Tag Archives: Collections

Hope and commitment

2022 gives rise to hope with regard to overcoming the pandemic and, above all, improving the working situation for our members. Larger concerts should be possible again this summer and the public is showing more interest in attending festivals and concerts once more. Some festivals and events sold out very quickly this spring. By Andreas Wegelin, CEO

Hope and commitment

Andreas Wegelin, SUISA CEO. (Photo: Lisa Burth)

The SUISA General Meeting on 17 June 2022 will mark the first opportunity in two years for our members to meet with other members, with SUISA’s Board of Directors, its Executive Committee and staff. If you are a member and entitled to vote, do take advantage of this opportunity and do get involved in our common cause so that we can ensure that authors receive a fair compensation for their work.

Thanks to the commitment of the SUISA staff and the good cooperation with our customers, the music users, the 2021 business year result reflected only a slight decline overall compared to our all-time record of 2019. The biggest drop occurred in live music performances: Since they could not take place, SUISA also recorded less licensing income from this sector. With a great deal of patience and commitment, our employees nevertheless did everything they could to ensure that music uses were licensed as comprehensively as possible. For this, they certainly deserve our thanks on your behalf as well.

Thanks to the commitment among many of you and of politicians, we were also able to fend off an attack on the enforcement of appropriate compensation in more recent times. On 8 March 2022, the Swiss Council of States finally rejected the parliamentary initiative Nantermod. The initiative demanded that hotels should no longer have to pay any fees for broadcasting radio and TV programmes in guest rooms. This would have resulted in authors losing at least 1 million Swiss francs.

What we are concerned about is the war situation in Europe. It cannot and must not be that cultural achievements are destroyed senselessly and that peaceful coexistence among people is rendered impossible. Let us all see to it that music will triumph over barbarism. For our professional colleagues, you can get involved and give them hope through the coordinated #creatorsforUkraine relief campaign via our umbrella organisation CISAC.

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2022 gives rise to hope with regard to overcoming the pandemic and, above all, improving the working situation for our members. Larger concerts should be possible again this summer and the public is showing more interest in attending festivals and concerts once more. Some festivals and events sold out very quickly this spring. By Andreas Wegelin, CEO

Hope and commitment

Andreas Wegelin, SUISA CEO. (Photo: Lisa Burth)

The SUISA General Meeting on 17 June 2022 will mark the first opportunity in two years for our members to meet with other members, with SUISA’s Board of Directors, its Executive Committee and staff. If you are a member and entitled to vote, do take advantage of this opportunity and do get involved in our common cause so that we can ensure that authors receive a fair compensation for their...read more

Two years of pandemic have passed financially smoothly for SUISA – new challenges ahead

After two difficult years for SUISA and authors and publishers due to the worldwide COVID-19 pandemic, we continue to face threats and difficult times. A war in Europe is destroying the foundations of peaceful coexistence. Culture, and thus also the creators of music, as a unifying and peace-building element, are called upon. Text by Andreas Wegelin

Two years of pandemic have passed financially smoothly for SUISA – new challenges ahead

In view of the war in Ukraine, it is worth remembering that music can be a unifying and peace-making element of coexistence. (Photo: Oleh Dubyna / Shutterstock.com)

Despite the event bans imposed by the authorities, SUISA has been able to achieve a respectable result, even in the past two years. The overall decrease in revenue in 2020 and in 2021 only amounted to 10%, compared to the best-ever result in 2019. At the same time, we were able to achieve savings on the cost side, in particular thanks to accelerated process automation. This stabilised the drop in terms of the distributable amount. It is 1% higher than in 2020. High secondary income also allows us to pay an additional 7% distribution on all 2022 settlements again.

In order to provide quick help to members who got into difficulties due to the pandemic and therefore received less money from SUISA, the General Assembly 2020 decided to set up a relief fund. This fund still exists, many distribution results continue to be bad in this year, too, and the respective requests can be addressed to the membership department.

