TONO has adopted new settlement rules for the broadcasting sector. The new rules apply from the 2019 performance year, and include greater emphasis on viewership and listenership figures than previously and new definitions of "live performance" in radio and TV.
/ 19/08/2019 / Willy MartinsenWhen TONO settles money to composers, lyricists and music publishers for public performances of music, it is done on the basis of a settlement model. The model that was used up to and including 2018 was adopted in 2009, before the introduction of DAB, and was based on music professional assessments, the proportion of music in different channels, the channels' accessibility and partly cultural policy considerations. Work on new settlement rules for radio and TV has been ongoing for a long time. The aim of the work has been to create new rules that are essentially based on objective criteria so that the rules are easier to administer and explain. It has also been a goal to establish new rules that balance adequate payment for making music available with quantifiable listening and viewing figures. In the work to create new distribution rules, it has also been important for TONO to see a clearer connection between distribution rules and licensing principles.
In the radio and TV field, the actual making of music available is a fundamental principle when it comes to copyright and TONO management. For the broadcaster, who creates content, however, it is crucial that what is made available is received and is relevant to listeners and viewers. The new billing model is based on these two fundamental principles. The new model is based on a two-part principle with a basic value for the actual availability per music minute on the one hand, and a market value per minute of music on the other hand. The market value is calculated based on daily listening and viewing in minutes per channel based on official listening and viewing figures from Kantar TNS and Nielsen Media Research.
TONO allocates distribution sums to the various broadcasting areas each year. The new settlement model involves changes in how much is allocated to the various radio and TV channels.
NRK
NRK is Norway's largest broadcaster with a number of radio channels, TV channels and online services. It has therefore been natural to start with NRK. As it is still not entirely clear how accessibility and listening/viewing will be weighted, a transitional arrangement has been decided for 2019 that will take the channel distribution in the direction of the new model. The accessibility part ensures that the performances receive a basic amount that is independent of listening/viewing. A general effect of this is that the niche channels are strengthened vis-à-vis previous distribution rules. With the new rules, the pools NRK radio and NRK TV have been merged into a pool called NRK.
NRK distribution for 2019:
| Platform | Channel | Share 2019 | Distribution 2018 |
| Radio | P1 national | 16,81% | 17,58% |
| P1 district | 7,67% | 11,17% | |
| P1 + | 8,36% | 8,81% | |
| P2 | 3,94% | 7,86% | |
| P3 | 8,78% | 15,37% | |
| Classic | 1,43% | 1,47% | |
| MP3 | 3,68% | 1,24% | |
| Folk music | 0,81% | 0,39% | |
| Jazz | 2,49% | 0,41% | |
| Super | 2,74% | 1,31% | |
| P13 | 3,30% | 2,04% | |
| News | 0,07% | 0,03% | |
| sapmi | 1,65% | 0,35% | |
| Sports | 1,76% | ||
| Untouched | 2,04% | 1,12% | |
| TV | NRK 1 | 18,34% | 13,41% |
| NRK 2 | 5,72% | 6,33% | |
| NRK 3 | 2,27% | 2,57% | |
| NRK Super | 4,83% | 5,91% | |
| NRK district television | 0,01% | 0,01% | |
| Online | NRK web player | 3,28% | 2,62% |
The exact distribution sum for 2019 will not be available until March 2020. The distribution sum for 2018 was kr 98 million. The method of settling quarterly based on budget figures and with a final settlement in June will therefore be continued with the new rules.
Bauer Media and the P4 Group
Bauer media's channels are settled according to similar rules as in 2018. Daily listening in minutes is used to weight the remuneration between the channels. Each quarter has its own distribution key. The minute values therefore vary from quarter to quarter. No final settlement is carried out, but any final settlement/repayments are entered into an additional settlement where the performances are settled again.
Bauer Media Channels
| Channel | Share |
| Radio Norway | Distributed by market share of listening per quarter |
| Kiss | |
| Radio Vinyl | |
| Radio Norwegian Pop | |
| Rock Radio | |
| Radio Top 40 | |
| Kisstory | |
| P24-7 Mix | |
| Radio1 |
P4 Group Channels
| Channel | Share |
| P4 | Distributed by market share of listening per quarter |
| P5 Hits | |
| P6 Rock | |
| P7 Squeeze | |
| P8 Pop | |
| P9 Retro | |
| P10 Country | |
| NRJ Norway |
TV2
TV2's channels are settled according to similar rules as in 2018, but the main channel has been adjusted up to reflect viewership/music content. For the linear TV channels, 80% is settled on the main channel, while the rest is distributed between TV Zebra, TV2 Humor, TV2 Livsstil, TV2 Nyhetskanalen and the TV2 sports channels according to points. Amounts are allocated to TV2 Sumo and C More according to the share of viewing measured by Kantar TNS.
TV Norway
TV Norge consists of only one channel and consequently has no channel distribution.
Live performances in the broadcasting area are awarded an increased per-minute rate when the program is broadcast live or when a recording is first broadcast. The increased rate is given regardless of who produced the program.
"Live" means that the musical work is performed live. On television, the performer will be seen singing/playing on screen. On radio, the performer may perform the musical work live in a studio or it may be a live broadcast of a concert. It may also be a recording as long as it is the first time it is broadcast. Music videos are considered recorded music and are billed as mechanical.
Programmed music in and between programmes, background music or music from archive recordings is not live. It can be vignettes, backgrounds, trailers, logos etc.
New live performances of the same work will be billed as live once per performance in line with the above even if it occurs during the same program. Excerpts are counted as mechanical.
The increased minute rate applies regardless of which channel the program is broadcast on; it is the first broadcast that counts. If broadcast simultaneously on multiple channels, the surcharge is given on the channel with the highest minute value. Reruns are billed as mechanical regardless of which channel they are broadcast on.
The factor for live is still 6 x the factor for mechanical. The factor for vignettes, theme songs, jingles, signatures, commercials, trailers and the like is 50% of the factor for mechanical.
Questions about the new rules can be directed to member services at medlem@tono.no or by telephone 22 05 72 80.