annual report 2015 - agicoa · 3 1 the dark side of the moon, luxembourg / germany - iris...
TRANSCRIPT
2A G I C O A A N N U A L R E P O R T 2 0 1 5 2
C O N T E N T S
PRESIDENT’S MESSAGE
FACTS & FIGURES
MANAGEMENT REPORT
AGICOA MEMBERS
AGICOA EXECUTIVE BOARD
AGICOA ALLIANCE
GUEST EDITORIAL
FINANCIAL INFORMATION
AUDITOR’S REPORT
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SHOULD YOU BE INTERESTED TO PROVIDE FILM PICTURES FOR THE AGICOA ANNUAL REPORT NEXT YEAR, KINDLY CONTACT [email protected]
T H E R I G H T S P E O P L E
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1 THE DARK SIDE OF THE MOON, LUXEMBOURG / GERMANY - IRIS PRODUCTIONS - PORT AU PRINCE
2 INTRUZ, POLAND - LAVA FILMS 3 RETRIBUTION (EL DESCONOCIDO), SPAIN - ATRESMEDIA CINE, S.L.U. - VACA FILMS STUDIO, S.L.
4A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
T he underlying market dynamic is the same as
ever – what consumers watch today funds
tomorrow’s content – but the simplicity and effec-
tiveness of this virtuous circle is at risk. New tech-
nological possibilities, business models and corpo-
rate ambitions complicate the relationship between
investment and return for all parties.
Many, especially the smaller, independent
producers who do so much to feed the entertain-
ment supply chain, find it increasingly difficult to
monetize their rights. The legal requirement for
service providers to remunerate each use of work
is increasingly blurred and often outflanked by new
forms of delivery.
But short-term gains can result in long-term
losses. The smartest, most sophisticated delivery sys-
tems are of no value without the continuous refresh-
ment of content. If the interests of audiovisual right-
sholders who invest in its creation are threatened, so
is the sustainability of the industry as a whole.
The complexity and lack of clarity we are
experiencing increases the value of the collective
management of rights as an alternative to individual
negotiation with broadcasters or platforms. We are
a vital safety net. This is reflected at AGICOA in the
growing number of producers registering works, and
record levels of royalty collections and distributions.
The AGICOA Board must continuously reas-
sess how best to serve member interests. Some
things are clear. We must listen to those we rep-
resent, and we have a role to play in helping them
understand industry trends and the options avail-
able to them. The first of what will be an on-going
series of reports was presented to the Board in
December, based on market research conducted in
the course of the year.
The Board is also giving careful consideration
to where and how the organization should seek to
extend its mandate to the licensing of new services.
The first step in this direction was taken in 2015
with an agreement negotiated in Ireland in partner-
ship with the BBC which includes TV Everywhere.
Each European market has special character-
istics and it is unlikely that one licensing model will
ever be universally applicable, but AGICOA’s Alli-
ance partnerships enable useful country-by-country
comparisons as industry profiles across Europe take
on new forms and technology converges.
The general direction of the recently
announced review of the European Commission
Satellite and Cable directive – the basis of AGICOA’s
business model – should become evident in the
course of 2016. No immediate change is expected,
but the long-term implications could be profound.
Hopefully, the process will at least result in greater
clarity in the application of the existing directive.
I am pleased to report that the AGICOA orga-
nization is functioning well, keeping costs down,
delivering a high level of service, and continually
seeking member feedback to further improve. On
behalf of the Board and members, I would like to
thank General Manager Tom de Lange and his staff
for their dedication and energetic support in the
course of 2015.
P R E S I D E N T ’ S M E S S A G E
There must be many in our industry, writ large, who would wish to hit the pause button and escape the whirlwind of change for long enough to think-through its implications – and lessen the likelihood of damaging outcomes.
CHRIS MARCICH AGICOA PRESIDENT
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1 A TARDE É SUA, PORTUGAL - CORAL EUROPA
2 EN MAN SOM HETER OVE (A MAN CALLED OVE), SWEDEN - TRE VÄNNER PRODUKTION AB
3 SPARTACUS, NEW ZEALAND - COURTESY OF STARZ MEDIA
4 DEGRASSI: NEXT CLASS, CANADA - EPITOME PICTURES INC., A DHX MEDIA COMPANY
5 BORDER SECURITY, AUSTRALIA - SEVEN NETWORK - CINEFLIX RIGHTS
6 EXCENTRYCY, CZYLI PO SŁONECZNEJ STRONIE ULICY, POLAND - WFDIF
7 COLONIA, LUXEMBOURG / GERMANY - IRIS PRODUCTIONS - MAJESTIC FILMPRODUKTION GMBH
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6A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
IN MILLIONS €
ROYALTIES
€153.6MFor the second consecutive
year, distribution of royalties
set a new record.
COUNTRIES
37Unique collection and distribution
network across major markets.
RIGHTSHOLDERS
16,702The numbers of rightsholders
taking advantage of AGICOA’s
services increased by 6%.
DECLARED WORKS
1,566,000Total number of declared works
more than doubled in a decade
of continuous growth.
AGICOA FEES
5 %The service fee deducted from royalties
put into distribution in 2015 was 5%.
