Improved Results Buma and Stemra

In 2009 the results of both Buma and Stemra improved compared to 2008, the year in which the investment results were badly hit. At Buma the results from normal business operations rose by € 15 million and at Stemra by € 5.7 million. Alongside cost control this is a result of extremely good investment results, for Buma an increase of € 16.1 million and for Stemra € 5.3 million.
At Buma € 132.7 million is available for distribution in 2009 compared to € 132.4 million in 2008 and for Stemra € 42 million compared to € 45.3 million in 2008.

The future of Stemra

At Stemra the income from the sale of CDs and DVDs is dropping more and more every year. The turnover from the internet should partially compensate for this but the income from it is disappointing. This is to do with the fact that agreements and decisions must be made about copyright on the internet, and arising from this many more internet parties agreements still have to enter into agreements for the use of music on the internet.
Buma/Stemra is still absolutely of the opinion that music authors ought to receive reasonable compensation for the use of their music, also on the internet. A recent ruling by the
’s-Hertogenbosch Court of Justice has strengthened Buma/Stemra’s belief in this.
Without doubt there will still be a demand for carriers but it is definitely online music distribution that has the future. The fact that the Dutch government has decided not to extend the existing Home Copy Regulation to new carriers such as USB sticks and MP3 players, ensures that the income for music authors will drop even further. Through this decision the Home Copy Regulation is doomed to disappear. Even though, on the contrary, the countries surrounding the Netherlands are actually extending similar regulations. Consequently the future of Stemra is looking more and more uncertain.

Fruitful co-operation

The co-operation that Buma has with SENA is dynamic. The sending of one joint invoice has, in the meantime, so taken root, that it has been decided to expand it and the invoicing handled in the joint administrative office Service Centre Copyright and Related rights (in short SCAN) in which Buma and SENA each participate for 50%. Buma and SENA are going to use SCAN, as part of  the action points of Pastors working group, to match addresses in a joint database. SCAN can then develop into an organization that administers the joint database of the affiliated management organizations. The success of SCAN has also led Videma to decide to join in the one-invoice arrangement with Buma and SENA.

Gerkens Report gives copyright the attention it deserves

In the Netherlands a lot of attention was given to the report of the commission under the chairmanship of SP (Socialist Party) Member of Parliament Arda Gerkens which was presented to the Standing Committee of Justice and Economic Affairs on 17 June 2009. The importance of the report lies in the fact that it is the first time that a group of members of parliament has come together to investigate a great number of aspects of copyright. The background to this is that they want to thoroughly discuss the future of copyright in the digital age.

Pastors Working group energetically get to work

The Pastors working group (officially: Working Group Improvement of Royalties Collection) has energetically created a platform where consultations between the collecting societies and the business community can now take place. The working group was set up in 2008 by the Ministry of Economic Affairs. The parties concerned wanted to give self-regulation a chance. Economic Affairs enlisted Marco Pastors as the independent chairman of the working group. The first report of the working group was published in March 2009. A number of action points, such as joint and electronic invoicing with other rights organizations, have already been picked up. Other action points are: to achieve basic registration, joint negotiating, a disputes and complaints regulations and a hallmark for rights organizations.

VOI©E has secured its place

VOI©E is the answer of the rights organizations to the great need for clarity and transparency in the sector. There is now a joint mouthpiece that in principle maintains all contact with the authorities and politics. Another task of VOI©E is to promote knowledge about the value and importance of copyright. In the meantime VOI©E has secured a strong position in the Hague. Political and employers’ organizations know their way to VOI©E and at official and political levels frequent consultations are held about collective management. The branch organization also plays a supporting role in the work of Pastors working group.

A look at 2010

The objective for Buma for 2010 is unchanged: distribute of the exploitation income. 1 euro in, 1 euro out is still a matter of prime importance in 2010. If the investment market makes it possible to maintain the financial results, at least compared to 2009, then the targeted principle of 1 euro in, 1 euro out is once more within reach. In 2010 Buma/Stemra will, once again, dedicate itself with deep conviction to the interests of well over 18,000 of its directly affiliated music authors.
Through the fall of the Cabinet the discussion of the Gerkens report and the proposal for the Collecting Societies Supervision Act has been deferred. It is not yet known when the report and the proposal is going to be dealt with.
The joint invoicing with other rights organizations is being expanded. Other points from the Pastors report will also be completed this year.
The future of Stemra is uncertain. As observed earlier, the exploitation of Phono Mechanical rights is becoming more and more difficult to realise at acceptable costs. For that matter, it is not something that only Stemra is confronted with, the financially acceptable exploitation of sister organizations overseas is also hanging in the balance.
In 2010 Buma/Stemra will, from a cost-saving viewpoint, once again dedicate itself to putting into practice joint back office operations, databases and IT systems with other Societies.
Our working group FlexCo 2.0 is investigating what is needed to achieve more flexibility in collective management. It demands great effort in the field of ICT and administration as the complete system must remain workable.
To conclude, Buma/Stemra will continue to stimulate talent by organizing the Dutch Writers Camp 2010, showcases and other initiatives to support lyricists/composers on their way in the (inter)national music industry. Buma/Stemra supports and promotes Dutch music culture by funding Buma Cultuur which it founded.

About Buma/Stemra

Buma/Stemra is the collecting society for music in the Netherlands. Buma/Stemra represents the interests of music authors worldwide and promotes Dutch music as an international product. Music authors can transfer the commercial exploitation of their music copyright to Buma/Stemra. Keeping track of who is using their music can be a lot of work for music authors to do theirselves. Buma/Stemra will do this job for them and makes sure music authors receive remuneration for the use of their creations. One of the things we do to ensure this is by signing agreements with music users.

More information about Buma/Stemra: www.bumastemra.nl


Contact for the press:

For more information please contact:
Buma/Stemra; Antoinette de Ridder
Telephone:+ 00 31 (0) 23) 799 75 80 / Cell Phone: + 00 31 (0)6 – 55 834 796
E-mail: antoinette.de.ridder@bumastemra.nl