Continued strong demand for Swedish music – higher revenue for STIM in 2018
“There is a strong demand for Swedish music and the level of quality is extremely high. Among all the Swedish music creators who have achieved international success during the year, several belong to the absolute world-elite, including Max Martin, Tove Lo and Ludwig Göransson. Besides those, composers of contemporary art music, such as Malin Bång, have also enjoyed international acclaim”, says Karsten Dyhrberg Nielsen, CEO of STIM.
One important event in 2018 was the signing of a licensing agreement for music on Facebook and Instagram. This was carried out via our international company, ICE, and it is the first agreement of this kind for these platforms. During the year, ICE also negotiated a new agreement with YouTube. These agreements ensure that STIM’s affiliated authors and publishers will be paid when their music is played in the social media platforms. The Swedish VOD (Video On Demand) market really took off in 2018 and agreements were signed with C More, SF Anytime and Viaplay. In 2018, revenue from VOD more than doubled.
“STIM was well-prepared for this development and our international company, ICE has been equipped for meeting increased internationalisation and growth in direct licensing of streaming services. All of this to ensure that our affiliates obtain revenue from the online market, which is a strategically important area. Over the last five years, revenue has increased substantially and last year, growth of digital music services was 7 percent”, says Karsten Dyhrberg Nielsen, CEO of STIM.
There was also robust growth for Swedish public performances (Live) and there is a clear demand for live music experiences. The live market is thriving, and global revenue increased by 100 percent during the period 2008-2018. Total concert revenue in Sweden increased by 70 percent during the period 2007–2017. Nevertheless, one of the challenges is that the strong demand is not currently reflected in the revenue earned by the music creators themselves. Successes in the live market are simply not reaching those who create the music to the extent desired. In 2018, STIM’s revenue for the Live Music category actually fell compared to the year before.
One of the most important issues in the music industry during 2018 has been modernisation of the EU copyright rules. Following much political controversy, the music creators prevailed. The European Copyright Directive states that major digital platforms engaged in the business concept of spreading music and earning money from it, must also sign licensing agreements.
“STIM has put a lot of effort into turning the Directive into a reality. Now, we can create a healthier digital market, where the creators behind the content and the major digital platforms basing their business on it, can grow in sync with each other, with a more constructive balance”, says Karsten Dyhrberg Nielsen, CEO of STIM.
- STIM is a copyright organisation with nearly 90,000 affiliated music creators and music publishers.
- SEK 1.6 billion was paid out in 2018.
- Last year, STIM distributed revenue to nearly 400,000 music creators and publishers throughout the world.
- Revenues licensed by ICE amounted to 430 MSEK.
- STIM’s database (shared with ICE) contains 35 million works and it has been compiled in collaboration with the UK’s PRS for Music and Germany’s GEMA.
- More than 46 MSEK financed STIM’s mission to promote the music, where the aim is sustainable growth and diversity in Swedish music.