Two become one: German industry associations to merge
As of 1 January 2019, Germany’s concert organisers will be represented by a single professional body: the Federal Association of the Concert and Event Industry.
The new association, Bundesverband der Konzert- und Veranstaltungswirtschaft (BDKV) in German, will be formed by the merger of the Federal Association of the Event Industry (BDV) and Association of Concert Management (VDKD), whose members have unanimously approved the union.
BDV president Jens Michow and VDKD president Pascal Funke will serve as joint presidents of the new BDKV.
Commenting on the two associations’ general meetings on 29 October, when the merger was agreed, Michow says: “It was a truly historic day for the German event industry. The bundling of almost all companies in the sector into a single association gives the BDKV considerable clout. I am particularly pleased to be able to represent the interests of the many classical music organisers and brokers who were previously only organised within the VDKD.”
“The bundling of almost all companies in the sector into a single association gives the BDKV considerable clout”
“I would like to thank Jens Michow, the board members and legal advisors for the effective cooperation in recent months and the members for their trust,” adds Funke. “This will enable us to face the challenges of the future with confidence.”
The make-up of BDKV’s executive board, also fixed until 2021, will initially be Christian Doll (BDV), Elisabeth Ehlers (VDKD), Christian Gerlach (VDKD), Michael Hermann (VDKD), Daniel Rothammer (BDV), Ulrike Schirrmacher (BDV), Sonia Simmenauer (VDKD), Stephan Thanscheidt (BDV), Michaela Russ (VDKD) and Klaus Wollny (BDV).
The Federal Association of the Concert and Event Industry’s combined membership will include around 500 concert organisers, promoters and agencies.
The German events industry collectively sells around 113.5 million tickets each year, for a total turnover of €5bn.
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Gema, promoters agree on increased live music tariff
German performance rights organisation (PRO) Gema has agreed a new concert tariff rate with promoters’ associations, bringing to a close three years of negotiations.
Effective 1 January 2018, tariffs will be levied on net, as opposed to gross, ticket sales, with other services included in the ticket price – such as, for example, fees for camping at festivals – also included for the first time.
The new rate will be 5.75% of net receipts for events under 2,000 people (it is currently 5% on gross receipts), 7.6% for 2,000–15,000-capacity shows (currently 7.2%) and 8% for events with a capacity of 15,000+ (currently 7.65%).
The changes follow a round of negotiations between Gema (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte, Society for Musical Performance and Mechanical Reproduction Rights), which has more than 70,000 members, and the BDV and VDKD, which between them represent the majority of Germany’s concert promoters.
Gema board member Georg Oeller says the new tariff structure represents an “important step forward for the work of Gema. Particularly in the rapidly evolving market of ticket sales, including secondary ticketing, [these new rates are] of great importance for the evaluation of appropriate remuneration for musicians.”
In the UK, a similarly long period of negotiations is approaching its end, as PRS for Music moves towards replacing the current flat rate of 3% on gross box-office receipts.