Lambasting YouTube, CISAC Posts $11 Billion in Global Royalty Collections
According to CISAC, no, YouTube still doesn’t pay its fair share.
Earlier today, the International Confederation of Societies of Authors and Composers (CISAC) published a new report.
In its 2018 Global Collections Report, CISAC reported global royalties collections for music, audiovisual, visual arts, drama, and literature creators rose 6.2% to €9.6 billion ($11 billion) in 2017. Since 2013, this number has grown 28.2%.
Digital collections last year also jumped 24% to €1.27 billion ($1.45 billion). Digital share accounted for 13.2% of all global royalty collections. Thanks to the rise of streaming services and consumer uptake in streaming, digital collections have nearly tripled – 166% – in the last five years.
Among sizable markets, Sweden, Mexico, and Korea had the leading digital shares of total collections at 32.8%, 32.3%, and 31.8%, respectively. Digital has become the largest collections source in Sweden. At 62.6%, Australia and New Zealand had the largest digital growth. APRA AMCOS, an Australian music society, saw digital overtake broadcast as the largest collections source.
Music royalties alone have grown 6% to €8.3 billion ($9.5 billion), with digital royalties reporting over €1 billion ($1.1 billion) for the first time. CISAC’s global music repertoire also grew 28.3% in the last five years.
Despite the rise in digital royalties, digital usage revenue remains far below collections from broadcast, live, and background use. Only 13% of all creators’ royalties came from digital sources, up from 11%. Rebuking YouTube, CISAC pinned the blame on the rise of user-uploaded services.
“[This number is] a reflection of the gross mismatch between the volume of creative work being made available via digital channels and the amounts being returned to creators.”
In a separate report highlighting today’s findings, CISAC explained digital collections underperformed thanks to “YouTube delivering a fraction of that share.”
Railing against the popular video platform once more, the organization wrote,
“In the current digital market, user upload content (UUC) services such as YouTube are using creative works, making large advertising revenues and paying only a tiny fraction of the sums they generate to creators. They also pay significantly less for other streaming services which offer the exact same content.”
You can view the complete report here.
Featured image by CISAC.