In 2008, the Internet will have earned authors next to nothing

In 2008, the overall amount of SACEM collections is expected to drop by 0.4% to €756m compared to €759m in 2007. In 2009, a new decrease estimated at 2.8% should follow the downward trend that is worrying for authors.
In reality, taking into account inflation, which seems logical when it comes to revenue that can be assimilated to a salary, it reveals a more pronounced and earlier decrease in collections. From 2003 to 2008, in inflation-adjusted euros, the amount collected dropped by nearly 2%.

Step-by-step analysis tends to show that this trend has two main causes

1. From 2003 to 2008, whether for CDs ( 34% of collections) or music DVDs ( 19% of collections), a very strong overall 31% decrease was observed in the sums collected by SACEM (Collections for so-called mechanical reproduction rights), i.e. a €41m loss. In 2009, this decrease, mechanically correlated with the decline in CD and DVD sales, should further accelerate ( 18% for 2008/2009 alone!).
    
2. Collections from multimedia, including the Internet, remain at abnormally low levels. Thus, at €9,3m in 2008, they represent only approximately 1% of the total sums collected. Promising and indispensable agreements signed with certain users (Musique Max/Orange, SFR, Illimythics, Deezer, Dailymotion…) are nonetheless unable to provide authors today with revenue on a level with the value which results from the exploitation of their works. The difference between the massive use of ‘dematerialized’ music on these networks and the amount of revenue paid to authors has become untenable.

In addition to these two main causes, there are other factors of uncertainty:

• Authors could be the victims of the anticipated drop in advertising revenue for French public television. Authors may well suffer a significant loss of revenues, in 2008 and latter on, if all resources, supposed to compensate this drop, are not subject to the payment of royalties.
   
• While private copying of music continues to grow, the levy for private audio copying will have dropped in 2008 for Sacem and could decrease further by some 16% between 2008 and 2009. This can be explained in particular by the fact the levy is increasingly favourable for consumers with the increasing storage capacity of media and recording devices and because the levy is paid only once for the entire period of use of these devices.

On the basis of these observations and analyses, SACEM formulates three general proposals for 2009:

1. SACEM deems it essential to obtain guarantees on the level and continuity of resources including subsidies or grants to French public television and their integration to the base for calculating authors’ rights. Furthermore, it considers that revaluation of the licence fee would be perfectly justified.
2. SACEM considers urgent to pass the draft law on Creation and the Internet.
   Like traditional users of audio and audiovisual programmes (cable operators, satellite platforms), it would be legitimate for Internet service providers (ISPs) to contribute to authors’ remuneration.
3. Revaluation of the private copy levy becomes indispensable since the drop in these resources is both inconsistent and unfair.

Press contact
Fabienne Herenberg:
+33 (0)6 84 95 29 80 / +33 (0)1 47 15 45 55