Who says the music business is crumbling? Australian songwriters will benefit from a revenue pool of $178 million from APRA.
APRA/AMCOS represents songwriters via publishing and collects revenues from music sales, broadcast and licensing.Total revenue for APRA the last financial year was $200 million, an increase of 7.4% on the previous year.
This is the first time APRA has hit the benchmark $200 million.
"This year's high water mark in revenue generation and royalty distribution reflects our continuing efforts to add financial flesh to a copyright system that is proving to be remarkably resilient and responsive to a rapidly changing commercial and technological environment,” said chairman Mike Perjanik.
Highlights of APRA's financial performance*
APRA's revenue rose 11.1% to $156.7m while expenses amounted to $19m. Its expense to revenue ratio of 12.13% is down from last year's 12.62% and is close to world best practice standards.
APRA membership grew to 51,325 - an increase of 5.7%.
Over the 2007 calendar year, APRA distributed over $108m (up from $96.2m in 2006) to 163,413 songwriters, composers and music publishers. That?ó•?s 16, 891 more music creators than we paid in 2006 (an increase of 11.5%).
On the revenue side, key areas of growth were:
- public performance licensing in Australia where revenue grew by 16% to $35m, following growth of 20% over the previous year. Likewise, New Zealand general licensing grew by 32% to $3m.
- Australian pay TV income grew 21% to $9.5m and is expected to continue to grow as market penetration improves in Australia and New Zealand.
International revenue stayed strong at $18m despite currency fluctuations.
*AMCOS' financial performance*
Mechanical rights societies around the world are facing challenges as the decline in sales of CDs and other physical carriers of music accelerates. However, the mandate under which AMCOS operates, combined with the diversified range of music applications licensed by AMCOS and the rise of digital models, have shielded AMCOS from the worst of the fall out.
AMCOS' gross revenue fell by 3.5% to $47m, due to a 9% decline in physical product income. This reflects a structural decline in direct revenues from record labels. Ringtone revenue also contracted by 39%, reflecting softening market for ringtones.
On the positive side, AMCOS' synchronisation income, especially from blanket licensing of music-based TV shows, grew 47% over the year to $2.5m. And digital income is also on the rise - AMCOS income from digital downloads has risen 77.8% to $4.8m; streaming/webcasting income has doubled to $0.4m..
As at 30 June 2007, AMCOS had 1,874 members, an increase of 42%.
"The range of opportunities and potential revenue streams for writers and publishers seems unprecedented, and music seems in demand like never before," said AMCOS Chairman Ian James. "We aim to ensure that the opportunities are realised on behalf of all AMCOS members."
The revenue increases were put down to a healthy growth in broadcast, pay television, digital, concert and general public performances.