F A C T S & F I G U R E S
IN THOUSANDS OF WORKS IN PERCENTAGE
60 6,000 600
30 3,000 300
20 6
10 3
0 0 0 0 0
120 12,000 1,200
90 9,000
15,000 1,500
900
30
40150
9
12
2015200420152000201520002015200020152000
7
1 GAME OF DEATH, ENGLAND - FORTUNE STAR MEDIA LIMITED
2 HE OVAT PAENNEET (THEY HAVE ESCAPED), FINLAND - HELSINKI-FILMI OY
3 SALVAGE HUNTERS, UK - CINEFLIX (SALVAGE HUNTERS) LIMITED - DISCOVERY NETWORK (INTERNATIONAL AND UK) - DISCOVERY CHANNEL (CANADA) - HISTORIA (CANADA) - CINEFLIX RIGHTS
4 MAGIC CITY, USA - COURTESY OF STARZ MEDIA
5 JACK, AUSTRIA - EPO-FILM
6 COPPERS, BELGIUM - MENUET
8A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
M A N A G E M E N T R E P O R T
Sharing Success
The belief that there is strength in numbers was validated by another excellent operating performance. Despite turbulent, transformational change in the broadcast industry, rightsholder royalty collections and distributions from the licensing of content for cable and satellite retransmission continued to grow.
T his was partly the result of new licensing agree-
ments and the legal resolution of conflicts
in a number of markets, but also reflected steady
growth in demand for audiovisual content across
Europe, and significant additions to the portfolio of
rightsholder works under management by AGICOA.
In the course of 2015, the number of right-
sholders taking advantage of its services increased
by 6% to over 16,700, and the total of audiovisual
works declared reached 1.6 million, having more
than doubled in a decade of continuous growth.
For the second consecutive year, distribution
of royalties set a new record. Total funds put into
distribution climbed to €153.6m – an increase of
€12.3m on 2014. The extraordinarily low 5% ser-
vice fee charged on 2015 distributions was made
possible by a one-off allocation of fee income from
exceptional collections in previous years. It reverts
to a normal rate of 8.75% for 2016.
The activities of AGICOA Geneva were well
within budget at year end, with good progress on
many fronts, including on-going upgrades with
minimum disruption to the organization’s day-to-
day operation. The state-of-the-art platform due for
completion in 2016 will ensure efficient manage-
ment of rightsholders’ interests well into the future.
The results of a pilot process launched in
July to encourage direct, voluntary resolution of
conflicts between rightsholders are promising. It
enabled rapid closure of a number of outstanding
cases, freeing €1.3m for distribution by year end. In
addition, AGICOA launched around 700 legal and
formal conflict resolution procedures of which 170
were resolved in the course of 2015, releasing a fur-
ther €1.5m in blocked revenue.
Overall, while there are significant chal-
lenges ahead in 2016 and beyond, the organization
and its rightsholders can look back on a positive,
productive and encouraging year.
Royalty collections in 2015 totalled €136m – an increase of 8% on the previous year.
9A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
Final distributionFirst distribution Exceptional catchup
IN MILLIONS €ROYALTIES DISTRIBUTION
2002
60.3
50.3
10.0
2005
97.1
78.7
18.4
2006
100.6
86.7
13.9
2008
115.8
94.8
21.0
2009
123.7
113.7
10.0
2010
130.8
116.7
14.2
2011
132.2
121.1
11.1
2012
139.7
128.0
11.7
2013
118.6
106.9
11.7
2000
38.0
34.3
3.7
2007
92.9
89.8
3.2
2004
86.8
79.8
7.1
2001
56.9
45.0
11.9
2014
141.3
127.2
14.1
2015
153.6
133.8
19.8
2003
122.2
71.0
14.1
37.1
1 0A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
AGICOA MANDATES
AUSTRALIA 2014
AUSTRIA 2009
BELGIUM 2014
CANADA 2013
DENMARK 2013
FINLAND 2014
GERMANY 2014
IRELAND 2014
ISRAEL 2006-2014
LUXEMBOURG 2014
NORWAY 2013
POLAND 2014
PORTUGAL 2014
SPAIN 2014
SWEDEN 2014
SWITZERLAND 2013
THE NETHERLANDS 2014
AD-HOC MANDATES
HUNGARY (EDUCATIONAL COPY) 2010-2013
FINLAND (EDUCATIONAL COPY) 2013
NORWAY (EDUCATIONAL COPY) 2012
SLOVAKIA (GUILDS) 2013
POLAND (GUILDS) 2013
UNITED KINGDOM (EDUCATIONAL COPY) 2014
AGICOA MANDATES
BELGIUM 2011
CANADA 2009-2011
DENMARK 2009
FINLAND 2011
IRELAND 2009
LUXEMBOURG 2011
NORWAY 2011
POLAND 2006-2011
SWEDEN 2011
SWITZERLAND 2007
THE NETHERLANDS 2011
AD-HOC MANDATES
FINLAND (EDUCATIONAL COPY) 2009-2010
HUNGARY (EDUCATIONAL COPY) 2010-2011
NORWAY (EDUCATIONAL COPY) 2003-2009
POLAND (GUILDS) 2012
SLOVAKIA (GUILDS) 2012
UNITED KINGDOM (EDUCATIONAL COPY) 2011
FIRST DISTRIBUTION FINAL DISTRIBUTION
1 1
1 ARMI ELÄÄ! (ARMI ALIVE!), FINLAND - BUFO OY
2 AGORA NÒS, PORTUGAL - CORAL EUROPA
3 FC DE KAMPIOENEN 2 : JUBILEE GENERAL, BELGIUM - SKYLINE
4 KARBALA, POLAND - WFDIF
5 HENKESI EDESTÄ (ABSOLUTION), FINLAND - VERTIGO PRODUCTIONS OY
1 2A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
T he good news for rightsholders is that demand
for programming is growing exponentially.
