Global royalty collections for creators increased by 7.6% to reach a new high of €13.1 billion last year, according to the 2024 Global Collections Report published by the International Confederation of Societies of Authors and Composers (CISAC).

The increase was partly attributed to the “strong” post-pandemic resurgence of live concerts and public performance, as well as a steady upturn in digital income.

Live and public performance collections – which includes concerts, exhibitions and licensing of venues and businesses – posted the strongest growth of any segment, growing by 22% to an all-time high of €3.3bn.

According to a sample of over 100 music societies, collections from live concerts and festivals grew 36.5%, while public performance licensing revenue was up 10.9%.

The income stream accounted for 25% of total collections, behind digital (35%) and broadcast (30%), and is up 12.6% on pre-Covid levels. The Latin American market was a key driver overall, showcasing huge growth of 114.6% over the past two years.

CISAC director general Gadi Oron says the figures paint a positive picture of a “healthy, stable and promising sector”.

“Overall, collections on behalf of creators reached a new all-time high of €13.1bn, an impressive 7.6% increase,” says Oron. “This, in itself, is a major achievement and shows the strength of the collective management system.”

“Support from governments to protect the live sector has never been more important”

Furthermore, the report reveals that royalties derived solely from live music have increased by 24% since 2019 to €1.03bn.

“The live and public performance income stream bounced back buoyantly,” notes Oron. “For the first time, the amounts collected by CISAC societies for background music, live concerts, exhibitions and entertainment, exceeded their 2019 pre-Covid level reaching €3.28bn, fuelled by the growing number of live concerts and tours around the world.”

However, Oron issues a warning over the continuing struggles of the grassroots scene.

“Yet, despite this success, the sector is fragmented and in many areas, fragile,” he says. “At the grassroots level, venues are closing and local events struggling. Support from governments to protect the live sector has never been more important.”

CISAC board chair Marcelo Castello Branco adds: “This 2024 CISAC Global Collections Report shows a successful performance by the CISAC global network, and we should take a moment to celebrate our achievements. However, it is essential that we elevate our ambitions further. We have to firmly reject the notion that creation – whether in music, audiovisual, visual arts, literature, or drama – is merely a commodity or a tool in the attention economy.

“Our market environment is full of uncertainties, and while we take pride in present growth, our priority now needs to be long-term sustainable growth to ensure the livelihoods of the creators we represent.”

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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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Music collections grew almost 2% in 2018, generating €8.5 billion, with the growth of live/background music royalties surpassing that of frontrunner TV/radio.

The most recent figures released by Cisac, the association that represents global copyright collection societies, show the traditional revenue streams of TV, radio, live and background music – that played in restaurants, bars and clubs – “continue to be the backbone of royalties collections”, despite the “mass migration to digital channels” in recent years.

In Cisac’s Global Collections Report 2019, which documents overall royalties collected in the areas of music, audiovisual, visual arts, drama and literature, the association’s director general, Gadi Oron, puts “comparatively modest” growth down to the “devaluing effect of the exceptionally strong euro”.

Revenue from live and background music combined has grown 0.8% from 2017 to €2.6bn, while TV and radio has seen a decline of 3.1%, generating €3.3bn.

In conjunction with TV/radio’s decline, live/background royalty collections surpass that of broadcast in Italy and Chile. Live and background royalties reach €322 million in Italy (-0.9% year-on-year) and CLP10,960m, or €13.43m, in Chile (+8.4% YOY).

“The large traditional revenue streams continue to be the backbone of royalties collections”

Europe remains the largest region for collections, generating over 50% of global music revenues. According to the report, the live music sector “continues to grow healthily across Europe, with strong demand for concerts and festivals.” Live/background collections lead the way in Europe, rising 1.4% in 2018 to €1.7bn, and by 11% over the past five years.

Live collections are also up in Asia-Pacific by 3.1% to €306m and 2.2% in Canada/USA to €345m. Elsewhere, royalties are down -0.9% in Africa (17m) and 9.5% to €194m in Latin America and the Caribbean, where live music still remains the leading source of collections.

Digital is where Cisac president Jean-Michael Jarre sees the “future”, with increasing subscription revenues driving growth of 185% over the past five years.

“More than ever, societies are working in a landscape of fragmenting income sources,” writes Oron. “This calls for more versatility: protecting the large traditional collections streams of live, background and broadcast, while striking new deals to monetise creators’ works on YouTube, Facebook and other digital platforms. The role of authors’ societies in generating monetary value for millions of creators has never been more vital.”

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