Koda's Cultural Contributions
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Annual Report 2018 Koda’s Annual Report 2018 1 vision of increasing the speed of Koda’s distribution rates has found a new form in what we call ‘Instant Distribution’ – an initiative launched in February 2019. Establishing a real sense of connection to the earnings Introducing Instant Distribution has been a fondly held wish for the board for a few years now, because yielded by our work is crucial the time elapsing between the performance of mu- for our members’ confidence sic and the distribution of royalties felt unreasonably in Koda – and for our overall long. It is very pleasing to see that the focused and credibility and visibility visionary efforts made by Koda’s employees has led to a solution that is already causing quite a stir in the wider world. The process of getting from the initial of production and business models pertaining to ideas to a final solution has been commendably quick, different genres and approaches. and the board is very happy with this show of speed. Thank you! Establishing a real sense of connection The Koda Kultur initiative will be crucial to the credibi- to the earnings yielded by our work is crucial for our lity and visibility of our collective management society, members’ confidence in Koda – and for our overall which invests its own funds in supporting new Danish credibility and visibility. music, in raising the visibility of individual artists, and in being a crucial part of the Danish music scene Koda’s board of directors has also been eager to see overall. Niels Mosumgaard, Koda’s business strategy translated into an actual Chairman cultural strategy for Koda’s cultural contributions. Here, If we are to sum up 2018, it was a working year that we aim for same kind of clarity, transparency and yielded very fine results. credibility that we see in the efforts to ensure high distribution efficiency. We call this ’Koda Kultur’ (Koda On a personal note, I will step down as chairman of The Chairman’s Report Culture). The board would like Koda’s members and Koda’s board of directors after serving six years in the outside world to fully see and realise that Koda the chair. Those years have been a fantastic journey, is a cultural business: an enterprise that works very taking the entire board into every nook and cranny When we think of 2018, we think of it as a year in which Grouping of Societies of Authors and Composers, we hard with collective rights management on the one of the business, of our articles of association, and many things we’ve been working on for a long time were at the very centre of the work being done on hand, but also one that is aware of its responsibility our cooperation with organisations in Denmark and began to fall into place. In some sense, it was a year this reform at a European level. as part of the cultural scene. This means that, begin- abroad. We have undergone internal changes that of calm, fruition and completion. ning in 2019, Koda Kultur will be increasingly visible may have felt rough at times, but we have also seen Similarly, our collaboration with the Polaris societies in as the sender of cultural contributions. Koda has set terrific collaboration with the management, emplo- First of all, we are very pleased and proud to note that Norway and Finland led to a good solution, enabling up grant schemes focusing on members with great yees and many productive exchanges with Koda we were able to maintain a turnover of DKK 1 billion for us to license of Danish and Scandinavian music potential for growth as well as on music releases, in- members of every kind. Fronting such a well-respe- the second consecutive year. This is basically what our throughout the world through a common hub in 2019. cluding aspects such as recording, mastering and cted, acclaimed enterprise has been a true privilege. work is all about, and we do what we can to take the mixing. Koda will also have two strategic reserves that I should like to take this opportunity to thank the ma- strengths and advantages of collective management If we turn to some of the other topics that have held hand out cultural contributions – one that welcomes naging director and board of Koda for facing these forward into the digital world. That transition involves the board’s attention – in addition to the business applications by the music scene in general, awarding challenges with me, jointly finding new roads and many challenges, and in these efforts it is absolutely itself, visions of technological developments and funds on the basis of Koda’s overall strategy, and the establishing a new framework for a modern-day col- crucial to remain aware of what the members and the overall strategy – it is gratifying to note that the other earmarked for strategic initiatives that span lective rights management society. customers expect from us – and of what the busi- several years. ness itself needs. We cannot solve all tasks ourselves; - Niels Mosumgaard cooperation is key. This change will obviously affect the four associations ...it is absolutely crucial to that have hitherto acted as senders of these cultural Cooperation has also been crucial on another issue remain aware of what the contributions, but at the same time it sets them free to that has weighed heavily on our minds: the ner- members and customers carry out independent efforts that match their specific ve-wracking work on the new EU Copyright Direc- professional profiles and concern areas where Koda tive. In the autumn of 2018, we happily saw things expect from us – and of what cannot and should not be involved. In addition to this, beginning to shape up favourably for us. With An- the business itself needs. the associations can still benefit from area-specific ders Lassen’s chairmanship of GESAC, the European reserves that take into account the different forms 2 Koda’s Annual Report 2018 Koda’s Annual Report 2018 3 the revenues generated? From which areas, which countries and which works? We know that knowing about these things is important for many of our major Fortunately, it seems that rightsholders for whom their music is the main source the extensive campaign of of income. Last year, we responded to this need by misinformation directed launching a long-term effort to renew and improve our IT platform. The current platform is built on older against the directive has been technology and for that reason alone we must take successfully counteracted. steps to future-proof it. But we also take this opportu- nity to improve all aspects of our systems: right from the registration of works to reporting from customers and the EU that the current legislation is riddled with and members onwards to distributions and member holes as far as digital/online content is concerned. interfaces. A mammoth task, and one where we will I am, of course, thinking of the big ‘user-generated’ once again seek to cooperate with other societies services like Facebook, YouTube and others who have in the Nordic countries in order to keep costs down. made huge profits from using other people’s content without paying a fair price for it. In this regard, 2018 Speaking of keeping costs down, the new structure was the pivotal year of our endeavours, and we spent of NCB is another measure that promotes savings. In a lot of effort and resources on this important area. 2017, the Nordic societies decided that NCB should In this regard, our cooperation with other collective no longer operate as an independent enterprise, but rights management societies in our European umbrel- Anders Lassen, be integrated into Koda, essentially letting Koda ope- la organisation GESAC has been crucial. Fortunately, it Managing Director rate NCB on behalf of the other Nordic societies. We seems that the extensive campaign of misinformation have now completed a full calendar year operating directed against the directive has been successfully in this manner, and it has proved to bring significant counteracted. We owe a particular debt of gratitude The Managing Director’s savings for everyone – all while maintaining decent to the forward-thinking Danish politicians who have levels of service. It is not going too far to say that this been such solid supporters – here in Denmark and in Report change was crucial for enabling NCB to survive in a the EU – in the work to modernise our legislation so world where CD sales continue to drop. that it does not only benefit the large American tech Once again, Koda made it across the magic one Of course, it is not satisfying to see several years go by companies. Thank you! We, and all our members, are billion kroner mark. A happy result, and one which from the time the agreements are made until the mo- When old areas fall into decline, it is good to have new very grateful for your work. means that we can distribute DKK 906 million to our ney is finally distributed to our members. In response, areas ready to take over. The year 2018 saw continued rightsholders. However, the splendid result is once we have joined up with Copydan to find faster ways growth within the digital area, with an increase of 18 - Anders Lassen again underpinned by a somewhat bittersweet reason: of getting the money out to our members. per cent in the revenues generated by Video-On-De- part of the turnover is generated by an accumulation mand. But there is also potential for development in of money in the system, money that we have been In fact, getting money out to our members faster has other areas of the digital market.