Information regarding Television Distribution

Transcription

1 Information regarding Television Distribution Status: July Reform in broadcast distribution The provisions regarding the new structure in broadcast distribution adopted by the 2014 General Meeting were finding first-time application on 1 July 2014 in distributions for the 2013 business year. Modifications to the royalties structure for radio and television resulting from the conclusion of new general agreements with broadcasters year before last have rendered a reform to broadcast distribution necessary. The aim of the provisions adopted in the General Meeting is to bring to fruition the application of the principles of usage-based distribution in radio and television as well as cultural promotion in a balanced manner. The reform to broadcast distribution particularly involves the following new aspects in the arena of television: a) Minute values specific to television b) Appropriate crediting of the miscellaneous television inflows c) Variable broadcaster coefficients for all programmes in television a) Minute values: In the interest of taking the current reality in usage and the economic significance of music in the broadcasting arena fully into account, the reform to broadcast distribution assumes a separation of amounts available for distribution, and hence a separation in the minute values for radio and television. Thus, there are no longer uniform minute values for radio and television. Rather, there are now separate minute values for the broadcasting right and mechanical right for radio (categories R for broadcasting right and R VR for mechanical right) and for television (categories FS and T FS for the broadcasting right and categories FS VR and T FS VR for the mechanical right). b) Appropriate crediting of miscellaneous television inflows: The separation of amounts available for distribution duly divides the miscellaneous broadcast distribution inflows, which have to date all been allocated to the joint minute value for radio and television, into the arenas of radio and television depending on their origin in audio and/or video uses. Examples for television include (each in relation to the shares to be distributed in the broadcasting sector): Revenue from communication to the public of television broadcasts and audio-visual carriers Revenue from cable retransmission of television broadcasts Video share of revenue from private copying (ZPÜ, Central Organisation for Private Copying Rights) Revenue from the commercial reproduction of audio-visual carriers without a programme c) Variable broadcaster coefficients: "Broadcaster coefficients" are set for individual television programmes. To date, the distribution plan stipulated the fixed coefficient 10 for the full public programmes "Das Erste" and ZDF, and the fixed coefficient of 1 for the third television programmes of ARD. In contrast, variable broadcaster coefficients have been set each year in proportion to the amount of remuneration for private television programmes. In accordance with the new provisions adopted by the 2014 General Meeting, there will now be a variable broadcaster coefficient for every Page 1 of 10

2 public and private television programme. The variable broadcaster coefficients will be calculated anew for each business year by dividing the applicable net amount from the royalties collected by broadcasting companies and the proportional revenue from cable retransmission by the number of minutes established in each case. The current list of television broadcaster coefficients for the business year 2014 is provided in the Annex. 2. Information on film and television distribution in the categories FS, FS VR, T FS, T FS VR, T and TD, TD VR Music usage in film and television is distributed annually on 1 July for the period of 1 January - 31 December of the preceding year. When crediting music usage in television, a distinction must be made between the broadcasters own and commissioned productions for own broadcast purposes and rebroadcasts on the one hand - categories FS and FS VR (television broadcast) - and "third-party and co-productions" on the other hand - categories T FS and T FS VR (sound film in television). Revenue from film screenings - especially from the communication of music in film screenings in cinemas - is credited in category T (sound film). Revenue from company films and audio-visual presentations are credited in the categories TD and TD VR (sound film - direct crediting) Distribution television broadcast (categories FS/FS VR) Broadcasts of music in own and commissioned productions are credited in the categories FS (broadcasting right) and FS VR (mechanical right). Own and commissioned productions are productions that are made directly by a GEMA-licensed broadcasting company or commissioned by a GEMA-licensed broadcasting company. Broadcaster self-advertising is also credited in the categories FS / FS VR, as this involves own or commissioned productions of broadcasters for their own broadcasting ends. Broadcaster selfadvertising encompasses all forms of television advertising that television broadcasters make themselves or commission, in order to advertise themselves or their programming (e.g. trailers). In this case, GEMA grants broadcasters the broadcasting and reproduction rights requisite for executing broadcasts, but not the synchronisation right, as this is a matter of advertising. This must be taken into consideration in crediting for the mechanical right (Section V (6) of the Implementation Rules for the Distribution Plan B, hereinafter referred to as AB VP-B). The amount of royalties distributed for transmitting a musical work in television is dependent upon the following factors: - Broadcast duration (in minutes and seconds) - Broadcaster coefficient (Section V (3)(b)) of the Implementation Rules for the Distribution Plan A, AB VP-A) - Television coefficient (Section XIV (3) AB VP-A) - Minute value - Point valuation (Section X-XIII AB VP-A) - Right holder's shares in the work Page 2 of 10

