Summing up 2023, we find that TONO’s figures for the year are extremely good. Record-high gross revenues totalling almost NOK 1 billion, reflect the fact that good new music was created, that a great many live concerts were staged, that more people are paying to stream music and films, and that music creates value for those who use it in their radio and television broadcasts, shops, restaurants, films and productions.
TONO’s more than 41,000 members, and the millions of music creators worldwide who we represent, can feel confident that we are protecting the rights they have entrusted to us. We are doing our utmost to license their use in a cost-effective way, and to distribute the correct amount to the proper rights holders.
But it is not enough.
Our members’ revenues should have been larger. It remains the case that the streaming market does not adequately reward composers, lyricists and music publishers. This is partly due to the mechanism for dividing revenues between the recording artists and the composers/lyricists, and partly to the way the streaming services’ allocation keys help dilute the revenues in an ocean of music that is uploaded to the platforms. In 2023, well over 100,000 new songs were uploaded every day. To this must be added the immaturity of the licensing models for the new, fast-growing social media platforms, which take little account of copyright in their business models. In the concert market, there are still areas in which the remuneration payable to the composers, lyricists, songwriters and music publishers is unreasonably low compared with the income these rights generate for the concert organisers. Another growing challenge is that copyright-protected music is used to train artificial intelligence (AI) models without consent having been sought or payment made for its use.
There are major challenges ahead and TONO is gearing up to face the future.
In 2023, we made considerable progress in our efforts to prepare and improve. Our internal transformation programme Mjølnir is intended to give everyone, members, customers and employees alike, better tools and data. We are digitalising and automating several work processes to improve our efficiency and gain greater insight. We are also developing our organisation by improving work processes, acquiring new expertise and recruiting new employees with different backgrounds and experience. As a result of important internal changes, TONO was certified as a “Great Place to Work” in 2023.
In the coming years, the legislation relating to copyright in our industry will be challenged and changed. Digitalisation and technology are the major drivers for this, and TONO will keep playing an active role both nationally and internationally in order to help ensure that music rights continue to enjoy the financial and cultural protection they deserve, while enabling technological opportunities to be exploited.
People should have high expectations of TONO.
These changes also challenge TONO’s organisation and the very model on which the collective management of copyright rests. In two key areas, TONO must continue to ensure that it is relevant to and has the confidence of both members and customers. The first area is transparency and communication. The Transparency Report, which we are publishing in connection with the presentation of our 2023 year-end results, is an example of how we wish everyone to have knowledge of and insight into the material aspects of our activities. Our day-to-day communication with members and customers during the year, both through open channels and in meetings, is meant to generate mutual insight and an understanding of the assets we manage.
The second area is how we and our product meet both members and customers In the past year, we have drawn up a new strategy that will take us into the future. TONO will add value for those who create and use music by being easy and efficient to interact with. We will also provide insight and quality that strengthens TONO’s members and customers.
We believe that greater visibility and accessibility will contribute to this. When TONO relocates to its new premises in Kongens gate in Oslo city centre in the coming year, we aim to invite people to a place that inspires and develops us all!
Karl Vestli
CEO