Especially during the pandemic, it was important to be there for our customers and members, in many cases electronically, via web forms on the internet, but also e-mails and, just like before, by phone or letter. We are also expanding our electronic communication channels further. They are a central component of good member and customer service, with the aim of enabling contact with SUISA 24/7 via the internet, thus saving costs for all parties involved.

Successful investments in new business areas

Today, music is not only performed and enjoyed in a live environment. During the pandemic, it has become clear that it is vital to diversify and branch out into other music exploitation areas. Many new presentation possibilities and uses on the internet, especially by means of streaming, could establish themselves over time and have become new and popular platforms for the sale of recorded music.

Since 2016, SUISA has invested in the development of the new business areas with its subsidiaries SUISA Digital Licensing and together with the American organisation SESAC at Mint Digital Services. Mint now manages the repertoire of over 3,500 American independent publishers, 14 collective management organisations from four continents, and the rights of BMG Rights Management in Asia and Australia. Licensing agreements have been signed with over 70 music providers worldwide. The possibilities for direct licensing of SUISA’s repertoire abroad are to be further exploited. In many cases, this means that SUISA’s authors and publishers can benefit from higher revenues which are paid out faster.

New challenges – the war in Europe

SUISA will be celebrating its centenary next year. The anniversary general meeting is scheduled to take place in Zurich on Friday, 23 June 2023 and to be followed by celebrations. Until then and beyond, we are to meet new challenges and further expand our existing services.

Music can be a unifying and peace-making element of coexistence and will continue to find and delight its audience. However, it should also provide its authors and musicians with a financial livelihood. With Russia’s war of aggression on Ukraine, peace in Europe is highly endangered. A relationship that has been built up over many years with the countries in Eastern Europe and with the authors over there is in danger of being damaged. The exchange among authors and also among the collective management organisation (CMO) is also severely endangered by the armed conflicts.

SUISA wants to do its part to ensure that the ties established with its sister organisation in Ukraine are not severed. 50,000 Swiss francs were allocated to the support fund of CISAC, our international umbrella organisation of CMOs, for emergency aid to musicians in the war zone and to Poland, which is providing an overwhelming amount of support work here. All efforts must be made for a peaceful solution and for the functioning and continued existence of the collective management organisation NGO UACCR in Ukraine.

But those who now condemn all Russian culture are acting blindly, just like the warring parties. Let us believe in the peace-making potential of music and in those who perform or enjoy music together, regardless of which country they come from.

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  1. Eric says:

    Thanks for the informative article!
    I can agree with exactly that….

    Best regards

    Eric

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After two difficult years for SUISA and authors and publishers due to the worldwide COVID-19 pandemic, we continue to face threats and difficult times. A war in Europe is destroying the foundations of peaceful coexistence. Culture, and thus also the creators of music, as a unifying and peace-building element, are called upon. Text by Andreas Wegelin

Two years of pandemic have passed financially smoothly for SUISA – new challenges ahead

In view of the war in Ukraine, it is worth remembering that music can be a unifying and peace-making element of coexistence. (Photo: Oleh Dubyna / Shutterstock.com)

Despite the event bans imposed by the authorities, SUISA has been able to achieve a respectable result, even in the past two years. The overall decrease in revenue in 2020 and in 2021 only amounted to 10%, compared to the best-ever result in 2019. At the same time, we were...read more

Spring meeting of the SUISA Board of Directors

The SUISA Board of Directors and its committees held their spring meetings on 11/12 April 2022. After a long break, it is back in full for the first time with face-to-face personal meetings at SUISAʼs headquarters in Zurich. Report from the Board by Andreas Wegelin

Spring meeting of the SUISA Board of Directors

Directorʼs seat in a TV broadcast vehicle: SUISAʼs Board and Executive Committee are preparing to counter the renewed attack on the media fee from the trade sector and the Jungfreisinnige (Young Liberals, Switzerland). (Photo: Cooler8 / Shutterstock.com)

Traditionally, the annual report and the annual financial statements/accounts are finalised and approved at the spring meetings in preparation for and for the attention of the General Meeting. The 2021 annual financial statements matched the previous yearʼs level despite the ongoing pandemic in the year under review. The overall decrease in revenue in 2020 and in 2021 only amounted to 10%, compared to the best-ever result in 2019.

