TORONTO — SOCAN today announced its final 2019 financial results, which included record domestic and international collections for the organization’s members, who include music creators, music publishers and visual artists.
While SOCAN (the Society of Composers, Authors and Music Publishers of Canada) reported total annual collections of $405.6 million in 2019, an 8.2% increase compared to 2018, the company also announced significant financial losses due to past investments in the acquisition, creation and financing of its Dataclef business venture.
According to SOCAN’s press release, its 2019 financial results include losses that resulted in an impairment of $41.7 million to the advances made by SOCAN to fund its Dataclef subsidiary operations since 2016.
“At the time of our investment in these operations, we were exploring new ways to support our members by creating other revenue streams and leveraging new technologies,” said interim CEO Jennifer Brown, in the press release. “Business plans didn’t come to fruition in the way we anticipated. Through the evaluation process, it became clear that we should divest ourselves of Dataclef assets. We are, however, encouraged by significant success with our new technology system and our improved matching and processing capabilities.”
SOCAN’s loss-management plan includes the sale of Dataclef assets, a significant reduction in SOCAN’s overhead expenses, a reorganization of the Dataclef operation, and new management leadership. Former CEO Eric Baptiste and the organization parted ways in April.
Among the highlights of SOCAN’s 2019 financial results are the following:
- Record-setting domestic collections of $315.1 million, a 10% increase compared to 2018.
- International royalty collections of $90.5 million, a 2.2% year-over-year increase.
- A 37.6% increase in revenue from digital sources ($86 million).
- Reproduction rights collections increased to $12 million.
However, distributions to members totalled $296 million in 2019, which represents a 6% decrease compared to the $315 million distributed in 2018.
“The disparity was due primarily to the steep learning curve required for the company’s newly deployed technology to process international and television income. Significant progress has been made in these areas in 2020, as SOCAN continues to leverage this new technology to meet the data-intensive demands of the digital age,” reads the press release.
SOCAN will hold its annual general meeting online on November 10 to discuss the organization’s 2019 results and financial plan in detail.
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