Tag Archives: Distribution

Changes in the distribution of revenues from radio uses

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

Changes in the distribution of revenues from radio uses

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

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

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

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

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

Billing per second

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

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

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

Level E (other music)

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

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

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

Changes in the distribution of revenues from radio uses

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

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

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

Positive figures for the 2018 financial year to date

The Board meeting held the day before the General Assembly in June 2018 had a multi-layered agenda to handle. In addition to preparing for the General Assembly, the meeting also reviewed the course of business for the year to date. Report from the Board by Dora Zeller

Positive figures for the 2018 financial year to date

Satisfactory revenue and distribution results for composers, lyricists and publishers: SUISA’s 2018 financial year got off to a good start in terms of results. (Photo: Manu Leuenberger)

Key figures for the start of the 2018 financial year are positive: domestic revenues totalled CHF 60.3 million as at 31 May 2018, exceeding the budget by 8% and the prior year by 7%. The amount distributed in the second-quarter settlement in mid-June was CHF 43.8 million. At CHF 13.2 million, expenses were within budget.

Review of business activities

The Board approved the comprehensive report and explanatory notes to the 2017 financial statements prepared by the Auditor. These are part of the documentation that SUISA is required to file with the Federal Intellectual Property Institute (IPI) each year for its review of SUISA’s business activities.

Following changes in the Financial Market Infrastructure Act and its implementing ordinances, SUISA had to amend its investment regulations, in particular as regards due care rules for derivatives trading. The Board laid down clear guidelines regulating SUISA’s activities on the investment market. SUISA is also required to submit any amendments to these regulations each year to the IPI, the competent regulatory authority.

Satisfactory income and distribution results for year-to-date 2018

For the year to date as at 31 May, revenues increased for all classes of rights compared both with the budget and the prior year. The growth in revenues from online uses – plus 174%, or CHF 4.7 million – was particularly noteworthy. When preparing the budget, it had been expected that all online contracts would be transferred to SUISA Digital Licensing or Mint Digital Services, and that the corresponding revenues would flow into these companies. However, negotiations with the online service providers are taking longer than expected. Until the new contracts are signed, the corresponding revenues will continue to flow to SUISA, the parent company.

Initial distribution results for 2018 are also positive. The remuneration collected under most tariffs is meanwhile distributed to rightsholders following a quarterly schedule. The first quarterly settlement comprised 8,879 individual settlements representing a total distribution of CHF 13.8 million; the second, in mid-June, comprised 11,800 individual settlements and a total distribution of CHF 43.8 million.

With regard to revenues from abroad, thanks to a new IT application, we managed to distribute a larger number of settlements from our foreign sister societies than ever before at this time of the year. Remuneration totalling CHF 4.1 million was distributed to SUISA members. Moreover, starting in autumn 2018, foreign revenues will also be distributed on a quarterly basis. This means that the second of the three foreign settlements for 2018 will be distributed in mid-September. The third settlement will then be made in mid-December.

Sponsoring commitments and distribution rules

Figures aside, on to sponsoring: SUISA is making itself seen and heard with a number of actions in the framework of various musical events. The overriding aim is always to inform the public about the purpose and activities of our Cooperative Society and to attract well-deserved attention and esteem for the creative work ofour members. In this context, the members of the Committee for Organisation and Communication learnt about SUISA’s commitment in support of the Walo Prize and the organisation of the successful Songwriting Camp. Other events (co-)sponsored by SUISA include a day of concerts in the “Offen für Neues” (“open for the new”) series at the Festival Murten Classics in August, as well as “Label Suisse” in mid-September in Lausanne.

At the meeting, the Board also spent considerable time debating the amendment of the Distribution Rules. The amendments proposed by the Executive Committee are first examined by the Distribution and Works Committee. They are then referred to the Committee for Tariffs and Distribution before being sent to the Board. Finally, the amendments must be submitted to the IPI and the Liechtenstein Office of Economic Affairs. The amendments come into force once they are approved by both institutions, and the document is published.

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The Board meeting held the day before the General Assembly in June 2018 had a multi-layered agenda to handle. In addition to preparing for the General Assembly, the meeting also reviewed the course of business for the year to date. Report from the Board by Dora Zeller

Positive figures for the 2018 financial year to date

Satisfactory revenue and distribution results for composers, lyricists and publishers: SUISA’s 2018 financial year got off to a good start in terms of results. (Photo: Manu Leuenberger)

Key figures for the start of the 2018 financial year are positive: domestic revenues totalled CHF 60.3 million as at 31 May 2018, exceeding the budget by 8% and the prior year by 7%. The amount distributed in the second-quarter settlement in mid-June was CHF 43.8 million. At CHF 13.2 million, expenses were within budget.

