annual report 2015 - agicoa · 3 1 the dark side of the moon, luxembourg / germany - iris...

Annual Report 2015

2A G I C O A A N N U A L R E P O R T 2 0 1 5 2

C O N T E N T S

PRESIDENT’S MESSAGE

FACTS & FIGURES

MANAGEMENT REPORT

AGICOA MEMBERS

AGICOA EXECUTIVE BOARD

AGICOA ALLIANCE

GUEST EDITORIAL

FINANCIAL INFORMATION

AUDITOR’S REPORT

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SHOULD YOU BE INTERESTED TO PROVIDE FILM PICTURES FOR THE AGICOA ANNUAL REPORT NEXT YEAR, KINDLY CONTACT [email protected]

T H E R I G H T S P E O P L E

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1 THE DARK SIDE OF THE MOON, LUXEMBOURG / GERMANY - IRIS PRODUCTIONS - PORT AU PRINCE

2 INTRUZ, POLAND - LAVA FILMS 3 RETRIBUTION (EL DESCONOCIDO), SPAIN - ATRESMEDIA CINE, S.L.U. - VACA FILMS STUDIO, S.L.

4A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E

T he underlying market dynamic is the same as

ever – what consumers watch today funds

tomorrow’s content – but the simplicity and effec-

tiveness of this virtuous circle is at risk. New tech-

nological possibilities, business models and corpo-

rate ambitions complicate the relationship between

investment and return for all parties.

Many, especially the smaller, independent

producers who do so much to feed the entertain-

ment supply chain, find it increasingly difficult to

monetize their rights. The legal requirement for

service providers to remunerate each use of work

is increasingly blurred and often outflanked by new

forms of delivery.

But short-term gains can result in long-term

losses. The smartest, most sophisticated delivery sys-

tems are of no value without the continuous refresh-

ment of content. If the interests of audiovisual right-

sholders who invest in its creation are threatened, so

is the sustainability of the industry as a whole.

The complexity and lack of clarity we are

experiencing increases the value of the collective

management of rights as an alternative to individual

negotiation with broadcasters or platforms. We are

a vital safety net. This is reflected at AGICOA in the

growing number of producers registering works, and

record levels of royalty collections and distributions.

The AGICOA Board must continuously reas-

sess how best to serve member interests. Some

things are clear. We must listen to those we rep-

resent, and we have a role to play in helping them

understand industry trends and the options avail-

able to them. The first of what will be an on-going

series of reports was presented to the Board in

December, based on market research conducted in

the course of the year.

The Board is also giving careful consideration

to where and how the organization should seek to

extend its mandate to the licensing of new services.

The first step in this direction was taken in 2015

with an agreement negotiated in Ireland in partner-

ship with the BBC which includes TV Everywhere.

Each European market has special character-

istics and it is unlikely that one licensing model will

ever be universally applicable, but AGICOA’s Alli-

ance partnerships enable useful country-by-country

comparisons as industry profiles across Europe take

on new forms and technology converges.

The general direction of the recently

announced review of the European Commission

Satellite and Cable directive – the basis of AGICOA’s

business model – should become evident in the

course of 2016. No immediate change is expected,

but the long-term implications could be profound.

Hopefully, the process will at least result in greater

clarity in the application of the existing directive.

I am pleased to report that the AGICOA orga-

nization is functioning well, keeping costs down,

delivering a high level of service, and continually

seeking member feedback to further improve. On

behalf of the Board and members, I would like to

thank General Manager Tom de Lange and his staff

for their dedication and energetic support in the

course of 2015.

P R E S I D E N T ’ S M E S S A G E

There must be many in our industry, writ large, who would wish to hit the pause button and escape the whirlwind of change for long enough to think-through its implications – and lessen the likelihood of damaging outcomes.

