ANNUAL
REPORT
BRAZILIAN
MUSIC
AND ARTS
ASSOCIATION
Romania, Georgia, India and Serbia. More than 2,300 Brazilian copyright holders were benefited by their songs performed abroad. And more than 20 million were distributed by ABRAMUS to 53 organizations from various countries, as well as the foreign right holders directly represented by ABRAMUS.
In the Digital context, ABRAMUS remained as the protagonist of several workgroups where it has the permanent monitoring of major events in the area and thus maintains the structure updated and the members informed. It participated in studies and discussions about changes and the directions of copyright laws involved in the market of music over the internet. There have been achievements in this area that have significantly increased the collection and distribution of these rights to the copyright holders.
The department of Theater & Dance continues with the purpose of going beyond the collection and distribution of rights and maintains a significant performance, bringing in new authors for membership and seeking the increasingly rapid management of rights arising from the productions of
Dramaturgy. ABRAMUS has had approximately 300 national authors, such as Manuel Bandeira, Cecilia Meireles, Carlos Drummond de Andrade, Luis Fernando Verissimo, Ariano Suassuna, and Nelson Rodrigues, among other renowned authors. There were 248 requests for authorization of assembly, 216 of these were authorized and approximately 210 contracts were signed. This contract work yielded a revenue of R$ 1.5 million.
In visual arts, AUTVIS ended the year with
875 registered members among visual
artists, photographers, sculptors,
illustrators, designers, set designers,
architects and graffiti artists. A new
system is being developed to make the
operation 100% electronic, which, in
addition to making the internal work
faster, will facilitate even more the
processes for the users and the access to
the members. AUTVIS focused on the
development of the Resale Rights, with
the participation at events for
dissemination, like the participation in
the Conference on Resale Rights in WIPO
– World Intellectual Property
Organization – in Brussels and
participation
as lecturer at the
Symposium
on Copyright in
Visual Arts, organized by WIPO's office in Brazil in partnership with the Federal University of Rio Grande do Sul.
In 2017, ABRAMUS strengthened its partnerships and remained engaged with the main organizations and global institutions of Rights so that the work of its registered artists are always respected and addressed not only in Brazil, but in all countries.
The detailed results of the work in 2017 are available on the following pages. We appreciate the confidence you have in our work and we commit ourselves to doing more and better every year. We will continue to fulfill our destination in favor of the copyright holders.
Roberto Mello
General Director
AFFILIATED IN 2017
MEMBERS TOTAL
2017 was the year of many
achievements for ABRAMUS and
collective management in Brazil.
The level of growth in the number
of registered members has
remained in ascension, surpassing
the 2016 numbers by 10%, with
6,571 registrations and ending the
year with a total of 60,526
members. The participation of
ABRAMUS was consolidated in
the center of sertanejo music
(Brazilian country music) with
approximately 90% of the right
holders of this market being
represented by ABRAMUS.
In 2017, the portal for resolution
of duplicates of copyright works
was enabled, which should help
the right holders in the resolution
of conflicts of works and in the
release of credits with more
agility, efficiency and with lower
operating costs. There were also
changes on the relationship portal,
where the statements of analytical
payments began to be made
available so that the right holders can check their
earnings
and financial income. In addition, the
right holder can also search for
unidentified credits, known as
withheld credits.
With the effective participation of
ABRAMUS there have been
achievements in the DIGITAL
universe, and in 2017 it was
possible to reap the benefits of
these victories, which increased
significantly the collection and
distribution of these rights to the
right holders..
In 2017, there was also a significant
growth in the distributions of
related rights in Audiovisual
production. This was due to the
demand of the cinema and
audiovisual producers that have
greater interest for these rights,
which previously they were
unaware of. The producers have
begun to join, significantly
increasing the number of
companies registered with
ABRAMUS. Another important
factor for this demand was the
agreements made by the delinquent cinemas with ECAD, which have to
pay these rights of
use of music in audiovisual
productions. Furthermore, the
constant and existing collection of
open TV and pay TV. Together,
these segments of the audiovisual
market detain 49.5% of copyright
and related rights in Brazil.
At the end of 2017, the associations
of collective management of Brazil
chose to distribute in advance the
prescribed rights of the years 2013,
2014 and 2015, and this meant an
increase of an extra R$188 million
in the distribution of 2017.
For 2018, the expectations are at
least 10% growth, maintaining or
surpassing the same level of
growth of previous years. Internal
campaigns are being developed to
seek new potential copyright
holders and related rights of
audiovisual media.
In 2017, the vanguard and pioneering
spirit of ABRAMUS was demonstrated
again as intrinsic characteristics of the
work that is executed with the
treatment of the different repertoires
represented not only in Brazil, but also
abroad, and that translate the
deserved respect with which its
members are welcomed.