However, new forms of content delivery and the
influence of new commercial interests have created
many complex licensing issues that AGICOA is com-
mitted to help resolve on their behalf.
The popularity and rapid development of
new services such as Start-from-the-Beginning,
Catch-up TV, TV Everywhere, and Network Per-
sonal Video Recording (NPVR) reflects an industry-
wide struggle for competitive advantage and feeds
consumer demand for increasingly flexible access to
programming from TV service providers. At another
level, fast-growing Over-the-Top (OTT) internet-
based services such as Netflix, Apple TV, Amazon
and YouTube offer alternative routes to market.
To what extent will traditional television
viewing give way to consumer preference for time-
shifted services? To what extent will some channels
and platforms that have contributed royalty income
to-date become less relevant? These, at least, are
‘known unknowns’. What ‘unknown unknowns’ lie
ahead is anyone’s guess.
One thing is increasingly clear, however:
technological progress has left the existing regu-
latory framework for licensing audiovisual proper-
ties far behind. The result is that many indepen-
dent producers face a steep climb to secure their
fair share of revenue in the new world of multiple
viewing options.
Until now, AGICOA’s royalty collections
have been based on the negotiation of traditional
retransmission rights with TV providers. Increas-
ingly, these providers seek to include new services
in the renewal of licensing agreements and to clear
the relevant rights collectively through AGICOA.
Meanwhile, a growing number of rightshold-
ers have expressed interest in voluntary collective
licensing those new services. While AGICOA fully
respects their individual preferences in managing
use of their work, it recognizes, as many of them
do, the potential value of a collective approach.
With this in mind, AGICOA commissioned a
survey of market developments and their impact on
viewing habits in eight European countries in 2015.
The strategic importance of exploring industry
horizons and being well prepared to argue the case
of rightsholders when TV service providers seek to
negotiate broader licensing agreements is obvious.
Market intelligence has a key part to play in this.
AGICOA’s research together with other
studies, such as those published by Ericsson 1 and
PWC 2 in 2015, and input from its Alliance part-
ners has helped build a country-by-country picture
of market developments and likely next steps.
The headline findings show that Catch-up and
TV Everywhere services are standard offers, and
access to NPVR is growing fast and will be stan-
dard in the near future.
The outlook and relevant insights from these
investigations were summarized in a report to the
General Assembly in December. Further research is
planned to enable annual updates.
The negotiation of a new licensing agree-
ment in Ireland was another notable development
as it extended AGICOA’s collection mandate to
TV Everywhere services that enables subscribers
to view their TV package on mobile devices. This
agreement is the first to include one of the new
services, and was negotiated in partnership with
the BBC. Similar joint action by producers with
major broadcasters could be a productive approach
to licensing new services elsewhere.
Industry Environment
US politician Donald Rumsfeld famously made the distinction between: “known unknowns – things we know we don’t know” and “unknown unknowns – things we don’t know we don’t know”. That fairly describes the broadcast industry today. Technology-driven changes gained momentum over the last decade and are now an unstoppable force transforming both business models and consumer viewing habits. There is no end in sight to this remarkable revolution.
FOOT NOTE
1 HTTP://WWW.ERICSSON.COM/RES/DOCS/2015/CONSUMERLAB/ERICSSON-CONSUMERLAB-TV-MEDIA-2015.PDF
2 HTTP://WWW.PWC.COM/GX/EN/INDUSTRIES/ENTERTAINMENT-MEDIA/OUTLOOK.HTML
1 3
1 LONDON HAS FALLEN, ENGLAND - LHF PRODUCTIONS, INC
2 LIBERDADE, PORTUGAL - VENDE-SEFILMES
3 CORAÇÃO D´OURO, PORTUGAL - SP TELEVISÃO S.A.6 BURNING SOULS, ECLYPSE FILMPARTNER (AUSTRIA), FILM-LINE
PRODUCTIONS (GERMANY) AND ZDF (GERMANY)
4 TRAITOR, CANADA AND MOROCCO - COURTESY OF STARZ MEDIA
5 CÓRKI DANCING, POLAND - WFDIF
1 4A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
Regulatory developments
The most significant regulatory development in 2015 was the European Commission’s decision to re-evaluate the effectiveness of the Cable and Satellite directive that has applied in EU markets since 1993.
T he agenda of the review raises two issues of
particular importance. The first is the concept
of licensing content in the appropriate "country of
origin" and allowing the licensee to sell-on rights
to other markets, increasing broadcaster control of
international licensing. The second is the extension
of collective rights management to online services
provided by broadcasters directly or by third parties
such as cable companies.
AGICOA submitted views on behalf of mem-
bers to the consultation process begun in 2015.
Most producers firmly reject the loss of territorial
rights because of the clear risk to revenue streams
that centralized licensing implies. Many are open to
the extension of collective management mandates,
however, if it is done on a voluntary basis.
AGICOA Alliance partners, national producer
organizations, broadcasters and TV service pro-
viders were among many others to lodge submis-
sions. Observers expect publication of an impact
assessment report which takes industry inputs into
account in the course of 2016.
