SOCAN Collections Top $405-million with Expanded Membership and More Canadian Music Than Ever Used in Canada and Worldwide
But low average streaming royalties continue to serve as a wake-up call to dramatically and quickly improve rates, discoverability and modernization of Canadian Content rules
TORONTO, Feb. 25, 2020 /CNW/ - For the first time in its history, SOCAN's total annual collections exceeded $400-million, with an estimated $405.5-million1 collected in fiscal year 2019 by the largest company in Canada's music industry, an 8% increase over the previous record of $375-million set in FY2018.
SOCAN attributed most of the approximately $30-million growth to an increase of approximately $23-million in collections from digital sources, as well as an additional $7-million from reproduction rights collections, following SOCAN's 2018 acquisition of Montréal-based SODRAC.
While digital collections ($86.1-million) increased by approximately $23-million (38%) over the $62.5-million of 2019, a SOCAN member who earned any royalties last year earned an average of only $67 from domestic digital royalties ? despite it being a $13 (24%) increase over the 2018 average of $54.
"Royalties from television, radio, international and concerts remain strong, but most growth this year came from domestic digital sources and it is clear that more must be done to improve the SOCAN writer and publisher's share from streaming royalties," said SOCAN CEO Eric Baptiste. "The Canadian government has acknowledged that Canadian content rules and discoverability must be modernized for the digital age. If music creation ? the lifeblood of Canada's music industry ? is not supported quickly through the development of updated rules, there could be dire economic and cultural consequences."
While royalties from digital sources remain too small for most SOCAN members, revenue from international sources continued to show strength at the historically high mark, and new record, of $88.5-million, demonstrating again that Canadian music creators and publishers continue to outperform on a global level.
The company also reported that the number of members who earned royalties in 2019 increased by nearly 3,000, as the company continues to attract songwriters, composers and music publishers who want to commence and build their careers with SOCAN.
About SOCAN
SOCAN is a rights management organization that connects more than four-million music creators worldwide and more than a quarter-million businesses and individuals in Canada. Nearly 160,000 songwriters, composers, music publishers and visual artists are its direct members, and more than 100,000 organizations are Licensed To Play music across Canada. With a concerted use of progressive technology and unique data as well as a commitment to lead the global transformation of rights management, with wholly-owned companies Audiam, Dataclef and MediaNet, and co-owners with RE:SOUND of music licensing organization Entandem, SOCAN is dedicated to upholding the fundamental truths that music and visual arts have value and creators and publishers deserve fair compensation for their work. For more information: www.socan.com
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1 Estimates. Final figures will be determined following the March 2020 meeting of SOCAN's Board of Directors and released in concert with SOCAN's annual general meeting in Montréal in June.
SOURCE SOCAN
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