Tag Archives: SUISA Digital Licensing

A Board Meeting focused on the coronavirus

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

A Board Meeting focused on the coronavirus

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

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

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

Written vote instead of a 2020 General Meeting

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

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

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

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

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

Developments in the online licensing market

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

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

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

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  1. Yannick Popesco says:

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

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

    Salutations,
    Yannick Popesco (artiste indépendant)

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

A Board Meeting focused on the coronavirus

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

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

Penny-pinching in digital music distribution

Business in the online sector has been subject to constant change – not only for copyright societies. In the second part of the interview, SUISA CEO Andreas Wegelin reports on the status quo and provides an outlook on the scenarios that are being discussed. Interview by guest author Silvano Cerutti

Penny-pinching in digital music distribution

Music is now consumed rather differently to how it was consumed 15 years ago: From the turnover of the Digital Service Providers, about 12 to 15 percent are allocated to authors, which results in royalties at a micro-penny -level per play. (Photo: LikeBerry)

Andreas Wegelin, let’s talk about proportions and size ratios. Streaming service providers such as Spotify, for example, pay composers micro-penny -amounts per play. If you extrapolate this, what is the percentage of the turnover?
Andreas Wegelin: If you only consider authors’ rights, that is about 12 to 15 percent of about 70% of the service provider’s total turnover. The rest is allocated to the recording, the producer, the artist. This roughly corresponds to the offline situation in Switzerland. Copyright for authors is governed by state-approved tariffs there. They are actually slightly lower. A monopoly thus does not bring about a better result for authors.

Why is there so little that comes together for the author? Without the author, the piece would not even exist for others to perform.
I completely agree with you. If a composer happens to be a good singer as well and thus performs his own songs, he gets more. But this is the same case for the offline sector. A singing author gets more from his record company than from us – because the producer provides the service provider with the music recording which can be played. It is not SUISA that does that but companies such as Sony, Universal etc. which therefore also hold the relevant market power.
Furthermore: Let’s compare the situation to the radio broadcasters: Radio addresses a multitude of listeners, streams one individual listener. If you break down the radio remuneration to listener levels, the amount is not much higher than that for streaming. A reason why streaming is even lower is that I nearly only have mainstream music on the radio. The selection of songs is therefore limited. In the case of streaming services, I also have niche repertoire. In other words (please don’t quote me on the figures), I have a “heavy rotation” on the radio with about 50 songs per month, and 1,000 songs on Spotify.

Can I assume that a service such as YouTube pays out to a similar extent as Spotify?
In the case of YouTube, one question needs to be asked which is difficult to answer: What do the 12 to 15 percent relate to? Spotify has subscription fees while YouTube only has advertising income: Is it thus 12 to 15% of the advertising revenue which has been generated in a specific country for a specific video during a specific period of time? And if there is no advertising shown on the video, is there no money, irrespective of how many thousands of clicks are shown in total?

With YouTube, you have the additional problem that everyone can upload everything without having to supply any rights information. How can you find out what belongs to whom?
YouTube’s approach is automation. This works to some extent, but there are also blatant mistakes with regards to the allocations. For such data volumes, however, it is only possible to do so by way of automation. For a total control, you would have to be able to track all sound files.

Does this mean, the future must be the upload filter?
There’s a huge debate on this topic at EU level. So far, the “safe harbor” principle has been applied in the EU, which said: A Digital Service Provider (DSP) is not responsible for the contents which are uploaded to their platforms. The regulation stems from 2002 and was intended to promote the development of the online data exchange. YouTube did not exist in those days. YouTube could then benefit from this regulation even though masses of protected contents are distributed via YouTube. In the meantime, the protection of the author has been enjoying greater importance again. YouTube, however, threatens now to block contents arguing it would be too complicated to provide for a settlement of the rights in each case. That way, certain contents would no longer be available and this would be a grave restriction of freedom of opinion.

Are there any alternatives?
You could introduce a statutory compensation claim for authors, similar to blank media levies for private copies. This would mean: YouTube is allowed to distribute contents but YouTube would have to pay for it by law. In the case of the blank media levy, the argumentation used to be: You cannot control what someone records onto a music cassette, so a blanket solution is required and it could be that you pay a remuneration of e.g. 5 Rappen for each blank medium per hour in favour of the authors. Something like this would also be possible for online usages but it is a topic that is highly controversial.

