Compared to 2018, management costs rose by 35.6% to € 4.5 million as a result of an adjustment in cost allocation between Buma and Stemra. In 2019, joint expenses fell by 10%, i.e. € 3.1 million.

Stemra’s management costs in 2019 consist of personnel costs (€ 2.1 million), general costs (€ 2.2 million) and accommodation costs (€ 0.1 million).

Compared to 2018, management costs fell by 16.0% to € 21.8 million. The main reasons for the fall were cost control measures and the lack of non-recurring costs that we had to incur in previous years. Also, fewer costs were allocated to Buma because of the new allocation key of the costs between Buma and Stemra. In 2019, joint expenses fell by 10%, i.e. € 3.1 million.

Buma’s management costs in 2019 consist of personnel costs (€ 10.3 million), general costs (€ 9.2 million), depreciation costs (€ 1.6 million) and accommodation costs (€ 0.6 million).

The standard focuses on the trend of the management costs level. The standard stipulates that the costs should not increase any more than the consumer index price of the year which the annual report relates to.

Potentially, the 2020 cost increase due to initiatives for improvement and change will be higher than the CPI change in that year. This cannot be determined – and if necessary explained – until the actual CPI change is known at the beginning of 2021.

Under this item, the management costs are linked to the distribution. The standard is 15%. This standard is met in Budget 2020.

Under this item, the management costs are linked to the copyright royalties. The standard is 15%. This standard is met in Budget 2020.

The standard focuses on the trend of the management costs level. The standard stipulates that the costs should not increase any more than the consumer index price of the year which the annual report relates to. The CPI movement in 2019 was 2.6%. This standard was not met in 2019. The change in cost allocation between Buma and Stemra has a non-recurrent major impact. In 2019, joint expenses fell by 10.2%. The joint work organisation Buma/Stemra meets this standard.

Under this item, the management costs are linked to the distribution. The standard is 15%. This standard was not met in 2019. Costs have increased as a result of the change in cost allocation between Buma and Stemra. At 14.2% on average, the actual administration fee withheld from distribution remains below the standard.

Under this item, the management costs are linked to the copyright royalties. The standard is 15%. This standard was met in 2019.

The standard focuses on the trend of the management costs level. The standard stipulates that the costs should not increase any more than the consumer index price of the year which the annual report relates to. The CPI movement in 2019 was 2.6%. This standard was met in 2019.

Under this item, the management costs are linked to the distribution. The standard is 15%. This standard was met in 2019.

Under this item, the management costs are linked to the copyright royalties. The standard is 15%. This standard was met in 2019.

Income rose by 14.6% in 2019, mainly because of higher, percentage-wise fixed administration fees for distribution.

Financial income and expenses in 2019 are made up of the investment result (€ 15.9 million) and interest expenses and similar expenses (€ -0.4 million). Financial income and expenses in 2019 rose by € 23.3 million, mainly because of the 9.7% positive return on the investment portfolio in 2019 (2018: 4.4% negative). This realisation will be added to (2018: deducted from) the appropriated reserve via the appropriation of the result; to cover the management costs, a normative result is used.

Income in 2019 fell by 15.2%, mainly because a lower deduction of variable administration fees was needed to cover the management costs.

The non-online markets in particular influence the royalties from the market segment Abroad (collections are made via sister societies). Here, Stemra is obviously dependent on the success of its managed repertoire abroad. Taking into account an occasional income of € 1.9 million in 2018 in connection with the settlement of a number of disputes with foreign sister societies about rights from several previous years covering use, income remained stable in 2019. In this market, we are increasingly confronted with a wide range of discussions and points of view of local tax authorities about withholding taxes to be levied.

The revenues Stemra receives from the Private Copying Foundation (Stichting Thuiskopie) have fluctuated in recent years, particularly as a result of supplementary payments received under the out-of-court settlement of the dispute with the Dutch State.

Due to the continued shift to royalties from online streaming, 25% of which is allocated to Stemra, Online has become the market segment that generates the highest income for Stemra in 2019. This segment is dominated by several major Digital Service Providers such as Spotify, Apple and YouTube. As pan-European licence agreements for the repertoire presented to us are increasingly concluded directly with major Digital Service Providers, these copyright royalties are to an increasingly lesser extent collected via our foreign sister societies.

The income from the Radio & TV market has been under pressure for a few years now. The fall in watching TV linearly affects the extent of the market of TV commercials. In 2019, some of the royalties for 2018 had to be paid back to local and regional broadcasters due to the new regulations. On the other hand, in 2019, as in 2018, subsequent income from copyrights revenue was realised for the previous year.

The copyright royalties from In-House Productions (PIEB) are falling due to the contracting market for mechanical rights, particularly for CDs. In 2019, a slightly higher income was realised compared to 2018.

The copyright royalties from BIEM contracts for mechanical music carriers, a traditional Stemra market segment, dropped even further in 2019 due to the contracting market for mechanical rights, particularly for CDs.

The non-online markets in particular influence the copyright royalties from the market segment Abroad (collections are made via sister societies). Given that Buma is obviously dependent on the success of its managed repertoire abroad, In this market, we are increasingly confronted with a wide range of discussions and points of view of local tax authorities about withholding taxes to be levied.

Due to the continued shift in music use to more streaming and subscription services, Online has been a major growth segment for some years now. This segment is dominated by several major Digital Service Providers such as Spotify, Apple and YouTube. As pan-European licence agreements for the repertoire presented to us are increasingly concluded directly with major Digital Service Providers, these copyright royalties are to an increasingly lesser extent collected via our foreign sister societies.

The copyright royalties from public use in restaurants and bars further rose in 2019.

Income from public use in work and sales units has been fairly stable until 2019. The efficiency improvements that were made, for instance, through the collaboration with Sena in the targeting of this market segment (jointly placed under the Music Copy and Neighbouring Rights Service Center), have played a crucial role in this process. The reduction in the number of physical shops in the streetscape puts pressure on income.

In 2019, copyright royalties from the Live Performances segment increased further, mainly driven by further growth in the number of licensed performances and events, from over 90,000 in 2018 to over 101,500 in 2019.

The income from the Radio & TV market has been under pressure for a few years now. The fall in watching TV linearly affects the extent of the market of TV commercials. In 2019, some of the royalties for 2018 had to be paid back to local and regional broadcasters due to the new regulations. On the other hand, in 2019, as in 2018, subsequent income from copyrights revenue was realised for the previous year. The decreasing collection from Radio & TV was partly compensated by providers of networks such as KPN and Ziggo, driven by a growing number of subscriptions.