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 2023, eight board meetings and one board committee meeting 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 31.12.23, TONO had management contracts with 41,289 rights holders. In comparison, the number as of 31.12.22 was 39,060 rights holders. In 2023, 2258 new rights holders were added, of which 14 were music publishers.
Among the authors, 21,6% are female members and 77,8% are male members. Music publishing members make up 0,6% of the membership.
Voting members
As of December 31.12.2023, 4, there were 710 registered voting members in TONO.
As of December 31.12.2022, 1, there were 965 registered voting members in TONO.
Of the voting members who are authors, 20% are women and 80% are men. 1% of the voting members are music publishers.
Economic circumstances
In 2023, TONO had a gross turnover of kr 843,967,603. This is an increase of 15,41% compared to 2022. Profit for distribution after deduction of 2% to the Norwegian Composers' Fund, losses and administrative costs was kr 737,508,715, an increase of kr 20,160,236 from 2022. The cost percentage for the entire business was 12,89% in 2023. The corresponding percentage the previous year was 12,77%.
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, 2023, the total effect of liabilities recorded against equity is kr minus 8,176,241. The previous year this obligation was kr 8 176 241
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 2023 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
2023 was an eventful year for TONO. In terms of results, this was a very good year, with record-high revenues. There was positive development in all market areas, and in particular several historic settlements in the media area contributed to the good result. TONO has set ambitious goals in terms of the development of both technology, work processes and organization. Our transformation program "Mjølnir", which will contribute with technological solutions and infrastructure that will support more efficient processes, gained momentum in 2023. Together with project support from the consulting company Bearing Point, there has been particular progress on new distribution solutions delivered by the Irish technology company Spanish Point. TONO collaborates closely with other sister societies to develop solutions, especially the collaboration with Koda and Teosto is close. Another important project is the new repertoire solution ICE Cube, which is being developed together with PRS, Stim and Gema.
In addition to technological developments, TONO is also developing its culture and organization. Attention has been paid to addressing gaps related to employee surveys in 2022 and 2023, and in December TONO was certified as a "Great Place to Work".
The music business and industry continues to change in step with new technology and new business models. In 2023, artificial intelligence in particular received attention. TONO follows these developments closely, and is particularly concerned with safeguarding the rights of authors when new technology is developed and legislative regulations are proposed. A stronger focus on how TONO can utilize new technology to automate and improve work processes, and utilize data for analysis and insight, will be central to the new business strategy that is being developed.
At the 2023 annual meeting, the annual meeting adopted changes to the articles of association that allowed TONO to invest part of the investment funds in real estate. We followed this, and in December 2023, TONO took over the building. Kongens gate 12 in the center of Oslo. The purchase is primarily an investment, but will also be a workplace for TONO and the group associations, as well as open opportunities to develop member facilities in the form of meeting spaces and a studio.
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.
NCB's total collected remuneration was DKK 91 million in 2023 compared to DKK 95 million in 2022. Sales of phonograms (recorded music) were DKK 27 million in 2023 compared to DKK 43 million in 2022. The decrease is primarily due to missing CLA payments from Germany. NCB had a profit of DKK 5,090 million in 2023, compared to DKK 13,047 million in 2022. This has been transferred to equity, which as of 31.12.2023 amounts to DKK 73.361 million.
TONO's staff
At the beginning of 2023, TONO had 62 permanent employees, of whom 3 employees worked voluntarily part-time (60,53 full-time equivalents in total). At the end of 2023, TONO had 59 permanent employees, of whom three still work voluntarily part-time. In addition to these, TONO has 5 employees in temporary positions. These are three trainees and two temporary workers who are paid by TONO. At the end of 2023, TONO also had two temporary workers who were paid by an external temporary employment agency.
TONO has a goal of full equality between women and men. This means that there should be no discrimination based on gender in matters such as salary, promotion and recruitment. There are 38 women and 28 men in TONO's workforce.
Two men and one woman are employed voluntarily in part-time positions. The average age for all employees at TONO is 46,45 years (women – 46,3 years and men – 46,6 years).
The average gross monthly salary for all female employees at the end of 2023, including managers, is kr 52,358. The average gross monthly salary for male employees, including managers, is kr 75,565. 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 in TONO.
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.
In 2023, sick leave was 5,43% compared to 3,9% the previous year. Sick leave is monitored in accordance with the provisions of the Working Environment Act. TONO does not conduct business that may 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 31.12.2023, there are 56% female employees and 44% male employees. Women and men in comparable positions are paid equally. Three employees are employed in part-time positions at their own request. The average number of weeks of parental leave for women and for men is 80 and 9 weeks, respectively.
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 has employees with backgrounds from all Scandinavian countries, the rest of Europe, Asia, Africa 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 12, 2024.