3 Formula (own and commissioned television production) The calculation formula for own productions and commissioned productions in television is: (Broadcast minutes x broadcaster coefficient x television coefficient x minute value PR 1 x factor according to point valuation PR) 2 + (Broadcast minutes x broadcaster coefficient x television coefficient x minute value MR 1 ) = Distribution sum per work (24/24 in PR / 100% in MR) for all entitled parties in EUROs 2 The General Assembly 2014 decided, that from on, 0.4 percent each of the composers arising revenues in categories R, FS and M will be allocated to the finance of the arrangers valuation procedure. For business year 2014 the minute value for category FS AR is EURO 2,7251 and for category FS VR the minute value is EURO 1, Television coefficient for FS (pursuant to Section XIV (3) AB VP-A) The following coefficients apply to music in own and commissioned productions: Music for videotext programmes receives the coefficient 0.1. Coefficient 1 applies to music in serial programmes or series transmitted on a regular basis - i.e. on at least five consecutive days or once weekly in seven consecutive weeks - as follows: - Opening and closing music* - Miscellaneous illustrative music (except opening and closing music) that is utilised - recurrently to identify or underscore standardised format elements, or - in serial programmes or series with moving or non-moving images, largely absent of spoken text.** Music utilised in serial programmes and series transmitted daily - i.e. as a general rule on five days per week and in multiple weeks of a year - and not credited in line with the above provisions with coefficient 1 will be subject to coefficient 2. Broadcaster self-advertising receives coefficient 2.* Performed music (live or playback performance) is subject to coefficient 6. Miscellaneous music in own and commissioned productions (e.g. illustrative music in films or irregularly transmitted serial programmes or series) is subject to coefficient 3. * A cap to one-third is applied in cases involving more than 5,000 weighted minutes, and to one-tenth in cases involving more than 10,000 weighted minutes. ** A cap to one-sixth is applied in cases involving more than 5,000 weighted minutes, and to one-tenth in cases involving more than 10,000 weighted minutes. 1 PR = performing right; MR = mechanical reproduction right Page 3 of 10

