We summarize 2023 and note that TONO's figures for the year are very good. A record gross turnover of almost one billion kroner reflects that new, good music was created, that there was great activity on the country's concert stages, that more people are paying for music and film streaming, and that music creates value for those who use it in their radio and TV broadcasts, shops, restaurants, films and productions.
TONO's more than 41,000 members and the millions of music creators we represent from around the world can trust that we will take good care of the rights they have entrusted to us. We do our utmost to license their use fairly and to pay the rightful compensation back to the rightful rights holders.
But, that's not enough.
The income of our members should have been greater. It is still the case that the streaming economy does not give enough back to composers, lyricists and publishers. This is due to both the distribution mechanism between recording and composer, but also how the distribution keys of the streaming services contribute to the fact that the income is diluted in a sea of music that is uploaded to the platforms. In 2023, well over 100,000 new songs were uploaded daily. In addition to this, the licensing models for the new, rapidly growing social media, which take little account of copyright in their business models, are immature. In the concert sector, there are still areas where the remuneration of composers, lyricists, songwriters and music publishers is not fair compared to the income that the rights create for the organizers. Another growing challenge is that protected music is used to train artificial intelligence models without permission or payment for use.
There are major challenges ahead of us, and TONO is preparing for the future.
During 2023, we have taken major steps to improve and prepare ourselves. Our internal transformation program Mjølnir will provide everyone, both members, customers and employees, with better tools and data. We are digitizing and automating several work processes so that we become more efficient and gain better insight. We are developing our organization through improving work processes, new expertise, and resources coming into TONO with different experience backgrounds. As a result of important internal changes, TONO was certified by "Great place to work" in 2023 as a good place to work.
In the coming years, the legislation related to copyright in our industry will be challenged and changed. Digitalization and technology are the major drivers for this, and TONO will continue to take an active role both nationally and internationally to contribute to ensuring that music rights continue to have the economic and cultural protection they deserve, while at the same time exploiting technological opportunities.
Expectations for TONO should be high.
The changes also challenge TONO's organization and the very model for collective management of copyrights. In two important areas, we at TONO must continue to ensure that we have trust and relevance for our members and customers. The first is transparency and communication. The transparency report that we publish in connection with the presentation of the results for 2023 is an example of our desire for everyone to have access to and insight into significant aspects of TONO's activity. Our ongoing communication with members and customers during the year, both in open channels and in meetings, will contribute to spreading mutual insight and understanding of the values we manage.
The second area is how we and our product meet both members and customers. Over the past year, we have laid out a new strategy that will take us into the future. TONO will provide value for those who create and use music. We will do this by being simple and effective to interact with, and we will contribute with insight and quality that strengthens both members and customers.
We believe that increased visibility and accessibility will contribute to this. When TONO moves into new premises in Kongens gate in the center of Oslo over the next year we want to invite you into a house that inspires and develops us all!
Karl Vestli
Managing Director