CHRIS MARCICH AGICOA PRESIDENT

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1 A TARDE É SUA, PORTUGAL - CORAL EUROPA

2 EN MAN SOM HETER OVE (A MAN CALLED OVE), SWEDEN - TRE VÄNNER PRODUKTION AB

3 SPARTACUS, NEW ZEALAND - COURTESY OF STARZ MEDIA

4 DEGRASSI: NEXT CLASS, CANADA - EPITOME PICTURES INC., A DHX MEDIA COMPANY

5 BORDER SECURITY, AUSTRALIA - SEVEN NETWORK - CINEFLIX RIGHTS

6 EXCENTRYCY, CZYLI PO SŁONECZNEJ STRONIE ULICY, POLAND - WFDIF

7 COLONIA, LUXEMBOURG / GERMANY - IRIS PRODUCTIONS - MAJESTIC FILMPRODUKTION GMBH

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IN MILLIONS €

ROYALTIES

€153.6MFor the second consecutive

year, distribution of royalties

set a new record.

COUNTRIES

37Unique collection and distribution

network across major markets.

RIGHTSHOLDERS

16,702The numbers of rightsholders

taking advantage of AGICOA’s

services increased by 6%.

DECLARED WORKS

1,566,000Total number of declared works

more than doubled in a decade

of continuous growth.

AGICOA FEES

5 %The service fee deducted from royalties

put into distribution in 2015 was 5%.

F A C T S & F I G U R E S

IN THOUSANDS OF WORKS IN PERCENTAGE

60 6,000 600

30 3,000 300

20 6

10 3

0 0 0 0 0

120 12,000 1,200

90 9,000

15,000 1,500

900

30

40150

9

12

2015200420152000201520002015200020152000

7

1 GAME OF DEATH, ENGLAND - FORTUNE STAR MEDIA LIMITED

2 HE OVAT PAENNEET (THEY HAVE ESCAPED), FINLAND - HELSINKI-FILMI OY

3 SALVAGE HUNTERS, UK - CINEFLIX (SALVAGE HUNTERS) LIMITED - DISCOVERY NETWORK (INTERNATIONAL AND UK) - DISCOVERY CHANNEL (CANADA) - HISTORIA (CANADA) - CINEFLIX RIGHTS

4 MAGIC CITY, USA - COURTESY OF STARZ MEDIA

5 JACK, AUSTRIA - EPO-FILM

6 COPPERS, BELGIUM - MENUET


M A N A G E M E N T R E P O R T

Sharing Success

The belief that there is strength in numbers was validated by another excellent operating performance. Despite turbulent, transformational change in the broadcast industry, rightsholder royalty collections and distributions from the licensing of content for cable and satellite retransmission continued to grow.

T his was partly the result of new licensing agree-

ments and the legal resolution of conflicts

in a number of markets, but also reflected steady

growth in demand for audiovisual content across

Europe, and significant additions to the portfolio of

rightsholder works under management by AGICOA.

In the course of 2015, the number of right-

sholders taking advantage of its services increased

by 6% to over 16,700, and the total of audiovisual

works declared reached 1.6 million, having more

than doubled in a decade of continuous growth.

For the second consecutive year, distribution

of royalties set a new record. Total funds put into

distribution climbed to €153.6m – an increase of

€12.3m on 2014. The extraordinarily low 5% ser-

vice fee charged on 2015 distributions was made

possible by a one-off allocation of fee income from

exceptional collections in previous years. It reverts

to a normal rate of 8.75% for 2016.

The activities of AGICOA Geneva were well

within budget at year end, with good progress on

many fronts, including on-going upgrades with

minimum disruption to the organization’s day-to-

day operation. The state-of-the-art platform due for

completion in 2016 will ensure efficient manage-

ment of rightsholders’ interests well into the future.

The results of a pilot process launched in

July to encourage direct, voluntary resolution of

conflicts between rightsholders are promising. It

enabled rapid closure of a number of outstanding

cases, freeing €1.3m for distribution by year end. In

addition, AGICOA launched around 700 legal and

formal conflict resolution procedures of which 170

were resolved in the course of 2015, releasing a fur-

ther €1.5m in blocked revenue.

Overall, while there are significant chal-

lenges ahead in 2016 and beyond, the organization

and its rightsholders can look back on a positive,

productive and encouraging year.

Royalty collections in 2015 totalled €136m – an increase of 8% on the previous year.