Review of business activities

The Board...read more

131.4m Swiss Francs for composers, lyricists and publishers

It was with satisfaction that members of the SUISA Board approved the results of the previous year during their meeting at the end of March 2017. The total turnover was 3.2% higher than that of the previous year. An overall amount of CHF 131.4m can be paid out to rights holders. The Board has, in addition, decided that a supplementary distribution of 7% shall be carried out on top of all regular distributions in 2018. Report from the Board by Dora Zeller

131.4m Swiss Francs for composers, lyricists and publishers

SUISA managed to yield a total turnover of CHF 159.2m in 2017, including secondary income. Due to the positive outcome, composers, lyricists and publishers receive CHF 2.5m more in royalties for their artistic performances than in the previous year. (Photo: Tabea Hüberli)

Apart from the delightful business result, the Board also received reports on the distribution of the collections of the last year in its meetings in March. As such, CHF 21m were paid to authors and CHF 38.7m to publishers. Transfers to sister societies amounted to CHF 53m.

Further distribution topics featured on the agenda: On the one hand, the Board decided that a supplementary distribution of 7% shall be carried out on top of all regular distributions in 2018. On the other hand, the governing body determined a minimum amount for the distribution of the collections from exploitations by broadcasters. Pursuant to the distribution rules, the distribution per private broadcaster follows the ratio of the licence fee that these broadcasters pay. The prerequisite for this is that the licence fee collected from the broadcaster must be higher than the amount determined by the Board each year. Furthermore, the station logs must be submitted electronically. Last year, the Board had lowered the minimum amount from CHF 15,000 to CHF 5,000. The Board took the decision to maintain this threshold.

General Assembly of SUISA on 22 June 2018 in Berne

The Board members also dedicate a lot of time to the preparation of the General Assembly. It takes place on Friday, 22 June 2018, in Berne. Apart from statutory business, the revision of the Articles of Association is an item on the agenda for the GA. The Articles of Association shall be adapted to the provisions of the EU Directive, which have been implemented into national law in Liechtenstein. Furthermore, such an adaptation is important so that SUISA can continue to carry out cross-border licensing of online usages within the European Union.

A synoptic representation of the changes to the Articles of Association will be posted to the members who are entitled to vote together with the invitation for the GA. The notes to the invitation include further details on the reasons for the intended changes to the provisions. One important issue is the duty to provide members with a complaints procedure. SUISA therefore plans to set up a Complaints Committee. The Board will propose the designated persons to the General Assembly for election.

Further elections are due for the Distribution and Works Committee. Guido Röösli retires and the Board has nominated Natalie Riede for the seat that has become available. She is a young publisher and represents the Swiss electronic music scene.

Mint Digital Services, the joint venture

The Board turned to the international stage with regards to the subject Mint Digital Services. A representative of US partner SESAC explained to Board members what it would take – in his opinion – to be successful in a competitive environment: Tenacity and negotiating skills, paired with intelligent IT software and high data quality are, from his point of view, the necessary tools. These qualities are combined under the joint venture Mint which was launched last year.

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It was with satisfaction that members of the SUISA Board approved the results of the previous year during their meeting at the end of March 2017. The total turnover was 3.2% higher than that of the previous year. An overall amount of CHF 131.4m can be paid out to rights holders. The Board has, in addition, decided that a supplementary distribution of 7% shall be carried out on top of all regular distributions in 2018. Report from the Board by Dora Zeller

131.4m Swiss Francs for composers, lyricists and publishers

SUISA managed to yield a total turnover of CHF 159.2m in 2017, including secondary income. Due to the positive outcome, composers, lyricists and publishers receive CHF 2.5m more in royalties for their artistic performances than in the previous year. (Photo: Tabea Hüberli)

Apart from the delightful business result, the Board also...read more

Wanted: New member for the Distribution and Works Committee

Due to a mid-term resignation, a seat on SUISA’s Distribution and Works Committee needs to be filled. We are looking for a SUISA member who is a publisher, active in the rock/pop, jazz or electronic genre and originates from the German-speaking part of Switzerland. Text by Irène Philipp Ziebold

Wanted: New member for the Distribution and Works Committee

Bang in the midst of it rather than watching from the sidelines – SUISA is looking for a member that holds voting and election rights willing to co-design the distribution of collections in the Distribution and Works Committee. (Photo: Manu Leuenberger)

SUISA authors and publishers have the opportunity as members of the Distribution and Works Committee (VWK) to directly shape the distribution of the collections arising from works usage. The Distribution Regulations are the authoritative documentation governing the issue of who ultimately gets how much money and for which usage of their works. The Distribution Regulations are also the centre of attraction of the meetings of the VWK which takes place twice a year, where VWK members are presented with any pending changes in the rules for discussion and co-determination. The final resolution regarding the respective change shall be made by the Board.

