15 June 2017 EUR 34 million distributed to Teosto members in June Teosto members receive EUR 34 million in Teosto s June distribution. Our direct members will receive EUR 15 million and our foreign rightsholders EUR 19 million. Our June distribution to direct members consist of EUR 12.4 million in performing rights royalties collected in Finland in 2016. EUR 0.6 million in royalties for the performance of our members works abroad. The June distribution includes foreign distributions paid to Teosto by 31 March 2017 EUR 1.3 million in online and mechanical reproduction royalties collected by NCB. EUR 517,899 in online royalties collected by NMP. As of June 2015, royalties accumulated for works for which no work notification had been submitted. Now included are the royalties for works for which a work notification has been submitted to Teosto by 31 March 2017. Royalties for complaints which Teosto has processed by 19 April 2017. Royalties that were retained in earlier distributions for works involved in disputes related to royalty shares and resolved by 31 March 2017. In connection with the June distribution, we are also paying EUR 195,000 out of the funds for promoting Finnish music as subsidies to authors and publishers of domestic works requiring performance materials ( score-based music ). Payments included in June distribution: Performing rights royalties from Finland EUR Radio 662,373 Television 649,412 Cinema 127,910 Events, live music 4,410,560 Streaming 354,467 Mechanically-reproduced music (Background Music) Private Copying fee, lending 2 016 3,245,860 Total 12 452 598 Performing rights royalties from abroad Radio 196,718 Television 106,900 Cinema 1,692 Events 178,700 Discos 5,717 Private copying fee 826 Lending 28,694 Mechanically-reproduced music (Background Music) 4,145 Streaming 11,180 Other royalties 105,263 Total 639,835 NCB: mechanical reproduction royalties 1,270,140 NMP: Online royalties 517,842 Total 14,880,415
A Teosto fee of 18.6% has been deducted from all royalties collected by Teosto in line with the average fee percentage. An additional 6.7% has been withheld for national funds*. In order to carry out its statutory purpose, Teosto, in customer agreements concluded with its rightsholders, has agreed a maximum deduction of 10% over and above the costs arising as a result of its copyright management activities to be used for the purpose of promoting Finnish music. In addition, Teosto has agreed with international copyright management organisations and other rightsholders that a proportion of the remuneration for the use of copyright collected will be retained for social, cultural or other equivalent purposes. The aforementioned funding sources are referred to as national funds. New distribution area for background music In June, we will be making payments for background music as a separate distribution category for the first time. Until now, all background music distributions have been made under other categories. For background music distribution purposes, we will continue to make use of live music performance reports and calculate distribution on the basis of a number of factors, including the annual music usage survey. All background music royalties will be distributed as a separate distribution category under Background music, Radio or Background music, Live. The performance area indicates the reports used to calculate the distribution. Information on which distribution categories have been used to calculate the performing rights royalties paid by businesses for background music is provided in the Background music table. New distribution category for TV Finland Distributions in respect of the Swedish TV Finland channel will be paid under a separate distribution category from June 2017 onwards. TV Finland broadcasts YLE television programmes. Rectifying royalty distributions paid four times a year We pay out so-called rectifying royalty distributions in connection with all of our quarterly distributions. Rectifying distributions include, among other items, royalties accumulated in earlier distributions for works for which no work notification had been submitted before the original distribution as well as distribution adjustments made on the basis of complaints and resolved disputes. In the June rectifying distribution, Teosto members will be paid a total of EUR 5,526 in respect of complaints and disputes that have now been resolved and EUR 49,903 in respect of works for which no work notification had been submitted. Royalties included in the rectifying distributions can be viewed in the online service distribution statement under the original performance areas. December 2016 royalties from Norway rectified In December 2016, Teosto distributed approximately EUR 72,000 to members in royalties paid by the Norwegian copyright organisation Tono. Following the distribution, it came to our attention that some of the distributions contained errors. In response to this, we are carrying out a rectifying distribution in conjunction with the June royalty distribution. This will affect all members who received foreign royalties from Norway in December 2016. For these members, the June 2017 royalty distribution will show the erroneously applied sums as debits in the rectifying distribution and the correct royalty distributions included as credits. As a result of this, the total amount distributed to you may be smaller, the same or higher than previously, depending on the rectification.
