• Overview
  • 2019 in a nutshell
  • Explanation Buma/Stemra
  • Explanation by the Board
  • Copyright royalties Radio & TV Buma Live performances Work spaces, shops and stores Restaurants and bars Online Buma Abroad Buma BIEM PIEB Radio & TV Stemra Online Stemra Home copy / Lending right / Graphic Abroad Stemra
  • Distribution Distributed to rights owners Buma Distributed to CMO’s abroad Buma Addition to Fund for Social and Cultural Purposes Distributed to rights owners Stemra Distributed to CMO’s abroad Stemra
  • Operating statement Income Buma Management costs Buma Financial income and expenses Buma Income Stemra Management costs Stemra
  • Number of employees in FTE’s
  • Appropriated reserve Changes in the appropriated reserve Changes in the appropriated reserve Buma Changes in the appropriated reserve Stemra
  • Cost standards Managament costs vs copyright royalties Buma Management costs vs Distribution Buma Management costs trend Buma Management costs vs copyright royalties Stemra Management costs vs Distribution Stemra Management costs trend Stemra

2019 in a nutshell

Animation results 2019 (02:25)

Explanation Buma/Stemra

Animation on what, how and why (03:11)

Explanation by the Board

Buma/Stemra looks back on a good 2019
Copyright royalties
€ 219,7m
€ 6,3m
Distribution
€ 190,0m
€ 9,3m
Operating statement
€ 14,8m
€ 23,9m
Number of employees in FTE’s
136,6
€ -0,4m
Appropriated reserve
€ 33,7m
€ 14,1m
Cost standards
Buma: in compliance
Stemra: partly in compliance
Together: in compliance
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Return to the 2019 environment

Publication

Head office
Saturnusstraat 46-62
2132 hb hoofddorp

T: 023 – 799 79 99
E: info@bumastemra.nl
bumastemra.nl

Editorial board
vereniging buma

Realisation
Merkelijkheid

Management costs Stemra

€ 5,9 m
2015
€ 3,0 m
2016
€ 4,2 m
2017
€ 3,3 m
2018
€ 4,5 m
2019

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).

Management costs Buma

€ 21,2 m
2015
€ 25,1 m
2016
€ 26,5 m
2017
€ 26,0 m
2018
€ 21,8 m
2019

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).

Changes in the appropriated reserve Stemra

The surplus of the operating statement for 2019 is added to the appropriated reserve. This appropriation of the result is included in the financial statements.

Changes in the appropriated reserve Buma

The difference between the realised investment result (€ 15.9 million) and the normative investment result that partially covers the management costs (€ 2.2 million), i.e. € 13.7 million, is added to the appropriated reserve. This appropriation of the result is included in the financial statements.

Changes in the appropriated reserve

The investments in 2018 resulted in negative result of € 7,4 million. To cover the expenses, a normative return of € 2,8 million was used. The difference between these two explains the change in the appropriated reserve (€ -10,2 million).

Management costs trend

-4,6%
Actual 2018
-3,8%
Budget 2019
3,5%
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.

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.

Management costs vs distribution

€ 14,2 m
Actual 2018
€ 13,2 m
Budget 2019
€ 13,0 m
Budget 2020

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

Management costs vs copyright royalties

13,7%
Actual 2018
13,2%
Budget 2019
13,0%
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.

Management costs trend Stemra

-10,1%
2015
-49,9%
2016
41,0%
2017
-21,3%
2018
35,6%
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 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.

Management costs vs Distribution Stemra

16,7%
2015
9,4%
2016
16,2%
2017
13,1%
2018
15,5%
2019

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.

Management costs vs copyright royalties Stemra

15,1%
2015
8,8%
2016
11,5%
2017
10,2%
2018
13,8%
2019

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

Management costs trend Buma

1,7%
2015
18,1%
2016
5,3%
2017
-1,9%
2018
-16,0%
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.

