TONO's CEO Cato Strøm summarizes in his Christmas greeting how 2020 has been for TONO. It can be roughly summarized in three key words: Covid-19, digital transformation and many new and good agreements.
/ 18/12/2020 / Willy Martinsen
We are about to leave behind a very difficult year for the music industry, and for many of TONO's members. TONO ended 2019 knowing that TONO's revenues had reached another record high, with record low costs. Everything indicated that 2020 was going to be even better. But in March, as is well known, Norway closed down. TONO's employees worked from home from March 11. They still do.
At about the same time, a new way of performing and using music suddenly emerged. For although TONO has had a tariff and an agreement model for livestreamed concerts For many years, this was a little-used tariff. It changed overnight, or rather: over the course of a weekend.
Several departments in TONO worked almost around the clock this weekend and the following weeks to receive all inquiries from users and members who were unsure how to relate to TONO and rights issues. We found out quite quickly that this was something different from what our existing tariff took into account.
I am proud that TONO quickly established a tariff and a form of agreement that facilitated performances in online concerts and church services, and which several TONO companies around the world were inspired by and copied.
I must also say that I am impressed by the creativity and perseverance of our members during this phase, and throughout the year. For many of us, the corona concerts were a reminder that when it really counts, it is the music, the music creators and the musicians that we turn to. When we were all isolated at home, our members invited us to online concerts, creating a community and a warmth that we all desperately needed at that time.
The government quickly came forward with measures to support cultural life. We were surprised when we and our members were left out, first from the compensation scheme and then the stimulus scheme, because the members' losses will only become seriously visible the following year, that is, in 2021.
We estimate a loss of revenue of several tens of millions in 2020, and approximately 43 million kroner in terms of direct TONO members. We have made this clear to both the Storting, the government, the ministry and the Arts Council throughout the autumn.
We are happy that our Minister of Culture is listening, something he addressed directly in his speech on November 20. We are in dialogue with the ministry. There are talented people working there, who in my opinion understand TONO and the somewhat complicated author economy. We hope and believe in good solutions to our members' loss of TONO remuneration.
I can promise our members that you can be assured that TONO's administration and TONO's board are working hard to advance the interests of copyright holders in this matter. So are our group associations, the Norwegian Composers' Association, NOPA and the Music Publishers Association.
TONO has negotiated a wide range of agreements throughout 2020 that are important both financially and in principle. We entered into new agreements with Disney+, Facebook, Youtube and Spotify. We have not yet succeeded in agreeing on an agreement with the Oslo Philharmonic Orchestra, unfortunately we have quite different views on what is right to pay for music. We hope to reach an agreement soon.
And even though the concert market has been disastrous this year, TONO has done well in other areas, not least because we have seen that streaming services within music and film have seen increased use during the corona crisis.
I would also like to mention that from the new year we will start licensing synchronization of music in smaller audio-visual productions. We are taking over this from NCB. The decision is simply about ensuring that synchronization of music in YouTube productions and similar smaller productions can be handled at least as efficiently with us as with NCB. NCB will still take the larger productions. More information about this will come.
I would also like to mention that TONO has been working on heavy and extensive IT projects throughout 2020. The foundation lies in a strategy of digital transformation. This summer we quietly launched new My TONO pages for members. We are also working on new digital reporting solutions, also for customers. We are also working on further developing My TONO so that it becomes an even better service for members.
We have also noticed that our members have used the corona crisis to write new music.
Compared to 2019, more new works have been reported to TONO in every month of 2020 compared to last year – except in January and February. In total from January to November, TONO members registered 32,989 new works compared to 27,766 in the same period last year.
I wish both members and customers of TONO a very Merry Christmas.
Sincerely,
Cato Strom.
CEO
TONO