At the same time, we were able to achieve savings on the cost side, in particular thanks to accelerated process automation. This stabilised the decline in terms of the distributable amount. It is even 1% higher than in 2020. High secondary income also allows us to pay an additional 7% distribution on all 2022 settlements again.

Risk management

The annual report also includes the Board of Directors activities in terms of the examination of possible risks and the taking of precautionary mitigating measures to prevent such risks from materialising. Thanks to good information work and lobbying, the CT 3a Tariff (background music) has been much more widely accepted over the last three years since SUISA set up the collection. The Board no longer sees any particular risk here.

On the other hand, the attacks on the media fee from the business sector and the Young Liberals are a cause for concern: The substantial cut in funding for SRG would also have far-reaching consequences for the broadcasting of music by our members. Our Board and Executive Committee will set everything in motion in the years leading up to the referendum to ensure that this scenario does not come to pass.

Partial revision of the Articles of Association, #creatorsforUkraine

The Board also approved a partial revision of the Articles of Association for the attention of the Annual General Meeting, including rules for a good modern corporate governance. For the first time, the emoluments and potential conflicts of interest of the members of the Board of Directors and the Executive Board will also be disclosed to the 2022 Annual General Meeting.

The Board also wishes to express its concern about the war in Ukraine and condemns Russiaʼs war of aggression. It decided to make a donation of CHF 50,000 to the #creatorsforUkraine relief campaign of our umbrella organisation CISAC.

Other agenda items

Other topics of the meeting were the optimal organisation of the representation of the rights of our members in South Africa, possibly through a new agency, and the cooperation with the German GEMA regarding the automated registration of small events with music.

In its function as the Board of the Pension Fund for Authors and Publishers, the SUISA Board of Directors has taken note of the annual financial statements of said foundation, which close successfully with an annual result of CHF 4.7 million thanks to the good securities situation at the end of 2021.

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The SUISA Board of Directors and its committees held their spring meetings on 11/12 April 2022. After a long break, it is back in full for the first time with face-to-face personal meetings at SUISAʼs headquarters in Zurich. Report from the Board by Andreas Wegelin

Spring meeting of the SUISA Board of Directors

Directorʼs seat in a TV broadcast vehicle: SUISAʼs Board and Executive Committee are preparing to counter the renewed attack on the media fee from the trade sector and the Jungfreisinnige (Young Liberals, Switzerland). (Photo: Cooler8 / Shutterstock.com)

Traditionally, the annual report and the annual financial statements/accounts are finalised and approved at the spring meetings in preparation for and for the attention of the General Meeting. The 2021 annual financial statements matched the previous yearʼs level despite the ongoing pandemic in the year under review. The overall decrease in...read more

SUISA and the Covid-19 crisis

Since the end of February 2020, it’s not just the music sector that has been confronted with an unforeseen challenge. As a cooperative society for authors and publishers of music and a collective management organisation, how is SUISA dealing with the Covid-19 crisis which has been around for nearly two years? Text by Andreas Wegelin

SUISA and the Covid-19 crisis

With the bans for public performances, many people in the music sector had neither work nor income overnight. SUISA kept its business and its services up and running during the Covid-19 crisis for its members and its customers. (Photo: Jirsak / Shutterstock.com)

At the gala for the 13th Swiss Music Awards on 28 February 2020, of all things, the Swiss-wide restrictions of events with music kicked in. That evening, only a maximum of 1,000 people were permitted to attend the live event. Those who believed that the Covid-19 pandemic would have disappeared with the cold winter air, just like a flu virus, were soon proved wrong: From 13 March 2020, no live concerts, no parties in clubs were allowed any longer. The music business, made up of composers, performing artists, event organisers and suppliers for the event sector was forcibly deprived of its existential basis.

Meanwhile, we find ourselves in the second Covid-19 year and have been experiencing enormous difficulties when it comes to holding music events with a physical audience. How is SUISA as a cooperative society for authors and publishers of music and as a collective management organisation dealing with that?

