World creators are in luck. They filled their pockets with more than 12.1 billion euros in 2022.
It is a historic high that has taken place thanks to a record growth of more than 27%, taking advantage of the start of the post-pandemic recovery, as can be seen from the latest report of Cisac, the International Confederation of Societies of Authors and Composers, the global network of copyright collective management societies, which was launched last week.
In fact, revenues have now far exceeded 2019 pre-covid levels – we are already almost 20% above. The creative arts sector has entered an expansive phase. Authors receive, in terms of the commercial exploitation of their creative works, increasingly consistent figures in all repertoires (audiovisual, dramatic art, literature, music and visual arts).
This rise, which affects some five million active creators, is largely due to a milestone of symbolic value, which marks a before and after in these creative industries: for the first time, after a decade of growth of two digits, the money collected in terms of royalties from the digital channel (between subscriptions and online broadcasts) already represents the majority of authors’ remuneration: 35%, twice as much as in 2018. Specifically, now one out of every three euros comes from the various streaming formats. “This turn is a consequence of covid. The pandemic has transformed this sector”, says Adrian Strain, Cisac’s communications director.
Indeed, on a global scale, these revenues from the digital sector totaled 4,167 million euros. It is double what was admitted before the pandemic. They already exceed the royalties paid for television and radio broadcasts, which for decades were among the most popular revenue channels for creators.
If Europe is where more payments are made (more than half of the total worldwide) and music is the bulk of income among all creative arts (almost 83%), it is true that one of the levers for the growth of rights author have been the live events. In 2022 they shot up by almost 70%, thanks to the resumption of festivals, music tours and the reopening of businesses, although the figure is still below pre-covid levels.
This income boom is the reflection of a change in consumer habits. TV use continues to gradually decline as streaming increases. According to Nielsen, the cable and television audience fell below 50% of the total audience. When it comes to music, digitization and the rise of platforms have dealt a blow to the piracy that traditionally plagued the business.
“Music piracy has decreased a lot. Perhaps there is a loophole in the videos or films of some platforms”, says Josep Coll, lawyer and businessman, specialist in copyright, after looking at the Cisac data.
“But I would say that what the report presents is aggregated data that masks one of the biggest problems facing the creative industries, which is inequality. The reality is that a few stars take the cake, thanks to their live performances with massive audiences and numerous listens on digital channels. But the others are dragging their feet”, says Coll. “In terms of concert halls, average musicians barely collect enough to pay the rental cost, while their digital listening fees on platforms, which mostly come from a single company, are minimal because they have a very low traffic”, he explains.
“I believe that these differences have always existed”, clarifies Adrian Strain from Cisac. “What’s more: digitization offers a wide range of opportunities for many artists to make their artistic skills known, much more than before.” Even so, from the same organization they admit that, in the face of the weight of the live shows or the record industries, “digital income remains scarce for the vast majority of creators and that the revenues related to streaming have doubled in five years”.
Looking ahead, one of the biggest challenges and threats will be the development of Artificial Intelligence (AI). “I think it has the potential to create wonderful works. But it also carries risks and, without strict rules that protect creators, it could also threaten their livelihoods on a large scale”, declared Björn Ulvaeus, president of Cisac and former member of the legendary musical group Abba.
The possibility that machines replace the creator, that the use of this tool by artists is not transparent or that they do not receive fair remuneration are some of the questions that will need to be resolved. Wasn’t it Abba who sang “Money, money, money…”?