Which solution would be better for the authors?
For authors of our scale, a blanket arrangement would be better, for bigger rights holders, the right of interdiction currently in force would be better. It gives them enough power to negotiate with YouTube or Google directly. Google cannot just ignore them. We, however, had to first become active ourselves in order to speak with YouTube about a licence. That was also a reason for our Joint Venture and our approach to expand the repertoire we represent.

How long does it take to negotiate an agreement with a platform of such a magnitude?
Since we have been part of the Joint License and have been processing via Mint, we could shorten the duration. Depending on the provider, it lasts between one and eight months. And if you want to renew an agreement, you are looking at four to five months.

What kind of strategy does SUISA pursue in cases where agreement negotiations with a provider fail?
In such a case – it is rather rare, because, among reasonable business partners, you do find a solution – we must fight in court to get the recognition and the adequate remuneration for the use of the rights of our members.

How many DSPs are there in total?
Actually, there are too many (laughs). There are dozens. Of course, you start with the most important ones, i.e. the biggest. There are about 15. But Mint is planning to expand into other territories. In India, for example, the two big telecoms companies are also important music providers which results in new and different constellations.

I am a cooperative member of SUISA, may I see such agreements?
No. A provider wants to prevent competitors seeing their contracts. That is why there is always a confidentiality clause. SUISA cooperative members do, however, see what they get in the end. If they do not like this situation, they can always assign their rights to someone else. I doubt very much that they will be given access to such contracts there. That is a result of the competitive market.

In December 2019, it became known that Gema has bought a majority stake in Zebralution GmbH, a digital distributor. What does this development mean for SUISA?
Gema tries this way to be increasingly active in the business with data for the works of its members. By cooperating with a digital distributor, Gema can succeed in providing its members with 360-degree-service, which does not just include the management of copyright but also neighbouring rights. SUISA is also going to consider what kind of steps are sensible for a rather comprehensive service to its members in the digital music distribution sector.

Züri West has earned money with “I schänke dir mis Härz”, whereas “079” by Lo & Leduc has yielded much less, even though it is at least as successful.
That may well be the case. This difference does not just apply to Lo & Leduc but for all, worldwide, because music consumption is different to what it was 15 years ago. That is why concerts have become more important and that is why the entire broadcasting sector is so important because we still have relatively stable conditions there …

But?
The problem is that more and more advertising is moving towards the internet. Licensing fees for broadcasting rights depend on the turnover of the broadcaster, and that turnover mainly comes from advertising. The income is falling drastically because advertising is shifting more and more towards the internet.

A similar scenario as we had it in the newspaper sector.
Exactly. This is hard to manage. The next online agreements will need to focus more on that. It is actually very fascinating. And of course we do not always succeed immediately, sometimes it takes tough negotiations and, if necessary, even legal proceedings. We also had this situation in the 70ies and 80ies when the task at hand was to collect remuneration for cable retransmission. New developments and types of services for music keep popping up. We need to keep an eye on them and it is our exciting and rewarding task to negotiate remunerations on behalf of our members.

To the first part of the interview: “Brave new world”

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The first year of SUISA Digital Licensing AGThe first year of SUISA Digital Licensing AG A little more than one and a half years ago, SUISA founded its subsidiary company, SUISA Digital Licensing AG. The subsidiary company has now completed its first business year. A year which was under the auspices of development and brought about a multitude of new findings. It is time for retrospection and a first interim summary. Read more
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  1. Rolf Hug says:

    Very interesting. Also to mention that the big publishing companies don’t play by the code of conduct and
    can get away with anything.

