CISAC's Global Collections Report 2022: Key Takeaways

According to CISAC's latest Global Collections Report, revenues collected by music collecting societies worldwide increased by 7.2% to 8.48 billion euros last year, following a decline as a result of Covid-19 in 2020.

However, with live music still very much restricted in 2021, total collections were 5.1% down compared to pre-pandemic levels.

CISAC director general Gadi Oron said: "After the 10% fall experienced in 2020, our societies' return to growth last year is an impressive achievement. Bearing in mind that income from live concerts and public venues was largely non-existent, the acceleration of digital licensing by many of our members to offset the decline in other areas is a real success story. The recovery is only half done, though. There is, without a doubt, much more room for growth, and to achieve that, we need to bring more value to creative works in the digital market and promote a fairer ecosystem for creators".

The US was the biggest global market for royalty collections at just over €2bn (23.6% of the total), followed by France, Japan, and the UK.

Here are our key takeaways:

Digital is leading growth

Digital music revenue "exceed[ed] expectations" in 2021, growing by 27.5% and surpassing €3bn globally (€3.06bn) for the first time. Digital accounted for 36.1% of global music revenue, though broadcast still brings in slightly more and accounts for 37.7% of income.

The report attributes this increase to the continued growth of subscription music services, plus increased income from user-generated content platforms and new licensing deals. Digital royalties are the biggest revenue generator for CISAC's member societies in 29 countries, with Mexico leading the way on 68.5%, followed by Sweden (58.7%) and Australia (57.9%).

Digital income seems certain to exceed live and public performance income even once the negative impact of Covid-19 is over, and could well start to out-perform broadcast income too.

Live and public performance royalties fell flat

Live and public performance royalties were flat at €1.49bn in 2021, reflecting the loss in particular of live income as a result of the pandemic. Total live income for CISAC societies in 2021 was down even on 2020 and figures across different territories varied depending on when lockdowns were imposed or lifted.

Increases in public performance compensated for the further declines in live. In fact, the €1.49 billion in performance revenues was slightly ahead of the €1.48 billion recorded in 2020, though still way down from the €2.62 billion collected in 2019.

"Looking ahead, it may take until 2023 or even 2024 for live royalties to recover their pre-pandemic level," stated the report. "Several factors underlie this slow recovery, including the permanent collapse of some businesses during the pandemic; the sluggish return of small-scale events featuring local artists in some countries; and initial delays in the return of world tours for the big stadium-filling acts."

Broadcast remains the largest income source globally, for now

Earnings from TV and radio remain the largest income source globally, though as previously noted this looks set to be replaced by digital. Total revenue fell by 1.8% from 2020's €3.24 billion as consumers increasing turned to digital streaming, a trend that is set to continue.

2021 marks the fifth year of decline for broadcast revenue and weaker advertising rates in some markets have now translated into lower usage fees.

Revenue from CDs, video and vinyl were up 3.1% in 2021 to €359 million gains this year thanks to the resurgence in (vinyl-driven) physical sales.

CISAC calls for a fairer environment and better data standards

CISAC president Bjorn Ulvaeus, who launched the Credits Due campaign last year and contributed to Synchtank's 2022 Music Publishing in the Age of the Songwriter report, stressed the need to unlock more value for creators in the digital world through both fairer terms and improved metadata standards.

He said: "Digital royalties collected by CISAC societies are growing impressively, but the streaming world is still unfinished business when it comes to ensuring a fair environment to earn a living. Too much of the data needed to identify and remunerate creators is incomplete or missing when works are ingested on streaming services. The result is a lot of money that is left on the table when it should be going into creators' pockets."

CISAC Board Chair Marcelo Castello Branco added: "We need to see this year not just as a return to normality, but as a bridge to the next phase. In the near term, we face the prospect of economic slowdown ahead and the risks that come with the unusual combination of inflation and recession. Subscription prices are already undervalued and need to be raised, with prices having barely changed since the early days of the streaming model. Fair value and fair terms are essential so as not to compromise the remuneration of rightsholders".