Music genres, regions, authors and publishers – it’s all in the mix

Based on the above mentioned criteria regarding the search of a successor for the member that has stepped down, the goal is to ensure that the VWK’s composition is as balanced as possible in future since this is a central point for its work. In the Committee, there are thus many different music genres as well as all linguistic regions of Switzerland and the Principality of Liechtenstein that must be represented. Furthermore, the VWK must consist of composers, music publishers as well as lyricists. Finally, the Committee should also exhibit the best possible mix regarding age and gender.

Further requirements for becoming a member of the VWK

Only SUISA members who hold a right to vote and elect can be appointed into the Committee. The (future) VWK member must – apart from the direct relationship to music – understand the effect of current decisions on the future. Members of the VWK may therefore not just focus on their own business areas, but must represent the interests of all authors and publishers. After all, being a Committee member takes time: The meetings of the VWK do take up a whole day (2x per annum) – including travel time and joint lunch. Members are also required to prepare accordingly for the meetings; this includes reading comprehensive and exhaustive materials which are provided in the run-up of the meeting.

Tasks of the distribution and works committee

A maximum of 22 members make up the VWK; they are elected for a term of four years by the General Assembly. The selection of the candidates proposed for election will be made by the Board. A re-election is limited to three terms in office.

The VWK fulfils the following tasks as per the SUISA Articles of Association by

  • checking the provisions of the Distribution Regulations and their implications on distribution proceeds;
  • proposing amendments to the Distribution Regulations to the Board;
  • as a first instance, handling appeals against Executive Committee decisions on the classification of broadcasting programmes, copyrightability of works and arrangement of non-protected works;
  • in an advisory capacity, evaluating unauthorised adaptations of protected works and cases of plagiarism.

The VWK is a Committee of the SUISA General Assembly. In other words: The General Assembly may allocate additional tasks to the Committee.

Candidate entries

Since the by-elections take place during the SUISA General Assembly on 22 June 2018 and the preparatory process does take up some time, we kindly ask interested candidates to send their application no later than Monday, 26 March 2018 to the following address:

SUISA, Stephanie Fikatas, Bellariastrasse 82, 8038 Zurich
E-mail: stephanie.fikatas (at) suisa (dot) ch

For further information please contact Mrs. Irène Philipp Ziebold, Director of Member Services and Distribution (Phone: +41 44 485 68 00).

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

Your email address will not be published.

Due to a mid-term resignation, a seat on SUISA’s Distribution and Works Committee needs to be filled. We are looking for a SUISA member who is a publisher, active in the rock/pop, jazz or electronic genre and originates from the German-speaking part of Switzerland. Text by Irène Philipp Ziebold

Wanted: New member for the Distribution and Works Committee

Bang in the midst of it rather than watching from the sidelines – SUISA is looking for a member that holds voting and election rights willing to co-design the distribution of collections in the Distribution and Works Committee. (Photo: Manu Leuenberger)

SUISA authors and publishers have the opportunity as members of the Distribution and Works Committee (VWK) to directly shape the distribution of the collections arising from works usage. The Distribution Regulations are the authoritative documentation governing the issue of who ultimately gets how...read more

Changes to the distribution of collections for internet use

New distribution keys will be used for the distribution of collections for internet use (audio and video on demand offers). For downloads, a new key of 25% for performing rights and 75% for reproduction rights shall be applied. For streaming, the split shall consist of 75% performing rights and 25% reproduction rights. Text by Irène Philipp Ziebold

Changes to the distribution of collections for internet use

SUISA changes its distribution keys for the income from streaming and downloads. (Photo: Rawpixel / Shutterstock.com)

For years, the distribution split between authors and publishers in terms of the allocation of the collections from performing and broadcasting rights on the one hand, and reproduction rights on the other hand has been agreed separately. SUISA has accordingly provided for different distribution keys in its distribution rules for the two rights categories.

