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23. June 2017.
In the course of this year’s Associates’ and Delegates’ Assembly, GVL has announced record figures for its 2016 collections. In the reporting period, the organisation collected more than EUR 271m on behalf of its members.
This constitutes an increase in revenue of more than 67% compared to the previous year. At the same time, the relative cost rates for GVL’s administration decreased by 0.6% from 7.1% to 6.5%. The basis for the clear plus in 2016 are the additional collections in the “reproduction” category. They reflect the pay-ments by producers and importers which GVL received in 2016 for the exploitation and private copying via mobile phones and tablet PCs for the first time: A manufacturers’ levy which GVL had, together with other affected collective management organisations, enforced after years of negotiations with the industry in 2015.
“We are pleased that we can officially confirm today that we outperformed our very good prognosis. With collections of more than EUR 271m and an growth of 67%, GVL can report record revenues on behalf of its 150,000 rights holders”, explains Guido Evers, Managing Director of GVL.
Dr. Tilo Gerlach, Managing Director of GVL, adds: “Our high commitment over the past years is reflected by the current financial statements which are extremely positive. We particularly see this as a confirmation of our efforts relating to the remuneration for the exploitation of digital end devices such as mobile phones and tablets.”
New Chair elected
GVL’s Associates’ and Delegates’ Assembly elected a new Chairman in its first session on 21 June 2017 in Berlin. Detlev Tiemann, singer in the choir of the Hamburg Staatsoper has taken the chair with immediate effect. Tiemann has been active in the governing bodies of GVL since 2000, holding positions such as Board member, member of the Distribution Committee and Chairman of the Tariff Committee. He succeeds Reinhard Biere, and his deputy is Dr. Henning Zimmermann, Executive Vice President at Universal Music Germany.
“I am looking forward to the interaction between the newly constituted bodies, the Associates’ and Dele-gates’ Assembly and the Supervisory Committee, and the trust-based collaboration with the deputy Chair-man Dr. Henning Zimmermann. With experienced and newly elected representatives in the Assembly, we were able to win over an optimal mix of traditional principles and innovative ideas for our work”, says Detlev Tiemann, Chairman of the Associates’ and Delegates’ Assembly.
GVL is currently in a technical and organisational modernising process to be able to meet future develop-ments of a digitised society at a level playing field and, at the same time, implement the provisions of the new Verwertungsgesellschaftengesetz (Collecting Societies Act, VGG). The medium-term goal is to create one of the most modern and progressive service providers, also regarding the comparison to international collective management organisations.
Background: 2016 financial results
The most important individual positions contributing to the total turnover 2016: The biggest share in income was made up of “reproductions” in 2016: EUR 132.7m were generated in 2016 (2015: EUR 26.1m).With re-spect to the broadcast remuneration category, EUR 83.5m were collected (2015: EUR 81.8m), the revenue yielded for public performance also saw a slight increase to EUR 41.5m (2015: EUR 41.1m). The remuneration from the rental and lending of various sound recordings and videos via libraries and video shops have slightly decreased from EUR 2.6m in the previous year to EUR 2.4m in financial year 2016. This stems quite clearly from a change in user behaviour. Income from cable retransmission remained stable at about EUR 2.1m (previous year: about EUR 2.1m).
Other revenue and interest exhibited a downward trend of 15% compared to the previous year, resulting in EUR 3.9m in 2016; this is due to the impact of the continuation of the low interest levels. Higher interest income could not be yielded in the given market environment due to the stipulation that GVL has to follow a gilt-edged investment policy. Just like in the previous years, not all of the income posted is available to GVL in order to be paid out to members by means of regular distributions - the outstanding amount to be temporarily blocked due to a lack of receipt of payments totals EUR 53.4 m for 2016.
Annual comparison of the revenue structure (in EUR ‘000s)
GVL's own administration costs amounted to EUR 17.7m and their pro rata share was half a percentage point lower than in the previous year, with 6.5% compared to 7.1%.
GVL’s detailed year-end accounts for 2016 will be published by GVL in late summer in the course of its transparency report, and will be available at www.gvl.de. It also will be published in the electronic ‘Bundesanzeiger’ (Federal Bulletin).
Those who render artistic performances or create the respective financial basis for the latter must receive money for the exploitation of their performances. GVL, the society for the administration of neighbouring rights, captures and manages such exploitations. GVL pays the fees it collects on a fiduciary basis e.g. from radio and TV stations and for the communication to the public (e.g. in restaurants or cafés) to its members in the form of a remuneration each year. More than 149,000 performing artists, producers of sound recordings and audiovisual recordings, music and music video clip producers as well as event organisers have placed their trust in GVL on a global level - and thus make GVL one of the biggest collective management organisations for neighbouring rights in the world. The German Orchestra Association (registered association) [DOV] and the Federal Association of the Music Industry (registered association) [BVMI] are associates of GVL.
Gregor Hintz / Communications
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