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ANNUAL REPORT STIM in Figures

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ANNUAL REPORT STIM in Figures ANNUAL REPORT STIM in figures Total operating revenue in Sweden and abroad Number of STIM affiliates 1.6 74,451 billion – a 40-percent increase over seven years 23 13 30 Revenue from online performance Number of notified works with at least has increased by one STIM-affiliated author 41.1 1,288,803 percent 21 16 STIM founded Songs with the most revenue 03 STIM in figures 17 31 Building for the future 8.7 from abroad 2013 million 05 A successful anniversary year 20 Prizes and scholarships 32 The STIM sphere allocated for scholarships 1923 The STIM process from Increasing demand The Board of Directors 06 license to distribution 22 for live music 33 High revenue resulted STIM – more than just Did you know that STIM… STIM's committees 08 in record royalties 24 royalty payments 38 • is the Swedish performing rights society (Svenska Tonsättares • also acts on behalf of counterpart organizations in other countries. Internationella Musikbyrå). • issues licenses to those who wish to use and distribute music. Good, reliable, and money From streaming music Administration Report • is owned by those who create music and music publishers. • collects license fees. 12 for music creators 26 to video on demand 40 • is a non-profit incorporated association. • distributes the remuneration to creators and music publishers on an • works on behalf of its affiliated authors and music publishers. individual basis. International success The music in our midst Notes • defends their economic interests in accordance with copyright legislation. • promotes Swedish music culture. 15 greater than ever 28 51 A successful anniversary year In many ways, STIM is a unique organization. We work on behalf of our affiliated authors and music publishers – and we are there to ensure they get paid when their music is used. STIM is a non-profit incorporated association. year BEING OPEN to change has long been fundamental to STIM. It is STIM-LICENSED revenue increased by a total of 8.5 percent. The online a prerequisite for meeting our affiliates' expectations – especially and new media category exhibited the largest revenue growth at in an age when technical development and market change move 41.1 percent. STIM is one of the most effective copyright organiza- faster than ever. STIM works continually to devise market-based tions in the world. And 2013 was also something of a year of cost pricing models that increase revenue for our affiliated authors. savings. We optimized our operations by, among other things, refining our royalty system and settling in at our new premises at STIM has also taken the initiative in several international collab- Hornsgatan 103 in Stockholm, to which we moved in 2012. orations, since national borders are disappearing as music finds new channels. During the year, we focused heavily on pan-Euro- 2013 was also the year when STIM celebrated 90 years of opera- pean online licensing. tion – the organization with which most Swedish music creators are affiliated. STIM was founded in 1923 and generated SEK 15,000 A few important events in 2013: in revenue that first year. Ninety years later, the organization had • Continued international success for our authors. more than 74,000 affiliated authors and music publishers. • Another strong year for live music – both popular music and art music. • Strong growth in video on demand services, while the growth rate of streaming music has slowed somewhat. • Signed license agreements with, among others, YouTube and SVT. • Extensive participation in international projects. • Improved organization with a new IT/project department and several new positions to provide affiliates with the best possible Kjell-Åke Hamrén service. STIM had 66 employees at year-end. Chair of the Board, STIM STIM ANNUAL REPORT 2013 5 The STIM process from license to distribution DISTRIBUTION OF MONEY BETWEEN THE AUTHOR Royalty payments to authors AND THE RIGHTS HOLDER are calculated on the basis of reports on which music has been IDENTIFICATION played, recorded, downloaded, or MONEY IN streamed. The information in the MONEY OUT MATCHING reports is linked to the details in The royalties are distributed according the works register on who at the to STIM's distribution rules and paid to STIM licenses the works, collects the time owns the rights to the musical the musical works' creators and their monies due, and then distributes Internet works used. publishers, as well as to STIM's interna- Copyright – pays – them to the authors & mobile: tional counterparts, which forward the holders and their music publishers remuneration to their members. on an individual basis. The PERFORMANCES/MECHANICAL REPRODUCTIONS amount of the license fee is The money is distributed after all