Year after year, ABRAMUS as
precursor, performs the documentary
analysis of the repertoires that are
the determining factor to contemplate
the right holders who participate in
all distributions carried out by the
system of collective management in
Brazil. It is through its compositions
and related repertoires that the artists
make their works known and always
present us with so much diversity
and creativity.
It is worth mentioning that, consistent
and correct documentation provides
ECAD with the rapid distribution of
the values collected for all right holders,
regardless of the category to which
they belong, i.e., it will contemplate
not only authors and interpreters, but
also publishers and sub-publishers,
accompanying musicians, producers
of tracks and the phonographic
producers who, through their work,
receive what is due to them.
The task of documenting repertoires
is a vital function of ABRAMUS, which
demonstrates organizational capacity
to manage and purge the information
received from its members in the
various existing formats.
Registering new repertoires and
keeping old records updated, which
are often negotiated and acquired
by new administrators, is not an easy
task, but with competence and know-how,
data cleansing is a process
conducted daily and that is always in
development, because it requires
constant improvement that will
determine directions and actions that
facilitate the proper administration
of the repertoires.
New challenges, due to the rapidity
with which innovations and changes
inherent to the business, make us
update ideas and create new options
and functions that facilitate the
day-to-day of creators, so they are
concerned only with their new
productions, with their new projects
and focus on their works, because
only then will we have good quality
music and surprising productions.
ABRAMUS continues to be a pioneer
in innovating and documenting
correctly and clearly the repertoires
of all its members.
1.276.736
8.785
831.919
Source of data: ECAD
TABLE
(2010 - 2017)
| YEAR | WORKS | PHONOGRAM | AUDIOVISUAL |
| 2010 | 653.294 | 107.720 | 6.211 |
| 2011 | 814.425 | 328.222 | 10.211 |
| 2012 | 522.409 | 172.191 | 9.641 |
| 2013 | 896.891 | 266.958 | 8.134 |
| 2014 | 877.280 | 1.335.931 | 7.513 |
| 2015 | 921.331 | 1.150.801 | 5.567 |
| 2016 | 1.017.783 | 628.396 | 8.851 |
| 2017 | 1.276.736 | 831.919 | 8.785 |
| TOTAL | 6.980.149 | 4.822.138 | 65.356 |
In 2017, ABRAMUS maintained its
efforts to continue increasing the
collection of values from the public
execution of the national repertoire
abroad, former demand of the right
holders. Investment was made in
training, systems and tools to make
this work even more effective.
In the past seven years, ABRAMUS
received more than
R$20,000,000.00 from abroad.
2017 ended with a total of 81 signed
contracts. The members of
ABRAMUS are represented in more
than 190 territories.
The international department of
related rights of ABRAMUS is
constantly seeking the balance
between the work that is done with
the national repertoire abroad and
the work that is done with the
foreign repertoire in Brazil.
With respect to the work developed
with the foreign repertoire in Brazil,
it is important to emphasize that
ABRAMUS represents not only
companies, but publishers and
foreign authors who have opted to
join directly. The international
copyright department remains
committed to honor the
commitment of caring the best form
of the repertoire of its members.
In 2017, ABRAMUS started
representing through the
international copyright department,
the repertoire of the Chilean SCD
society and also the repertoire of
AMRA, societies then represented
by other associations in Brazil
that elected ABRAMUS as its
representative to take care
of its repertoires.
In 2017, ABRAMUS transferred
abroad the value of
R$14,536,577.89, an amount
larger than the one sent
in 2016.
For 2018, there will be a new
system with new technologies.
ABRAMUS is making all the
necessary adjustments to adapt
to all rules of CISAC and thus
establish greater transparency in
carrying out the work for its
members. Among these tools,
the Portal of Resolution of
Duplicates is highlighted
because it allows the registered
publishers and societies
represented to accompany this
process correctly and in a timely
manner. Another important
tool will be the payment
statement that contains even
more information and details.
service and innovation. Having ABRAMUS as a valued partner in the region allows for SESAC to continue its
objective of increasing royalty income for its music rightsholders.”
SESAC (Society of European Stage Authors & Composers)
that they represent and their openness to client driven solutions that help to unlock value to creators.”
AMRA – (American Music Rights Association)
satisfechos y agradecidos por el trabajo que han realizados nuestros colegas respecto de la gestión del
repertorio de nuestros socios en el territorio de Brasil. Su permanente actitud proactiva se está viendo
reflejada en los buenos resultados que estamos obteniendo para nuestros administrados en ese país.