While there could be longer-term risks for
audiovisual rightsholders and for collective man-
agement principles, significant change is unlikely in
the immediate future, and the review process might
even be advantageous in clarifying application of
the existing directive and reducing inconsistencies
between national jurisdictions.
Progress was also made in the course of
2015 towards implementation of the new EU Direc-
tive on collective management of copyright and
related rights which aims to ensure best practice
among collective management organizations in
terms of governance, financial management, trans-
parency and reporting.
EU member states must incorporate the pro-
visions of this Directive into national law by April
2016. Although AGICOA is based in Switzerland
and not bound to observe EU legislation, it intends
to meet the new regulatory requirements.
In the context of the EU Digital single market
strategy, the Commission will also consider whether
solutions at EU level are required to increase legal
certainty, transparency and balance in the system
that governs the remuneration of authors and per-
formers. In parallel, Belgium and the Netherlands
have already implemented national laws to provide
unwaivable and unassignable rights in favour of
authors and performers.
AGICOA is closely monitoring these develop-
ments which could pose risks for producers as they
could impact the scope, validity and ultimately the
value of producers’ own ability to license retrans-
mission of work.
1 5
1 EIGHT CATALAN SURNAMES (8 APELLIDOS CATALANES), SPAIN - TELECINCO CINEMA, S.A. - LAZONA FILMS, S.L.
2 BABY(A)LONE, LUXEMBOURG / BELGIUM - IRIS PRODUCTIONS - IRIS FILMS,
3 DISAPPEARED IN WINTER, LUXEMBOURG / FRANCE / BELGIUM - IRIS PRODUCTIONS - HUGO FILMS - IRIS FILMS
6 ZIARNO PRAWDY, POLAND - STUDIO REWERS
7 TRUMAN, SPAIN & ARGENTINA - BD CINE, S.R.L. - IMPOSIBLE FILMS, S.L. - TRUMANFILM, A.I.E.
4 LAST CHANCE HARVEY, UK - COURTESY OF STARZ MEDIA
5 LEE & CINDY C. , BELGIUM - EYEWORKS NV
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Value proposition
Conclusion
I t has built an industry reputation for reliable, effi-
cient collective rights management over a 30-year
period. It offers rightsholders a single point of con-
tact to declare audiovisual works and continuously
track their use on major TV channels in countries
where it operates. There are no entry costs: regis-
tration of content is the sole requirement.
AGICOA is also a source of valuable nego-
tiating experience and market insight at a time of
fast-moving innovation and change in the broad-
cast industry. It is an influential voice on behalf of
rightsholders and facilitates valuable information
sharing on business and regulatory developments.
Use of its international database brings
important economies of scale to a range of collec-
tive management services. These are delivered in
conjunction with AGICOA Alliance partners, a well-
established network with close connections to local
content producers and operators in key markets.
Agreed international standards ensure equal
treatment of all content owners and the timely,
transparent remuneration of royalty payments for
use of their works.
I t is clear from market research and from the
considerable investments that broadcasters are
making in social media and other forms of market-
ing that linear broadcasting remains the prime TV
viewing option, and the basis for additional services
that are now widely available and market standard.
This broader industry agenda – the sharp
increase in regional, national and local channel
access, new ways of distributing TV packages, and
the proliferation of viewing options – is attractive
and exciting for consumers. But it is harder than
ever for rightsholders to track use of their work and
be properly remunerated, which makes the AGICOA
collective management model additionally relevant.
AGICOA is committed to serving rightsholder
interests in ways that will deliver the best possible
financial returns on use of their works. The man-
agement team thanks them for their trust, takes
pleasure in reporting excellent results for 2015, and
looks forward to further shared success in 2016 and
beyond.
TOM DE LANGE GENERAL MANAGERCARLA DECHAMBOUX, JEAN-DANIEL GIROD, STÉPHANIE GUFFROY-DROUX, TOM DE LANGE, ANNIKA ANDRIVET, SALVATORE SILVESTRI, VERA CASTANHEIRA
AGICOA is uniquely placed to deliver value to both audiovisual rightsholders and content distributors.
Although there were as many open questions about the industry future at the end of 2015 as there were in the beginning, it was by any measure a successful and encouraging year for AGICOA and the worldwide body of audiovisual rightsholders it represents.
1 7
1 SOMOS PORTUGAL, PORTUGAL - CORAL EUROPA
2 PRODUÇÕES CLANDESTINAS, PORTUGAL – PRODUÇÕES CLANDESTINAS, LDA
3 SOL DE INVERNO, PORTUGAL - SP TELEVISÃO S.A.
4 ÄIDIN TOIVE (MOTHER’S WISH), FINLAND - OKTOBER OY
5 MAR SALGADO, PORTUGAL - SP TELEVISÃO S.A 6 LOUDER THAN BOMBS, NORWAY - MOTLYS - NIMBUSFILM - MEMENTO
1 8A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
A G I C O A M E M B E R S
A GICOA’s members are associations of
audiovisual producers or distributors,
audiovisual producer collective rights man-
agement organizations, rights agents and
other film and television rightsholders from
all over the world.
AGICOA’s members define the asso-
ciation’s role through their presence in and
contributions to its supreme decision making
body, AGICOA’s General Assembly.
The members, through the General
Assembly, define AGICOA’s purpose in its
by-laws and fundamental rules of royalty
distribution. They approve the annual oper-
ating budget and the AGICOA fee. They
give discharge to AGICOA’s Executive Board
and Management and elect and dismiss the
auditors. They proclaim the exclusion and
suspension of a member and also decide on
the association’s dissolution.
