Paris-headquartered royalty collection society Sacem has announced another year of record-breaking revenue collection for 2023.
The organization attributed the growth to its ongoing strategic transformation efforts focused on cost control, maximizing value for members, and supporting creators.
Sacem collected EUR €1.487 billion (USD $1.61 billion at the average exchange rate for 2023) in royalties, a 5% increase from 2022. In comparison, revenues at ASCAP, the American Society of Composers, Authors and Publishers, jumped 14.1% to $1.737 billion, while that of Germany’s GEMA climbed 8.4% YoY to €1.277 billion ($1.385 billion).
A total of 458,000 authors, composers and publishers worldwide received a combined €1.233 billion ($1.335 billion) from Sacem for their work. The figure was up 17% from a year earlier. ASCAP, on the other hand, paid out $1.592 billion to songwriters and publishers, up 14.7% from 2022, while GEMA paid out €1.082 billion ($1.17 billion) to its members and rightsholders globally in 2023.
Of its total €1.487 billion collections in 2023, digital collections, including agreements with international publishers, surged by 13% to €557 million ($604.6 million), driven by the renewal of its agreements with Apple Music, Spotify and Deezer in 2023. The company added that two new multi-territory online mandates also took effect in 2023, with the Hungarian society ARTISJUS and the Brazilian society UBC.
In contrast, revenue from TV/radio/telecoms slipped 4% YoY to €318 million ($344.2 million).
Meanwhile, the rebound in live music helped Sacem post an 18.5% rise in general royalties to €388 million ($419.9 million) in 2023. General royalties represents earnings from concerts or from the use of songs as background music.
“We are now looking to a future where the major changes that marked 2023 will continue, whether it be the development of artificial intelligence or the emergence of new players.”
Cécile Rap-Veber, Sacem
“In 2023 SACEM accelerated collection and distribution activities for the benefit of its members, for general royalties – concerts or background music – and for the exploitation of streaming works on Apple Music and Spotify – with distribution three months after the quarter of exploitation,” Sacem said.
“This will soon be the case for YouTube, for music content, from July 2024, making Sacem the most diligent society in Europe in terms of paying out main online royalties. More than 458,000 authors, composers and publishers worldwide have been remunerated by Sacem for the use of their works as quickly as possible,” the society added.
Sacem’s upbeat results for 2023 can be attributed to its improved operational efficiency, with a net operating expense-to-collection ratio of 10.76%, the lowest in its history, and down from 11.65% in 2022. The society also cited the continued modernization of its IT tools to streamline processing of audiovisual works and member relations.
“The company is also actively working to use AI internally to improve its overall operations,” Sacem said.
Sacem also revealed in its 2023 results that more than 13,870 new members worldwide, 28% of whom are under 25, joined the collection society, allowing it to pass the 224,470-member mark.
Additionally, over 3,657 projects were supported via cultural action in 2023 for a total of €22.5 million, with 25% from private copying levies.
Sacem added that in 2023, it had processed 458 trillion streams and downloads.
Also during the year, Sacem says it developed a range of services including the creation of the mandate rights portal and the development of the MusicStart service, which covers over 130,000 protected works, and continued to simplify its operating rules for all players in the value chain.
Sacem also noted its board has unanimously decided to renew the term of its CEO, Cécile Rap-Veber. She has been at the helm of the company since October 2021.
“2023 was a year of confirmation in the implementation of our major strategic priorities. We continued our transformation into Sacem 3.0 and worked to improve efficiency, ensuring the sustainability of our management account and optimizing both our collections and the amount distributed to our members,” Rap-Veber said.
“We are now looking to a future where the major changes that marked 2023 will continue, whether it be the development of artificial intelligence or the emergence of new players.
“In this immensely challenging environment, we will continue to evolve in order to strengthen our capacity for innovation and to remain the undisputed leader in the collective management of copyright and the protection of creative works for the benefit of all.”
“Today, we are convinced of our society’s ability to respond ever more effectively to the challenges of the future, and we are delighted to be continuing this adventure with Cécile Rap-Veber, in whom we have every confidence as she successfully leads management in taking on these developments.”
Christine Lidon, Sacem
Christine Lidon, Chair of the Sacem Board, added: “In 2023, Sacem was, more than ever, true to its vocation of creating a home for all creators and all aesthetics. It has mobilized to seek ever greater value for its members and for the principals who have placed their trust in it, and has organized itself to support authors, composers and music publishers, in particular by taking care of the most vulnerable and by defending the demanding conception of copyright to which we are all attached.
“Today, we are convinced of our society’s ability to respond ever more effectively to the challenges of the future, and we are delighted to be continuing this adventure with Cécile Rap-Veber, in whom we have every confidence as she successfully leads management in taking on these developments.”
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