Business status and future development
TONO SA is a cooperative that manages performance and sound fixation rights to music. In addition to individual management contracts with 41,289 rights holders, TONO has reciprocal representation agreements with 78 foreign sister societies, and thus also manages their rights in Norwegian territory. TONO has transferred the management of its rights holders' sound fixation rights to NCB (Nordic Copyright Bureau) in Copenhagen, which is owned by the Nordic management companies Koda (Denmark), Stim (Sweden), STEF (Iceland), Teosto (Finland) and TONO.
TONO is operated from Oslo with the visiting address Møllergata 4, 0179 Oslo.
In 2022, 9 board meetings and 3 board committee meetings were held.
TONO has taken out board insurance and insurance for the general manager in accordance with RL §3-3a. The coverage is kr 5 000 000
Management contracts
As of 31.12.22, TONO had management contracts with 39,060 rights holders. In 2022, 1657 new rights holders were added, of which 13 were music publishers.
For comparison, the number as of 31.12.21 was 32,590 rights holders. In 2021, 1,642 new rights holders were added, of which 13 were music publishers.
Among the founders, 21,8% are female members and 78,2% are male members.
Music publishing members make up 1,2% of the membership.
Voting members
As of December 31.12.2022, 1, there were 965 registered voting members in TONO.
As of December 31.12.2021, 1, there were 917 registered voting members in TONO.
Of the voting members who are authors, 16,6% are women and 83,4% are men. 1,1% of the voting members are music publishers.
Economic circumstances
In 2022, TONO had a gross turnover of kr 843,967,603. This is an increase of 2,45% compared to 2021. Profit for distribution after deduction of 2% to the Norwegian Composers' Fund, losses and administrative costs was kr 717,348,479, a reduction of kr 20,160,236 from 2021. The cost percentage for the entire business was 12,77% in 2022. The corresponding percentage the previous year was 10,66%.
The accounts have been prepared in accordance with the requirements of the Accounting Act of 1998, and satisfy the requirements of applicable laws, regulations and generally accepted accounting principles. The Accounting Act of 1998 resulted in significant changes in 1999 for the recognition of pension costs. As a result, TONO records a negative equity. Originally, this effect of liabilities was minus kr 11,026,446. As of December 31, 2022, the total effect of liabilities recorded against equity is kr minus 8,176,241. The previous year this obligation was kr 11,741,423. The large change is a result of the purchase of a pension scheme.
TONO's profit for distribution usually amounts to between 85 and 90 percent of turnover. The distribution of the profit is what is left at any given time after all costs have been deducted, and it is the board's opinion that TONO's financial result for 2022 is good.
TONO has a large and liquid management portfolio at all times. The goal is to achieve the highest possible return with the lowest possible risk. TONO's conservative investment strategy ensures stable returns. Each investment should be among the lowest risk within its asset classes. Risk is further reduced through a broadly structured portfolio, and TONO uses several financial players to reduce management risk.
Market development
2022 was the year when the Covid-19 pandemic finally let go. Increased concert activity contributed to strong growth in TONO's concert revenues, which ended at NOK 104 million, the highest ever from the concert area. In the background music area, revenues were also the highest for TONO ever, NOK 2 million above the pre-pandemic year 2019. Cinema revenues were back to normal levels. In the media area, i.e. broadcasting and online, we saw underlying, organic growth, but must still account for a small decline based on the fact that 2021 revenues were characterized by several major post-settlement settlements.
The Collective Management Act took effect for TONO and our statutes in 2022. TONO established categories of rights, changed the management agreement and introduced new conditions for concert organizers. In addition, we see, in light of the Collective Management Act, that several matters require clarification in the legal system. This entails increased costs for TONO.
The music economy is constantly changing. Several of the trends we have seen in recent years continued in 2022, such as direct licensing and rights acquisition. Technological developments continue, and 2022 was the year when artificial intelligence seriously made its entry into the music field. TONO is following the development closely, and will address it in the upcoming strategy work.