Financial losses and unpredictability

About a month after the first lockdown had been ordered, the Executive Committee and Board of Directors of SUISA revised the budget for 2020. This so-called “Covid-19 budget” target which forecast 23% less in terms of collections and 8.5% more in terms of costs, could be met. As the annual accounts finally showed, the overall turnover losses were fortunately limited: The collections of SUISA in Switzerland and from abroad amounted to CHF 138.5m in 2020 which was 12% less than the previous record year (CHF 155.2m). Costs rose by only 1.1% compared to the previous year and therefore less dramatically as anticipated in the Covid-19 budget.

The drastic effects of the Covid-19 ordinances only become apparent when you look at the sectors individually: The decrease of the collections from concerts (–51%), entertainment events (–47%), the hospitality industry (–46%) and cinemas (–58%) is blatant compared to the 2019 results. The good results achieved for broadcasting rights, compensation claims and online usages partially offset these losses. However, rights owners whose income mainly stems from the success of live events had to face huge losses in terms of their distribution amounts.

Due to the second wave of the pandemic, all events were banned again in December 2020. Again, a Covid-19 budget had to be created where the expectations are lower yet again on the income side for the 2021 financial year: compared to 2020, 11% less. At the same time, savings of 11% in terms of costs should be achieved compared to the year before. Particularly with regard to the collections from concerts (tariff K), a further slump must be expected. The prognosis for the second Covid-19 year projects CHF 6m collections in this area. In 2020, this tariff generated CHF 11m and before the crisis in 2019, CHF 23m in remuneration for authors and publishers of music.

Two “buffers” help in this situation; they are expected to cushion the inclement framework conditions in the financial results as per the current status of the 2021 financial year: On the one hand, the situation regarding the securities investments is good. On the other hand, the money which could not be allocated to any rights owners during the last five years is used to cover costs. If possible it is paid out in the form of a supplementary distribution once this period has expired.

Relief measures for rights owners

Due to the effect of the pandemic, all collective management organisations in Europe decided to set up aid measures in favour of their rights holders. The aid measures launched by SUISA are based on three “columns”: First, advance payments on the distribution settlements with an extended payback period, second, contributions from the Covid-19 emergency fund which had been specially set up, and third and last, the emergency assistance for authors from the Pension Fund for Authors and Publishers (UVF).

These aid measures are gratefully received: Since the beginning of the Covid-19 crisis in March 2020, CHF 1,416,084 advance payments were made up to 25 October 2021. CHF 251,250 were awarded as contributions from the emergency fund and CHF 170,500 were granted as emergency assistance via the UVF fund. You can continue to submit applications via “My account”. Due to the high number of rights owners, the extent of the losses only become apparent when it comes to the distributions in the years 2021 or 2022 which will be much lower for many since the events in 2020 and 2021 could not be held. Publishing companies have the option to request advance payments or contributions from the Covid-19 emergency fund. The UVF fund emergency assistance is only possible to be granted to authors due to legal reasons.

Lobbying

Just like if you had a short circuit, the lights went out for the entire event sector regarding public performances. From one day to the next, performers, event organisers, stage technicians and other staff in the public event sector were without work and income. For authors the concert stoppage meant that their works were no longer performed live and therefore no licence fees were paid for the performance of their music any longer. The collections from live events slumped to their lowest ever as described further above. These copyright royalties are, however, an important basis for the existence of many rights owners.

The first aid measures by the Swiss Confederation were insufficient and also not really tailored to resolve the problems in the cultural sector. Lobbying therefore became rather important during the crisis. It has been and still continues to be paramount to persuade public authorities, parliaments and the government that culture is vitally important for society, just like shops for your daily needs. If, therefore, cultural performances may no longer take place due to event bans, the creatives, event organisers but also the publishers and suppliers affected must be compensated accordingly. What needs to be taken into account in such situations is that, particularly in the culture sector, many work as self-employed freelancers or in the form of small organisations, e.g. associations.