Lo anterior, sumado a la transparencia y compromiso con el que realizan su gestión en el día a día,
nos permite seguir confiando en el logro de un trabajo colaborativo a largo plazo”.
AMRA – (American Music Rights Association)
2017 was a year of much planning and engagement with various worldwide entities. It was also the year of the VRDB2 (Virtual Repertoire Data Base 2), a powerful tool to standardize the way of working with more than 40 countries in which ABRAMUS holds contracts. Thus, ABRAMUS consolidates itself as the main Brazilian organization of Related Rights in the world and, certainly, the interaction with the international entities like FILAIE, SCAPR, IFPI have been shown to be crucial
The collection of foreign values in 2017 was around R$550,000.00. The main receipts were from the countries of Georgia, Japan and Italy.
R$646,793.47 were distributed
in relation to the values
collected in previous years,
benefiting more than 2,300
Brazilian members. In relation
to foreign music, R$20,200.00
million were distributed to 53
organizations from various
countries, in addition to some
foreign right holders represented
directly by ABRAMUS.
In continuity to the projects
initiated this year, 2018 will
have a lot of work, especially in
relation to the collection
Federacion Ibero-latino Americana de Artistas Intérpretes Y Ejecutantes
www.filaie.comInternational Federation of the Phonographic Industry
www.ifpi.orgSocieties’ Council for the Collective Management of Performers’ Rights
www.scapr.org
Today Brazil flaunts the leadership
in the digital music market in Latin
America and is still not even close
to reaching its maximum potential.
There is still room for growth and
the world is watching the
Brazilian market.
The main digital platforms like
Spotify, Apple Music, Deezer and
Netflix have been conquering more
and more subscribers worldwide
and Brazil is not behind.
Considering the possibility of
growth, the Brazilian market
can still be considered little
exploited, it has been the target of
heavy targeting from the players to
increase the number of paying
subscribers, which in general is
good for everyone.
There are also the national
platforms, such as SuperPlay, which
comes as a national competitor to
giants like Spotify. This is also very
good for the market because the
competition for services and better
platforms is always positive.
In addition to the music services
above, today Brazil is one of the
countries with the highest number of Youtube users and one of the
largest markets for platforms of
Video On Demand (VOD),like
Netflix. These two platforms of
audiovisual and musical content
are licensing the repertoire with
ECAD through agreements signed
in 2017, which occurred after it
was defined in the STJ (Superior
Court of Justice) that there is public
execution in the streaming.
Even with the strong market
growth and with high figures, the
values involved and passed on to
the creators are still low when
compared with the rest of the
public execution. This is just the
beginning and in a short time this
market will be an important source
of revenue in Brazil.
In Global terms, according to the
annual report of CISAC, in 2017,
the revenue from the digital
market represents only 10.4%
of the total, but had a growth of
51.4% in relation to the total
revenue in 2016. The figures are
still low in relation to the potential
that this market has, but they are
promising and demonstrate a
fantastic potential.
The digital environment,
despite not being a new theme,
has generated increasingly more
curiosity from the artistic class.
ABRAMUS monitors the evolution
of this market and has been
developing solutions to help
members who seek support in
this area. It is important that the
creators of music feel secure
during this moment of transition.
The objective of ABRAMUS has
been to instruct and help its
members on this important
business model.
The challenges of this new
market are also constant in the
business of ABRAMUS and due
to this, the Company remains
as a protagonist centerpiece of
several workgroups of CISAC
(International Confederation of
Societies of Authors), like the
Society Publisher Forum (SPF)
and the Business Techninal
Committee (BTC). In these
groups, ABRAMUS performs the
permanent monitoring of the
main events in the digital area
to keep the current structure
updated and the members
always well informed.
WORKS AUTHORIZED IN 2017
216
CONTRACTS SIGNED IN 2017
210
AVERAGE INCOME IN 2017
R$ 1,5MI
In 2017, the country began to
recover from the financial crisis of
the last few years and this fact
cooperated to increase the
national collection of AUTVIS.
This fact, together with an
intense work of awareness on
copyright in visual arts for the
market and the engagement of
the current artists in this cause,
resulted in an increase in the
revenues for the national and
foreign artists represented.
In order to optimize the operation
and prepare us for a future
increase in demand, AUTVIS
began developing a new system,
Organization – in Brussels and
participation as lecturer at
the Symposium on Copyright in
Visual Arts, organized by WIPO's
office in Brazil in partnership with
the Federal University of Rio
Grande do Sul.
For 2018, the goal is to increase
the number of registered artists,
implement the collection of the
Resale Rights in commercial
transactions that occur in Brazil
and make the operation 100%
electronic.