For online uses, there is no separate distribution key which could be directly agreed on by the contracting parties. As a consequence, the collections from online uses are on the one hand distributed in analogy with the performing rights distribution key and on the other hand in accordance with the reproduction rights distribution key (cf. item 2.1.2 of the distribution rules).

Up to now, SUISA has been distributing 100% of collections from streaming in accordance with the distribution key for performing rights and 100% of collections for downloads in accordance with the distribution key for reproduction rights. This meant, however, that SUISA held a special position internationally and, at the same time, this practice no longer met the latest developments in the online sector.

New distribution keys for downloads and streaming

Apart from taking a look at the usual rules applicable abroad, technical procedures were also evaluated with a view to the analysis that led to the determination of the new distribution ratios of the distribution keys for download and streaming. Technically speaking, the making available of a work is based on the creation of a copy of the work on the server of the provider, the transmission of the copy to the consumer as well as the performance resp. potential storage on the terminal device of the consumer.

During discussions among the various committees (Distribution and Works Committee andBoard) with respect to the proposed changes, various views regarding the performing and reproduction rights shares existed with respect to the weighting of the distribution keys.

In particular the question arose how the aspect of transitoriness resp. repeated playback of a work should be considered for streaming, and which percentage should reflect this for the weighting of the performing share.

In the end, the following split was agreed:

  • Download: 25% of collections shall be allocated to the performing rights distribution key and 75% to the reproduction rights distribution key.
  • Streams: 75% of collections shall be allocated to the performing rights distribution key and 25% to the reproduction rights distribution key.

Distribution of the collections from video on demand (VOD)

At the same time, the provisions regarding the distribution of collections from video on demand were adjusted. The respective revenues shall now be distributed in analogy to download and streaming “per file” (per work). Prior to that, the revenues from video on demand had been supplemented to the remuneration for broadcasts of pay TV. The change now also permits in this sector that collections are distributed in a more exact and pinpointed manner.

For further information see the distribution rules of SUISA.

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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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New distribution keys will be used for the distribution of collections for internet use (audio and video on demand offers). For downloads, a new key of 25% for performing rights and 75% for reproduction rights shall be applied. For streaming, the split shall consist of 75% performing rights and 25% reproduction rights. Text by Irène Philipp Ziebold

Changes to the distribution of collections for internet use

SUISA changes its distribution keys for the income from streaming and downloads. (Photo: Rawpixel / Shutterstock.com)

For years, the distribution split between authors and publishers in terms of the allocation of the collections from performing and broadcasting rights on the one hand, and reproduction rights on the other hand has been agreed separately. SUISA has accordingly provided for different distribution keys in its distribution rules for the two rights categories.

For online uses, there is no separate...read more

SUISA settlement dates 2018 – and one improvement

SUISA shall stick to its established settlement dates in 2018. They comprise, in the main, four quarterly settlements as well as various supplementary settlements spread across the coming year in analogy to the previous year. From the 2nd semester of 2018 onwards, settlements of international collections shall be switched over to a quarterly distribution frequency. Text by Wolfgang Rudigier and Manu Leuenberger

SUISA settlement dates 2018 - and one improvement

Always staying on top of their copyright remuneration: SUISA members get online access to their settlements via the portal “My Account” and can take a look by simply clicking their way through. (Photo: Denis Nata / Shutterstock.com)

The first settlement for international collections shall be paid out at the usual date, at the end of May, in 2018. Later on, after the 2nd semester, the payment of the remuneration from abroad will be switched over to quarterly settlements: Thanks to this improvement, two dates for international settlements will be added in September and December instead of the previous November pay-out.

Another enhancement in terms of international settlements had already been introduced successfully with the recent settlement of November 2017: By way of a new application, the settlements for the remuneration from abroad now also reflect the variety of usage categories of the works (e.g. live, radio, TV, sound recordings, downloads, streaming etc.). Moreover, further usage details (such as online provider, radio channel etc.) are now visible. This requires that such details have been passed on to SUISA by its sister society.