Furthermore, the understanding needs to be firmed up that there are different types of events: Studies show that there often is a lower risk of getting infected at cultural events than at large sports events or funfairs. Lobbyists have not yet managed to anchor this differentiation in the minds of the decision-makers so far. Nevertheless, the “Taskforce Culture” which had been spontaneously set up during the crisis, has achieved a lot and has become an important contact point for authorities, parliaments and the government. SUISA is a part of the extended support circle of the Taskforce.

Manage from a distance and work remotely

The Cooperative Society SUISA employs about 250 people. They share 187 full time positions. All staff whose tasks could be done by working remotely had to be sent home in the week of 16 to 23 March 2020. The IT team created the required plans for such a completely unexpected process from scratch and made sure that staff could continue to work from home on devices provided by the employer, without major difficulties.

Working in your home office, a recommendation issued by the authorities, later turned from being optional to mandatory. As such, it was not just a challenge it also entailed completely new experiences in terms of managing and organising the operations. How do you reach your co-workers and colleagues if you cannot simply pop over to the next office space if the meeting and break out rooms cannot be used?

The previously existing and used options to hold virtual meetings and one-to-one conversations via video conference were expanded. Thanks to these technical means the connection which is so important for a good collaboration between management and staff but also among colleagues could be maintained. Executive staff were trained in how to lead and manage their staff from home. Every two weeks, a web meeting with the Executive Committee, the HR manager and the IT manager took place, moderated by the communications manager. All staff could participate in this meeting and ask questions via the chat function. We thus managed to transition the collaboration “across the distance” into a daily work routine.

Business operations were functioning, thanks to the flexible, committed and disciplined staff as well as the advanced digitisation. SUISA was always available to its members and its customers. This new experience made the Executive Committee decided to also enable home office work in future, up to 50% of the work time. Home office deployments must, however, be coordinated within the teams and this cannot be carried out for some positions in the extent reflecting a maximum.

More self-service – process automation

The obligation to work from home particularly highlighted how indispensable and important digitisation has been for a collective management organisation like SUISA. Working from home is only possible if the necessary data is available electronically and extensive paper dossiers do not have to be accessed. The immense advantages in terms of availability of the required information was proven as a consequence of the digitisation of all member and customer files in the last few years. The developments in terms of computerisation further contributed that it was possible to quickly switch to working from home in a successful manner.

Customers and members of SUISA also benefited from progress for efficient and satisfying contacts with the company triggered by the digitisation. Due to the closure months for the hospitality industry and shops ordered by the authorities, many customers had requested a refund of the unusable licence for music performances. The process of refunding licence fees can now simply be triggered via a web form.

Since the middle of 2020, members can access the royalty report via “my account”. All members who have a valid online access can retrieve the up-to-date data for their works and the licences issued for them and view and arrange them according to selected criteria. More recently, the login process for members and customers was enhanced via a two-factor authentication which means that the digital business exchange with SUISA offers an even higher security standard. Further developments will follow.

The applications and digitisation projects mentioned above were only implemented in such a successful and timely manner because the staff continued to work on them at full steam and without any limitations during the pandemic. After some lengthy discussions, Executive Committee and Board of Directors had decided that SUISA would not apply for and introduce short-time work. A wise decision, as the situation which we have been experiencing since March 2020, shows more and more clearly: In a roundabout way under pressure from the authorities’ ordinances regarding the pandemic, SUISA was able to develop its services much further over the last few months. Despite the losses in collections, we are ready with digitised and automated processes to manage the music licences for event organisers and to distribute the royalties to rights owners reliably and, above all, cost-effectively.