4 2. 2 Distribution sound film in television (T FS/T FS VR) Third-party and co-productions (including product advertising) are credited in category T FS. These are "bought-in" productions, also known as licensed productions. GEMA does not grant a synchronisation right to broadcasting companies for productions of this nature. This must be accounted for in mechanical right crediting. The amount of royalties distributed for broadcasting a musical work for sound film in television is dependent upon the following factors: - Number of broadcasts of the production - Music seconds of the work (according to "Notification for audio-visual production") - Broadcaster coefficient (Section V (3)(b) AB VP A) - Television coefficient (Section XIV (3) AB VP-A) - Music seconds value (this value is derived from the minute value for television broadcast, and therefore identical to it.) - Right holder's shares in the work When crediting the mechanical right, account must be taken of the fact that GEMA does not grant the synchronisation right to broadcasting companies for third-party and co-productions. Thus, in the category T FS VR crediting is at one-tenth pursuant to Section V (6) AB VP-B in accordance with the coefficients specified in Section XIV (3) AB VP-A. This means that 10% of the weighted broadcast seconds credited in category T FS for the performing right is used as the foundation for crediting in category T FS VR Formula (sound film in television) The calculation formula for sound film in television is: Number of broadcast x music seconds x broadcaster coefficient x television coefficient x music seconds value PR 1000 seconds + Number of broadcasts x music seconds x 1/10 x broadcaster coefficient x television coefficient x music seconds value MR 1000 seconds = Distribution sum per work (12/12 in PR/100% in MR) for all entitled parties in EUROs For business year 2014 the music seconds value for category TFS AR is EURO 45,6733 per 1000 seconds and for category TFS VR the music seconds value is EURO 27,5566 per 1000 seconds Television coefficients for T FS (pursuant to Section XIV (3) AB VP-A) The following coefficients apply to music in third-party productions: - Music in serial programmes or series transmitted daily - i.e. in general, on five days per week and in multiple weeks of a year - will be subject to coefficient Miscellaneous music in third-party productions (e.g. illustrative music for films, video clips, etc.) will be subject to coefficient 2. - Music for advertising spots and miscellaneous commercials will also be subject to coefficient 2.* * A cap to one-third is applied in cases involving more than 5,000 weighted minutes, and to onetenth in cases involving more than 10,000 weighted minutes. Page 4 of 10

5 2.3. Distribution T - sound film Distribution for cinematographic films and advertising in cinemas is based on the number of screenings reported by movie theatres or, where applicable, by third parties. That figure is multiplied by the music seconds of the work subject to crediting. The resulting sum is multiplied by the corresponding seconds value of the business year for which accounting is being performed. The calculation formula is: Number of screenings x music seconds x music seconds value 1000 seconds =12/12 (100%) for all entitled parties in EUROs For business year 2014 the music seconds value for category T is EURO 0,1772 per 1000 seconds Distribution TD - sound film direct crediting (Music in company films, audio-visual presentations) Licensing pursuant to Rates Schedule T-W-AV (net individual crediting / direct crediting) Utilisation of audio-visual productions that are company films in nature, screened publicly and free of charge is licensed pursuant to the royalty rates set forth in Rates Schedule T-W-AV. If licensing was in accordance with Rates Schedule T-W-AV, then there will be one-time production-based direct crediting to the entitled parties. 2/3 of the aggregate amount available is credited for the broadcasting right (TD-AR), and 1/3 is credited for the mechanical reproduction right and the synchronisation right in the production (TD- VR). Prior to distribution for the performing right, the standard cost rate for the performing and broadcasting right is subtracted from the aggregate amount, together with a further 10% for social and cultural purposes. Prior to distribution for the reproduction right, a commission of 20% is deducted from the total amount. 3. Cases of hardship for radio and television In connection with the new provisions in broadcast distribution, the General Meeting held in April 2014 also decided on provisions to offset cases of hardship. These provisions are intended to cushion potential individual cases of hardship for the business years , which could arise from the reform to broadcast distribution for individual right holders. The basis for offsetting cases of hardship consists of parallel accounting, comparing the distributions that the right holder receives for the respective business year under the new broadcast distribution model with the distributions the right holder would receive based on the same accounting data under the version of the distribution plan applicable to the 2012 business year. Losses for the categories FS / FS VR, TFS / TFS VR and R / R VR not exceeding the amount of EUR 500 per business year in aggregate are generally not subject to hardship offsetting. Page 5 of 10

