Society of Authors, Composers 2009and Music Publishers Annual Report — Profil Editorial — welCome HESNEAU C © MARC — Our professional and institutional counterparts often try music industry” has emerged, which does not remunerate crea- to impress upon us that “the music industry is not well, but tors in any way and which is a hindrance to the development of Sacem… Sacem rights collection levels remain stable!”. Often, it’s a way a legal market on the Internet. of saying to us that authors, composers and music publishers Seen in this light, the stability of our collection is an “optical 132,000 should have the grace not to complain about the situation. illusion” in that it hides the difficulties for some of our mem- … a service organization members, including At first sight, the figures seem to confirm their position, bers, who have seen their revenues decline significantly while Sacem is a private non-profit Collective 15,500 foreign members since this year collection of authors’ rights increased by 0.85% their music is pillaged or used as a promotional product to to €762.3m. This performance was truly remarkable in the develop networks or sell more IT equipment. Rights Management Organization (CMO) run e762.3m collected prevailing economic environment. It should be noted that this To make matters worse, these same categories of the reper- achievement was attributable to the day-to-day commitment of toire suffer from less exposure in the media, thus dramatically by music lyricists, composers and publishers. (distributed in 2009 all Sacem teams and the recognized expertise and efficiency reducing their ability to reach a wider audience. As the epitome It protects, represents and serves their & 2010) of our organization in collecting rights from all media and all of leisure in our society, musical creation has been paradoxi- interests. venues. This performance is buttressed by the modernization cally “ghettoized” on television and relegated to late-night the- e748.1m allocated for redis- of our IT tools, which are constantly improving productivity and matic channels with very small audiences. our ongoing cost-control policies, which resulted in a 2.94% The community of creators is the big loser in the sharing of tribution (collected in 2008 decrease in operating expenses in 2009. added value in the digital era. This is why Sacem continues to … an essential mission & 2009) of which e650.5m But how can we possibly accept that the massive increase in be a militant organization, closely monitoring developments. Sacem collects royalties in France and distributed to members musical consumption due to the advent of digital technology In 2009, we were able to achieve some progress, with the pas- should transit mainly via free and illicit channels, without there sing of the French “Hadopi 2” law in September, which we redistributes them to French and foreign or allocated to cultural being any equivalent compensation in the collection of authors’ hope will provide a foundation for regulating the Internet. At creators throughout the world. initiatives rights? Since Napster came on the scene 10 years ago, enabling the same time, there were some disappointments, in particular peer-to-peer exchange of protected content, a veritable “parallel the results of the “Creation and Internet” mission, whose aim This fundamental mission sustains creative 40 million works was to “propose concrete measures to improve the offer of legal activity and the music industry. cultural content on the Internet and proper remuneration for in the world repertoire Bernard Miyet / all those who participate in the creation of these works.” The represented Ceo & CHairman of tHe SaCem introduction of a contribution from ISPs to partially compen- … a wide range of activities manaGement Board sate the damage caused by illegal exchange was unfortunately 617,000 new works not accepted. Furthermore, no specific measure for supporting From live entertainment to individual (French and foreign) authors, composers and publishers was recommended. performanCe We will therefore have plenty of issues to deal with in 2010: consumption, Sacem ensures that artists’ registered in the repertoire music on television, ISP contributions to musical creation, the rights and their works are respected, opposition of electronics manufacturers to the private copying e and remuneration in France and Europe, the protection of the col- whatever the medium of distribution. 