French rights management organizations SCPP and ADAMI have signed a partnership agreement, aiming to streamline royalty collections and strengthen their collective bargaining power in the music industry.
This move signifies a significant shift in the French rights management landscape, potentially paving the way for a full merger between the two organizations.
The SCPP (Société Civile des Producteurs Phonographiques) represents over 4,400 French and international music producers, collecting and distributing royalties for sound recordings and music videos, while ADAMI champions the rights of nearly 100,000 performers, offering services like rights management, career support, and financial assistance for projects.
“Both companies jointly acknowledged that the situation in France creates inefficiencies that are detrimental to all rights holders and weakens their ability to negotiate their rights,” stated a joint press release issued on May 27.
“Both companies jointly acknowledged that the situation in France creates inefficiencies that are detrimental to all rights holders and weakens their ability to negotiate their rights.”
SCCP and ADAMI
This challenge weakens artists and producers’ negotiating positions in France, where there are seven related collective rights management organizations, compared with other European countries with typically just one organization, SCPP and ADAMI said.
While performers and producers may have differing interests at times, they share a common goal of protecting their rights, they said. The new partnership builds on existing collaborations such as SPRE and COPIE FRANCE.
The organizations also highlighted the need for rights management groups to adapt amid the constantly evolving music industry, recognizing the importance of big data and the need for adaptable information systems, especially with the rise of artificial intelligence.
To tackle these challenges, SCPP and ADAMI have agreed to create a joint subsidiary that will merge their databases and royalty distribution tools for “private copying” and “equitable remuneration.”
ADAMI recently updated its distribution rules, making them similar to those employed by SCPP. This allows the adoption of common rules for allocation per sound recording, the release said.
The agreement includes an option for a full merger of SCPP and ADAMI into the joint subsidiary. Both companies’ shareholders will vote on the creation of the joint subsidiary “as soon as possible.”
“Uniting forces across all divides can only grow collective management to meet today’s challenges and those of the future.”
Anne Bouvier, ADAMI
“I am very proud of this historic partnership that is in the public interest. Uniting forces across all divides can only grow collective management to meet today’s challenges and those of the future. Thank you to Bruno Boutleux for his unwavering faith in developing a super champion of related rights,” said Anne Bouvier, Chairwoman of ADAMI’s Board of Directors.
Boutleux took the initiative for the merger when he served as Managing Director of ADAMI until the end of January 2024.
Olivier Nusse, SCPP’s Chairman of the Board, added: “I am pleased with this agreement in France between producers and performers, which reflects a mutual desire to overcome the usual antagonisms and, above all, to build a stronger defense of our interests together, in a context where the music industry is constantly transforming.”
“I am pleased with this agreement in France between producers and performers, which reflects a mutual desire to overcome the usual antagonisms and, above all, to build a stronger defense of our interests together, in a context where the music industry is constantly transforming.”
Olivier Nusse, SCPP
“I would especially like to thank Anne Bouvier, who believed in this ambitious project from the outset, Bruno Boutleux, who initiated it, and Marc Guez, Managing Director of the SCPP, who convinced the producers of the merits of this merger.”
The French music market grew by 5.1% in 2023 to EUR €968 million (approx. USD $1 billion), according to data from industry body SNEP.
Music Business Worldwide