NCB distribution: Online and mechanical reproduction royalties The June royalty distribution will comprise mechanical reproduction royalties licensed, invoiced and processed by NCB on behalf of Teosto. The NCB also comprises online royalties from December 2015 onwards as well as itunes (now known as Apple) sales royalties from April to May 2016. In addition to the standard NCB distribution, the June distribution will also comprise sales royalties in respect of the online distribution category for itunes (now known as Apple) from 2012. We have been unable to allocate these royalties and, as a result, they will be distributed equally between rightsholders who received online royalties for this period. The NCB distribution includes so-called lump sum payments that have not been allocated to any single work. The lump sum payments consist of: Private copying levies from international copyright organisations Royalties from foreign copyright organisations Royalties NCB was unable to allocate to any single works in June 2013. The June NCB distribution is lower as NCB has not yet received all royalties from Gema in Germany. The German organisation is currently subject to an audit by the tax authorities, which has led to the delay. The audit is also expected to cause delays to Gema royalties for the second half of 2016 and Warner and Sony CLA royalties paid by Gema. Due to the audit, NCB has also not received sales royalties from Greece. The UK sales royalties for the second half of 2016 have also been delayed. NCB aims to complete the payment of these royalties by December 2017. NMP: online royalties The invoicing and processing of the international online music services licensed by Teosto is administered by Network of Music Partners (NMP), a joint venture owned by NCB and the UK-based collection society PRS for Music. The following will be distributed to Teosto members in June: Spotify royalties between November 2016 and January 2017 itunes royalties for June 2016 Microsoft box royalties for July to September 2016 The June distribution does not include online royalties for Apple Music and YouTube as these missed the deadline. See our web service for an itemisation of your distribution You can see the details of your distribution in your personal itemisation. NCB s distribution lists are available in PDF format online. The minimum sum paid to rightholders is EUR 25. If the distribution amounts to less than this, no payout will be made to the account of the rightsholder until subsequent distributions bring the total up to EUR 25. The royalties will then be paid at the next distribution. Teosto distributions to VAT-registered publishers are subject to VAT.
Distribution Categories In the list below, you can see which radio or TV channels or other performance contexts each distribution area covers. Information on which reports have been used to calculate the performing rights royalties paid by businesses for background music is provided in the Background music table. Distribution category Performance area Notes RADIO YLE s national radio channels Local YLE stations YLE recordings, recordings Commercial radio stations TELEVISION YLE recordings, AV productions STREAMING EVENTS Live music Concerts Festivals Yle Radio 1, Yle Radio Suomi, Yle, Radio Extrem, Radio Vega, Yle Yöradio, Ylen Klassinen Local YLE radio stations (broadcasts in Finnish, Swedish and Sámi) Includes royalties for Internet radio. Includes royalties for Internet radio. Mechanical reproduction royalties paid by YLE on its own recording production. Separately for each of the following: Radio Includes royalties for Internet radio. Nova, City-radiot (Bauer), Radio Rock, Radio Aalto, Radio Dei, SuomiPOP, NRJ Energy, Iskelmä (Bauer) + partners, Voice, Radio MetroFM, Groove FM, Radio Pori, NRJ Nostalgia, Loop, small commercial stations Yle TV1, Yle TV2, Yle Teema, Yle Fem, MTV3, MTV3 Ava, MTV Juniori, MTV3 Max, Sub, Nelonen, Jim, Liv, 4Prime, TV5, TV7, Kutonen, Fox, Hero, Frii, TV Finland Yle Areena Yle Elävä arkisto Live music, minor events Live music, distribution based on the total amount of royalties collected Live music, distribution based on the number of audience members Mechanically reproduced music, DJ Conservatoires, music institutes, Sibelius Academy, concerts of the Finnish Radio Symphony Orchestra, other concerts organised by YLE, concerts of garrison wind bands, concerts of the Helsinki Philharmonic Orchestra, concerts of the Lahti Philharmonic Orchestra, concerts of Tampere Philharmonic orchestra, concerts of other municipal orchestras, concerts organised by local authorities, concerts organised by parishes, other concerts for which the invoiced performing rights royalties are below EUR 1,200. Pori Jazz, Provinssirock, Ruisrock, Ilosaarirock, Tuska Festival, Flow Festival, Himos Festival (midsummer), Qstock This group includes royalties for pay TV channels and online TV. Mechanical reproduction royalties paid by YLE on its own TV productions and for productions co-produced by YLE with a third-party producer, the broadcasting rights for which are solely held by YLE. Performing rights royalties paid by YLE for the use of music in online services. Incl. music performed in restaurants and onboard ferries. Royalties in respect of ferries are included under small events and events where distribution is based on the total amount of royalties collected.
Distribution category Performance area Notes Major concerts Theatre CINEMA Concerts for which the invoiced performing rights royalties amount to EUR 1,200 or more: distributed on a case-by-case basis according to the royalties invoiced. This group includes royalties for music used in plays. Royalties for music contained in films screened at cinemas. Distributed on a case-by-case basis, according to the box office receipts. MECHANICALLY-REPRODUCED Background music, radio MUSIC (BACKGROUND MUSIC) Background music, live Radio reports used to calculate background music distribution (see table below) Live music and concert reports used to calculate background music distribution (see table below) Background music, radio Background music, live Restaurants mechanically reproduced background music Customer premises Beauty and health care services Taxis Restaurants mechanically reproduced dance music and karaoke Accommodation facilities Jukeboxes Personnel music Buses, coaches and trains Did you find something in the distribution statement that should be corrected? If you find any errors or omissions in your royalty distribution statement, please report them to us by e-mail at huomautukset@teosto.fi no later than31 August 2017. We will process any distribution-related messages in the order of arrival as soon as possible. Please note that the processing of the messages will be slower in the summer holiday season. In your message, please state the following: title of the work date and place of the performance organiser of the event if the work is performed on radio or TV, the name of the channel and the programme. Please remember to send a work notification as soon as a work is completed Remember that we can only pay royalties for works for which we have received a work notification on time. Have a nice summer! Teosto MEMBER SERVICE TEL. 010 808 118 OMATEOSTO@TEOSTO.FI WWW.TEOSTO.FI