Annual Report 2014 and Accounts My Sacem Sacem Annual Report and Accounts 2014 Sacem is one of the world’s leading cultural and creative rights companies, collecting close to €1.3 billion, including €829.7m My Sacem from author’s rights, and distributing royalties protects to over 276,000 songwriters, composers and publishers around the world. adapts We play a core role in cultural and artistic development within France and internationally, inspires investing over €52m annually in the support of talent and creativity across all ages, activities and communities. Our mission is to protect and enhance the value of our members’ rights, and to inspire artistic creativity and support long-term cultural sustainability. “ The Board of Directors has complete confidence in the ability of the Executive Board and the employees throughout Sacem to deliver on the Society’s objectives.” Laurent Petitgirard Conductor and composer Chairman of the Board of Directors Adapt Inspire Adapting to a changing Inspiring artistic and marketplace is key to our cultural creativity is of success, particularly in an critical importance in increasingly digital and ensuring a sustainable data-driven world. heritage, and is central to our responsibilities. Protect Protecting our members’ rights is at the heart of our activities, and we work hard to maximise value and accuracy. Welcome to our 2014 Annual Report. If you would like to learn more about Sacem, please visit our website at: www.sacem.fr Strategic overview A summary of our 02 My Sacem activities, approach and 08 Sacem at a glance achievements, the role we play in society, and 10 Highlights of 2014 how our business model 16 Chief Executive’s Q&A and strategy enable us to deliver successfully 18 Business model for our members. My Sacem 02 Management report A detailed report and 20 General information analysis of our operations, 32 Economic position markets and governance, and trends affecting future 40 Future development development. Chief Executive’s Q&A 16 Financial statements The audited financial 41 Statutory auditor’s report ¤829.7m statements and 42 Income and expenses notes relating to our authors’ rights performance for the year statement – ¤444.1m: mandates ended 31 December 2014. 43 Balance sheet All together, we collected 45 Notes to the financial €1,273.7m in 2014. statements 46 Appendices Our business model explained 18 ANNUAL REPORT 2014 | SACEM 01 “ Sacem is the Father The value of Christmas of creators... cooperatives without royalties Sacem is a private non profit we would have no company and operates as remuneration. Thank a cooperative. Songwriters, composers and publishers you to Sacem for come together and bring rewarding us for a job their works to Sacem that sometimes takes which then negotiates on their behalf with music several years.” users. Many creators have Pierre Henry no income other than the Composer, Electroacoustic music royalties collected by the collective society. 153,000 Members in France and throughout the world comprising 147,300 creators and 5,700 publishers. protectsMy Sacem Our core objective is to protect our members’ rights. We work hard to maximise returns, through sophisticated systems and transparent working practices. “ Authors right gives life to our dreams... I am a proud member of Sacem.” Fred Rister Songwriter/composer Writing partner of David Guetta 02 SACEM | ANNUAL REPORT 2014 Social Sacem PLUS responsibility Sacem PLUS, a programme €52.6m Sacem has a strong sense of exclusive advantages, was designed to meet the needs Spent on social and of social responsibility. and expectations of Sacem cultural programmes We aim to sustain and members. and aids. strengthen our model, which looks after a wide Sacem PLUS is constantly spectrum of creators evolving. It currently has at every stage of their more than 12,000 members development. We allocate and 26 partnerships with key more than 30 million euros companies. annually to authors and publishers in difficulty, and have an ongoing programme of support. “ For every publisher regardless of its size, Strategic overview 164 collective management Nationalities represented societies are instrumental including 18,530 foreign members – Sacem is the for the sustainability of most international of all our business.” the authors’ societies in the world. Gérard Davoust Management report Publisher, Honorary President of Sacem “Authors right protection is at the heart of Sacem’s focus, Financial statements particularly at a time when internet piracy puts the survival of cultural and artistic creativity at risk.” Angélique Kidjo Songwriter/composer ANNUAL REPORT 2014 | SACEM 03 adaptsMy Sacem Our success depends on our ability to adapt. In our rapidly changing marketplace, we constantly invest in and