Final distributionFirst distribution Exceptional catchup

IN MILLIONS €ROYALTIES DISTRIBUTION

2002

60.3

50.3

10.0

2005

97.1

78.7

18.4

2006

100.6

86.7

13.9

2008

115.8

94.8

21.0

2009

123.7

113.7

10.0

2010

130.8

116.7

14.2

2011

132.2

121.1

11.1

2012

139.7

128.0

11.7

2013

118.6

106.9

11.7

2000

38.0

34.3

3.7

2007

92.9

89.8

3.2

2004

86.8

79.8

7.1

2001

56.9

45.0

11.9

2014

141.3

127.2

14.1

2015

153.6

133.8

19.8

2003

122.2

71.0

14.1

37.1

1 0A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E

AGICOA MANDATES

AUSTRALIA 2014

AUSTRIA 2009

BELGIUM 2014

CANADA 2013

DENMARK 2013

FINLAND 2014

GERMANY 2014

IRELAND 2014

ISRAEL 2006-2014

LUXEMBOURG 2014

NORWAY 2013

POLAND 2014

PORTUGAL 2014

SPAIN 2014

SWEDEN 2014

SWITZERLAND 2013

THE NETHERLANDS 2014

AD-HOC MANDATES

HUNGARY (EDUCATIONAL COPY) 2010-2013

FINLAND (EDUCATIONAL COPY) 2013

NORWAY (EDUCATIONAL COPY) 2012

SLOVAKIA (GUILDS) 2013

POLAND (GUILDS) 2013

UNITED KINGDOM (EDUCATIONAL COPY) 2014

AGICOA MANDATES

BELGIUM 2011

CANADA 2009-2011

DENMARK 2009

FINLAND 2011

IRELAND 2009

LUXEMBOURG 2011

NORWAY 2011

POLAND 2006-2011

SWEDEN 2011

SWITZERLAND 2007

THE NETHERLANDS 2011

AD-HOC MANDATES

FINLAND (EDUCATIONAL COPY) 2009-2010

HUNGARY (EDUCATIONAL COPY) 2010-2011

NORWAY (EDUCATIONAL COPY) 2003-2009

POLAND (GUILDS) 2012

SLOVAKIA (GUILDS) 2012

UNITED KINGDOM (EDUCATIONAL COPY) 2011

FIRST DISTRIBUTION FINAL DISTRIBUTION

1 1

1 ARMI ELÄÄ! (ARMI ALIVE!), FINLAND - BUFO OY

2 AGORA NÒS, PORTUGAL - CORAL EUROPA

3 FC DE KAMPIOENEN 2 : JUBILEE GENERAL, BELGIUM - SKYLINE

4 KARBALA, POLAND - WFDIF

5 HENKESI EDESTÄ (ABSOLUTION), FINLAND - VERTIGO PRODUCTIONS OY


T he good news for rightsholders is that demand

for programming is growing exponentially.

However, new forms of content delivery and the

influence of new commercial interests have created

many complex licensing issues that AGICOA is com-

mitted to help resolve on their behalf.

The popularity and rapid development of

new services such as Start-from-the-Beginning,

Catch-up TV, TV Everywhere, and Network Per-

sonal Video Recording (NPVR) reflects an industry-

wide struggle for competitive advantage and feeds

consumer demand for increasingly flexible access to

programming from TV service providers. At another

level, fast-growing Over-the-Top (OTT) internet-

based services such as Netflix, Apple TV, Amazon

and YouTube offer alternative routes to market.

To what extent will traditional television

viewing give way to consumer preference for time-

shifted services? To what extent will some channels

and platforms that have contributed royalty income

to-date become less relevant? These, at least, are

‘known unknowns’. What ‘unknown unknowns’ lie

ahead is anyone’s guess.

One thing is increasingly clear, however:

technological progress has left the existing regu-

latory framework for licensing audiovisual proper-

ties far behind. The result is that many indepen-

dent producers face a steep climb to secure their

fair share of revenue in the new world of multiple

viewing options.

Until now, AGICOA’s royalty collections

have been based on the negotiation of traditional

retransmission rights with TV providers. Increas-

ingly, these providers seek to include new services

in the renewal of licensing agreements and to clear

the relevant rights collectively through AGICOA.

