CISAC reports 70% rise in live performance revenue

Global royalty collections for creators reached a historical high of €12.1 billion in 2022, growing by a record 26.7% in a full recovery from the pandemic, according to the latest report by the International Confederation of Societies of Authors and Composers (CISAC).

Royalties from the live and public performance sector, including concerts, background, exhibitions, and theatres, increased 69.9% to €2.7bn in 2022 as festivals, music tours and businesses reopened.

Despite this, CISAC says the live sector’s return to health fell short of complete recovery, remaining 7.9% below the pre-pandemic level of 2019.

The majority of the growth was in Europe, where royalties increased by more than three-quarters of a billion euros, while collections in Latin America more than tripled, underscoring the importance of that market to the music industry.

“This is a remarkable return to growth as our whole sector fully recovers from the disastrous three-year pandemic”

The confederation says that although live and public performance collections rose by nearly 70% in 2022, they still remain 7.9% below the 2019 figure. Virtually all CISAC’s collection society members reported sharp increases in all 2022 events generating live collections, from concerts and festivals to theatre plays and exhibitions.

The live music sector, slower to recover than public performance, bounced back sharply, with data from a sample of 116 CISAC member societies showing that live music royalties rose 185.7%, while background music was up only 34%.

The rate of recovery in live and background also varied by geography. Collections in Latin America and the Caribbean rebounded very strongly in 2022. This region had the highest growth rate of 218.9% but remained 16% short of pre-pandemic levels. Elsewhere, public performance revenues continued to suffer in some countries from the enduring damage caused by the pandemic. For example, AEI-Guatemala reported that 48% of all bars and restaurants have not reopened after the lifting of Covid restrictions.

In 2023, CISAC notes, live entertainment has continued to rebound after three years of pent-up demand. “Live and background royalties appear on course for further sharp growth, recovering well beyond pre-pandemic levels for the first time,” it states in its annual report.

However, CISAC warns its members that there are still some concerns that this bubble will burst after 2023 due to consumer spending cuts and constraints on artists’ touring budgets.

“Streaming and subscription have not just revived the status quo, they have transformed the market, changed the game for creators and paved the way for future growth”

Overall, collections are now 19.8% higher than their pre-pandemic level, driven by continued strong growth in digital income and the recovery in live and public performance contributions.

Digital collections, boosted by continued growth of streaming and subscription, rose to €4.2bn, and is now, for the first time, creators’ biggest income stream, overtaking TV and radio, with 35% of total collections.

In a significant rebalancing of income streams since the start of the pandemic, digital collections are up 100%, TV and radio up 4.6% and live and public performance down 7.9% on their pre-Covid levels of 2019.

All regions and all repertoires saw collections growth in 2022. Music collections, the largest segment, rose a record 28% to €10.8 billion, 21.4% up on 2019.

“[AI] demands international leadership and a strong united front from all parts of the creative industry”.

Commenting on the report, CISAC director general Gadi Oron says, “This is a remarkable return to growth as our whole sector fully recovers from the disastrous three-year pandemic. While live and public performance have bounced back strongly, the recovery is driven most of all by digital which has now become creators’ largest source of income. Streaming and subscription have not just revived the status quo, they have transformed the market, changed the game for creators and paved the way for future growth.”

Meanwhile, CISAC president Björn Ulvaeus takes the opportunity to voice concerns about the future impact of AI on creators’ collections, stating, “CMOs have the backs of the creators they serve and are now delivering more money to more creators than ever before. And that is good news – because, fresh from Covid and the economic squeeze, what we now face is another very serious, existential challenge – that of artificial intelligence. AI will radically change the world for creators and the creative industry. It demands international leadership and a strong united front from all parts of the creative industry.”

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