Management costs vs Distribution Buma

13,5%
2015
14,7%
2016
15,9%
2017
14,5%
2018
11,8%
2019

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

Managament costs vs copyright royalties Buma

12,9%
2015
14,7%
2016
15,3%
2017
14,3%
2018
11,6%
2019

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

Income Stemra

€ 5,5 m
2015
€ 4,7 m
2016
€ 3,7 m
2017
€ 4,4 m
2018
€ 5,0 m
2019

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

Financial income and expenses Buma

€ 1,2 m
2015
€ 8,4 m
2016
€ 10,5 m
2017
€ -7,9 m
2018
€ 15,4 m
2019

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 Buma

€ 14,7 m
2015
€ 18,9 m
2016
€ 22,9 m
2017
€ 23,6 m
2018
€ 20,0 m
2019

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

Distributed to CMO’s abroad Stemra

€ 3,4 m
2015
€ 2,6 m
2016
€ 2,1 m
2017
€ 2,7 m
2018
€ 3,4 m
2019

Distributed to rights owners Stemra

€ 27,3 m
2015
€ 25,0 m
2016
€ 20,8 m
2017
€ 22,4 m
2018
€ 25,4 m
2019

Addition to Fund for Social and Cultural Purposes

€ 10,2 m
2015
€ 10,4 m
2016
€ 9,9 m
2017
€ 10,5 m
2018
€ 10,9 m
2019

Distributed to CMO’s abroad Buma

€ 53,7 m
2015
€ 54,5 m
2016
€ 53,5 m
2017
€ 57,9 m
2018
€ 55,0 m
2019

Distributed to rights owners Buma

€ 80,1 m
2015
€ 91,3 m
2016
€ 84,3 m
2017
€ 87,3 m
2018
€ 95,3 m
2019

Abroad Stemra

€ 4,6 m
2015
€ 5,1 m
2016
€ 3,8 m
2017
€ 5,7 m
2018
€ 3,8 m
2019

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.

Home copy / Lending right / Graphic

€ 13,8 m
2015
€ 6,1 m
2016
€ 10,3 m
2017
€ 5,3 m
2018
€ 5,8 m
2019

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.

Online Stemra

€ 3,8 m
2015
€ 4,6 m
2016
€ 5,3 m
2017
€ 5,3 m
2018
€ 7,5 m
2019

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.

Radio & TV Stemra

€ 6,0 m
2015
€ 7,0 m
2016
€ 5,8 m
2017
€ 6,6 m
2018
€ 6,1 m
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.

PIEB

€ 4,9 m
2015
€ 4,9 m
2016
€ 4,9 m
2017
€ 3,9 m
2018
€ 4,0 m
2019

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.

BIEM

€ 6,2 m
2015
€ 6,2 m
2016
€ 6,1 m
2017
€ 5,6 m
2018
€ 4,9 m
2019

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.

Abroad Buma

€ 16,4 m
2015
€ 15,2 m
2016
€ 14,7 m
2017
€ 16,5 m
2018
€ 16,4 m
20189

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.

Online Buma

€ 8,4 m
2015
€ 10,1 m
2016
€ 13,6 m
2017
€ 13,7 m
2018
€ 19,0 m
2019

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.

Restaurants and bars

€ 14,6 m
2015
€ 15,1 m
2016
€ 14,3 m
2017
€ 14,9 m
2018
€ 15,2 m
2019

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

Work spaces, shops and stores

€ 30,8 m
2015
€ 30,4 m
2016
€ 30,9 m
2017
€ 30,4 m
2018
€ 30,7 m
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.

Live performances

€ 27,1 m
2015
€ 29,8 m
2016
€ 30,7 m
2017
€ 34,1 m
2018
€ 35,2 m
2019

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.

Radio & TV Buma

€ 67,3 m
2015
€ 70,4 m
2016
€ 68,2 m
2017
€ 71,4 m
2018
€ 71,2 m
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.

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