Change in settlement of undistributed funds within live events
Change in settlement of undistributed funds within live events.
As of distribution year 2022, a change has taken place in the settlement of undistributed funds within live events. In this message we inform you about this change.
In August 2020 the General Assembly agreed to a change in the rules and regulations regarding the Buma deductions. This amendment came into effect as of January 1, 2021. In general, the rule change means that there has been a switch from a retrospectively determined variable administration fee to a pre-budgeted fixed administration fee.
In 2022 the undistributed Buma funds for usage years 2017 and 2018 will be released.
In the former system with retrospectively set variable administration fees (last applied to usage year 2020), the released undistributed funds (last applied to fiscal year 2016) were – via the administration fee – allocated to the funds available for distribution in Buma general rights (last applied to usage year 2020, live, radio, television, film and background music categories).
In order to implement the change in the regulations, a new policy for the distribution of undistributed funds was developed in close cooperation with the Rightsholders distribution policies committee. The Council of Rightholders has advised the Board of Directors on this matter.
Under the new methodology, available undistributed funds (in fiscal year 2022, these are years of use 2017 and 2018, respectively) will be distributed by each value chain (live, radio, television, film and background music) as follows:
- on the basis of distributed market shares per right holder for the originating year of use (2017 and 2018 respectively), or;
- on the basis of reference repertoire from the originating year of use.
For live events, we use both distribution methods.
Based on distributed market share
- Undistributed funds live Serious categories:
- CA (Carillon)
- CO (Organ circles)
- CZ (Choirs)
- HB (Harmony and Fanfare professional)
- HF (Harmony and Fanfare other)
- KP (Protestant Church)
- KR (Catholic Church)
- CS/ CS2 (Jazz)
- CR (Recitals and chamber music)
- CE (Symphony orchestras)
- ASE (Serious live theaters)
For these categories, the market share within known and settled performances is generally sufficiently representative as a starting point for an allocation of previously undistributed funds within the category.
On the basis of reference repertoire
Undistributed funds Live entertainment concerts, events and festivals – settlement category AS
The 2017 and 2018 undistributed funds from these licenses are settled in the undistributable funds category AS_ONVERD (AS undistributable) based on reference repertoire from radio 2017 and 2018, respectively, and settled performances in the AS category that took part in 2017 and 2018, respectively.
Undistributed funds Dance events – settlement category AS
The undistributed funds 2018 from these licenses are settled in the undistributable funds category DANCE_REF (Dance Reference) based on reference repertoire.
The reference repertoire is composed of the following components:
- The repertoire of a number of specific radio programs focused on dance music in 2018;
- The repertoire of a number of major dance events in 2018;
- The online sales data of dance repertoire through Beatport in 2018.
The undistributed funds from dance events that took place in 2017 were distributed in DANCE_REF 2017 in December 2021.
Undistributed funds Live entertainment in the hospitality industry – settlement category AL
The funds from the hospitality licenses for which we did not expect to be able to obtain set list information at the time, were last distributed in the AL-ref category for year of use 2020 in September 2021 based on reference repertoire from (AL) live events and radio from previous years. Starting in year of use 2021, we will align this flow of money with the newly developed policy around undistributable funds. This means that the undistributed funds relating to operating year 2021 – after the effort obligation to gather set list information has expired – will be released in distribution year 2025 and will be paid out on the basis of reference repertoire from operating year 2021, to be determined. Specifically, as a result of the policy adjustment, the AL-ref settlement is temporarily – up to and including benefit year 2024 – suspended.
In respect of live categories, the undistributed funds for operating years 2017 and 2018 will be distributed in December 2022.