SUISA settlement dates 2018 – an overview

Settlement Date
Quarterly settlement 2018-1 15/03/2018
Domestic performing rights, tariffs: D, K, Z (3rd quarter 2017)
Domestic broadcasting rights, tariff: A (SRG Radio & TV 3rd quarter 2017)
Reproduction rights, tariffs: PA, PI, PN, VI, VN (3rd quarter 2017)
Reproduction rights online (Downloads & Streaming)
Supplementary settlements
Adjustments 2018, 1st settlement End of March
Settlements from abroad: Performing, broadcasting and reproduction rights 2018, 1st settlement End of May
Quarterly settlement 2018-2 15/06/2018
Domestic performing rights, tariffs: B, C, D, E, H, Hb, HV, K, Z (2017)
Domestic broadcasting rights, tariff: A (SRG Radio & TV 4rd quarter 2017)
Domestic broadcasting rights, tariff: A (SRG commercials 2017)
Domestic broadcasting rights, tariffs: S, Y (2017)
Reproduction rights, tariffs: PA, PI, PN, VI, VN (4th quarter 2017)
Reproduction rights, central licensing (2nd semester 2017)
Reproduction rights, online (Downloads & Streaming)
Supplementary settlements
Publisher’s pension benefits Beginning of July
Author’s pension benefits Mid-July
Quarterly settlement 2018-3 15/09/2018
Domestic performing rights, tariffs: D, K, Z (1st quarter 2018)
Domestic broadcasting rights, tariff: A (SRG Radio & TV 1st quarter 2018)
Advertising windows (2016)
Reproduction rights, tariffs: PA, PI, PN, VI, VN (1st quarter 2018)
Reproduction rights, online (Downloads & Streaming)
Supplementary settlements
Settlements from abroad: Performing, broadcasting and reproduction rights 2018, 2nd settlement Mid-September
Blank media levy (CT 4), settlement 2018 Mid-September
Sub-publisher shares cable networks, settlement 2018 Mid-September
Adjustments 2018, 2nd settlement End of September
Re-recording rights settlement, 2018 End of October
Quarterly settlement 2018-4 15/12/2018
Domestic performing rights, tariffs: D, K, Z (2nd quarter 2018)
Domestic broadcasting rights, tariff: A (SRG Radio & TV 2nd quarter 2018)
Reproduction rights, tariffs: PA, PI, PN, VI, VN (2nd quarter 2018)
Reproduction rights, central licensing (1st semester 2018)
Reproduction rights, online (Downloads & Streaming)
Supplementary settlements
Settlements from abroad: Performing, broadcasting and reproduction rights 2018, 3rd settlement Mid-December

Further information on the SUISA settlements can be accessed at:
www.suisa.ch/settlementdates

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SUISA shall stick to its established settlement dates in 2018. They comprise, in the main, four quarterly settlements as well as various supplementary settlements spread across the coming year in analogy to the previous year. From the 2nd semester of 2018 onwards, settlements of international collections shall be switched over to a quarterly distribution frequency. Text by Wolfgang Rudigier and Manu Leuenberger

SUISA settlement dates 2018 - and one improvement

Always staying on top of their copyright remuneration: SUISA members get online access to their settlements via the portal “My Account” and can take a look by simply clicking their way through. (Photo: Denis Nata / Shutterstock.com)

The first settlement for international collections shall be paid out at the usual date, at the end of May, in 2018. Later on, after the 2nd semester, the payment of the remuneration from abroad...read more

SUISA Board looks ahead into the future

Initiated by Ticino-based Board member Zeno Gabaglio, the Board of Directors of SUISA held its autumn meeting in Lugano this year. The agenda items for the meetings on 3 and 4 October 2017 were quite exhaustive. A selection of the topics under discussion are included in this report from the Board by Dora Zeller.

SUISA Board looks ahead into the future

The current Board of SUISA in a photoshoot dating back to spring 2017. (Photo: Marc Latzel)

An important agenda point was the ratification of the business strategy. Management is looking ahead into the future with this strategy, defining which objectives it wishes to reach in a specified period of time. SUISA’s strategy usually covers a four-year period, currently 2016-2020. Due to the business events and plans it is subject to review several times a year. It is subdivided in four main areas:

  • Cost & growth (cultivate customer relations, maximise members’ incomes, support and challenge staff members)
  • Trust (members are ‘shareholders’)
  • Develop copyright
  • Align the business with new demands (online and offline)

For each of the main areas, facts are recorded; subsequently, the relevant measures are listed in terms of planning how to reach the strategic goals. For example, in the case of “members are our shareholders”, this means: Rethink and diversify services, standardise documentation and works registration, cultivate transparency and communication, guarantee domestic and international administration of members’ rights and assure quality via automation and process optimisation.