14.5m dedicated lective management system, etc. You can count on us to mobi- As an active player in the music industry, to supporting live lize all our energy and to continue our determined action to entertainment, creation Commitment defend the rights of creators and the creative community. Sacem monitors developments and the and training in all musical musical environment, in France and abroad. genres 1,415 staff members at the head office in Neuilly-sur-Seine, and Table of conTenTs in 90 locations throughout 03 | editorial 10 | trendS 22 | manaGement France Collection 12 Governance 24 04 | panorama Distribution 15 HESNEAU Highlights 26 | fiGUreS C 18 | CUltUral aCtion Account statements 06 | a UtHorS’ riGHtS Sustaining © MARC paGe 03 annUal report 2009 panorama panorama 2009 highlights — DailyMotion rotana auDioViSual’S Signature L E BART S © THOMA 2009 granDS priX Sacem aWarDS for SaceM repertoire abroaD: DaviD guetta / FréDéric rieSterer © EDMOND SADAKA Mounira Mitchala, carte Blanche Sacem AU E N ES H C ARC M © January marcH may JuLy Presentation of a new fund Launch of the Sacem channel on Dailymotion. Signature of an agreement Mobilization for the adoption of the Adoption by the French Creation of the Tous pour la to foster the creation of “Creation and Internet” law. original music for television — with Dailymotion. w Launch and follow-up of the “Appeal by Parliament of a law to facilitate musique (TPLM, United for Round table organized by Neelie Kroes,the The video-sharing platform 10,000 artists, creators and professionals of “the dissemination and Music) trade body, born of the (series and documentaries) then European Competition Commissioner, leading to several commitments, including the agrees to pay Sacem royalties the music industry” published in Le Monde. creation of creative works merger between Musiques at the Festival de la Fiction TV 97% of the signatures registered via in La Rochelle. examination of the potential implemention of a for the broadcast of works of its sacem.fr on the Internet”, known France Plus and ProMusic new pan-European platform to deliver licenses repertoire: musical works; music w March 30 at the Théâtre de l’Odéon: Press as Hadopi 1 and calling France. The new body offers (authorizations) in a cooperation program conference, with several participating between the majority of European CMOs, documentaries and promotional for gradual and increasing educational activities and bringing together the largest possible cultural organizations, bringing together measures of reprisal. OctObEr videos; French dubbing and 30 major creative artists in film and music defends the interests of musical repertoire. Bernard Miyet was an active Final adoption of the Hadopi 2 Law, participant in these discussions. sub-titles; humor; poems and to express their support. professionals in all fields. taking into account demands from France’s comedy sketches. — Constitutional Council. JunE — Signature between French SEptEmbEr — Sacem granted approval by the Lebanese CMOs (SACEM, SCAM, SACD France Musique – Sacem Award Rotana Audiovisual, the leading DEcEmbEr Ministry of Culture, thus allowing it to claim for a film score attributed to Léo Sujatovich, Establishment of the Zelnik “Création and its members’ rights in this country. and SDRM) and Radio France composer of the original music for the film Internet” Mission to improve the offer of legal music publisher in the Arab The Grands Prix for its podcast offer, which Telepolis directed by Esteban Sapir. content on the Internet and the remuneration world, signed an agreement Sacem Awards at the retransmits many of its member — of creators and artists (headed by Patrick entrusting Sacem with the Zelnik, Jacques Toubon and Guillaume Cerutti). radio stations’ broadcasts: Provisions of the Hadopi 1 law enabling management of its repertoire, Théâtre du Rond-Point the newly created High Authority to suspend Sacem and Adami support the idea of a France Inter, France Info, infringers ‘ Internet access, declared financial contribution from Internet service over 7.000 works by 120 artists des Champs-Elysées in France Bleu (41 radio stations), unconstitutional by France’s Constitutional providers (ISPs) to finance the music industry. (except Turkey). Paris. France Culture, France Council. — Musique, FIP and Mouv’. Sacem page 04 page 05 annual report 2009 AUTHORS’ rIgHtS was only on September 15, 2009 that the bill The proposal supported by Sacem, calling Sept. 15th was finally passed by the French National for a compensatory contribution to be levied on Assembly, before being approved by the the revenues of ISPs, has not been retained. Adoption of the Hadopi 2 Constitutional Council and published in the Over the past 10 years, these operators have by the lower house Official Journal at the end of October 2009. enriched themselves by simply acting as go- of the French Parliament In taking into account the observations of betweens for the exchange, mainly unauthori- the Constitutional Council, Hadopi 2 introdu- zed, of protected works. ces the offence of counterfeiting as applied to Such compensation is urgently needed. It is illegal downloading, as well as provisions for the only way to sustainably support the music sanctioning the Internet user for neglecting to industry as a whole. It therefore constitutes a ensure that his or her Internet access is secure. priority for Sacem in its fight to defend authors’ The sanction – a fine, plus possibly cutting off rights. Internet access – must be pronounced by a judge. To this end, Hadopi’s Commission for SONGS NO LONGER LOVED BY the Protection of Rights refers the case to the TELEVISION Public Prosecutor’s Office.