involvement in sponsoring is planned to be for the classical music sector. The Board of Directors welcomed this initiative. A cooperation project with the Archipel Festival is planned for 2017. The festival for contemporary music creation shall take place between 24 March and 2 April 2017 in Geneva.

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Four times each year, SUISA Board members gather in committee and plenary meetings. Some of the agenda items are recurring at a set date each year: In spring, the annual accounts for the past financial year is an important issue. In December, the budget for the following year is set. Additional topics arise from the course of business such as changes to the distribution rules, details on tariff negotiations or the cooperation with other organisations. Report from the Board by Dora Zeller and Manu Leuenberger

SUISA Board meeting: Collections, budget and sponsoring for classical music

Snapshot of a concert with works by Claude Vivier and Karlheinz Stockhausen during the last Archipel festival in Geneva: In 2017, SUISA is going to carry out a sponsoring project together with the festival organisers. (Photo: Raphaëlle Mueller)

Budget control is one of the fixed items on the...read more

Continuously improving collections

SUISA’s Board meeting of December 2015 was marked by numbers and regulations. Board members discussed the 2016 budget. They revised individual articles of the distribution rules. Furthermore, they approved an increase of the admission fee from 2016 and prepared the revision of the rules for the SUISA Pension Fund for Authors and Publishers (UVF) for the General Assembly. Report from the Board by Dora Zeller

Continuously improving collections

Die Schweizer Genossenschaft der Urheber und Verleger von Musik hat für das Geschäftsjahr 2016 eine Einnahmensteigerung von 1,76% budgetiert. (Bild: Manu Leuenberger)

The SUISA Board ratified the 2016 budget during its meeting in December 2015. The budget provides for a slight increase in collections (+1.76%). Broadcasting rights, fair compensation revenues and the online sector are expected to contribute to this rise. In terms of expenditure, a slightly higher amount is expected (+ 1.6%). The budget thus covers the increased need for IT specialists (salaries) and additional IT licence costs. Other factors leading to an increase in expenditure are more intensive sponsoring activities and the accompaniment of the copyright debate, and more costs for PR activities.

Projections above and beyond 2016 are mainly dependent on the regulatory background. If the conditions remain stable, a positive development in terms of income can be expected.

Admission fees and cost deductions

The number of SUISA members continues to grow. On the one hand, this growth is good news, on the other hand it means a steep increase in terms of administrative efforts. A higher admission fee for new members is intended to equalise the ratio between effort and income. The Board members have ratified the admission fee increase. From 2016 onwards, the one-off fee for new admissions amounts to CHF 200 for authors and CHF 400 for publishers. SUISA will still not charge an annual fee for its members. Some sister societies abroad are charging annual fees.

Moreover, cost deductions for the distribution in 2016 have been set. The Board decided to retain the percentage levels of 2015.

Changes to rules and regulations

Various applications for changes to the distribution rules were approved. The updated definition of the term “publisher and sub-publisher” as well as some changes to the wording of Tariff VN and Common Tariff 10 were also approved. A revision of the “shares of members and principals of SUISA” was partially approved.

The regulations for the SUISA Pension Fund for Authors and Publishers (UVF) are to be updated with clearer provisions and terms adapted to professional providence. The actual level of the pension payments for authors and the contributions to publishers shall remain unchanged. The Board has ratified the changes. They will be explained in the invitation to the General Assembly. Said changes will be voted on during the General Assembly.

General Assembly 2016

SUISA’s General Assembly for this year will take place on Friday, 24th June 2016, 11am, in the Paul Klee Centre in Berne.

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SUISA’s Board meeting of December 2015 was marked by numbers and regulations. Board members discussed the 2016 budget. They revised individual articles of the distribution rules. Furthermore, they approved an increase of the admission fee from 2016 and prepared the revision of the rules for the SUISA Pension Fund for Authors and Publishers (UVF) for the General Assembly. Report from the Board by Dora Zeller

Continuously improving collections

Die Schweizer Genossenschaft der Urheber und Verleger von Musik hat für das Geschäftsjahr 2016 eine Einnahmensteigerung von 1,76% budgetiert. (Bild: Manu Leuenberger)

The SUISA Board ratified the 2016 budget during its meeting in December 2015. The budget provides for a slight increase in collections (+1.76%). Broadcasting rights, fair compensation revenues and the online sector are expected to contribute to this rise. In terms of expenditure, a slightly higher...read more

SUISA budgetiert für 2015 leicht steigende Einnahmen bei etwas höheren Ausgaben

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