Increased competition in the licensing business requires measures

When it comes to the main area “align the business with new demands”, offline business was added as a new area. In the course of the last few years, there is now competition for music licences and there are new providers in the marketplace, too. These providers are no cooperative societies and do not belong to the authors as is the case for the majority of collective management organisations in Europe. They are profit-making private companies.

There are new developments in the “direct licensing” area for major concerts as well as for the collection of background music (piped music). The task at hand is to tackle the new licensing offers, to create SUISA’s own offers (tariffs) in a competitive manner, to search collaboration and to promote the legal framework conditions.

On the basis of the agreed strategy, management is now going to work on a roadmap. The latter will serve the purpose of splitting the measures into small, specific steps to which deadlines and responsibilities will be allocated.

Distribution: 8,126 members received CHF 11,093,520

SUISA distributes the majority of its tariffs on a quarterly basis. In September, collections for performances (Tariffs D, K; 1st quarter 2017), broadcasts SRG (Tariff A; 1st quarter 2017), “advertising windows” (2015) and reproduction (Tariffs PA, PI, PN, VI, 1st quarter 2017) were included in the distribution.

The remuneration was paid out to SUISA members (CHF 5,729,852.00) and to sister societies (CHF 5,363,669.00). Approx. CHF 1,229,425 were held back due to a lack of details, missing documentation etc. The reserved monies will be paid out in adjustment runs as soon as the necessary data for a correct distribution has been completed.

Collaboration between ProLitteris, SSA, SUISA, Suissimage and Swissperform

In 1993, the five Swiss collective management organisations signed the first written collaboration agreement. This was triggered by the expansion of copyright towards neighbouring rights back in the day. Before that, the societies had entertained informal exchanges and coordinated joint tariff negotiations.

In the coordination committee (KOAU) of the societies, the agreement was recently reviewed. The intention was to reflect the current situation and to simplify the collaboration in complex areas. New provisions include the process of passing resolutions as well as collection principles relating to collections on behalf of other societies. The SUISA Board has approved the revised collaboration agreement.

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Initiated by Ticino-based Board member Zeno Gabaglio, the Board of Directors of SUISA held its autumn meeting in Lugano this year. The agenda items for the meetings on 3 and 4 October 2017 were quite exhaustive. A selection of the topics under discussion are included in this report from the Board by Dora Zeller.

SUISA Board looks ahead into the future

The current Board of SUISA in a photoshoot dating back to spring 2017. (Photo: Marc Latzel)

An important agenda point was the ratification of the business strategy. Management is looking ahead into the future with this strategy, defining which objectives it wishes to reach in a specified period of time. SUISA’s strategy usually covers a four-year period, currently 2016-2020. Due to the business events and plans it is subject to review several times a year. It is subdivided in...read more

Changes in relation to the distribution of Tariff CT 1 and CT 2 collections

In the last few years, cable network providers switched their offerings from analogue to digital. In order to take these changes into consideration, the distribution of the collections arising from Tariffs CT 1 (cable networks), CT 2a (retransmitters) and CT 2b (IP based networks) was aligned. In item 5.5.1 of the distribution rules the calculation basis of the reference parameter “number of subscribers” was changed to “daily reach”. Text by Irène Philipp Ziebold

Changes in relation to the distribution of Tariff CT 1 and CT 2 collections

Even though there is a plethora of digital TV programmes available, only a few of them fill TV screens for a longer period. (Foto: Zeber / Shutterstock.com)

Cable network providers have carried out a migration of their offerings from analogue to digital in the last few years. The number of the radio and TV programmes on offer is now many times higher than before. Until recently, the number of subscribers acted as the calculation basis for the distribution of income from Tariffs CT 1, CT 2a and CT 2b. As a consequence, the distribution depended on the receptability, i.e. on how many subscribers of a cable network provider had the option to receive a specific channel.

With the increase of the broadcaster offerings, the significance of the subscriber numbers regarding the actual work usage has decreased remarkably. This is due to the fact that of the multitude of channels that consumers have at their fingertips today, they only use a few in reality. With the switch of the calculation basis to the reference parameter “daily reach”, what counts in terms of distribution now is what consumers actually watch.

The daily reach corresponds with the share of people who have watched or listened to a specific programme on an average day for at least 30 seconds. The relevant usage is thus registered which goes above and beyond a mere channel hopping.