The purpose of the association AGICOA is to defend, through collective rights management, the interests of its members.
SOUTH AMERICA
ARGENTINA › CAPIT
NORTH AMERICA
CANADA› CRCUSA› APTPA-PBS› IFTA› MPA
1 9A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
AFRICA
UGANDA› UFMI
ASIA
CHINA › CFCAINDIA › THE FILM & TELEVISION PRODUCERS GUILD OF INDIA LTDRUSSIA› PRODUCERS’ GUILD OF RUSSIATURKEY› SE-YAP
EUROPE
AUSTRIA › VAMBELGIUM › BAVP› COMEDIABULGARIA› FILMAUTORDENMARK› CABENGLAND› COMPACT MEDIA GROUP› EMI MUSIC PUBLISHING LIMITED› PACTFINLAND› COFFPA› TUOTOS FRANCE› FIAD› FIAPFGERMANY› GWFF› VDF› VGFGREECE› SAPOEICELAND› SIKIRELAND› SCREEN PRODUCERS IRELAND
ITALY› ANICALUXEMBOURG › ALGOA› SAMSA FILM SARLNORWAY› AGICOA NORGEPOLAND› ZAPAPORTUGAL› GEDIPESERBIA› FILM CENTER SERBIASLOVAK REPUBLIC› SAPASPAIN› EGEDA› IBAIA› PAC› UPCTSWEDEN› FRFSWITZERLAND› SUISSIMAGETHE NETHERLANDS› FINTAGE HOUSE› SEKAMUKRAINE› APU
OCEANIA
AUSTRALIA› SCREENRIGHTS
2 0
1 ZIARNO PRAWDY, POLAND - STUDIO REWERS
2 CÓRKI DANCING, POLAND - WFDIF
3 BONDI RESCUE, AUSTRALIA - CORDELL JIGSAW PRODUCTIONS
4 FOOD & SHELTER (TECHO Y COMIDA), SPAIN - DIVERSA AUDIOVISUAL, S.L.
5 ACHTER DE WOLKEN, BELGIUM - EYEWORKS NV
6 PODEROSAS, PORTUGAL - SP TELEVISÃO S.A.
2 1A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
1 SYLWIA BIADUN 2 DAVID JOHNSON 3 JANE HYNDMAN 4 SAN FU MALTHA 5 MAX RUMNEY 6 NIELS TEVES 7 SUSAN CLEARY 8 JOSÉ ANTONIO SUAREZ 9 JANE SAUNDERS 10 GERTRAUDE MÜLLER-ERNSTBERGER 11 RYSZARD KIREJCZYK 12 MICHAEL BRODIE 13 NICOLE LA BOUVERIE 14 CHRIS MARCICH 15 RONALD FROHNE 16 JOHN M. JACOBSEN
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CHRIS MARCICH 14USA | PRESIDENTPresident, International of Motion Picture Associa-tion (MPA), European office, Brussels.
RONALD FROHNE 15GERMANY | VICE-PRESIDENTSUBSTITUTE: GERTRAUDE MÜLLER-ERNSTBERGER 10
Attorney and CPA. Head of New York Office of international Law Firm Noerr LLP. Managing Direc-tor of GWFF (collecting society for private copy) and AGICOA Germany. Board member of various German and international companies.
NICOLE LA BOUVERIE 13BELGIUM | VICE-PRESIDENTCEO of BAVP (collecting society for cable), PROCI-BEL (collecting society for private copy), AGICOA Europe Brussels, Zenab consulting. Director of AUVIBEL (collecting society for the private copying of sound and audiovisual works) and of Eurocopya (European organization of collecting societies for private copy), member of the Belgian Centre of Intellectual Property (CEPI), accredited mediator.
MICHAEL BRODIE 12UNITED KINGDOM | TREASURERBachelor of laws, ACA chartered accountant, UK former Universal Pictures executive.
MIGUEL ANGEL BENZAL MEDINA *SPAIN
SUBSTITUTE: JOSÉ ANTONIO SUAREZ 8
CEO EGEDA, Spain (Audiovisual Producers Rights Management Association) since 1992. At the same time, is CEO of Audiovisual SGR, a mutual guaran-tee society in which EGEDA is a protector member.
BÖRJE HANSSON *SWEDEN | OBSERVERSUBSTITUTE: JOHANNES KLINGSPORN *
Film producer, managing director of Bright Pictures. Earlier head of production at Svensk Filmindustri (SF) and Swedish film company Filmlance that pro-duced among others the famous Swedish criminal series “Beck”. Representative of FIAPF.
JOHN M. JACOBSEN 16NORWAY
Producer and head of Filmkameratene AS, one of the leading Norwegian film and television compa-nies. Their productions include the Oscar nominated “Pathfinder”, the international Emmy nominated animated series “Elias, the little rescue boat” and the recently acclaimed “Max Manus” and “Troll-hunter”. Their TV-series “The Heavy Water War” which premiered in January 2015 is the most seen drama in Norwegian television history.
DAVID JOHNSON 2UNITED KINGDOM
SUBSTITUTE: JANE HYNDMAN 3
CEO of Compact Media Group since 2014, David has worked in media for over 20 years in a variety of senior management, commercial and financial roles. His involvement with Compact as a former client goes back to 2001, when he was at Granada International. He is a FCA qualified Chartered Accountant. He has worked in international distri-bution and licensing, broadcast, new media and production for companies including the BBC and ITV. Most recently he was MD of an independent sports production company. He has extensive expe-rience in negotiating large scale deals for produc-tions, co-productions and international sales.