6 Losses for the categories FS / FS VR and TFS / TFS VR and R / R VR exceeding the amount of EUR 500 in aggregate are subject to the following: - For the 2013 business year, losses beyond a share of 15% of the distribution sum for the respective right holder are offset at 100%. - For the 2014 business year, losses beyond a share of 20% of the distribution sum for the respective right holder are offset at 50%. - For the 2015 business year, losses beyond a share of 30% of the distribution sum for the respective right holder are offset at 30%. 4. Programme crediting limit Revenue from the categories R, FS, TFS and T is generally paid out based on programme crediting to the GEMA beneficiaries and to the foreign societies having a contractual relationship with GEMA. In radio and television, broadcasters revenue will not be credited by programme below a certain limit to be fixed by the Board of Supervisors for the respective field ("programme crediting limit") (Section VIII (3)(c) AB VP-A) taking account of proportionate revenue from cable retransmission and distribution of collections pursuant to Section IX (1)(2) AB VP-A. The programme crediting limit is EUR 90,000 for radio broadcasters and EUR 204,000 for television broadcasters. 5. Request for crediting Broadcaster revenue below the programme crediting limit is distributed as a supplement to the distribution sums in the categories of radio and television. If in one business year individual works of a right holder are used exclusively or predominantly (measured in actual minutes broadcast) in radio and television programmes that have not been credited by programme due to negligible collection, then the right holder will still be able to request crediting pursuant to Section VIII (3) (c) AB VP-A. If the request is justified, then the right holder will receive the royalties for the uses not credited by programme with the distribution following his request. The distribution sum is calculated on the basis of the actual scope of music used in relation to the respective collection. If the right holder has received a distribution for the respective business year in the categories of radio and/or television, then the amount to be paid will be reduced by the supplement contained in that statement for broadcasters not credited by programme. The request for crediting must be filed within six months of the respective accounting deadline and include verifiable information regarding work title, entitled parties, broadcasters and broadcasting station, title of broadcast, broadcast dates and broadcasting time of the work. The request can furthermore only be considered if the respective broadcaster confirms this information to GEMA and a minimum amount of at least EUR 5.00 per work can be expected from crediting. Upon accepting the motion to reform broadcast distribution, the General Meeting resolved that right holders will have a one-time opportunity to retroactively file such a request for crediting by 30 September 2014 for the business years This should also enable right holders who have not yet filed a request of this nature to participate in payment crediting for back payments that GEMA receives from broadcasting companies as a result of the retroactive conclusion of the new general agreements for the business years named. Page 6 of 10

7 6. Grand Right distribution GEMA does not administer the "Grand Right" (the right to stage performance of dramatico-musical works; e.g. operas and musicals). Here, the performing and broadcasting rights must be exercised individually by the author, a publisher or a theatrical distributor. One exception here is the right of communication for radio and television broadcasts, which GEMA does administer for dramaticomusical works as well. To that end, it is necessary to notify the work using the "Declaration form for a dramatico-musical work" provided for that purpose. You will find the form under following link: In this case, crediting will be assigned to the holder of the Grand Right at 100%. ANNEX Broadcaster coefficients in television for the business years 2012 to 2014 Page 7 of 10

8 Broadcaster coefficient in television for the business years 2012 to 2014 List of the television broadcasters subject to crediting by programme pursuant to the Implementation Rules of the GEMA distribution plan for the performing and broadcasting right Section V. (3b). Updated: July 2015 Ser. No Business 2013 Business 2014 Business Television broadcaster Nr. Year th Street 0,17 0,14 0, sat 2,5 1,06 0, Animal Planet 0,02 0,07 0, ARD Das Erste ,6 14, ARTE 2,6 2,50 5, Bayerischer Rundfunk (BR) 1 2,85 2, BR Alpha 0,33 0,44 0, Bibel TV - - 0, Boomerang - - 0, Cartoon Network - - 0, Das Vierte - 0,28-12 Deutsche Welle 1 0,24 0, Discovery Channel 0,13 0,07 0, Discovery HD 0, Disney Channel 0,22 0,2 0, Disney Junior 0,11 0,08 0, Disney XD 0,25 0,12 0, DMAX 0,33 0,61 0, EinsFestival 0,63 0,14 0, EinsPlus 0,86 0,13 0, FOX - - 0, Hessischer Rundfunk (HR) 1 1,00 1, History Channel - - 0, Home Shopping Europe (HSE24) - 5,33 4 3, Kabel Eins 2,63 2,50 1, Kabel Eins CLASSICS 0,11 0,05 0, Kinderkanal 1,33 1,78 1, Mitteldeutscher Rundfunk (MDR) 1 1,55 1, N24-0,57 0, National Geographic - - 0, National Geographic People - - 0, National Geographic Wild - - 0, Norddeutscher Rundfunk (NDR) 1 2,79 3, n-tv - 0,35 0, Phoenix 0,25 0,47 0, ProSieben 6 4,42 4, ProSieben Fun - 0,05 0, ProSieben Maxx - 0,20 0, QVC - 3,77 4 3, Radio Bremen (RB) 1 3,84 4 3, Page 8 of 10