Distribution more exact based on actual usage

Due to the daily reach as a calculation basis the actual usage is now taken into consideration more: The copyright royalties now flow to those channels that have really been watched or listened to. Channels which were not selected by the consumer or where consumers merely hop through, are not taken into consideration for the allocations into the three broadcaster groupings (SRG SSR, Swiss private channels, foreign channels).

The switch to the reference parameter of the daily reach will entail that more money is going to be distributed to Swiss channels. In the case of the calculation based on subscriber numbers so far, many foreign channels were taken into consideration which are in fact only used by a very small portion of subscribers. This will no longer be the case with a calculation basis in accordance with the daily reach.

IGE (Institute of Intellectual Property) decision dated 26/07/2017 (PDF 1.47 MB, only in German) in relation to “Review of item 5.5.1 distribution rules: Distribution of collections from CT 1, 2a and 2b”
Further information on the distribution keys of SUISA

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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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In the last few years, cable network providers switched their offerings from analogue to digital. In order to take these changes into consideration, the distribution of the collections arising from Tariffs CT 1 (cable networks), CT 2a (retransmitters) and CT 2b (IP based networks) was aligned. In item 5.5.1 of the distribution rules the calculation basis of the reference parameter “number of subscribers” was changed to “daily reach”. Text by Irène Philipp Ziebold

Changes in relation to the distribution of Tariff CT 1 and CT 2 collections

Even though there is a plethora of digital TV programmes available, only a few of them fill TV screens for a longer period. (Foto: Zeber / Shutterstock.com)

Cable network providers have carried out a migration of their offerings from analogue to digital in the last few years. The number of the radio and TV programmes on offer is now many...read more

To be continued: Our success story, spanning more than 90 years

The General Assembly of our Cooperative Society will take place on Friday, 23 June 2017, in Zurich. Members will have the opportunity during the General Assembly to co-determine the destiny of their cooperative society. Apart from the positive results of the annual accounts for 2016, SUISA is also going to report on the Joint Venture Mint Digital Services, co-founded with SESAC, plus on the developments regarding the copyright revision and the debate on the ‘service public’. By Andreas Wegelin, CEO

To be continued: Our success story, spanning more than 90 years

SUISA founded the Joint Venture Mint Digital Services together with US authors’ society SESAC. The project helps improve the competitiveness of SUISA in the online music market. Shown in the picture: Andreas Wegelin, SUISA CEO (on the left), and John Josephson, Chairman and CEO of SESAC Holding. (Photo: Hannah McKay)

SUISA can look back on a successful financial year 2016. Thanks to the positive year-end result, we are able to pay out more than CHF 128m to those who are entitled to receive a payment. That is more than ever before in the successful history of the Cooperative Society SUISA, spanning more than 90 years.

We are also doing well in terms of our costs. An average cost coverage deduction of 12.37% shows that we have the costs under control. If you take the reoccurring supplementary distribution of 7% into consideration as a contribution to the costs, the actual percentage amounts to 6.75% of the pay-outs to those entitled to receive a payment.

SUISA improves its competitiveness in the online market

Members will have the opportunity during the General Assembly to co-determine the destiny of their cooperative society. Apart from the positive annual accounts, we are also going to present the newly founded project for the improvement of SUISA’s international competitiveness in the online music market.

Together with the US authors’ society SESAC, we have founded Mint Digital Services as a Joint Venture back in February 2017. The JV enterprise offers services in relation to the administration and processing of online music licences. With this JV, we emphasise our strategic direction, i.e. to offer rightsholders an efficient and cost-effective administration.

Wanted: Active participation of our cooperative members

There will also be news on the legal framework conditions. AGUR12 II has passed a compromise for the attention of the Head of the Ministry in the EJPD (Federal Department of Justice and Police, FDJP); we are now waiting for it to be substantiated in a legislative draft.

Please do take part in our General Assembly. Only your active participation ensures that SUISA will be there for its members as a Cooperative Society in future.

See you on 23 June 2017 in the Kaufleuten Zurich.

