Tag Archives: Budget

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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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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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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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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