develop our processes, systems and technology to ensure that we keep ahead. “ In the digital age, the author’s rights are a guarantee of freedom for the composer that Sacem strongly promotes in Europe and in the world.” Issam Krimi Jazz composer 251.6bn Downloads and streams processed by Sacem IT in 2014. “ Google Play was the first digital service to conclude licenses with Armonia when we launched our service in Europe in 2012. As our business has grown rapidly the constructive relationship we have built between Armonia and its members - among them Sacem - is a benefit to creators, music consumers and the whole ecosystem.” Sami Valkonen Head of International Music Partnerships Google Play 04 SACEM | ANNUAL REPORT 2014 “ Right now we want to focus on our best delivery in the Armonia project – we feel Sacem and Bmat work very well together and would very much like to explore the potential of this synergy. There are already some very interesting ideas for further partnerships that hopefully will be taking shape in the next months.” Alex Loscos Chief Executive Officer Bmat Armonia Data processing Innovative Strategic overview Armonia is the leading One of the key challenges technology European licence hub for is to be able to process Sacem has taken on online musical services. data concerning works board new technologies to which Sacem represents It provides a single delivery enhance royalties, develop coming from any Internet point for issuing pan- services for its members service which offers music European licences for a and customers, whilst and audiovisual content in Management report large number of musical optimising its operational every territory in the world. repertoires. It represents the efficiency and creating new For the past two years repertoires of well-known development opportunities Sacem has been working societies as well as a large in an increasingly globalised on strengthening its online number of Anglo-American world. music invoicing systems and Latin American works, as well as overhauling totalling 12.5 million works its documentation and in 33 countries. distribution systems. Financial statements “ Sacem has been extremely supportive of Spotify since our launch, and understands that Spotify’s goal is to return the music industry to health. We would like to thank Sacem for their continued support, and for the work of their supremely talented songwriters, composers and publishers in helping to build both the world’s biggest music subscription service, and to build a better, stronger, fairer music economy for composers and songwriters with us.” Daniel Ek Chief Executive Officer Spotify ANNUAL REPORT 2014 | SACEM 05 inspiresMy Sacem A critical part of our responsibility is to inspire creativity and performance. We have a strong programme of activity, creating opportunities for authors, artists and publishers to flourish. “ Sacem is an integral partner in my journey as a composer.” Ibrahim Maalouf Jazz composer/songwriter Investing in our French law requires that 25% of Private Copying levy cultural heritage to be dedicated to cultural Our unique business projects. We are able to model has resulted in support significantly in a 1, 6 3 8 wide range of national and Sacem being one of the Cultural projects supported most successful collective international cultural events by Sacem in 2014. societies in the world, and activities designed to and this in turn enables encourage and promote us to fulfil a role that is of creativity and expression. fundamental importance to the sustainability of our cultural heritage. Gilberto Gil Singer/songwriter “ Sacem is a society which perfectly fulfills its mission with great professionalism.” Pascaline Gineste Director of Legal and European Affairs 06 SACEMSACEM | | ANNUALANNUAL REPORTREPORT 20142014 Ensuring a Training, “ Sacem is an essential sustainable development creative future and education engine for creation, for all A key part of our which it protects In order to ensure a sustainability programme and promotes. sustainable cultural future, involves encouraging young ” it is critical that we play people to develop their Thierry Escaich our part in nurturing and skills and creativity. We Contemporary music composer promoting talent. This have a well-established creates a virtuous circle programme of partnerships that benefits consumers, and associations partners and artists throughout the educational alike, by providing an system encompassing environment in which both masterclasses, workshops established and emerging and concerts which authors and artists can contribute strongly to express and develop their encouraging creative talent through a wide range development and help of cultural projects within build the confidence of Strategic overview France, across