Payments as of 01 June 2021

Live and communication to the public categories, special pay-out for statutory remuneration rights

 

Pay-out in the live and communication to the public categories as of 1 June 2021

GEMA pays out about €50m to its members and sister organisations as of 1 June 2021. Due to a widespread cancellation of events and the business closures lasting for months in the gastronomy and retail, the corona pandemic led to massive losses in licensing income of GEMA during the 2020 financial year.

The distribution volume has, correspondingly, decreased dramatically in these revenue sectors, an extremely painful experience for many GEMA members. Overall, the distribution in the categories U, UD, M, E, ED, EM, BM, KI, DK, and DK VR will only amount to 42% of the distributable amount of the previous year. The effects will be different in the individual categories and will be individual, but definitely different for the relevant rightsholders.

 

Pay-outs as of 1 June and 1 July in the M category - special regulations because of corona

Due to the COVID-19 pandemic, many live events had to be cancelled in 2020 which has an effect on the M category distribution. As a consequence, the General Assembly decided in 2020 that the distribution in the M category should be adapted for the 2020 financial year:

Pay-out in two steps

Step 1:

As of 1 June 2021, the usual M distribution will take place on the basis of the (relatively few) live events of the year 2020. Deviating from previous processes, no new point value will be calculated in the segments 1 to 8. Instead, the average point value of the M category of the last three financial years (2017 to 2019) will be used as a basis. The 20 percent M supplement in the segments 9 to 12 (from collections of €500) remains unchanged.

Step 2:

As of 1 July 2021, the remaining amount of the distributable amount in the M category for the 2020 financial year will be paid out as a percentage-based supplement to your pay-outs in the M category for the 2018 and 2019 financial years (“M supplement Corona”). You will find the specific pay-out amount in your account statement which you will receive as of 1 July 2021.

From 1 July onwards, more information can be accessed in the info sheet on our page Domestic Royalty Distribution

The General Assembly will decide on a corresponding regulation for the current financial year, 2021 (motion 30 of the AGM agenda More on this in the video.

Pay-out in the DK and DK VR categories

Due to the pandemic, the majority of clubs, discotheques and music pubs remained closed in 2020, with dramatic consequences for the discotheque category, DK. Revenue was only collected during regular opening times, i.e. January to March 2020. The pay-out amount is therefore only 20 percent of the previous year’s amount.

Both the monitoring process intended for the distribution and the statistic projections were carried out as usual. They are the basis for the distribution in the categories DK and DK VR.

Special pay-out for statutory remuneration rights (GVA)

In addition to the already high regular GVA distribution as of 1 April 2021, about €49m were paid out as of 1 June 2021 from extraordinary collections by ZPÜ (Zentralstelle für private Überspielungsrechte, Central Organisation for Private Copying Rights).

The pay-out amounts which are a means of support to many of our members in these tough times, will be distributed on a financial year basis as a separate supplement to the 2012-2018 financial years in the relevant categories.

GEMA Schutzschirm (protective shield) 2021

The pandemic is hitting many of our members very hard. Many of them will see their pay-outs as of 1 June 2021 reflecting a deep plunge compared to the previous year. Declines will also continue to rule the pay-outs as of 1 July 2021. Supervisory Board and Managing Committee have therefore decided to deploy a financial “Schutzschirm” (Protective Shield) again this year from mid-July onwards which provides lump sum advance payments. In a more comprehensive manner than in the case of the aid programme in 2020, this protective shield scheme will comprise additional categories such as music playback in addition to live sectors. Moreover, apart from creators, publishers will now also be entitled to cushion their income deficits by means of advance payments.

Creators will be shown the option to submit an unbureaucratic application in the GEMA Online Portal if they fulfil the requirement for an advance payment. Publishers who have an entitlement to an advance will be contacted proactively by us. We will publish the start of the application and further details in good time prior to the pay-out as of 1 July 2021.

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