TORONTO — Rights management organization SOCAN today announced it distributed more than $348 million in royalties in 2020 to its 175,000 members, who include music creators, music publishers and visual artists.
Announcing its 2020 financial results in a press release, SOCAN said the total royalties distributed in 2020 represents a 10% increase over 2019.
However, during the pandemic-impacted year, SOCAN saw an overall revenue decline of 4% “primarily as a result of 10 months without in-person concert revenue and the use of licensed recorded music in public,” says the press release.
The revenue decline in 2020 was offset by increased collections from digital and international sources, SOCAN says.
The company reported a 10.5% year-over-year increase in international royalties for “an all-time high of $100 million going to SOCAN members,” says the release.
Collections from digital sources reached a record $104 million for music created and published by SOCAN members, which represents an average annual growth rate of 32%, SOCAN says.
More than $11 million was collected for reproduction rights on behalf of its members.
SOCAN also reported it reduced its gross expenses by 4% in 2020, compared to the prior year, “as a result of continued operational improvements through more efficient and cost-effective approaches at every level,” according to the release.
“Supporting our members in a year of challenges meant adjusting swiftly and effectively to challenging circumstances,” said SOCAN CEO Jennifer Brown.
“Reducing our operating costs and getting funds to struggling music creators as quickly and thoroughly as possible was paramount. We steadily worked to lessen the pandemic’s impact on members — particularly those who rely on income from in-person concerts and touring — offering various financial initiatives,” she added.
Some of the financial support and new programs provided by SOCAN to its members in 2020 include an enhanced emergency advance program, the Encore payment program for qualifying live performances on Facebook and Instagram, and a new permanent distribution rule for online concerts.
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