9 Ser. No Business 2013 Business 2014 Business Television broadcaster Nr. Year 2 41 RTL 9,63 8,50 7, RTL 2 2 1,86 1, RTL Crime 0,17 0,10 0, RTL Geo Television - - 0, RTL Living 0,06 0,02 0, RTL Nitro 0,01 0,23 0, Rundfunk Berlin-Brandenburg (RBB) 1 1,06 1, Saarländischer Rundfunk (SR) 1 0,27 3, SAT.1 8 6,50 4, SAT.1 Emotions 0,13 0,07 0, SAT.1 Gold - 0,08 0, SIXX - 0,21 0, SKY 3D 0,11 0,07 0, SKY Action 0,33 0,20 0, SKY Atlantic 0,29 0,29 0, SKY Cinema 0,33 0,19 0, SKY Cinema +1 0,33 0,19 0, SKY Cinema +24 0,33 0,19 0, SKY Cinema Hits 0,38 0,22 0, SKY Comedy 0,33 0,19 0, SKY Emotion 0,33 0,22 0, SKY Krimi 0,38 0,25 0, SKY Nostalgie 0,33 0,22 0, SKY SPORT 0,75 0,27-65 SKY Sport , SKY Sport , SKY Sport Austria - 0,07 0, SKY Sport Bundesliga - - 0, SKY Sport News - 0,28 1, Sport 1-0,43 0, Sport , Sport 1 US - - 0, Südwestrundfunk (SWR) 1 3,04 2, Super RTL 1 1,03 0, Syfy 0,17 0,15 0, tagesschau24 1 0,21 0, Tele 5 0,38 0,36 0, The Biography Channel - - 0, TLC TV - - 0, TNT Film - - 0, TNT Glitz - - 0, TNT Serie - - 0, Universal Channel - - 0, VOX 4,5 3,68 3, Westdeutscher Rundfunk (WDR) 1 2,29 3, ZDF 10 12,0 11, ZDF Info 1,25 0,13 0,0975 Page 9 of 10

10 Ser. No Business 2013 Business 2014 Business Television broadcaster Nr. Year 2 88 ZDF Kultur 0,8 0,08 0, ZDF Neo 2 0,45 0, Up to and including the distribution of business year 2013 applies: Regional broadcasts within the area of a public service broadcaster are offset with the half of the broadcasting time (Broadcasting time is being halved). Sub-regional broadcasts only within the area of a regional studio are offset with a quarter of the broadcasting time (Broadcasting time is being quartered). Regional window programmes and local or city broadcasters are offset with a tenth of the broadcasting time (Broadcasting time is being reduced to a tenth). 2 The following applies to the distributions from business year 2014 on: If several regional broadcasts are aired parallel on radio or television without making a separate debt collection for these programmes, the broadcasting time will be divided by the number of the parallel aired broadcasts. 3 Broadcasts on ARD are supplied by various broadcasters. Here, the broadcaster coefficient of ARD applies. 4 Comparatively high broadcaster coefficient despite relatively marginal collections due to low music usage in the business years 2013 and Page 10 of 10