RYSZARD KIREJCZYK 11POLAND
SUBSTITUTE: SYLWIA BIADUN 1
CEO of ZAPA (Union of Audiovisual Authors and Producers - a collecting society within Polish Film-makers Association). Former film producer and former Director of Gdynia Film Festival and Debut Film Festival - the biggest Polish film events.
SAN FU MALTHA 4THE NETHERLANDS
SUBSTITUTE: DICK VAN DER GRAAF *
Dutch film producer. San Fu Maltha found the pro-duction company Fu Works in 1995 and the company has grown into one of the most leading feature film production companies of the Netherlands. Fu Works is an independent and internationally oriented pro-duction company that produces feature films, docu-mentaries and TV series. Representative of SEKAM.
JEAN PREWITT *USA
SUBSTITUTE: SUSAN CLEARY 7
President/CEO of the Independent Film & Television Alliance (IFTA).
MAX RUMNEY 5UNITED KINGDOM
SUBSTITUTE: VALERIE SMITH *
Deputy CEO and Director of Business Affairs for PACT (Producers Alliance for Cinema and Television in the UK). Solicitor in England and Wales. Negoti-ates terms of trade between Producers and Broad-casters as well as Collective Agreements between Producers and Talent/Authors/Labour Unions.
JANE SAUNDERS 9USA
Senior Vice President, Worldwide Rights Man-agement, Motion Picture Association of America (MPAA).
NIELS TEVES 6THE NETHERLANDS
SUBSTITUTE: MARCEL HOOGENBERK *
Co-owner/CEO of Fintage House, a privately owned global Music, Film & TV Rights company headquar-tered in The Netherlands with offices in the UK and Hungary and global consultants in 14 countries. Over the years, Niels has cultivated and built a fully inte-grated business model connecting all sectors of the entertainment industry. He has created unique ser-vice lines within Fintage as well as securing strategic investments and business developments in cutting edge technology and complete digital eco-systems.
2 0 1 5 A G I C O A E X E C U T I V E B O A R D
*MISSING FROM THE PICTURE
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1 ONNELIN JA ANNELIN TALVI (ONNELI’S AND ANNELI’S WINTER), FINLAND - ZODIAK FINLAND OY
2 INGREDIENTE SECRETO, PORTUGAL - VENDE-SEFILMES
3 À BOLEIA DA FILIPA, PORTUGAL - SP TELEVISÃO S.A.
4 SUNSET SONG, LUXEMBOURG / UNITED KINGDOM - IRIS PRODUCTIONS - HURRICANE FILMS – SELLOUTPICTURES
5 T., BELGIUM - SKYLINE - DEMENSEN
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2 4A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
AGICOA and its partners organizations
A lliance partners accommodate different
national legal requirements but embody
common practices to manage rightsholders’ inter-
ests in a consistent, cost efficient way. The single
declaration of an audiovisual work enables the
collection of royalties wherever collective manage-
ment operates.
Alliance partners have deep knowledge of
their own broadcast markets. Aggregation of the
interests of international rightsholders adds consid-
erable weight to the collective licensing agreements
they negotiate with national and local operators.
Equal treatment of all rightsholders, irrespective of
size and nationality, is guaranteed.
The AGICOA Alliance is a unique partnership that enables the efficient international collection and distribution of royalties for the retransmission of audiovisual works.
A G I C O A A L L I A N C E
BELGIUM› AGICOA EUROPE BRUSSELSFINLAND› TUOTOS FRANCE› ANGOA GERMANY› AGICOA GMBH
LUXEMBOURG› AGICOA EUROPE› ALGOANORWAY› AGICOA NORWAY POLAND› ZAPA PORTUGAL› GEDIPE
SPAIN› EGEDA SWEDEN› FRFSWITZERLAND› AGICOA
2 5A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
People in Geneva
O f these, 34 worked at AGICOA in Geneva in 2015. Right-
sholder Relations managed client portfolios. Distribution
and Identification tracked use of work and organized distri-
butions. Legal and Licensing negotiated new license agree-
ments, renewed and extended existing contracts. Finance
and Administration managed the collection and distribution
of funds. Information Systems was responsible for the quality
and performance of the information systems that support our
operations, and Information Technology and Security ensured
the protection and failsafe back-up of rightsholders data.
Almost 90 people located in 11 countries are involved in the management of rightsholder interests by the AGICOA Alliance.
THE AGICOA TEAM IN GENEVA
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1 FOOD FACTORY, CANADA - CINEFLIX (FOOD FACTORY) INC - SHAW MEDIA - CINEFLIX RIGHTS
2 SUNSET SONG, LUXEMBOURG / UNITED KINGDOM - IRIS PRODUCTIONS - HURRICANE FILMS – SELLOUTPICTURES
3 JUNTOS FAZEMOSE FESTA, PORTUGAL - CORAL EUROPA
4 EN UNDERBAR JÄVLA JUL, SWEDEN - SWEETWATER PRODUCTION AB
5 CAFE DERBY, BELGIUM - MENUET
6 SPITSBROERS, BELGIUM - DEMENSEN
7 ZOO TALES, AUSTRALIA - SEVEN NETWORK - CINEFLIX RIGHTS
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2 7A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E 2 7A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
A fter years of debate, a new collective licens-
ing agreement concluded in Finland in July
2015 will significantly increase rightsholder revenue
streams through the inclusion of Network Personal
Video Recording (NPVR) services.
