Fourth quarter settlement in 2016

As already announced at the beginning of the year, the changes to the distribution rules approved by the IPI on 15 December 2015 will influence the fourth quarter settlement on 15 December 2016.

The following are the main goals of the change to the distribution rules:

  • When it comes to the remuneration for music in films, the new regulations provide that only the duration of the music itself, not the duration of the film are instrumental.
  • Remuneration for music serving the purpose of recognising stations, station networks or broadcasts - in short: jingles - respectively the purpose of providing a background or backdrop, shall be determined by a standard factor. What’s new is that this distribution now also includes opening and end titles’ music for series and logos

Music duration instead of film duration
By changing the distribution rules, the significance of the music in films is established independently of the duration of a film. A distinction is no longer made by film duration as it had been the case previously (longer or shorter than 60 minutes). As this relates to the calculation of authors’ remuneration for music, it is only the duration of the music that should be instrumental. By taking the music duration into consideration, a film automatically obtains more money than a film with less music.A comparison with sister societies abroad has shown that they also use the duration of the music, not the film, as connecting factor for the distribution. The falling away of the 60-minute-limits constitutes a simplification of the distribution process and leads to a neutral weighting of the film score - as it will be independent of the film duration.

Standard factor for music with repetitive character
The term “jingle” shall be defined as follows, in line with SUISA’ distribution rules: Music which serves the recognition of broadcasters, station networks and programmes or the provision of a background or backdrop. Idents, loops, trailers, billboards etc., background music, e.g. For information programmes, sport and quiz shows, music for test cards, audiotexts and still images, and now also opening and end titles for series and logos also fall under this category.Such “jingles” often serve the purpose of spectator retention and are intensively repeated during the TV transmissions. The repetitive character of jingles is taken into account in terms of the distribution by separately allocating the significance of this music in broadcast programmes. The weighting of jingles for the distribution shall now be based on a standard factor of 0.25. Compared to the previous regulations, the factor does not decrease proportionally to how often the jingle is broadcast. The new standard factor corresponds to the previous level for the 13th to 52nd broadcast. Compared to the old tiered model, the new factor is lower than previously for the 1st to the 12th broadcast. However, it is higher for all repetitions beyond the 53rd broadcast. By changing the distribution rules, the multiple usage of music such as is the case for idents to daily broadcast news programmes will be weighted more heavily.

More detailed information on the review of the distribution categories 1C/1D and 2C/2D are available in our blog article dated 02/03/2016 (available in German and French only)  as well as in the edition of our SUISAinfo March 2016 (available in German and French only).

SUISA's distribution department staff are happy to help with any further question on this matter.