2021 – another difficult year for most of TONO's members.
In May 2021, when we wrote the annual report for 2020, we expressed that 2021 would likely be as difficult a year for TONO members as 2020.
Unfortunately, it turned out to be a success. Although the company TONO had a very good financial year with record-high revenues of NOK 844 million compared to NOK 712 million in 2020, and at an administrative cost of 10,66 percent, this is overshadowed by the sad fact that most of our members were prevented from practicing their profession, or having their works performed, as a result of the shutdowns.
Throughout most of 2021, TONO's workday has been conducted from home. We have established good routines that have led to all settlements and grant awards to members being made on time and as planned for a normal year.
The crisis years of 2020 and 2021 have primarily affected the concert industry, and that is where a large part of TONO's members have their most important field of work. The first three months of 2022 have also shown no signs of us approaching "normal", but we can notice a dawning optimism that bodes well for the next three quarters.
We often get asked whether streaming concerts have taken over any of the “concert market”. The answer is probably no. Streaming concerts were a welcome opportunity for creators and performers to reach their audience, even if for most it did not generate any particular income. In retrospect, we see that it can be a supplement to the traditional live market.
In our work vis-à-vis the cultural authorities over the past two years, we have noted that they have gained a deeper understanding of what we call the author economy, which includes both authors and music publishers. After a somewhat faltering start to 2020 on the part of the cultural authorities, there is reason to commend both the outgoing and the current government for having shown the will and ability to understand the complicated composition of the author economy, which has led to the Ministry of Culture granting TONO's application for state support.
This has compensated the areas where our members have suffered the greatest losses due to the strict measures implemented by the authorities. For the year 2021, the Ministry of Culture has decided to compensate TONO's Norwegian members for their financial losses with NOK 34 million. These are funds that will be paid to TONO's Norwegian members according to the criteria set out by the Ministry of Culture in the grant letter. Only 1,76 percent will be deducted in distribution costs, and cultural funds cannot be deducted.
Compared to other collective management organizations around the world, we have gotten away "cheaply". Many companies have seen revenue declines of 30 percent or more, and many employees have had to leave the companies. TONO's members are still doing well outside the country's borders. In 2020, we were able to record record revenues from abroad. This was probably largely due to the efforts of many sister societies to find money and get it.
out to rights holders around the globe. Foreign revenues for 2021 are back to pre-pandemic levels.
In addition to the traditional sister society revenues, TONO now has significant revenues from other countries and territories because we have started pan-European direct licensing of Norwegian members' works through Polaris HUB. We are now also directly licensing territories outside Europe, with more territories in the pipeline.
The year 2022 began with the sale of TONO's premises at Tøyenbekken 21, and we moved into contemporary premises at Møllergata 4, right next to Glassmagasinet and Oslo Cathedral. The owner is Møller Eiendom AS.
Sincerely,
Cato Strom
Adm. Manager