The Finnish market is particular in a number
of respects. Consumers have traditionally had free
access to high quality programming on public
broadcasting and commercial channels and are
reluctant to pay for content. Services such as Net-
flix have been notably less successful than in other
Scandinavian countries.
NPVR services, launched about 10 years ago,
proved popular and were also free to consumers.
They were not covered by any licensing agreement,
and there was no remuneration to rightsholders for
re-use of work. Licensing discussions between the
major operators and producers initiated by TUOTOS
in 2009 were unproductive.
Gradually, however, Finnish rightsholders got
together to increase pressure on the major opera-
tors to reopen the issue and reach an agreement. A
successful court action against one platform made
it very clear that positioning NPVR services as pri-
vate copying was not a sustainable proposition.
The parties regrouped for further discussions
in a more accommodating frame of mind, and the
eventual outcome was an amendment to the Finn-
ish regulatory framework to enable collective licens-
ing of this category of secondary use of content.
The Scandinavian model of Extended Collec-
tive Licensing (ECL) helped considerably in reaching
a satisfactory conclusion. This mandates collective
societies to negotiate on behalf of all rightshold-
ers in the categories they represent. In effect, it
assumes consensus and dissenting rightsholders
can opt out of any subsequent agreements.
Stakeholder reaction has been overwhelm-
ingly positive. The new agreement will directly ben-
efit national and foreign rightsholders, and provides
operators with a straightforward, one-stop solution
to managing their licensing obligations.
Collections have begun and TUOTOS will
make a first distribution in 2016. Current projections
suggest that NPVR royalties will increase the annual
amount in distribution from €600,000 for cable and
educational copying to around €2.5m in all. We use
AGICOA systems and its IRRIS database to facilitate
local collection and distribution in parallel with AGI-
COA’s management of international rights.
In the case of NPVR, TUOTOS was able to
broker a specific solution to a very specific problem.
But it is also a useful start to broader resolution of
the kinds of licensing issues raised by technology
developments and new operator business models.
We will see how things work out, but can foresee-
ably draw on this experience to look into other new
forms of content use where it is difficult to negoti-
ate individual licenses.
G U E S T E D I T O R I A L
Positive Outcome
TUOTOS was founded in 1998 to represent and collectively manage producers’ rights to royalties for retransmission and educational copying of audio visual works in Finland. It represents 220 national film and TV producers, and has also worked closely in partnership with AGICOA since 2004 on the collective management of international rightsholder interests.
KIRSI COLLIANDER
EXECUTIVE DIRECTOR TUOTOS
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2 8A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
Financial Statements of AGICOA (CHF)
Summary balance sheet 2015 2014
Assets
Current Assets
Cash and term-deposits 13,124 34,784
Receivables from the fiduciary funds 476,484 621,711
Other receivables and prepaid expenses 658,678 796,389
1,148,286 1,452,884
Non-Current Assets
Deposits and guarantees 54,516 44,399
Investments in affiliates 99,828 99,828
Other receivables 71,295 71,295
Receivables ISAN International Agency 2,544,265 2,562,265
Tangible fixed assets 95,902 144,652
2,865,806 2,922,439
Total Assets 4,014,092 4,375,323
Liabilities
Current Liabilities
Accounts payable 677,043 840,730
Accounts payable related to affiliates 19,083 16,760
Accruals/provisions 193,464 382,035
Other short term liabilities 580,237 573,533
1,469,827 1,813,058
Non-Current Liabilities
Provision ISAN International Agency 2,544,265 2,562,265
Equity 0 0
2,544,265 2,562,265
Total Liabilities and Equity 4,014,092 4,375,323
Summary statement of income 2015 2014
Operating Expenses
Salaries and social charges 4,472,779 4,575,002
Professional fees and administrative expenses 1,692,444 1,950,360
Depreciation 52,948 96,977
Costs incurred by partner organizations 4,060,276 4,638,312
Modernization of information systems 510,272 491,100
Special projects 53,399 50,000
Total Operating Expenses 10,842,118 11,801,751
Financial (Income)/Expenses
Interest and bank charges, net 5,630 6,876
Exchange (gains)/losses, net 52,838 (144,528)
Total Financial (Income)/Expenses 58,468 (137,652)
Miscellaneous (Income)/Expenses
External services (309,708) (331,733)
Rent office space (130,934) (123,823)
Other income (89,256) (29,614)
Exceptional (income)/charges 13,912 0
Total Miscellaneous Income (515,986) (485,170)
Total Net Expenses before Taxes 10,384,600 11,178,929
Direct Taxes 100,000 71,051
Total Net Expenses 10,484,600 11,249,980
Funding of Net Expenses
Operational budget 11,973,531 11,295,373
Allocation from fiduciary provision 510,272 491,100
Operational budget (surplus)/deficit (1,999,203) (536,493)
Total Funding of Net Expenses 10,484,600 11,249,980
F I N A N C I A L I N F O R M A T I O N
FIGURES FOR THE YEAR ENDED DECEMBER 31
2 9A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
Fiduciary Funds Managed by AGICOA (EURO)
