Hds Zamp 2018

2018 HDS ZAMP SUMMARY ANNUAL REPORT 2018 HDS ZAMP IN 2018 EVENTFUL AND SUCCESSFUL YEAR HDS ZAMP continued its rise of collected royalties as well as decrease in operating costs... Nenad Marčec HDS ZAMP General Manager It has been an eventful year for HDS ZAMP – in 2018 we were part of far-reaching decisions for all authors and right holders. Our pleasure is bigger because we think we have contributed significantly to almost all of these changes being made to the benefit of all of our members. I’d like to begin with the most important fact: for another year in a row, HDS ZAMP continued its rise of collected royalties as well as decrease in operating costs which positions us as one of the most successful collective rights management organizations. In 2018, almost 99 million HRK were distributed to members, songwriters and right holders, namely 98.968.275,99 HRK - 9.42% more than the previous year. At the same time, our operating costs have been reduced to all-time lowest percentage: 21,64% of total amount collected. The decrease in costs compared to previous year is 0,63% - one more reason for satisfaction another year in a row. In this successful year we have been granted a new license by State Intellectual Property Office (DZIV) for collective rights management. This also formally confirms complete compliance of our business and internal acts with the provisions of new Copyright law and the CRM Directive. 2018 was also marked by the fight of European authors and their associations for better position in the digital market and the vote for new EU copyright Directive. The voices and activities of our members and HDS representatives, as well as our partners from other music associations, were fruitful and the members of EU Parliament finally adopted the new Directive on March 26th 2019, making it an important regulation that will ultimately regulate digital market and secure a fair and balanced playing field while also providing even richer offer of creative works online for the citizens. The role of Croatian Government representatives during this process, especially that of Minister of culture, Nina Obuljen-Koržinek, cannot be highlighted enough – we would like to thank all our MEPs 2 2018 was strongly marked by the fight of European authors and their associations for better position in the digital market and by voting for the new EU copyright Directive who recognized the facts and saw the importance of the Directive for Croatian and European culture, democracy and economy. The process of implementing the Directive into Croatian legislation is ahead of us, enabling Croatian authors and their societies to negotiate fair remunerations with large Internet providers, which wasn’t the case so far. We look forward to a free, open and fair Internet that will also be enjoyed by the creators whose creative work was the foundation for Internet platforms. During the public debate, the testimonials and statements from our members explaining the effects of the Directive were of great importance – thank you once again for your efforts! HDS ZAMP is also the organization behind the web site clanak13.org, dedicated to providing information about the Directive – I invite you to look it up for the real purpose and latest updates on the Directive. During the vote for the Directive, we had a good partnership with other associations of authors and creators: journalists, media publishers and filmmakers. By this time, the idea of respecting copyright was no longer identi- fied only by HDS ZAMP who was by far the most vocal about it during the past decades and has, more often than not, met with misunderstanding, even in the related circles. We hope that „the battle for the Directive“ changed that while also preparing for its implementation in our legislation, which should result with the new copyright law during the following 2 year period. New digital challenges were welcomed by HDS ZAMP – direct licensing of Croatian repertoire on online music services (YouTube, Google Play and Deezer) began in early 2018 in 40 different countries. It resulted in doubling the revenue from some services. In September 2018 we reached a licensing agreement with Spotify, making the catalogue of Croatian authors available in more than 40 countries. We belive that the effects of this will be visible in the distribution statements received by our members, but we are also working on the localization and the availability of Spotify and other services in our market. 