2022 was the year when TONO and society in general returned "to normal" after two years marked by covid-19 lockdowns with a drop in revenue, especially from concerts, cinema and the background music area. We are therefore satisfied with a gross turnover of kr 864,6 millions.
Deducting the covid-19 compensation to TONO's Norwegian members in 2021 of NOK 33,9 million, this corresponds to an increase from 2021 of approx. 4 percent. TONO's income from the concert market was a record high and ended at NOK 104 million. Profit for distribution after statutory deduction of 2% to the Norwegian Composers' Fund, losses and admin. costs was kr NOK 717.3 million. The cost ratio for the entire business was 12,77% in 2022, up from 10,66% the previous year. This is due in particular to costs related to legal processes, and some related to the start-up of a new and extensive technology development program.
Year of change
Even though we are back to a sort of normality after the pandemic, our industry and our business are in a state of continuous change. The abnormal has become the normal. Technology, represented through new tools that use artificial intelligence, increased expectations for solutions and reporting, and acquisitions and fragmentation within rights ownership.
Both 2022, 2023 and 2024 are, and will be, years of change for TONO. We are now making significant investments in IT to create automated, competitive and future-oriented solutions. The investment we are now making will ensure that TONO remains a preferred business partner well into the future – for members, for our customers and for our sister societies in other countries. We have a goal of being a leading manager of music rights. TONO will be efficient and precise, and we will create added value for both authors and users.
The Collective Management Act was fully implemented into Norwegian law in 2021, and TONO has adapted to the requirements of the law. After the 2022 annual meeting, TONO is therefore more open and democratic than ever before.
We established rights categories in 2022, and introduced new conditions for concert organizers, with the possibility of a reduction in remuneration when performing repertoire outside TONO's management. The change came as a result of changed legal framework conditions, and although it results in somewhat lower concert revenues in isolation, the effect is not very large for the whole. Another advantage is that it provides better reporting of what has been performed at the concerts.
openness
Transparency is essential to maintaining the trust of customers, members, sister societies and the wider community.
We strive for transparency in our daily work. Throughout 2022, we have invited groups of individual members, music publishers and managers to various member meetings. In 2023, we will establish meeting places with customers. The dialogue with groups and stakeholders affected by TONO's activities is useful.
In addition to the requirements of the Collective Management Act, TONO will also comply with the requirements of the new Transparency Act in 2023. This will help ensure that businesses above a certain size have ethical business practices. It is a question of interpretation whether TONO is a business that falls under the Transparency Act, but we believe it is so relevant and important that we want to comply with the requirements anyway. Our first report on the Transparency Act will be published on tono.no in June 2023. The foundation we have laid in the spring of 2023 will eventually also include the important area of sustainability.
TONO creates value for our members, sister societies and customers
Although the foundation of the copyright economy is good legal protection, copyright income does not arise by itself. TONO's more than 60 employees represent a strong professional community that makes a formidable effort for Norwegian and foreign composers, lyricists and music publishers. TONO is, and will continue to be, a company that not only administers, but creates genuine value for those we represent.
In a time when the international rights economy is fragmenting, with new, commercial corporate constellations and where rights are changing hands more than ever before, TONO believes that value is best created through collective management. The world repertoire of music TONO manages gives us the collective strength necessary to ensure what the law calls "fair remuneration" to rights holders - both at home and abroad.
For businesses and organizations that use music, collective management is a great idea. With a TONO license, you are free to pick and choose from the world's best music repertoire, and you can, with the help of TONO's music rights, add value to your offering to customers - whether you run a streaming service, radio channel, concert venue, hair salon or cinema. Read more about the power of using the right music at musicamplifier.no
Karl Vestli
Managing Director