Summary fiduciary funds balance sheet 2015 2014
Current Fiduciary Assets
Cash and term-deposits 189,132,260 179,111,365
Other assets 1,306,460 639,637
190,438,720 179,751,002
Non-Current Fiduciary Assets
Investment property 5,183,250 5,183,250
5,183,250 5,183,250
Total Fiduciary Assets 195,621,970 184,934,252
Fiduciary Liabilities, Reserves and Provisions
Short-Term Fiduciary Liabilities
Payable to rightsholders 5,700,325 4,177,646
AGICOA current account payable 440,126 516,921
Payables of national partner organizations 111,941 525,448
Fiduciary funds put into distribution pending allocation to rightsholders
79,533,078 72,538,785
Fiduciary funds to be put into distribution 85,988,803 86,126,269
171,774,273 163,885,069
Fiduciary Reserves and Provisions 23,847,697 21,049,183
Total Fiduciary Liabilities, Reserves and Provisions 195,621,970 184,934,252
Summary fiduciary funds statement of income 2015 2014
Revenues
Royalties earned 111,195,238 102,538,195
Financial and other revenues 485,813 691,952
Total Revenues 111,681,051 103,230,147
Distributions and other Charges
Fiduciary funds put into distribution (104,968,992) (92,789,047)
AGICOA fees (7,765,879) (7,507,018)
Bank charges (12,909) (19,817)
Foreign currency translation adjustment 2,389,564 462,336
Total Distributions and other Charges (110,358,216) (99,853,546)
Net Surplus prior to Allocations 1,322,835 3,376,601
Total Allocations (1,322,835) (3,376,601)
Net Surplus after Allocations 0 0
The fiduciary funds financial statements exclude the fiduciary funds managed by AGICOA
Urheberrechtsschutz GmbH (Germany), ANGOA (France) and EGEDA (Spain).
3 0A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
Fiduciary Funds Split AGICOA & Partner Organizations (EURO)
Summary fiduciary funds balance sheet 2015 2015 2015
AGICOA Alliance AGICOA Geneva Partner OrganizationsCurrent Fiduciary Assets
Cash and term-deposits 189,132,260 108,355,605 80,776,655
Other assets 1,306,460 330,003 976,457
190,438,720 108,685,608 81,753,112 Non-Current Fiduciary Assets
Investment property 5,183,250 5,183,250 -
5,183,250 5,183,250 -
Total Fiduciary Assets 195,621,970 113,868,858 81,753,112
Fiduciary Liabilities, Reserves and Provisions
Short-Term Fiduciary Liabilities
Payable to rightsholders 5,700,325 4,025,294 1,675,031
AGICOA current account payable/(receivable) 440,126 (628,771) 1,068,897
Payables of national partner organizations 111,941 22,134 89,807
Fiduciary funds put into distribution pending allocation to rightsholders 79,533,078 45,987,314 33,545,764
Fiduciary funds to be put into distribution 85,988,803 46,298,486 39,690,317
171,774,273 95,704,457 76,069,816 Fiduciary Reserves and Provisions 23,847,697 18,164,401 5,683,296 Total Fiduciary Liabilities, Reserves and Provisions 195,621,970 113,868,858 81,753,112
3 1A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
Summary fiduciary funds statement of income 2015 2015 2015
AGICOA Alliance AGICOA Geneva Partner OrganizationsRevenues
Royalties earned 111,195,238 59,992,712 51,202,526
Financial and other revenues 485,813 40,362 445,451
Total Revenues 111,681,051 60,033,074 51,647,977
Distributions and other Charges
Fiduciary funds put into distribution (104,968,992) (55,933,686) (49,035,306)
AGICOA fees (7,765,879) (5,213,814) (2,552,065)
Bank charges (12,909) (10,112) (2,797)
Foreign currency translation adjustment 2,389,564 2,389,564 0
Total Distributions and other Charges (110,358,216) (58,768,048) (51,590,168)
Net Surplus prior to Allocations 1,322,835 1,265,026 57,809
Total Allocations (1,322,835) (1,265,026) (57,809)
Net Surplus after Allocations 0 0 0
3 2A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E
A U D I T O R ’ S R E P O R T
Report of the independent auditor on the summary financial statementsTo the General Meeting of the Members of Association de Gestion Internationale Collective des Œuvres Audiovisuelles (AGICOA), Geneva
The accompanying summary financial statements, which comprise the summary bal-ance sheet as at December 31, 2015, the summary statement of income for the year then ended, and related notes, are derived from the audited financial statements of Associa-tion de Gestion Internationale Collective des Œuvres Audiovisuelles (AGICOA), for the year ended December 31, 2015. We expressed an unmodified audit opinion on those financial statements in our report dated April 22, 2016.
The summary financial statements do not contain all the disclosures required by Swiss law and the association’s By-Laws. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of AGICOA.
Executive Board of the Association’s Responsibility for the Summary Financial Statements The Executive Board of the Association is responsible for the preparation of the sum-mary financial statements in accordance with Swiss law and the Association’s by-laws.
Auditor’s Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Swiss Auditing Stan-dard (SSA) 810, Engagements to Report on Summary Financial Statements.
Opinion In our opinion, the summary financial statements derived from the audited financial statements of AGICOA for the year ended December 31, 2015 are consistent, in all material respects, with those financial statements, in accordance with Swiss law and the Association’s by-laws.
Deloitte SA Geneva, April 22, 2016
AURÉLIE DARRIGADE SENIOR MANAGER
FABIEN BRYOIS PARTNER