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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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Elton John invests in music tech company Audoo

Elton John and his manager David Furnish have invested in a music technology company that is bidding to “revolutionise” public performance royalties.

The duo have joined the likes of ABBA’s Bjorn Ulvaeus, MPL Ventures, Tileyard and Edinv in backing London-based Adoo, which has secured $5 million (€4.76m) in its latest funding round, taking its total raised to $22m.

The investment round follows key hires at Audoo, including music publishing veteran Nigel Elderton as chair and Melanie Johnson as chief commercial officer.

“Working as a musician can be seen as all glitz and glamour but for the vast majority of artists, especially new and emerging acts, this isn’t the case,” says Elton. “It’s often brutally unfair and this sadly extends into being paid correctly. Right now, artists are not being paid accurately for their plays because the data simply doesn’t exist.

“People have given up on their dreams and we’ve lost talent and future stars because of this disparity. That’s why we’ve invested in Audoo and their world-class technology and data, to help create a more transparent system for everyone, and ultimately to keep the music alive.”

“Being able to draw on the support of artists in our mission to revolutionise the royalty space has been key to Audoo’s success”

Formed in 2018, Audoo’s board includes experts from APRA AMCOS, BMG, Bowers and Wilkins, PRS for Music and Sony Music Publishing. According to the firm, its technology “powers the commitment to improving accuracy, transparency and reporting in quasi-real-time without burden for licensees, PROs and CMOs”.

“Being able to draw on the support of artists in our mission to revolutionise the royalty space has been key to Audoo’s success,” says Audoo founder and CEO Ryan Edwards. “We are proud to welcome more icons to aid the next stage of our journey.

“With Elton and David’s strategic investment, we continue to champion and deliver a fairer and more transparent music industry for creatives to benefit for generations to come. We look forward to welcoming more international partners, licensees and creators to join us on this industry-changing journey.”

Audoo works to provide solutions to the challenges faced in public performance royalty data collection and payment distribution with its Audoo Audio Meter and insights platform that is rolling out across the UK, Europe, Australasia and Africa through industry-first partnerships.

The company says the installation of Audio Meters in businesses worldwide – including cafés, bars, hair salons, restaurants, gyms and retail locations – “sees its small, discreet plug-in solution cut through foreground noise, identify the music, match the song data, and report this usage back to PRO and CMO partners – ultimately improving fair and accurate payments to rights holders with a greater level of accuracy”.

 


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PRS for Music hails live music rebound

UK-based rights management organisation PRS for Music has hailed the rebound in live music after revealing record collections for 2022.

The society, which represents the rights of over 165,000 writers, composers, and music publishers globally, collected £964 million in 2022, a year-on-year increase of 22.9% (£179.4m), and an 18.9% increase on the previous high of £810m achieved in 2019.

Live music was responsible for generating £62.7m of royalties, an increase of 683% (£54.7m) on the pandemic-hit 2021 and 16.1% up on 2019. More than 128,000 live events were reported to PRS across the year in the UK, including major tours from the likes of Dua Lipa, Ed Sheeran, Little Mix, N-Dubz, The Cure and the Rolling Stones.

“In 2021, PRS for Music set out its vision to pay out over £1 billion in royalties within the next five years,” says PRS CEO Andrea Czapary Martin. “Last year we accelerated progress towards, and beyond, this milestone. Through our ambitious licensing strategy and utilising our joint ventures we have maximised the value of members works at every opportunity, while our investment in new technologies and services means we can pay out royalties more quickly and accurately, delivering the best possible service to members at a market leading low cost-to-income ratio.”

“LIVE continues to champion our sector, and recognises that not all parts of the live music value chain have experienced the same rebound”

PRS also launched its Back to Live Music Venue Prize competition in 2022, which saw six independent music venues across England, Northern Ireland, Scotland and Wales awarded a total of £60,000 of financial support to improve live music experiences for performers and for the local communities they serve.

“Today’s PRS for Music announcement reflects the UK’s love of live music from our talented artists and writers,” says a statement from LIVE, the trade body of the UK live music business. “LIVE continues to champion our sector, and recognises that not all parts of the live music value chain have experienced the same rebound.

“We will continue to work with government and other stakeholders to ensure that the whole live music ecosystem can grow sustainably and uphold the UK’s reputation as a leader in the music industry. Our own report Valuing Live Music will build on this work to explore the dynamics underneath the headlines and highlight the difficulties and successes of the sector.”

Elsewhere, PRS says the European market grew 7.5% (£10.4m) in 2022 to £148.3m, predominantly due to the recovery in live touring – particularly those using PRS’s Major Live Concert Service including Coldplay, Iron Maiden and Sting.

 


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