NATIONAL REVENUE IN 2017
R$
INTERNATIONAL REVENUE IN 2017
R$
TOTAL NUMBER OF REGISTERED MEMBERS
875
TOTAL REVENUE IN 2017
R$ 854.757,25
Having as its main objective the
approximation with its audience,
in 2017, ABRAMUS invested even
more in all its means of
communication with greater
focus on digital marketing and
social media.
ABRAMUS created an intense
communication on social
networks, working in partnership
with an agency specialized
month
Music Contacts: 50,000
Theater & Dance Contacts: 10,000
AUTVIS Contacts: 7,000
For 2018, the goal is to increase further the approximation of ABRAMUS with its members through actions of the department of Communication. Tools already used for this purpose, like the social networks, will have more investments and a larger production of its own content and moretargeted actions.
The perspective is
always improving the flow of information and the organizational relationship of ABRAMUS with its members.
2017 was a year of changes and
enhancements in IT at ABRAMUS.
The development of the
technologies to execute the
internal and external procedures
allowed the optimization in the
execution of the work routines
and the processing of registers of
works and phonograms.
The Relationship Portal of
ABRAMUS, an important tool
used by members and
non-members, grew even more,
has developed new functions
and enhancements, giving
continuity to the transparency
policy to the members.
Other important tools were
created during the year:
- Portal of Duplicates;
An online tool for handling
duplicates of copyright registers.
Through the portal the publishers
are able to manage their catalogs
and identify problems with
duplicate registers.
- Integration with VRDB2 (Virtual
Repertoire Data Base 2);
VRDB2 is an international
Project created in cooperation
with SCAPR and 44 other
countries, which aims to improve
the exchange of information of
phonograms between societies
of related rights of the world.
It is a worldwide database of
phonograms, however, it also
covers the identification of
withheld credits and
other purposes.
- Improvement in the payment
of rights collected abroad;
The identification tools of the
system have been enhanced to
improve the payments for copyright and
related rights
collected abroad.
- Improvement in the integration
interfaces with partner entities;
- Improvement of registration
matching routines;
- Redesign of internal tools;
Automation of the remittance of
registration purges to ECAD;
The expectations for 2018 are
to continue improving the
internal and external technologies
for the benefit of the members.
Many projects are in progress or
are being developed to be
completed in 2018, all aiming to
optimize the internal work of
ABRAMUS and the effectiveness
and excellence in the services
provided directly to the members.
TITULARES CONTEMPLADOS
259.000
TOTAL DISTRUBUIDO
PARA TITULARES
CONEXO E AUTORAL
R$
Continuing from 2016, 2017
has maintained a high level
of economic and political
instability, which impacted
virtually all the segments of
Brazilian society. Added to
this, the provisions of the Law
No. 12,853/13, drastically
reducing the administration
fee of ECAD, ensured the
implementation of a strict
policy of cost reduction,
sacrificing the personnel of
the entity and driving the
adoption of transformative
measures of the
operational activities.
However, facing the challenges
of the year with determination,
ECAD, once again, in 2017,
exceeded the targets of
collection and distribution
established by its General
Meeting. This fact is due mainly
to the efforts of the entire team
of the organization. A total
collection of R$1,140,017,647
was recorded, which exceeded
the budget for the year by
R$60,227,630, as well as the goal of the task force
established by the General Meeting.
In relation to the previous year,
the amount collected was
exceeded by R$96,800,866,
totaling an increase of 9.28%.
Regarding the distribution of
values to the copyright holders
and related rights, 2017 showed
very significant numbers. The
total distributed was
R$1,153,473,517, representing
a growth of 46.57% in relation to
the goal established for the year
and an increase of 37.02% in
comparison to 2016.
About 259,000 members were
contemplated, exceeding the
previous year by 17%. The
efforts focused on cost control
eventually generated a final
deficit of R$24,191,962, already
computing the extraordinary
expenses arising from
operational adjustments
implemented during the
financial year.
Many activities and projects
were developed during 2017.
Their results are exposed in
detail in this report, but it is with
great pleasure that we emphasize
the awards received over the
year from renowned institutes,
such as the Great Place to Work,
IDG (International Data Group Inc.),
IT Media/IT Forum Expo, Regional
Council of Accounting/RJ and
Abrasca, which, on analyzing the
performance of ECAD through
its various operational areas,
awarded the importance and
seriousness of the work carried
out by the organization.
We, therefore, go on to the
details of all the actions
developed in 2017, grateful for
the respect and trust in our
work and, once more,
highlighting the commitment
of the team that, once again,
has overcome the challenges
while maintaining the quality
of the work. We are at your
disposal for any further
clarification.
ANNUAL
REPORT