In October 2022, TONO entered into a collaboration with the Irish technology company Spanish Point Technologies, which is a recognized supplier of systems for music rights managers. In the last quarter of 2022, TONO established the comprehensive technology program Mjølnir, which was fully launched from the new year 2023. This comprehensive investment in technology has been requested by TONO's annual meeting. The investment in technology will result in increased administrative investments in 2023 and 2024, but will lay the foundation for a more modern and efficient operation, and is necessary in a technology-driven era for TONO to be able to carry out its mission according to TONO's statutes §3 (1) and (2) a.
TONO does not expect any significant changes to TONO's rights portfolio this year.
NCB
NCB is an independent legal entity, and is managed by a board elected by Koda, Teosto, STIM, STEF and TONO. NCB's operational management is carried out by Koda. This has proven to be an effective solution for the NCB organization and its owners.
NCB's total collected remuneration in 2022 was DKK 95 million compared to DKK 119,9 million in 2021. However, 2022 revenues were higher than in 2020, when they were DKK 87 million. NCB had a profit of DKK 13,047 million in 2022, compared to DKK 8,55 million in 2021. This has been transferred to equity, which as of 31.12.2022 amounts to DKK 70,269 million. Sales of phonograms are declining overall in line with the increasing use of digital services, and NCB has adapted to the market situation, with significantly reduced revenue.
TONO's staff
At the end of 2022, TONO had 64 permanent employees, of which 3 were part-time employees, while at the end of 2021 the number of permanent employees was 65, of which 3 employees worked part-time.
TONO has a goal of achieving full equality between women and men. This means that there should be no discrimination based on gender in matters such as salary, advancement and recruitment.
There are 35 women and 29 men in TONO's workforce. 2 men and 1 woman are employed part-time. The average age for all is 47 years (46,0 years for women and 47,5 years for men).
The average gross monthly salary for all female employees at the end of 2022, including managers, is kr 52,358. The average gross monthly salary for male employees, including managers, is kr 71,122 The higher average salary for men is due to the fact that the proportion of men in management positions is higher than that of women.
Internal control, HSE (health, environment and safety)
Through the working environment committee (AMU) for the staff representatives and management, HSE work is systematized. Regular meetings are held in the AMU. Sick leave work must be discussed in at least two meetings annually.
For many years, TONO has had an IA agreement (Including Working Life), a cooperation agreement between the individual company and NAV. The main goal of the agreement was to provide space for everyone who can and wants to work, fully or partially. As of 2019, the IA agreement has been applied to the entire working life, and is therefore no longer entered into separately with the individual company.
In 2022, sick leave was 3,89% compared to 3,07% the previous year. Sick leave is monitored in accordance with the IA agreement and the provisions of the Working Environment Act.
TONO does not conduct business that could pollute the external environment.
Employers' duty to promote equality and prevent discrimination TONO's business ethics guidelines, which all TONO employees have signed, include the following:
"TONO shall be a workplace with an inclusive working environment. Employees shall treat each other and those they come into contact with through their work with respect and integrity. TONO shall facilitate a working community free from discrimination, be it due to factors such as religion, skin color, gender, sexual orientation, age, national or ethnic origin or disability. TONO's employees shall also contribute to a working community free from bullying, harassment, bullying and the like. TONO does not tolerate anyone displaying behavior that can be perceived as degrading or threatening."
Over time, TONO has aimed to achieve an approximately equal distribution of women and men in the workforce. As of 31.12.2022, 55% of employees were female and 45% were male. Women and men in comparable positions are paid equally.
Three employees are employed in part-time positions at their own request, partly due to care needs at home and partly due to reduced functional capacity.
Welfare and care leave is distributed equally by gender, but there is a higher proportion of sick leave among women than among men. TONO pays attention to the area of gender equality, and statistics show that the requirements of the Gender Equality Act are met.
TONO follows the provisions of the Cooperative Act on gender representation, which means that both genders must be represented by at least 40% on TONO's board.
TONO's 64 employees are ethnically diverse. We have employees from all Scandinavian countries, the rest of Europe, as well as Africa, Asia and the USA.
We therefore believe that TONO promotes equality in accordance with the purpose of the law.
Basic human rights and decent working conditions
A report on TONO's due diligence assessments in line with the Transparency Act will be available on TONO's website in June of this year.
Oslo, March 16, 2023
