Sacem: 2021 results 

Collections return to growth, propelled by the explosion of digital rights

2021 saw a rebound in collections, which passed the €1 billion mark again, totalling €1.0564 billion, compared to €988.5 million in 2020 (+7%). However, this amount remains 6% lower than in 2019 (€1.1192 billion).

The 2021 rebound was largely due to very strong growth in online revenues, which reached €357.9 million, up 23% compared to 2020 and 55% compared to 2019.

For the first time in Sacem's history, online rights became the leading source of income, accounting for more than a third of total revenue. This development came amid growth in the music streaming market during the health crisis, but also because of a better renegotiation of existing agreements and the conclusion of new contracts.

These developments validate Sacem's strategy. The member-owned society has been able to anticipate transformations in the industry by investing in innovative IT systems and cutting-edge technologies, such as URights, the world's leading platform for processing information on the online use of works. Sacem has also been investing in the human skills needed to handle the increasing flow of data: 170 trillion streams will be processed in 2021, an 81-fold increase in 5 years.

However, the strong rise in streaming revenues did not compensate for the massive drop, due to the crisis, of collections linked to live performances (festivals, concerts, etc.) and background music, a drop that has left creators with a shortfall in revenues:
- On the one hand, because part of the growth in online revenue has benefitted the international partners for which Sacem has mandates.
- On the other hand, because the monetization of certain forms of streaming is still largely insufficient.

This is why Sacem's priority is to create value for those who make creation happen. Sacem continued its transformation into a true "data company" in 2021 by launching a new strategic stage in its development, giving priority to innovation and the search for new sources of value for creators. In 2021, this approach took form with the creation of a Committee for Strategy and Innovation, created to guide the society’s thinking on the sector’s technological transformations and the opportunities they open up. The CSI is made up of creators, music publishers and Sacem employees who have subject matter expertise.


A persistent decline in general rights has lowered income for many members

Collections related to live performances and background music showed a decrease of 3% compared to 2020 (to €169.6M) and were still down 49% from 2019 levels, due to closures and then restrictions on access to performance venues during the pandemic.
A very large number of members have seen a drastic drop in their income. Between 2019 and 2021, some members who relied mainly on live performances lost more than 95% of their royalties.

Sacem has maintained and reinforced the emergency measures initiated in 2020 to support members facing such difficult times. More than 7,200 grants were paid out to authors, composers and music publishers in difficult situations — for a total of €7.3 million — within the framework of the Emergency Fund. Sacem also managed, with the SACD, the exceptional fund for securing income financed by the Centre National de la Musique, which resulted in the payment of 2,600 grants.

In addition, more than €35 million went to social works (provident fund, RAES, Sacem Santé, Comité du Cœur, etc.)
And through its cultural aid, Sacem supported and accompanied more than 2,700 projects to the tune of €31.2 million, helping many authors, composers and music publishers, as well as project developers, pursue their creative activities despite the crisis.

After the Tous en Live campaign, Sacem continued its support for its music customers in France with the #RetrouvonsNous campaign to accelerate the resumption of live shows and encourage the public to return to venues.


Rigorous management for an even fairer distribution

The other sources of revenue recorded more moderate variations overall: radio and TV rights amounted to €296.9 million, down 2% compared to 2020; private copying revenues amounted to €95.4 million (+19%); international revenues amounted to €80.5 million (-7%); and phono/video revenues amounted to €56.1 million (+11%).

In this demanding environment, Sacem worked to optimise its operating costs. Thanks to rigorous management and the continuation of its transformation plan, including a voluntary redundancy plan and the sale of real estate assets, net expenses fell by 6.8% between 2020 and 2021.
The total amount distributed in 2021 reached €886 million. The amount distributed decreased by 2.9% between 2020 and 2021. In 2020, the distribution included most of the 2019 collections, so the impact of the crisis was felt more strongly in 2021.


Sustained expansion in France and abroad

Sacem currently has 196,700 members (189,470 authors and composers + 7,230 publishers). Of the 14,210 members who joined in 2021, 29% were under 25 years old.

All told, Sacem distributed rights in 2021 to 370,000 authors, composers and publishers worldwide (including 327,000 for online rights). Rights were distributed for 2.9 million different works (including 2.2 million for online).

Sacem continued to grow internationally.
Firstly, through the representation agreements it has with foreign authors' societies: at the end of 2021, it had 184 such partnerships, compared with 178 a year earlier.

Secondly, through the development of multi-territory mandates with music publishers, as well as Ascap’s the American society, which joins the Canadian and the Korean authors' societies (Socan and Komca), to manage their online rights. Sacem currently holds 52 mandates, compared to 39 at the end of 2020.

In France, the model is inspiring other creative sectors. Sacem contributed its expertise to the creation and operation of the new Press Neighbouring Rights Society (DVP, Droits Voisins de la Presse), which was launched in October 2021.


A transformation drive that will continue into 2022

In 2022, Sacem is continuing its digital transformation to create value for its members, authors, composers and music publishers.

Created at the beginning of 2022, the Sacem Lab is an incubator for new technologies in the music sector that brings together creators, innovators and Sacem teams. They are building the collective management model of the future. A first series of partnerships with music tech players is underway to explore and experiment with high value-added innovations and develop new growth drivers in the emerging web3 ecosystem.

Sacem is working to develop creators’ income linked to new digital uses, many of which are not yet sufficiently lucrative. It is doing this through dialogue with players in the sector in an effort to increase rates of remuneration, and by creating or reinforcing monetisation mechanisms adapted to the new ways of consuming music.

It also wants to focus on innovation to develop new services for its members. For example, it is lauching MusicStart (currently in beta testing phase), a 100% digital service for protecting works. MusicStart enables creators to register their works very easily, to secure their intellectual property rights using blockchain technology, and to potentially benefit from the new modes of exploitation that will develop, such as NFTs.

 

"2021 was a year of great contrasts, with a crisis that continued to hit our members' revenues very hard, while at the same time speeding the growth of digital. During this period, Sacem demonstrated its ability to innovate while maintaining its unique social and solidarity-based model,” said Cécile Rap-Veber, CEO of Sacem.
“Based on this solid foundation, we are launching a modern and ambitious business plan that will enable us to strengthen and preserve our fundamentals in the years to come. We will serve our members even better by relying on innovation, and by continuing our development. We will always strive to bring value to those whocreate and make us dream.”