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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

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

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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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

Supplementary distribution of 7 percent in 2016

Important topics during the SUISA Board meeting in April included the annual accounts, the annual report and the preparation of the General Assembly, which is going to take place on Friday, 24 June 2016 in Berne. Report from the Board by Dora Zeller

More money was available for authors and publishers due to a new record level reached for domestic collections in business year 2015, and due to another supplementary distribution of 7% on all payouts in 2016 as decided by the SUISA Board. (Photo: Africa Studio / Shutterstock.com)

The SUISA Board focussed on the annual accounts 2015 at its April meeting. For the first time, the accounts will be presented in line with the new accounting standards (Swiss GAAP FER). Apart from the financial statements and the profit and loss accounts, it includes the management report, cash flow statement and the annex to the annual accounts.

The Board members have approved all documents and recommend that the members entitled to vote should accept the annual accounts 2015 during the General Assembly on 24 June 2016 in Berne. Said recommendation also extends to the auditors’ report by BDO and the annual report.

Domestic record collections for a distribution to authors

Domestic collections from the exploitation of copyright reached new record levels at CHF 134.6m (previous year: CHF 130.3m). Together with other income from the online sector and from abroad, the total collections thus increased by nearly 1%. Approximately 88 of every 100 francs collected are allocated to composers, lyricists and publishers whose rights are managed by SUISA.

The Board also decided to run another supplementary distribution. Just like in the previous year, it will amount to 7% on all regular distributions in 2016. Members of SUISA as well as members of SUISA’s sister societies are going to benefit from this additional payout.

General Assembly 2016 and annual report

In line with the preparations for the General Assembly on 24 June 2016 in Berne, the Board has verified and ratified the written annual report. Due to the new layout based on the Swiss standard GAAP FER, the annual report is now going to be about 40 pages long. It is going to be published in the run-up to the General Assembly, just like before, and can be accessed electronically via the SUISA website; hardcopies are available on special request.

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Important topics during the SUISA Board meeting in April included the annual accounts, the annual report and the preparation of the General Assembly, which is going to take place on Friday, 24 June 2016 in Berne. Report from the Board by Dora Zeller

More money was available for authors and publishers due to a new record level reached for domestic collections in business year 2015, and due to another supplementary distribution of 7% on all payouts in 2016 as decided by the SUISA Board. (Photo: Africa Studio / Shutterstock.com)

The SUISA Board focussed on the annual accounts 2015 at its April meeting. For the first time, the accounts will be presented in line with the new accounting standards (Swiss GAAP FER). Apart from the financial statements and the profit and loss accounts, it...read more