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Business in the online sector has been subject to constant change – not only for copyright societies. In the second part of the interview, SUISA CEO Andreas Wegelin reports on the status quo and provides an outlook on the scenarios that are being discussed. Interview by guest author Silvano Cerutti

Penny-pinching in digital music distribution

Music is now consumed rather differently to how it was consumed 15 years ago: From the turnover of the Digital Service Providers, about 12 to 15 percent are allocated to authors, which results in royalties at a micro-penny -level per play. (Photo: LikeBerry)

Andreas Wegelin, let’s talk about proportions and size ratios. Streaming service providers such as Spotify, for example, pay composers micro-penny -amounts per play. If you extrapolate this, what is the percentage of the turnover?
Andreas Wegelin: If you only consider authors’...read more

Outlooks and insights

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

Report from the Board: Outlooks and insights

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

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

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

Budget approved, future discussed

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

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

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

Distribution rules and by-elections

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

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

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

Report from the Board: Outlooks and insights

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

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

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

Overall, a positive financial year 2018

The SUISA Board and its Committees for Tariffs and Distribution as well as for Organisation and Communication met for their regular spring sessions on 9 and 10 April 2019 at the SUISA head office in Zurich. Report from the Board by Andreas Wegelin

Report from the Board: Overall, a positive financial year 2018

Apart from the Cooperative Society SUISA, there is now also a SUISA group, which includes the subsidiary company SUISA Digital Licensing and the 50% holding in the Joint Venture Mint Digital Services AG. (Photo: Natalie Schlumpf)

The most important topic during the spring meeting are traditionally the resolutions concerning the financial statements of the past year for submission to the General Assembly. SUISA publishes two financial statements in accordance with the Standard Swiss GAAP FER from this year onwards, one for the parent company, the Cooperative Society SUISA, and one consolidated financial statement for the SUISA group. The group comprises the subsidiary company SUISA Digital Licensing with headquarters in Vaduz (FL) and the 50% holding in the company Mint Digital Services AG, Zurich, a Joint Venture by SUISA and the American organisation for music rights, SESAC.

The annual financial statements of the group as well as of the parent company show an overall positive picture. Total collections reached a new high of CHF 160.8m. Income from the licensing of the online music business surpassed CHF 10m for the first time and contributed to this result.

Unfortunately, the secondary income was much lower last year. The reason for this is the bad investment year. Securities income only reached CHF 0.6m in 2018. In 2017, this amount still stood at CHF 3m. As a consequence, this difference now lacks in terms of covering expenditure for 2018. Nevertheless, cost coverage deductions taken from the settlements to members should not increase. The Board therefore decided to use more money from the liabilities that became available for the financing of the costs, and has subsequently reduced the supplementary distribution from 7% to 5%.

Preparations for the General Assembly

Additional topics were the preparation of other business for the General Assembly: the analysis of the organisation’s risks, the resulting management report and the approval of the entire annual report for submission to the GA. Lastly, nominations for two retiring Board members had to be decided upon, and documents relating to the investment policy and the compensation of Board members that had become necessary due to the new Articles of Association had to be resolved.

The Board took notice that Executive Committee was making efforts and got involved with the relevant departments to collect remuneration from abroad. In this context, it is important to take into consideration that the laws, tariffs and distribution rules are different at our sister societies and that SUISA cannot be held responsible for that. The Board therefore rejected the claim for a settlement of a member which held the view that it had not received enough remuneration for usages abroad.

Finally, the Board had to say farewell to executive assistant Dora Zeller, who is going to leave SUISA in order to retire. President Xavier Dayer expressed his thanks in the name of the entire Board for the turntable-like function that Dora Zeller had mastered with distinction throughout the last 10 years, and wished her well for the next, ‘third’ phase in her life.

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The SUISA Board and its Committees for Tariffs and Distribution as well as for Organisation and Communication met for their regular spring sessions on 9 and 10 April 2019 at the SUISA head office in Zurich. Report from the Board by Andreas Wegelin

Report from the Board: Overall, a positive financial year 2018

Apart from the Cooperative Society SUISA, there is now also a SUISA group, which includes the subsidiary company SUISA Digital Licensing and the 50% holding in the Joint Venture Mint Digital Services AG. (Photo: Natalie Schlumpf)

The most important topic during the spring meeting are traditionally the resolutions concerning the financial statements of the past year for submission to the General Assembly. SUISA publishes two financial statements in accordance with the Standard Swiss GAAP FER from this year onwards, one for the parent company, the Cooperative Society SUISA, and one...read more

