Global royalty collections for music creators have hit a record high of €8bn (£7.2bn) annually, bolstered by growth in the digital music market, a new study shows.
According to figures from the International Confederation of Societies of Authors and Composers (CISAC), annual music royalty income rose by 6.8 percent in 2016, while digital music royalties increased by 52 percent.
Revenues from digital uses of all repertoires (audiovisual, music, literature and more) have nearly tripled since 2012, largely driven by streaming subscription services. However, at €948m, it still accounts for only 10.4 percent of global income, with revenues held back in particular by poor returns from user generated content video streaming platforms, CISAC said.
In Europe’s music sector, live and background royalty collections have overtaken TV and radio for the first time, reflecting the health of the live business and pressure on rates from broadcasters.
The region continued to bring in the lion share of royalty collections in 2016, amounting to 56.8 percent of the total. In Asia-Pacific and Australasia, collections increased 10.3 percent to €1.4bn, while collections in Latin America and the Caribbean rose by 1.3 percent to €557mn. In Africa, collections rose 9.5 percent to €67 million, representing only 0.7 percent of the global total.
The numbers were released in the CISAC Global Collections Report, which collated and analysed 2016 data received from member authors societies in 123 territories.
Introducing the 2017 report, CISAC director general Gadi Oron said: ‘This year’s report shows the system of collective management of creators’ rights is robust, successful and ready for more growth.
‘The big traditional revenue streams, led by broadcast and live performance, remain stable and strong. Digital royalties continue to surge and in some markets already overtake other forms of income. The figures we’re releasing today reflect our societies’ relentless effort to be more efficient and innovative, and drive income growth.’