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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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The General Assembly of our Cooperative Society will take place on Friday, 23 June 2017, in Zurich. Members will have the opportunity during the General Assembly to co-determine the destiny of their cooperative society. Apart from the positive results of the annual accounts for 2016, SUISA is also going to report on the Joint Venture Mint Digital Services, co-founded with SESAC, plus on the developments regarding the copyright revision and the debate on the ‘service public’. By Andreas Wegelin, CEO

To be continued: Our success story, spanning more than 90 years

SUISA founded the Joint Venture Mint Digital Services together with US authors’ society SESAC. The project helps improve the competitiveness of SUISA in the online music market. Shown in the picture: Andreas Wegelin, SUISA CEO (on the left), and John Josephson, Chairman and CEO of SESAC Holding. (Photo: Hannah McKay)

SUISA can look...read more

Commentary on SUISA’s annual results for 2016

SUISA can report a very successful financial year 2016. The result reflects an all-time high regarding the income from domestic copyright exploitation. In the Cooperative Society’s history of more than 90 years, this is a record sum in terms of remuneration that is due for distribution. The average cost coverage deduction remains low – about CHF 88 per CHF 100 of the income collected can be paid out to authors and publishers that are entitled to receive such remuneration. Text by Andreas Wegelin

Commentary on SUISA’s annual results for 2016

SUISA is going to pay authors and publishers remuneration totalling CHF 128.9m for financial year 2016. That is the highest ever distributable amount in the Cooperative Society’s history which spans more than 90 years. (Photo: Manu Leuenberger)

The best business yield achieved by SUISA previously, in 2008, has thus been topped by the results of 2016. The income from the usage of copyright in musical works in Switzerland and the Principality of Liechtenstein have never reached such high levels before. As a consequence, more than CHF 128m can be paid out to domestic and international authors and publishers entitled to receive such remuneration. That is the highest amount in our Cooperative Society’s history which spans more than 90 years.

Several reasons contributed to this record result. Broadcast and retransmission rights’ collections, in particular, (Tariff CT S, broadcasters except SRG, CT Y, pay TV, and CT 1 & 2), and the time-shift usage of broadcasts (Tariff CT 12, rental of set-top-boxes) could be increased. The licensing of music performing rights, in particular for concerts (Tariff CT K) and film screenings(Tariff CT E, cinemas) also saw a sustained increase.

Regarding the licences for the distribution of music recordings, the trend continues to move away from physical sound recordings towards online exploitation. Regarding online music exploitation, downloads are increasingly replaced by streaming. Remuneration for private copying, regarding Tariff CT 4, has also grown. The latter can be attributed to the expansion of the storage capacity of devices (smartphones, tablets).

Cost coverage deductions remain low

While the costs for rights management have slightly increased, the proportion of this increase compared to the income remains low. The result is that the applicable cost deductions for settlements to rightsholders entitled to receive a payment are a very reasonable 12.37%. About CHF 88 per CHF 100 will therefore be paid out by SUISA to authors and publishers.

Furthermore, there will be a supplementary distribution on top of all regular settlements, at a level of currently 7%. This consists of monies for which the parties entitled to receive a payment could not be traced. After a period of 5 years, such income will be paid out by SUISA as a supplementary distribution on top of all settlements.

Successful negotiations – still a lot of work to do for SUISA

Such positive annual results are a proof of successful negotiations for tariffs and terms and conditions of use, and of reliable customers and business partners. It also shows that music exploitation is on the rise and SUISA can negotiate and enforce licences for music in relation to new technologies accordingly.

Particularly with regards to internet usage, there is still a lot of work to do. SUISA is increasingly managing online rights for cross-border usage directly. This sector is expected to turn into an important pillar of our work for our members.

Further information:
«SUISA 2016 results: CHF 128.9 million for authors and publishers», Press release, 30 May 2017

SUISA’s annual report 2016 is available as pdf for download. For the third year running, the annual report is published together with the brochure “Where the music is new”. It contains portraits of five SUISA members from different music genres. SUISA focusses on musical diversity. A collective management organisation is putting itself at the service of its members and thus promotes and supports music creatives such as the five personalities portrayed in the brochure. The brochure “Where the music is new” can also be downloaded as a pdf. It is also possible to order printed versions of the brochure and the annual report.
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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 can report a very successful financial year 2016. The result reflects an all-time high regarding the income from domestic copyright exploitation. In the Cooperative Society’s history of more than 90 years, this is a record sum in terms of remuneration that is due for distribution. The average cost coverage deduction remains low – about CHF 88 per CHF 100 of the income collected can be paid out to authors and publishers that are entitled to receive such remuneration. Text by Andreas Wegelin

Commentary on SUISA’s annual results for 2016

SUISA is going to pay authors and publishers remuneration totalling CHF 128.9m for financial year 2016. That is the highest ever distributable amount in the Cooperative Society’s history which spans more than 90 years. (Photo: Manu Leuenberger)

The best business yield achieved by SUISA previously, in 2008, has thus been...read more