The first year of SUISA Digital Licensing AG

A little more than one and a half years ago, SUISA founded its subsidiary company, SUISA Digital Licensing AG. The subsidiary company has now completed its first business year. A year which was under the auspices of development and brought about a multitude of new findings. It is time for retrospection and a first interim summary. Text by Fabian Niggemeier

The first year of SUISA Digital Licensing AG

The first business year of SUISA Digital Licensing AG was influenced by negotiations with many music service providers, successfully and jointly held with the SESAC Digital Licensing AG. (Photo: MichaelJayBerlin / Shutterstock.com)

By launching the subsidiary company, in short SUISA Digital, SUISA has outsourced cross-border and international online licensing in its entirety. SUISA is, from now, only responsible for the licensing of music uses on homepages and music services which only address a Swiss audience.

SUISA Digital’s responsibilities

SUISA has, for nearly six years, issued pan-European licences for online uses. In other words, the rights of SUISA members in the online world are not granted just for Switzerland, but directly for the whole of Europe. Thanks to the outstanding IT systems in this sector, SUISA was able to significantly increase the income of its members.

Another step followed in 2017: SUISA founded the Joint Venture, Mint Digital Services, with US collective management organisation SESAC. Until then, SUISA negotiated agreements with internet music providers (music service providers, abbreviated to MSPs) and managed the agreements itself upon their conclusion. With the creation of the Joint Venture, these two fundamental activities were split and outsourced. Mint Digital Services is responsible for the administration of the agreements i.e. the technical processing and invoicing in the name of the rights holders, whereas SUISA Digital is responsible for market monitoring, market penetration and the negotiation of the agreements. By way of another new introduction, the territory where the agreements apply was extended from Europe to nearly the whole world.

SUISA Digital is thus building a global licensing system and also offers this system to third parties. Collective management organisations from other countries can instruct SUISA Digital just like publishers can (for their Anglo-American repertoire), or authors from all over the world. That way, a cost-efficient management of rights can be ensured in the best possible manner.

Joint licences

SUISA Digital does not pursue this task by itself. It is in the interest of the rights holders as well as the MSPs to structure the negotiations in as efficient a manner as possible. That means to cover and govern as many rights as possible with as few agreements as possible. For this reason, SUISA Digital offers all MSPs to extend their agreements to the repertoire of SESAC Digital Licensing AG (in short: SESAC Digital). Provided that the MSP agrees, SUISA Digital and SESAC Digital jointly lead the negotiations and bundle their repertoire into a joint licence.

This is in the interest of the MSPs since it means they have to undertake less negotiation efforts, but also in the interest of SUISA Digital and SESAC Digital since a highly interesting “package” can be offered to the providers by joining up the repertoires. The advantage of this package is also that it does not just contain compositions which are used in Switzerland or Europe but also create a high demand globally.

The negotiations

At the end of 2017, a small but motivated team only focussed on preparing the negotiations. A multitude of information and figures had to be gathered and linked. Designing the agreement for areas outside Switzerland and Europe presented some challenges to the negotiation team. The parties agreed that the price of music should be linked mainly to the local significance of the music and the local buying power. It can thus be ensured that an adequate remuneration can be invoiced which remains affordable to the consumers.

Economic deliberations also made it clear that the big MSPs had to be approached first. The six biggest providers are responsible for 80% of the turnover. This statistical average does, of course, not apply for the music of all members: Those who are active in a specific music genre will at best have a bigger turnover on the platforms that focus specially on that genre. It was nevertheless paramount to prioritise the providers in line with their market share; knowing that certain big providers would be among the negotiation partners that would be harder to deal with.

Involving a mix of consistency, comprehension and rigour it was possible to make good progress in the negotiations. After twelve months, agreements could be entered into with all big MSPs or the negotiations are close to being concluded. Since these agreements are now ‘safe’, the next task is to complete the market penetration.

Until now, agreements with the following providers were jointly entered into with SESAC Digital:
YouTube, Spotify, Apple Music, Apple iTunes, Google Play, Deezer, Beatport, Facebook, Soundcloud, Melody VR, and Qobuz.