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Since the end of February 2020, it’s not just the music sector that has been confronted with an unforeseen challenge. As a cooperative society for authors and publishers of music and a collective management organisation, how is SUISA dealing with the Covid-19 crisis which has been around for nearly two years? Text by Andreas Wegelin

SUISA and the Covid-19 crisis

With the bans for public performances, many people in the music sector had neither work nor income overnight. SUISA kept its business and its services up and running during the Covid-19 crisis for its members and its customers. (Photo: Jirsak / Shutterstock.com)

At the gala for the 13th Swiss Music Awards on 28 February 2020, of all things, the Swiss-wide restrictions of events with music kicked in. That evening, only a maximum of 1,000 people were permitted to...read more

A worthy result despite Covid

2020 was an annus horribilis for many music creators. Concerts and other events were by and large prohibited. Most organisers, artists and authors thus lost a large part of their income. Thanks to the good performance in other areas and to its prompt action, SUISA managed to contain the financial damage for many entitled parties. Text by Andreas Wegelin

A worthy result despite COVID

Concerts were hardly possible from February 2020 onwards. However, thanks to an increase in the online sector, SUISA’s annual result turned out relatively good. (Photo: Oleksii Synelnykov / Shutterstock)

After being hit by the Covid pandemic, the world went into a state of shock. The pandemic impacted – and continues to impact – large segments of the economy. The cultural sector, and music creators as part of it, were hit especially hard. “First to close, last to open”. Creators and organisers were the first to be affected by the shutdowns and restrictions, and they will be the last able to fully resume their work.

Needless to say, the difficult situation for the cultural sector also affected SUISA’s annual results. After all, in the past, performance rights, i.e. revenues from concerts and other performances, music usage in businesses and restaurants, and music for parties, accounted for 35% of SUISA’s rights administration revenues. After nearly all events were prohibited in March 2020, it was clear that SUISA’s revenues – especially from performance rights – would fall short of the prior year’s. It was hard to predict, however, how steep the downturn would be, and whether revenues from other rights would also be adversely affected.

The steep downturn in revenues from performance rights was partially compensated by other rights revenues

As it fortunately turned out, SUISA’s turnover was less severely impacted than had been feared. Last year, SUISA recorded total revenues, domestic and international, of CHF 138.5m: this is 12% less than the prior year (CHF 155.2m). As expected, the shortfall in performance rights accounted for greater part of the downturn: while in 2019, revenues from performance rights had attained CHF 51.2m, in 2020 they only reached CHF 34.4m, i.e. 34% less.

SUISA managed to make up for this shortfall in other areas. Revenues from broadcasting rights increased slightly – from CHF 63.6m in 2019 to CHF 64.3m in 2020. Downturns that had been feared, for example in advertising revenues from TV and radio broadcasts following the cancellation of many large events, failed to materialise.

Positive trend in online business thanks to SUISA Digital Licensing and Mint

The trend in revenues from online uses was extremely positive: online revenues climbed from CHF 8.8m in 2019 to CHF 11.4m last year. This was especially thanks to the growth in revenues realised by SUISA’s subsidiary SUISA Digital Licensing. The latter succeeded in acquiring a number of new customers including foreign sister societies and music publishers, and also managed to negotiate improved contract terms with online providers of streaming and downloading platforms.

This satisfactory development in the online area is all to the benefit of the authors and publishers whose works are increasingly streamed on the various platforms. Even Mint, the joint venture with the US society SESAC, continued its expansion last year as a provider of services to various music publishers and foreign sister societies.

SUISA has responded to the crisis

The fact that, from the outset of the pandemic, SUISA responded promptly – with a view to cutting costs on the one hand, and to distributing as much as possible to authors and publishers on the other – also contributed to the relatively good year.

Projects that were not urgent were deferred or even cancelled and, wherever possible, staff departures were not replaced. Certain expenditures, such as sponsoring contributions and travel expenses, disappeared anyway because of the pandemic. And SUISA did everything possible to invoice all and every use of music – including those pertaining to prior years – and collect the revenues. At a time when nearly all performances have been barred, the royalties from SUISA are more important than ever for many music creators.

Supplemental distributions from released settlement liabilities

In 2021, SUISA was again able to allocate a supplemental distribution of 7% on all settlement amounts from the released provisions for settlement liabilities which could not be distributed after five years in absence of the necessary information on the entitled parties.

