Despite lockdown during the first half of year, realisation of moderately optimistic 2021 budget in sight
The first half of 2021 was characterised by drastic lockdown measures. Relaxation of restrictions in our sector is still limited and the outlook for the events industry in particular is still very uncertain. The ongoing Covid-19 restrictions have major consequences for the composers, music writers and publishers affiliated with Buma/Stemra, and for Buma/Stemra itself.
Although the realisation in the first half of 2021 was significantly lower than budgeted because of the lockdown, we expect – with the knowledge of today – that the realisation for 2021 as a whole will be close to the moderately optimistic budget. We also expect to realise the budgeted distribution of €172.8 million (including €8.6 million allocated to the Fund for Social and Cultural Purposes). This distribution budget takes into account the impact of Covid-19 on collection in both 2020 and 2021. The budgeted distribution in 2021 is approximately 10% lower than the realisation in 2020.
A year of hard knocks, but also positive notes and a light at the end of the tunnel
The year 2020 brought extraordinary and challenging circumstances. The first nation-wide Covid-19 measures, announced on 12 March, resulted in a decrease in copyright royalties from Buma’s market segments affected by the Covid-19 measures. This decrease was partly compensated by the strong growth in Online royalties. In total, the copyright royalties of Buma/Stemra amounted to € 203.5 million in 2020. That is 7.4% below the level of record year 2019. A record total of € 192.7 million was distributed in 2020. This represents an increase of 1.4%, partly achieved by accelerating the distribution of copyright royalties for the RTV and Live Performances segments. However, the income per music maker varies greatly. Buma/Stemra also helped members and affiliates by contributing to the Music Industry Emergency Fund and an Investment Fund. Although the future is still uncertain for the short term, Buma/Stemra is getting ready. In 2020 we launched our new strategy: To the Beat of the Drum. View the annual report 2020 and previous years.
The coronavirus is still having a major impact in 2021; Buma/Stemra is preparing for a better future!
Buma/Stemra has drawn up the budget for 2021. We are sharing this with our members in a somewhat different form than you may be accustomed to from us. That has everything to do with the societal and economic reality in which we live. Because there is great uncertainty about the near future, we decided to draw up four scenarios alongside the budget. We share these with you in this financial portal.
First half of 2020 – Buma / Stemra tries to limit damage from the corona crisis
The year 2020 started promising, but this turned drastically at the end of February due to the outbreak of the corona crisis. The (inter) national measures to control the corona virus have major consequences for the composers, lyricists and publishers affiliated with Buma / Stemra and also for Buma / Stemra itself. Buma / Stemra does everything it can to limit the consequences as much as possible through the accelerated payment of copyright monies through the Music Emergency Fund and the Music Investment Fund. Buma / Stemra has taken further measures to save costs where possible in 2020. Read more about the 2020 half-year figures here.
Buma / Stemra can look back on a good 2019
The year 2019 was a year of growth and further improved efficiency for our organization. We look back on it with pride. The rights revenues of Buma / Stemra increased in almost all market segments in 2019 compared to 2018 and amounted to a total of € 219.7 million, an increase compared to the previous year by 3%. In 2019, a total of € 190.0 million in copyright monies was paid out to rightholders, more than 5% more than in 2018. At € 26.2 million, the management costs are more than 10% lower than in 2018. View the annual report 2019 (and previous years).
Positive expectations for 2019 set the tone for 2020!
The 2020 budget was adopted by the Supervisory Board in December 2019 based in part on our latest expectations for the financial year 2019: copyright royalties collected and distributions above budget, lower operational expenses and investment results well above the standard return. Compared to the 2019 budget, Buma/Stemra expects to collect €9.7 million more copyright royalties in 2020 and to distribute €11.1 million more to rights owners. Read more about the budget 2020.
Buma/Stemra achieved good results in the first half of 2019!
Buma/Stemra looks back on a good first half of 2019.* Copyright royalties are increasing in almost all market segments and the management costs are under control. The investment results are very positive and more than offset the negative results for 2018. These achievements provide a good basis for the remainder of the financial year. Read more about the 2019 half-yearly figures here.