Joint negotiations are underway with the following providers:
Amazon, Napster, Tidal, Juke, 7Digital, dailymotion, Mixcloud, Red Karaoke, Soundtrack your Brand, What people play, Anghami, Auro, Bleep, Emoticast, Idagio, Smule, Xtendamix, Yousician, Better Day Wireless, DJ City, Juno, Linn Record, Musically, Recisio und Radionomy.

Add to that another approximately 20 MSPs from which feedback is due, as well as about 10 MSPs which are only active on a national level in the selected territories.

Distribution

As mentioned at the outset, the relevant agreements are processed and administered by the Joint Venture Mint Digital Services. The distribution of the income is, however, done by SUISA Digital and SUISA. A minimum of six months lies between the usage period and the distribution. The reason for this is that we do not represent the global repertoire, compared to the traditional offline sector. We can thus not invoice everything and then distribute, but only what we identify.

In this context, we depend on the collaboration by our members: The quicker they notify us of their works, the faster we can generate the invoices. For this reason, we are waiting between 60 and 100 days before we process the reports, depending on the MSP. That way, we can ensure that the majority of the new works and thus works with the highest usage levels has been registered and can be distributed by us. The distribution of the income is then made, at the latest, in the quarter after the payment from the MSPs has reached us.

There are going to be bigger settlements in due course. Since all agreements had to be renegotiated, no invoices could be sent out during the ongoing negotiations. In the cases of Spotify or Deezer, this led to the fact that the uses of the entire year 2018 were only invoiced at the beginning of 2019.

Outlook

During the second business year, SUISA Digital is going to focus firstly on achieving a coverage of the internet music market which is as complete as possible. Secondly, it is paramount that new markets, also outside of Europe, will be opened up and to ensure that SUISA members receive the remuneration they are due from anywhere in the world. For this purpose, we are constantly collaborating with Mint to improve systems and processes in order to continue providing our members with the best possible services in future.

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  1. Walter Thut says:

    Guten Tag,
    einen Fall welcher mich und andere von der SUISA vertretene Komponisten betrifft, und die oben genannten Zeitverschiebungen bei den Abrechnungungen fuer Urheber stark in Frage stellt, moechte ich gerne hier beschreiben:

    Die Urheber des bei dere SUISA angemeldeten Songs BACK TO THE DIRTY TOWN haben viele Millionen Clicks uf Youtube, und viele Screenshots Belege dass dieser Song seit 2017 z.B. in der Schweiz, Frankreich und den USA dauernd Webungen vorgeschaltet hat.

    Leider haben die Urherber von der SUISA noch keine einzige Ueberweisung erhalten. Obwohl die SUISA uns vor mehr als einem Jahr bestatigt hat, dass sie cies Clicks auch erfasst haben, und dass wir Verguetungen von der SUISA bis spaetestens Ende 2018 bekommen werden, haben wir noch keine einzige Abrechung dazu, und keinen einzigen Rappen ueberwiesen erhalten.

    Bei unserem digitalen Vertrieb funktioniert hingegen die Abrechnung sehr gut, und liegt bei mehreren Tausend CHF pro Jahr.

    Was stimmt hier nicht?

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A little more than one and a half years ago, SUISA founded its subsidiary company, SUISA Digital Licensing AG. The subsidiary company has now completed its first business year. A year which was under the auspices of development and brought about a multitude of new findings. It is time for retrospection and a first interim summary. Text by Fabian Niggemeier

The first year of SUISA Digital Licensing AG

The first business year of SUISA Digital Licensing AG was influenced by negotiations with many music service providers, successfully and jointly held with the SESAC Digital Licensing AG. (Photo: MichaelJayBerlin / Shutterstock.com)

By launching the subsidiary company, in short SUISA Digital, SUISA has outsourced cross-border and international online licensing in its entirety. SUISA is, from now, only responsible for the licensing of music uses on homepages and music services which only address a...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

SUISA’s financial year 2018: an outlook

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

SUISA’s financial year 2018: an outlook

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

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

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

SUISA budget 2018

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

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

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

Regulations and statutory provisions

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

Cost coverage deductions

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

Changes at Board level

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

Copyright Act Review

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

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

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

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

SUISA’s financial year 2018: an outlook

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

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