Meanwhile, a growing number of rightshold-

ers have expressed interest in voluntary collective

licensing those new services. While AGICOA fully

respects their individual preferences in managing

use of their work, it recognizes, as many of them

do, the potential value of a collective approach.

With this in mind, AGICOA commissioned a

survey of market developments and their impact on

viewing habits in eight European countries in 2015.

The strategic importance of exploring industry

horizons and being well prepared to argue the case

of rightsholders when TV service providers seek to

negotiate broader licensing agreements is obvious.

Market intelligence has a key part to play in this.

AGICOA’s research together with other

studies, such as those published by Ericsson 1 and

PWC 2 in 2015, and input from its Alliance part-

ners has helped build a country-by-country picture

of market developments and likely next steps.

The headline findings show that Catch-up and

TV Everywhere services are standard offers, and

access to NPVR is growing fast and will be stan-

dard in the near future.

The outlook and relevant insights from these

investigations were summarized in a report to the

General Assembly in December. Further research is

planned to enable annual updates.

The negotiation of a new licensing agree-

ment in Ireland was another notable development

as it extended AGICOA’s collection mandate to

TV Everywhere services that enables subscribers

to view their TV package on mobile devices. This

agreement is the first to include one of the new

services, and was negotiated in partnership with

the BBC. Similar joint action by producers with

major broadcasters could be a productive approach

to licensing new services elsewhere.

Industry Environment

US politician Donald Rumsfeld famously made the distinction between: “known unknowns – things we know we don’t know” and “unknown unknowns – things we don’t know we don’t know”. That fairly describes the broadcast industry today. Technology-driven changes gained momentum over the last decade and are now an unstoppable force transforming both business models and consumer viewing habits. There is no end in sight to this remarkable revolution.

FOOT NOTE

1 HTTP://WWW.ERICSSON.COM/RES/DOCS/2015/CONSUMERLAB/ERICSSON-CONSUMERLAB-TV-MEDIA-2015.PDF

2 HTTP://WWW.PWC.COM/GX/EN/INDUSTRIES/ENTERTAINMENT-MEDIA/OUTLOOK.HTML

1 3

1 LONDON HAS FALLEN, ENGLAND - LHF PRODUCTIONS, INC

2 LIBERDADE, PORTUGAL - VENDE-SEFILMES

3 CORAÇÃO D´OURO, PORTUGAL - SP TELEVISÃO S.A.6 BURNING SOULS, ECLYPSE FILMPARTNER (AUSTRIA), FILM-LINE

PRODUCTIONS (GERMANY) AND ZDF (GERMANY)

4 TRAITOR, CANADA AND MOROCCO - COURTESY OF STARZ MEDIA

5 CÓRKI DANCING, POLAND - WFDIF


Regulatory developments

The most significant regulatory development in 2015 was the European Commission’s decision to re-evaluate the effectiveness of the Cable and Satellite directive that has applied in EU markets since 1993.

T he agenda of the review raises two issues of

particular importance. The first is the concept

of licensing content in the appropriate "country of

origin" and allowing the licensee to sell-on rights

to other markets, increasing broadcaster control of

international licensing. The second is the extension

of collective rights management to online services

provided by broadcasters directly or by third parties

such as cable companies.

AGICOA submitted views on behalf of mem-

bers to the consultation process begun in 2015.

Most producers firmly reject the loss of territorial

rights because of the clear risk to revenue streams

that centralized licensing implies. Many are open to

the extension of collective management mandates,

however, if it is done on a voluntary basis.

AGICOA Alliance partners, national producer

organizations, broadcasters and TV service pro-

viders were among many others to lodge submis-

sions. Observers expect publication of an impact

assessment report which takes industry inputs into

account in the course of 2016.

While there could be longer-term risks for

audiovisual rightsholders and for collective man-

agement principles, significant change is unlikely in

the immediate future, and the review process might

even be advantageous in clarifying application of

the existing directive and reducing inconsistencies

between national jurisdictions.

Progress was also made in the course of

2015 towards implementation of the new EU Direc-

tive on collective management of copyright and

related rights which aims to ensure best practice

among collective management organizations in

terms of governance, financial management, trans-

parency and reporting.

