SOCAN’s Total Annual Collections Hit A Record $416M
The PRO brings in more than ever for Canada's songwriters, composers and music publishers. Its unofficial financials indicate continued international and digital growth, though the average total streaming royalties is only $67.14.
By FYI Staff
Despite the challenges of 2021 in the wake of the Covid-19 pandemic, for the first time in its history SOCAN’s total annual collections for licensed music are expected to exceed $416-million, a 3% increase over the previous record of $405.6-million set in FY2019.
When compared with 2020 collections of $391-million, the company attributed most of the $25-million year-over-year growth to $135-million collected for the use of music on digital platforms – an increase of $32-million over 2020. This more than offset the pandemic-driven downward pressure on General Licensing (primarily background music used in public spaces) and Concerts (music performed live), having decreased 70% from pre-pandemic levels.
Despite the continuing positive growth in digital music licensing and the popularity of online streaming services, a SOCAN writer member who earned royalties in 2021 earned an average of only $67.14 from domestic digital sources for the entire year.
Revenue from international sources continued to show strength at the historically high mark of $106.1-million, demonstrating again that Canadian music creators and publishers continue to outperform on a global level.
International music license collections were fostered by the increased popularity of digital music platforms and the strength of SOCAN members abroad.
"Given the challenges of the pandemic, at the end of 2020 we prepared for a financially austere 2021," said SOCAN CEO Jennifer Brown. "Thanks to a combination of more music being consumed in Canada and worldwide and the diligence and commitment of our nearly 280 employees working tirelessly to uncover and collect domestic and international music licenses, we were able to bring in more than ever for our nearly 180,000 members for their incredible and invaluable work."
Unofficial 2021 SOCAN financial highlights:
Total collections: $416-million (6% increase over 2020).
Domestic collections: $310-million (+6% year-over-year).
Total collections from internet use of music: $135-million.advertisement
Strong Reproduction Rights results with digital audio-visual more than doubling, synchronization up 37%, and international revenue +32% over 2020.
International collections: 6% increase to $106-million.
Gross expenses: less than 1% increase over 2020.
SOCAN welcomed 6,743 new members in 2021.
A total of 273,646 songs and compositions registered with SOCAN last year.
SOCAN remains cautiously optimistic for 2022 for the return of in-person events and concerts as Canada and the rest of the world emerge from the two-year Covid-19 crisis.
Along with the continuing popularity of music delivered digitally, SOCAN's steady growth in Reproduction Rights, striking various agreements with several major platforms, the addition of the Audio-Visual Broadcast Mechanical right, plus the prospect of the passage of the federal government's Online Streaming Act to help safeguard the future of Canadian music all bode well for a continuation of positive results for Canada's music creators, publishers, and visual artists.
Estimates. Final figures will be released in concert with SOCAN’s online annual general meeting in June 2022.
SOCAN is a rights management organization that connects more than four-million music creators worldwide and more than a quarter-million businesses and individuals in Canada. More than 175,000 songwriters, composers, music publishers and visual artists are its direct members, and more than 100,000 organizations are Licensed To Play music across Canada. With a concerted use of progressive technology and unique data as well as a commitment to lead the global transformation of rights management, SOCAN is dedicated to upholding the fundamental truths that music and visual arts have value. and creators and publishers deserve fair compensation for their work. For more information: www.socan.com