Stat of the Week
MBW is a series where we highlight a data point that deserves the attention of the global music industry. This week’s statistic is supported by the analytical company Music Data Chartmetric.
Field
Income and Royalties Growth Report
The German music collection society Gema reported a4.3% year increase in income and4.7% year growth in royalty distributions for 2024.
Gema oversees copyright for approximately98,000 participants (songwriters, composers, and publishers) along with around2 million copyright owners globally, whose works are consumed in Germany.
In its annual report for 2024, published on Tuesday (April 8), Gema announced an income of€ 1.332 billion or$ 1.442 billion at the average exchange rate for 2024, compared to €1.277 billion the previous year.
From this, Gema distributed€ 1.133 billion ($ 1.226 billion) for rights in comparison to €1.082 billion in 2023.
This resulted in a collection value of14.9%, down from 15.2% in 2023.
Regarding the cost rate, “We are not where we want to be in an international comparison, but we are on the right track,” statedLorenzo Columbini, Chief Financial Officer at Gema.
“The results clearly indicate that Gema operates effectively while continuously improving and digitizing its processes. We are also investing in new services and technologies to remain competitive and meet the expectations of our members and customers in the future.”
Key Trends and Developments
The fastest growth for the fee agency was in public rights, which surged 13.1% year to502.0 million euros (543.3 million dollars), partly attributed to a “boom” in live concerts, with249,610 events held throughout the year, attracting69.87 million attendees.
Collections from online music remained stable at310.1 million euros (335.6 million dollars), whereas radio/television collections increased 1.2% year to€ 308.4 million (333.8 million dollars).
“The positive development in the on-demand video sector continued, while the market share on demand has decreased,” Gema noted.
Interestingly, last year, Gema reported “slight growth” in online music revenue, resulting in a cumulative growth of merely3% over the past two years.
“2024 was characterized by geopolitical tensions, economic uncertainty, and destructive technological advancements,” statedDr. Tobias Holtsmüller.
Holtzmüller added that the distribution for 2024 “is not only an economic achievement but also a testament to our responsibility to music creators in Germany and worldwide.”
Gema’s growth figures for 2024 were slightly lesser than those recorded by the Federal Association of the Music Industry in Germany (BVMI), which earlier this year reported music sales rose 7.8% year, totaling2.38 billion euros (2.58 billion dollars) for 2024, with digital music sales first surpassing the two-billion-euro mark.
Digital music generated€ 2.001 billion (2.17 billion dollars), reflecting a growth of 11.2% year and accounting for84.1% of total music sales in the world’s fourth-largest music market.
Excluding downloads and other digital sales, streaming recorded a growth of 12.6% year, representing78.1% of the income from music, as reported in February by BVMI.
“We remain strongly committed to fair regulations for the digital use of music, particularly concerning major platforms and AI developers.”
Dr. Tobias Holtsmüller, Gema
Over the past year, Gema gained recognition for addressing challenges related to artificial intelligence. The organization claims to be the first collection society worldwide to initiate lawsuits against generative AI developers, suing OpenAI, the creator of ChatGPT, last November for allegedly using copyrighted material without permission to train its AI.
Earlier this year, Gema filed a lawsuit against the AI music platform Suno, alleging illegal usage of music notes for AI training. (Suno, alongside competitor UDIO, is also facing legal action in the USA, brought by record companies associated with three music specialists: Sony Music Group, Universal Music Group, and Warner Music Group.)
Additionally, Gema proposed a licensing model for copyrighted music concerning AI development and released the “artificial intelligence charter,” aimed at guiding the use of AI technology in music and protecting individuals’ rights regarding AI-based advancements in music technology.
“We remain steadfastly dedicated to fair guidelines for the digital use of music, especially concerning large platforms and AI providers,” Holtzmüller stated.
“Creativity requires protection, and copyright is the fundamental cornerstone of our culture. We will continue to uphold this protection through innovative foresight and a strong defense of legal clarity.”
Chartmetric is an “all-in-one” platform for artists and professionals in the music industry, offering extensive streaming data, social analytics, and audience insights to help build a successful career in music.
German collection society GEMA distributed $1.22bn to rightsholders in 2024, up 4.7% YoY