Understanding for customers

Its efforts to collect the greatest amount in revenues does not mean, however, that SUISA is blind to the circumstances of its customers. On the contrary: precisely in the case of the inns and restaurants which were severely affected by the shutdowns ordered by the authorities, SUISA demonstrated goodwill with regard to invoice payments, granting extended payment terms for example, and permitted refunds to customers who had made down payments but had no music usage in the period. Ultimately, it is in the interest of SUISA and its members to ensure that businesses, organisers, and other music users survive and continue to use music. After all, there will be a time after the Covid-pandemic, and SUISA must do its utmost to ensure that, in that future, it can continue to distribute the largest possible amount in royalties to the authors and publishers of music.

SUISA’s detailed 2020 results can be found in the 2020 Annual Report, in which this article (on pages 9/10) also appeared: www.suisa.ch/annualreport

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Music and culture are part of your daily needsMusic and culture are part of your daily needs A year ago, on 28 February 2020, the first restrictions for cultural events were adopted. Initially events were limited to 1,000 people, then the first lockdown occurred in mid-March. Thanks to precautionary measures, small rule relaxations were granted in the summer, but they were gradually reversed in autumn. Since mid-January 2021, we have been stuck in the second lockdown: without music events, without access to real – non-virtual – cultural experiences. Read more
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2020 was an annus horribilis for many music creators. Concerts and other events were by and large prohibited. Most organisers, artists and authors thus lost a large part of their income. Thanks to the good performance in other areas and to its prompt action, SUISA managed to contain the financial damage for many entitled parties. Text by Andreas Wegelin

A worthy result despite COVID

Concerts were hardly possible from February 2020 onwards. However, thanks to an increase in the online sector, SUISA’s annual result turned out relatively good. (Photo: Oleksii Synelnykov / Shutterstock)

After being hit by the Covid pandemic, the world went into a state of shock. The pandemic impacted – and continues to impact – large segments of the economy. The cultural sector, and music creators as part of it, were hit especially hard. “First to...read more

Full speed ahead

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

Report from the Board of Directors: Full speed ahead

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

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

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

Relatively good performance thanks to broadcasting rights and online uses

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

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

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

The 2021 General Meeting will take place by written correspondence again

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

Status of 2021 budget with the ongoing Corona crisis

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

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

Mint joint venture to be strengthened

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

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

Adapting the range of services for members and principals

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

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

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

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

Report from the Board of Directors: Full speed ahead

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

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

And yet, this year,...read more

No physical General Meeting in 2021 either | plus video

Members with voting rights can still co-determine the fate of the SUISA Cooperative by casting their votes in writing. Text by Regula Greuter; Videos by Manu Leuenberger

No physical General Meeting in 2021 either

The big room in the Bierhübeli in Berne remains empty: The SUISA “AGM” 2021 will be held based on voting in written format. (Photo: Manu Leuenberger, edited by Likeberry and Schellenberg Druck AG)

Not quite as expected, the Covid-19 pandemic prevents holding a face-to-face General Meeting again this year. The plan was that the Bierhübeli in Berne should be the venue for this year’s event on 25 June 2021. The current situation, however, allows for no reliable planning of the event and the Board of Directors has consequently decided during its meeting on 22 April 2021 that the General Meeting should be held again this year by participation via voting in writing. That way, all members entitled to vote have the opportunity to participate in the AGM without taking a health risk.

Organisational execution

From 25 May 2021 onwards, the documents for the General Meeting will be dispatched to all members entitled to vote (invitation to voting by letter, information on the General Meeting including the agenda items and the voting form). From the day you receive the documents you can complete the personalised voting form, sign it and return it to SUISA by letter no later than 25 June 2021 (25th June is the latest date of receipt).

The results of the votes are then counted by the election office headed by Dr. Bernhard Wittweiler (head of SUISA’s Legal Department).

The results of the vote and election will be formally established by the President, the Secretary, the CEO and the Head of the Legal Department on the basis of the count and published on the SUISA website on 30 June 2021.

