2019 Annual Report
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Annual Report 2019 nside: Section 1 - What SIAE does Section 2 - 2019 Balance sheet 2/1 - Rights Management - Music - Cinema - Theater-Opera - OLAF 2/2 - Beside copyright - Home copying Società Italiana - Validation Service degli Autori ed Editori - Per chi Crea Project Viale della Letteratura, - Solidarity Fund 30 · 00144 Roma (Italia) - Other Services www.siae.it www.siae.it SIAE SECTION 1 What SIAE does 2 Section 1 - What SIAE does SIAE SECTION 1 What SIAE does Section 1 - What SIAE does 3 SIAE: protecting creativity A Society for copyright collective management SIAE is a collective management society intellectual activity. Therefore the creative dealing with intermediation of copyrights. work is protected by attributing it, as it Its membership base is constituted by happens for every other work, the right to a the right holders themselves: authors, compensation each time it is used (concerts, publishers and concessionaires. TV, radio, theatre, discotheques, cinemas, bar and so on, as well as online and on Authors, publishers and concessionaires mobile devices). hold the economic rights on their works and may entrust SIAE with their protection, The SIAE’ s governance is entirely so that SIAE licenses the repertories entrusted to the bodies elected by utilization, collects the royalties due and the Associates (Supervisory Board, distributes them to the right holders. Management Board and Section Committees). Consequently all the strategic SIAE’s mission is to guarantee its associates and administrative choices are made by the the remuneration for their work. Indeed, representatives of the associates: each creative work is the product of an 4 Section 1 - What SIAE does EXTERNAL SUPERVISORY BODIES Presidency of the Council of Ministers MIBACT MEF AGCOM • timing and criteria for the allocation of the revenue collected are decided by the Management GENERAL ASSEMBLY Board on the advice of the SUPERVISORY Section Committees made up of BOARD Associates; INDEPENDENT AUDITING SECTION COMPANY • Upon the request of any entitled COMMITTES right holder, SIAE grants BOARD OF important advances, thus AUDITORS allowing authors and publishers INTERNAL SUPERVISORY O.D.V. to receive a copyright payment EX D.LGS.231/2001 before the distribution operations. STRUCTURES MANAGEMENT BOARD INTERNAL SUPERVISORY COMMITTEE MANAGING DIRECTOR SIAE in three forms Beside copyright, SIAE manages other services SIAE business is developed in three areas: • Copyright protection • Services entrusted to SIAE by law • Services in agreement with public and private entities 2019 SIAE TURNOVER 797 mln € 1. Copyright protection 80% - 641 mln 2. Services entrusted to SIAE by law 16% - 125 mln 3. Services in agreement with public and private 4% - 31 mln entities 6 Section 1 - What SIAE does MUSIC CINEMA RIGHTS OLAF MANAGEMENT THEATER - OPERA COPYRIGHT 1 PROTECTION HOME COPYING SERVICES VALIDATION SERVICE 2 ENTRUSTED SIAE TO SIAE BY LAW PER CHI CREA PROJECT SOLIDARITY FUND SERVICES IN AGREEMENT 3 WITH PUBLIC AND PRIVATE TAX REVENUE AGENCY ENTITIES SERVICES IN AGREEMENT AND CUSTOMS AND OTHER CULTURAL & MONOPOLIES AGENCY STRATEGIC ACTIVITIES OTHER SERVICES Section 1 - What SIAE does 7 SIAE in Italy A widespread presence on the territory 1129 Average number of employees in the year 1 Headquarters in Rome 10 Regional/inter-regional branches 28 Local branches 435 Agents 8 Section 1 - What SIAE does SIAE is active in the international context Contracts of representation signed with more than 150 Authors Societies in 145 countries 273 Agreements for the management of copyrights Member of the most important international organizations dealing with copyright protection: CISAC, BIEM, GESAC, EVA, SAA e IFRRO Active participation in international initiatives such as ARMONIA (together with SACEM and SGAE) and FastTrack Section 1 - What SIAE does 9 SIAE raises the culture Its reference context is the italian cultural market SIAE allocated more than 22 million SIAE is also active in various social and of euros (of which € 3,7 million directly solidarity activities, in the knowledge sustained) to support and promote that culture too can contribute to reduce various cultural initiatives, favoring the disadvantaged and emergency conditions, ones addressed to young authors, training, be they social, economic or medical. digitalization and enhancement of the cultural industry. 10 Section 1 - What SIAE does € 2,7 mln € 17,7 mln Cultural intiatives Solidarity deduction on collection from performing rights € 0,4 mln € 13,5 mln Social initiatives “PER CHI CREA” project € 0,6 mln € 0,7 mln Training initiatives Ordinary subsidies solidarity fund Section 1 - What SIAE does 11 SIAE today Implemented activities A deep change focussed on a new service model for users is based on the € innovation in the offer and tariffs and in the development of a new technological architecture. New digital touch points, new lean and simplified processes have been put in place for a new fast, smart and effective user experience. 