3 Total REMUNERATION collected | last 5 years: 2014 | 111,5 mil. kn 2015 | 120,1 mil. kn 2016 | 124,4 mil. kn 2017 | 127,3 mil. kn 2018 | 137,6 mil. kn Working with the DJ section of Musicians’ Union, we agreed the new terms for renewed Contract for temporary dubbing for DJ’s shows – new conditions reflect our appreciation of mutually agreed attitu- des of DJs from electronic and club scene. But, it is important to emphasize that, although with some technical flexibility, we have maintained intact the foundation, and that is the respect for the authors and other copyright holders. Agreements for music use with other business partners, such as cinema broadcasters and publishers of schoolbooks were also finalized while the partnership with caterers and hoteliers (with whom a new model has been agreed!) successfully continued throughout 2018. Last year’s 6th edition of MAKK conference, organized by HDS ZAMP’s PR department, welcomed Guy Chambers, world famous songwriter whose CV includes working with Robbie Williams and other star musicians. The richness of domestic talent and the messages sent from MAKK positioned our little conference on European map of cultural and creative industry. MAKK became a meeting place for various art professionals, decision and policy makers, legal experts, media and startup entrepreneurs. We expect MAKK to be equally useful and interesting for music scene in the future. The media and the public recognized our prize contest aimed at business users who respect the copyright by paying the fee for commercial use of music – the final concert „Best music for best party“ by Croatian band Neno Belan & Fiumens was held in Hrvatska Kostajnica. The dialogue between music and business world continued on our website with the series of columns by renowed musicologist and music writer Zlatko Gall. There you will also find the list of our partnerships with projects who promote the role and importance of authors in creative industry. Of course, the most important focus of our work are the authors, 383 regular and more than 9500 affiliated members. Apart from regular royalties payments (4 throughout the year!), we are con- tinually dedicated to education and promotion of their work. Very successful series of 42 epi- sodes of „My song“ was substituted by new series of our collaboration with CMC TV, „Autograph“. It is a project which will present the work and various genres of up & coming artists, younger than 30. Education activities delivered by HDS ZAMP are something to be proud of – regular INTRO le- ctures are continuously well attended, but special workshops about various music business se- gments, from music publishing, media ralations to concert booking, were also excellently visited. 4 ADMINISTRATON COSTS in % of gross income collected | last 5 years: 2014 | 23,41 % 2015 | 22,95 % 2016 | 22,49 % 2017 | 22,27 % 2018 | 21,64 % To continue informing the public about collective rights management system, in 2018 we produced a short promotional film „This is HDS ZAMP“ with appearences by our famous authors. The business of HDS ZAMP was, as always, socially aware and responsible - during 2018, we partici- pated as partners in a total of 290 benefit concerts and events throughout Croatia, opening the year by participating in the benefit project for the Center for Autism and concluding it with 12 thousands HRK raised on our Christmas dinner for young families in Vukovar. Last year’s World Intellectual Property Day, April 26, was devoted to female creators and innovators, both in science and in cultural and creative industries around the world. It was the perfect occasion to present the interesting infographic “Women in Music” about the impact and successes of our authors. It was also a fitting closure and a cherry-on-top to the story started with our compilation CD “Women’s voices of Croatia” from 2017. The succes of many projects and activites by Croatian Composers’ Society was reflected in positi- ve media analysis related to our society and organization. We are pleased that, based on the 1876 newspaper and web articles last year, 64% of them are affirmative, 33% neutral and 3% negative. Based on independent analysis by Press Clipping company, „HDS ZAMP positioned itself in affirmative media context“. Our authors and members also deserve credit and praise for that. So, with that in mind, I would like to thank them all for successful cooperation, understanding and support through individual projects and business at large. 5 almost 99 million HRK were distributed to members, songwriters and right holders 6 Guests at MAKK: Ante Pecotić, Nina Obuljen-Koržinek, Guy Chambers | Music diva Josipa Lisac | European Copyright Directive: delegation of Croatian musicians in Strasbourg | Intro workshop – educating young creators on authors rights | Best music for best party – Neno Belan 7 A B C D E F G H DEDUCTI- ONS FOR DEDU- COLLECTED COLLECTED EXPEN- FOR NET FOR DIS- EXPENSES SOCIAL AND CTIONS % IN 2018 - HRK IN TOTAL SES % DISTRIBUTION TRIBUTION CULTURAL % PURPOSES PUBLIC PERFORMANCE RIGHTS Radio stations 17.268.809,86 4.088.543,46 23,68% 13.180.266,40 1.318.026,64 10,00% 11.862.239,76 68,69% Television stations 26.315.995,45 6.040.425,27 22,95% 20.275.570,18 2.027.557,02 10,00% 18.248.013,16 69,34% Cable retransmission 14.459.625,28 2.656.006,27 18,37% 11.803.619,01 1.180.361,90 10,00% 10.623.257,11 73,47% Concerts 2.779.297,18 18,00% 12.661.242,73 0,00 0,00% 12.661.242,73 82,00% Hotels, clubs, caterers, 41.114.140,23 10.272.736,54 24,99% 30.841.403,69 3.035.964,49 9,84% 27.805.439,20 67,63% transporters, etc.

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