Agenda items of this year’s General Meeting

Apart from the usual statutory business, i.e. ratification of the minutes, decisions on the financial statements, the management report and the annual report of the SUISA cooperative and the SUISA group – the General Meeting will be presented with a motion to adapt the general rules on investment and a surrogate candidate for Géraldine Savary who is stepping down from her post.

Adapting the general rules on investment

It is a matter of increasingly social concern to sustainably manage investments. SUISA is also intending to submit to this. This is why the Board of Directors decided to adapt rules on investment of SUISA by adding the criterion “sustainability”. Apart from the main objectives of the investments, i.e. security and liquidity, the criterion of “sustainability” shall now also be anchored into the general investment rules.

Pursuant to the Articles of Association, the General Meeting is responsible for the general investment policy with regards to the collected remuneration (Article 9.2.2 m).

The Board of Directors therefore proposes that the general rules on investment should be supplemented by the criterion of sustainability.

By-election to the Board

Due to Géraldine Savary who is going to step down (former State Councillor SP/VD) a new member for the Board of Directors will be proposed for election. In accordance with the Articles of Association (Article 9.3.2) apart from SUISA members entitled to vote and be elected, “persons who, on grounds of their position or expertise, have a special involvement with SUISA’s activities” can be elected to the Board of Directors. As a consequence, there were active or former Parliamentarians throughout many years who were members of the Board of Directors who bring valuable experience to SUISA with their expertise.

The Board of Directors therefore proposes that Johanna Gapany (State Councillor FDP/FR) to be newly elected to the SUISA Board of Directors.

Johanna Gapany started her political career in her younger days. This led her from the General Council to the Municipal Council of Bulle, she took a seat in the Grand Council of the Canton of Fribourg from 2016 to 2019 until she was elected in 2019 as the first woman of the Canton of Fribourg to the Council of States. A graduate in business economics, she brings professional experience as a marketing manager in various companies and as a communications manager in a private hospital in Fribourg.

Even though there will be no physical General Meeting in 2021, members with voting rights will be able to have their say on SUISA’s business in writing. We invite you to use this opportunity and to vote!

All documents and details regarding the General Meeting can be accessed at www.suisa.ch/en/members/general-assembly.html. Questions on the process and the agenda items can be sent to the Executive Committee by e-mail: gv (at) suisa (dot) ch

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Leave a Reply

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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Members with voting rights can still co-determine the fate of the SUISA Cooperative by casting their votes in writing. Text by Regula Greuter; Videos by Manu Leuenberger

No physical General Meeting in 2021 either

The big room in the Bierhübeli in Berne remains empty: The SUISA “AGM” 2021 will be held based on voting in written format. (Photo: Manu Leuenberger, edited by Likeberry and Schellenberg Druck AG)

Not quite as expected, the Covid-19 pandemic prevents holding a face-to-face General Meeting again this year. The plan was that the Bierhübeli in Berne should be the venue for this year’s event on 25 June 2021. The current situation, however, allows for no reliable planning of the event and the Board of Directors has consequently decided during its meeting on 22 April 2021 that the General Meeting should be held again this year...read more

Planning ahead in a crisis situation

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

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

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

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

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

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

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

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

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

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

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

New service range catalogue and minimum fee for SUISA membership

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

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

Changes in the distribution and investment rules

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

Flexible management in times of crisis

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

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Negotiating in the age of corona … and with coronaNegotiating in the age of corona … and with corona Negotiating is one of SUISA’s key functions. SUISA negotiates tariffs and contracts inter alia. It must safeguard the interests of its members, ensure their legitimate demands are understood and accepted, and obtain the best possible terms for musical creation. It does this through discussion and compromise: in a nutshell, through human relations. But last spring, a new player invited itself to the negotiating table: Covid-19. Read more
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  1. hermann says:

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

    • Sehr geehrter Herr Hermann

      Danke für Ihre Nachricht.

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

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

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

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

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

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

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

Leave a Reply

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

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

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

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

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 (to be seen in the picture: Corin Curschellas and Ursina Giger from the trio La Triada). 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

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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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Leave a Reply

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

Your email address will not be published.

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