12 Section 1 - What SIAE does Our goals: SPORTELLO CHANNELS c to increase the speed and frequency of distributions, guaranteeing a greater census analysis; c to facilitate access to the repertoire by users; SOPHIA CRM SIAE c to cost less and less, but always guaranteeing an adequate remuneration to the represented right holders; DIGITAL LIBRARY ULISSE c to reach a greater simplicity in the use of online reporting and registration tools. Section 1 - What SIAE does 13 SIAE in the front line Initiatives in progress A continuous defense of the authors For the future, SIAE is investing in and users’s rights: in 2019 the European advanced new technologies that could, Parliament has approved the Directive on in the medium term, significantly modify copyright in the digital single market for access to the copyright market and to the updating of copyright rules in European contents in general and the role of the SIAE Union. President Mogol has declared: “That’s intermediary itself. great news, reason and culture have won over money, the directive doesn’t impose a tax but recognizes a fair compensation.” 14 Section 1 - What SIAE does SIAE tomorrow In order to continue to remain and contents in general. The a global player in copyright project aims to define scenarios intermediation, in February 2019 at 5-10 years and to carry out a SIAE has started a collaboration proof of concept demonstrating with the startup Blockchain the applicability of technologies Core and with the University to such a specific business, thus “La Sapienza” of Rome with the transforming a possible threat into aim of evaluating the possible a great development opportunity. scenarios that the Distributer Ledger Technologies (DLT), the most famous of which is certainly the blockchain family, open to the market of copyright intermediation Section 1 - What SIAE does 15 SECTION 2 2019 BALANCE SHEET 2019 alance sheet 16 Section 1 - What SIAE does SECTION 2 2019 BALANCE SHEET 2019 alance sheet Section 1 - What SIAE does 17 Data, in brief A specific balance, thanks to the anticipation of the revenues, in respect to the expenditures As all other international collecting societies • In the Balance Sheet: among the SIAE is characterized by the reversal of cash sums, the current assets and the the operating cycle, meaning that the financial immobilizations and in the revenues (copyright collection), precedes liabilities (debts) as sums intended to the expenditures (allocation to the right be allocated at the end of the processes holders). This circumstance physiologically of individuation of the right holders results in generating cash, that can produce depending on the repertoire used; financial incomes (as it happens for all the • In the Income Statement: among international collecting societies). The sums the financial management incomes. pending for processing and attribution to The sums pending for the allocation the right holders, are found in the Financial (classified as debts) are present in all Statement: the collecting societies; for SIAE they represent the 56,7% of the liabilities (the 80,1% for GEMA – Germany). 18 Section 2 - 2019 Balance sheet BALANCE SHEET (€/M) ASSET 2019 2018 LIABILITIES 2019 2018 Fixed assets Net worth 126,3 125,0 tangible 22 23,7 Funds for risks and charges 93,9 141,1 financial 957,7 976,5 Employees severance indemnity 15,1 16,2 intangible 8,5 7,6 Total Fixed assets 988,3 1.007,8 Payables to associates of which: Current assets pending for allocation 789,5 748,0 receivables 229,8 200,0 guarantee funds 48,9 44,5 fin. activities no fixed assets 0 49,6 institutional services 1,0 0,8 cash 254,4 155,5 839,4 793,4 Total Current assets 484,2 405,1 Other payables 403,6 344,3 Accruals and prepaid expenses 0,8 1,0 Accruals and prepaid expenses 6,6 8,0 TOTALE ATTIVO 1.479,1 1.420,9 TOTAL LIABILITIES 1.479,1 1.420,9 Section 2 - 2019 Balance sheet 19 Amounts pending for allocation SIAE GEMA Payables to associates 839,48 956,35 Total payables 1243,01 1039,01 Total liabilities 1479,05 1193,88 Payables/Total payables 67,5% 92% Payables/Total liabilities 56,7% 80,1% In accordance with the Legislative Decree This scheme has a scalar structure, March 15, 2017, no. 35, SIAE draws up its and highlights the difference between Financial Statement following the scheme production value and costs, and is used by foreseen by the Civil Code for Limited normal commercial companies as one of Companies (Book V, Title V, Chapter V, the management efficiency parameters, Section IX). thus excluding the contribution of the financial