AFFILIATION CONCERNS PUBLIC By becoming affiliated with STIM, PERFORMANCE AND RECORDING based on tariffs or agreements MUSIC REPORTS FROM deductions for expenses, national (MECHANICAL REPRODUCTION) authors and their music publish- ONLINE MUSIC SERVICES under contracts entered into. funds, scholarships, and subsidies. ers instruct STIM to manage their economic rights as laid down in copyright legislation. The author notifies STIM of their musi- cal works. These are documented by ROYALTY Music Recordings being entered in the works register publishers (MECHANICAL REPRODUCTIONS) WORKS REGISTER PAYMENTS with details of current ownership IN SWEDEN ROYALTY PAYMENTS ARE MADE WORK NOTIFICATION WITH DIVISION OF shares. Information about foreign THE PRODUCTION'S WORK CONTENT SEVERAL TIMES A YEAR SHARES IN WORK musical works is also entered in the FROM THE PRODUCER works register. AFFILIATION CONCERNS PUBLIC COUNTERPART ORGANIZATIONS IN PERFORMANCE AND RECORDING OTHER COUNTRIES (MECHANICAL REPRODUCTION) STIM instructs its counterparts in Public Counterpart other parts of the world to protect performances organizations in the economic rights of STIM-affiliated IN SWEDEN other countries members in these other territories. The MUSIC REPORTS FROM ARTIST remuneration is forwarded to STIM for OR ORGANIZER WORKS INFORMATION WITH further distribution to STIM-affiliated COUNTERPART ORGANIZATIONS FACTS ABOUT WORKS FROM members. Similarly, STIM represents IN OTHER COUNTRIES OTHER RIGHTSHOLDERS rights to foreign music performed in Sweden. MUSIC PUBLISHERS, COPYRIGHT HOLDERS, AND ORGANIZATIONS IN OTHER COUNTRIES MEMBERS 6 STIM ANNUAL REPORT 2013 STIM ANNUAL REPORT 2013 7 Total revenue per revenue category, Payment of performance revenue, High revenue resulted Sweden 2013 Sweden 2013 International, for distribution by STIM Mechanical 2.1% reproduction 11.7% in record royalties Radio and TV Foreign music with 21.3% STIM-aliated sub-publishers Foreign music Sweden's musical success continues with unabated strength. For STIM, this means higher 27% 35% Live music revenue and, as such, higher royalty payments to authors. International 6.2% 30.6% Background music 11.6% Music with STIM-aliated authors and music Online and publishers new media 14.3% Other revenue 1.5% Private copying levy 0.7% IN 2013, STIM distributed almost SEK 1.3 billion in royalties, the same record level as in 2012. STIM's total costs excluding national funds comprise about 11 percent of total revenue. This makes STIM one of the most effective copyright organizationsin the world. The largest revenue increases for the year were seen in the online 2. Distributable income, SEK m pg 8 2. Distributable income, SEK m pg 8 STIM – distributable income, SEK m 2013 2012 % and new media category, which increased by a total of SEK 66 mil- lion or 41.1 percent. This means that for the first time revenue from Performance in Sweden 851.5 785.1 8.5 the online and new media category exceeded revenue from record Performance abroad 487.7 443.0 10.1 sales. Revenue from live music also continued to rise during the year. Distributable income, SEK m Performance abroad for distribution by STIM 34.2 42.8 -20.1 Other revenue 35.1 35.5 -1.1 Mechanical reproduction Performance AS AN ORGANIZATION, STIM is characterized by great flexibility – Total performance revenue 1,408.5 1,306.4 7.8 1,600 Mechanical reproduction Performance which is necessary to keep up with the rapid development of new Operating costs -168.7 -159.9 5.5 1,600 areas for music use and new distribution formats, often crossing 1,400 For distribution, including national funds 1,239.8 1,146.5 8.1 international borders. 1,400 Mechanical reproduction 186.7 165.5 12.8 1,200 STIM – distributable income 1,426.5 1,312.0 8.7 In 2013, STIM implemented a new royalty system that is both more 1,200 1,000 modern and faster with an improved user interface. The result is 1,000 even lower administration costs and faster service for our members. 800 Distribution of income, SEK m 2013 2012 % 800 Distributed for performance in Sweden 682.9 626.7 9.0 In 2013, STIM began distributing royalties for live performances 600 600 Distributed for national funds 31.3 32.6 -4.0 every quarter. STIM's royalty payments are generally distributed 400 Awarded scholarships 8.7 8.1 7.4 every six months, with the exception of music played online, music 400 Distributed for performance abroad 487.7 443.0 10.1 at movie theaters, and now live music. 200 200 Distributed for performance abroad, distributed by STIM on behalf of others 29.2 36.1 -19.1 0 Distributed for mechanical reproduction 186.7 165.5 12.8 2009 2010 2011 2012 2013 0 Distribution of income 1,426.5 1,312.0 8.7 2009 2010 2011 2012 2013 8 STIM ANNUAL REPORT 2013 STIM ANNUAL REPORT 2013 9 Distribution per revenue category 2013 (2012) DISTRIBUTION CATEGORY REMUNERATION REMUNERATION
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