SUISA 2016 results: CHF 128.9 million for authors and publishers
For the 2016 financial year, SUISA will distribute CHF 128.9 million to composers, lyricists and publishers of music in Switzerland and abroad. This is the highest distribution settlement ever in the Cooperative's 90-year history. In 2016, SUISA's revenues reached a total of CHF 154.3 million. This is 1.6% more than in the prior year. The good results are mainly due to higher revenues from music usage on private TV and radio broadcasting stations, and to licence fees for private copying and income for online usages. In 2016 for the first time, streaming revenues exceeded revenues from downloading. Last year, SUISA managed to slightly reduce its cost-coverage deduction to 12.37%. This means that 88 of every 100 francs collected by SUISA is passed on to authors and publishers. SUISA's satisfactory 2016 results also evidence its success in negotiating tariffs and usage terms, and the reliability of its customers and partners.
SUISA, the Swiss Cooperative Society for Authors and Publishers of Music, had a very successful year in 2016. Revenues from the administration of authors' rights reached a new record high of CHF 154.3 million. Last year, SUISA collected CHF 136.1 million in revenues in Switzerland and Liechtenstein. This represents an increase of 2.6% over the prior year (CHF 132.7 million).
Growth in licence fees from private broadcasters and for private copying
Last year's growth in domestic revenues (Switzerland and Liechtenstein) stemmed mainly from the licensing of broadcasting rights to private radio and television broadcasters. These revenues increased by nearly one third over the prior year, i.e. from CHF 10 million to CHF 13 million. Private copying fees also developed nicely for music authors and publishers. In this area, SUISA collected CHF 10.2 million in revenues last year, representing an increase of CHF 1.3 million, or 14.5%, over 2015. This positive development was primarily due to the in-creasing storage capacity in smartphones, tables and other devices with built-in storage media.
Authors must also benefit from the growth in online uses
Last year, SUISA collected revenues of CHF 6.1 million from online uses, 10.7% more than in 2015 (CHF 5.6 million). In 2016 for the first time, streaming revenues were higher than downloading revenues. With regard to internet uses, SUISA still has a lot to do to secure fair revenues for authors. In cooperation with the other rights management organisations, SUISA remains committed, both at domestic and international level, to ensuring that authors and publishers of music also benefit from the growing online usage of their works – and that the corresponding revenues do not only fill the coffers of the providers of streaming and download services.
Joint venture Mint Digital Services: a strategic step in the online market
SUISA increasingly manages transnational online rights directly. By creating Mint Digital Services in joint ven-ture with the US rights' management organisation SESAC this year, SUISA has taken a strategic step to suc-cessfully defend its members' interests in the online area. Mint has already acquired a key customer in Warner/Chappell Music, a major music publisher.
SUISA distributes 88 of each 100 francs to authors and publishers
Rights' administration costs increased slightly, but significantly less than revenues. This year again, this resulted in a more favourable cost-coverage rate of 12.37% deducted from the settlements of entitled authors and publishers. Therefore, out of every 100 francs collected in revenue, SUISA passes on 88 francs to the composers, lyricists and authors of music.
SUISA's 2016 Annual Report is available online at www.suisa.ch/annualreport.
SUISA's financial statements are commented on the SUISAblog:
SUISA is the cooperative society for composers, lyricists and music publishers in Switzerland and Liechtenstein. Its 36,000 members represent all musical walks of life. SUISA represents the world music repertoire of two million authors in Switzerland and Liechtenstein. It licenses the use of this world repertoire to over 90,000 clients. In 2017, SUISA and SESAC, a US music rights organisation, established Mint Digital Services in joint venture. Mint Digital Services is responsible for the accounting and management of the transnational music licensing activities of SESAC and its subsidiary The Harry Fox Agency, and for SUISA's business with online providers; the joint venture company also provides services for publishers.
SUISA employs a staff of 200 in its offices in Zurich, Lausanne and Lugano and realises an annual turnover of over CHF 154 million. As a not-for-profit organisation, SUISA distributes its licensing revenues, net of a cost coverage deduction, to music authors and publishers. www.suisa.ch