TORONTO – While the Society of Composers, Authors and Music Publishers of Canada (SOCAN) saw Internet-based revenues jump 46% in 2017, the majority of members who received payment for their streamed music only received less than $40 annually.
The performing rights organization said that it realized $49.3 million in Internet audio streaming revenues, however, the average annual streaming revenues (including both digital Internet and digital audio-visual performances) distributed to a SOCAN member who earned royalties in 2017 was just $38.72 annually.
"As a new area of growth, streamed music continues its rapid uptake, resulting in a 46 percent increase in revenues, but, if original music is to thrive or even survive in Canada, overall remuneration for digital music must be corrected to be commensurate with the contributions of music creators and publishers as well as its importance to music fans from coast to coast to coast", said SOCAN CEO Eric Baptiste in the news release.
SOCAN's revenues collected for its nearly 150,000 member songwriters, composers and music publishers continued to accelerate, due mainly to long-term investments in leading-edge technologies, strategic acquisitions and mutually beneficial partnerships. Its total performing rights revenues of more than $350 million increased 6.4% increase over 2016, while the total distribution of royalties to SOCAN members of more than $300 million marked a record high for the organization.
Domestic revenue of $274 million grew 4.5% over last year's record, and royalties from non-Canadian sources – which topped $75 million in 2017 – is now the top revenue stream for SOCAN members, reflecting the “incredible strength” of Canadian talent and SOCAN's repertoire.
"SOCAN is collecting more overall on almost every level," Baptiste added. "Our investment in artificial intelligence, blockchain and other technologies position it at the forefront of the music rights industry now, providing a positive path to the future. Canada's and the world's music creators and publishers are receiving more of what they have earned; however, in most cases those amounts are too small because of frequently unfair royalty rates that are not commensurate with the true value of their creative intellectual property."
SOCAN attributed the substantial increase in international royalties collected and distributed to the impressive performance of members' works worldwide, a favourable exchange rate, and the efforts of SOCAN's International Relations and Membership teams.
