Record-Breaking Growth in Global Royalty Collections

The International Confederation of Societies of Authors and Composers (CISAC) has announced that global royalty collections for creators have reached a record high in 2023. Total collections amounted to €13.1 billion ($14.2 billion), marking a 7.6% year-over-year increase, according to CISAC's latest Global Collections Report released on October 24.

Key Drivers of Growth

• Music Collections: Royalties collected for publishers and songwriters totaled €11.75 billion ($12.72 billion), also up 7.6% from the previous year.
• Live and Public Performance: This segment experienced the most significant growth, surging 22% year-over-year to €3.28 billion ($3.55 billion) as live events continued to rebound post-pandemic.
• Digital Collections: Increased by 9.6% to €4.62 billion ($5.0 billion), although growth has slowed compared to the 33.5% increase seen the previous year.

Geographic Breakdown

• United States: Remained the largest source of music collections with €2.8 billion ($3.03 billion), an 8.1% increase.
• France: Ranked second with €1.4 billion ($1.51 billion), up 5.1%.
• United Kingdom: Came in third with €1.1 billion ($1.2 billion), a 7.1% rise.
• Latin America: Recorded the fastest growth at 26.2%, reaching €694 million ($751 million).
• Eastern Europe: Grew by 10.4% to €399 million ($432 million).

Challenges and Concerns

Despite positive trends, CISAC highlighted concerns over slowing growth in digital revenues and insufficient earnings for most creators.
"Despite the growth in royalties from digital platforms, the vast majority of creators say that streaming income cannot support a career or livelihood," the report stated.
James Duvall, Principal Analyst at Futuresource Consulting, noted that the digital subscription market is nearing saturation in major territories and warned about potential limitations in further subscription price increases.

The Impact of Artificial Intelligence

CISAC President Björn Ulvaeus emphasized the urgent need for policies addressing the growing role of Artificial Intelligence (AI) in music creation.
"A badly regulated AI environment could wipe out many artists' careers. That could be the next Paul McCartney or Taylor Swift," Ulvaeus warned.
The report references studies suggesting that 27% of creators' revenue is at risk due to AI advancements.

Conclusion

CISAC's 2023 report underscores significant growth and recovery in the music industry following the pandemic. However, it also calls attention to pressing issues that need to be addressed, including fair compensation for creators and the regulation of AI's influence on the industry.