GVL grows total income by 8.5% to EUR 163.4m

15. June 2015. 

GVL can look back on a successful financial year 2014: Total returns for 2014 amount to EUR 163.4m and are thus EUR 12.9m higher than in the previous year (+ 8.5%). This noticeable gain of returns is mainly due to increased claims for copying remuneration (EUR 35.1m compared to EUR 22.9m in the previous year), as well as back payments for private copies made on personal computers for the period 2011-2013.

GVL can look back on a successful financial year 2014: Total returns for 2014 amount to EUR 163.4m and are thus EUR 12.9m higher than in the previous year (+ 8.5%). This noticeable gain of returns is mainly due to increased claims for copying remuneration (EUR 35.1m compared to EUR 22.9m in the previous year), as well as back payments for private copies made on personal computers for the period 2011-2013.

"We are extremely pleased with the continued positive income trend on behalf of our members. This reflects the high value of creative performances to which our artists, producers and event organisers contribute", state Guido Evers and Tilo Gerlach. The two Managing Directors of GVL add: "It is with even greater pleasure that we can also present a cost rate prior to write-offs of 6.8% which reflects our emphasis on managing our members' rights as efficiently as possible." The cost rate in the previous year was 7.1%. For the social and cultural promotion of its members as well as for the support of politico-cultural projects, GVL allocated grants amounting to EUR 3.4m in its financial year 2014 (previous year: EUR 3.6m).
    
In addition to the clear increase of collections from copying rights, other income sources reflected an overall stable development. Broadcast remuneration remains by far the biggest source of income for GVL at EUR 80.3m (previous year: EUR 81.3m). A slight increase of 1.8% can be reported for public performance, resulting in EUR 39.3m. GVL seeks equal treatment for performing artists compared to composers for tariffs in the public performance sector via three model case proceedings, which would lead to a further increase in revenues. Income from rental and lending has decreased in 2014 by approx. EUR 0.9m to EUR 2.8m. This is due to the fact that income outside the actual collection period was taken into account in the previous year and because lending of sound recordings  in public libraries has been declining. GVL could secure EUR 2.3m in collections for cable re-transmission – due to back payments, this is 13.6% more than in the previous year. Based on the increased financial investment of the remuneration reserved for distribution and an optimised investment policy, the interest rates in the financial year 2014 could nearly be doubled: From EUR 1.2m to EUR 2.6m. Finally, other operating income of EUR 0.9m (previous year: EUR 0.4m) could be added.

Despite the positive overall results for financial year 2014, Gerlach and Evers point out again that private copying suffered from loss of revenues: "For years, we have been missing income from private copying for smartphones, tablets and consumer electronics which is our members are entitled to by statute. We are currently in negotiations and invest our efforts so that these monies to be paid out in the near future." The back payments received in financial year 2014 fully covered the outstanding amounts relating to previous years up to 2013 as included in GVLs financial accounts; thus no further adjustments were necessary. For financial year 2014, GVL will have to block EUR 20.6m for private copying and public performance from being paid out due to incomplete amounts having been collected. GVL's Managing Directors eagerly await the draft version of the amendment of the Copyright Act and the Copyright Administration Act, announced to be presented in June 2015. In connection with the implementation of the EU Directive into German law prior to April 2016, improvements such as a compulsory deposit for withheld remuneration as well as an accelerated process to enforce claims, as currently formalised in the coalition agreement and urgently needed in relation to the setting of tariffs for private copying, shall be included.

A copy of GVL's detailed annual accounts 2014 shall be published in the electronic Federal Gazette, the annual report 2014 with additional contents shall be published prior to the end of August 2015 on www.gvl.de.

GVL was founded in 1959 and represented 144,771 members worldwide as per 31 December 2014 (previous year: 142,635) with regards to the management and administration of their neighbouring rights; among its members are producers of sound recordings, producers of music videos and event organisers. The German Orchestra Association (registered association) [DOV] and the Federal Association of the Music Industry (registered association) [BVMI] are equal associates of GVL.