EU member states must incorporate the pro-

visions of this Directive into national law by April

2016. Although AGICOA is based in Switzerland

and not bound to observe EU legislation, it intends

to meet the new regulatory requirements.

In the context of the EU Digital single market

strategy, the Commission will also consider whether

solutions at EU level are required to increase legal

certainty, transparency and balance in the system

that governs the remuneration of authors and per-

formers. In parallel, Belgium and the Netherlands

have already implemented national laws to provide

unwaivable and unassignable rights in favour of

authors and performers.

AGICOA is closely monitoring these develop-

ments which could pose risks for producers as they

could impact the scope, validity and ultimately the

value of producers’ own ability to license retrans-

mission of work.

1 5

1 EIGHT CATALAN SURNAMES (8 APELLIDOS CATALANES), SPAIN - TELECINCO CINEMA, S.A. - LAZONA FILMS, S.L.

2 BABY(A)LONE, LUXEMBOURG / BELGIUM - IRIS PRODUCTIONS - IRIS FILMS,

3 DISAPPEARED IN WINTER, LUXEMBOURG / FRANCE / BELGIUM - IRIS PRODUCTIONS - HUGO FILMS - IRIS FILMS

6 ZIARNO PRAWDY, POLAND - STUDIO REWERS

7 TRUMAN, SPAIN & ARGENTINA - BD CINE, S.R.L. - IMPOSIBLE FILMS, S.L. - TRUMANFILM, A.I.E.

4 LAST CHANCE HARVEY, UK - COURTESY OF STARZ MEDIA

5 LEE & CINDY C. , BELGIUM - EYEWORKS NV

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Value proposition

Conclusion

I t has built an industry reputation for reliable, effi-

cient collective rights management over a 30-year

period. It offers rightsholders a single point of con-

tact to declare audiovisual works and continuously

track their use on major TV channels in countries

where it operates. There are no entry costs: regis-

tration of content is the sole requirement.

AGICOA is also a source of valuable nego-

tiating experience and market insight at a time of

fast-moving innovation and change in the broad-

cast industry. It is an influential voice on behalf of

rightsholders and facilitates valuable information

sharing on business and regulatory developments.

Use of its international database brings

important economies of scale to a range of collec-

tive management services. These are delivered in

conjunction with AGICOA Alliance partners, a well-

established network with close connections to local

content producers and operators in key markets.

Agreed international standards ensure equal

treatment of all content owners and the timely,

transparent remuneration of royalty payments for

use of their works.

I t is clear from market research and from the

considerable investments that broadcasters are

making in social media and other forms of market-

ing that linear broadcasting remains the prime TV

viewing option, and the basis for additional services

that are now widely available and market standard.

This broader industry agenda – the sharp

increase in regional, national and local channel

access, new ways of distributing TV packages, and

the proliferation of viewing options – is attractive

and exciting for consumers. But it is harder than

ever for rightsholders to track use of their work and

be properly remunerated, which makes the AGICOA

collective management model additionally relevant.

AGICOA is committed to serving rightsholder

interests in ways that will deliver the best possible

financial returns on use of their works. The man-

agement team thanks them for their trust, takes

pleasure in reporting excellent results for 2015, and

looks forward to further shared success in 2016 and

beyond.

TOM DE LANGE GENERAL MANAGERCARLA DECHAMBOUX, JEAN-DANIEL GIROD, STÉPHANIE GUFFROY-DROUX, TOM DE LANGE, ANNIKA ANDRIVET, SALVATORE SILVESTRI, VERA CASTANHEIRA

AGICOA is uniquely placed to deliver value to both audiovisual rightsholders and content distributors.

Although there were as many open questions about the industry future at the end of 2015 as there were in the beginning, it was by any measure a successful and encouraging year for AGICOA and the worldwide body of audiovisual rightsholders it represents.

1 7

1 SOMOS PORTUGAL, PORTUGAL - CORAL EUROPA

2 PRODUÇÕES CLANDESTINAS, PORTUGAL – PRODUÇÕES CLANDESTINAS, LDA

3 SOL DE INVERNO, PORTUGAL - SP TELEVISÃO S.A.

4 ÄIDIN TOIVE (MOTHER’S WISH), FINLAND - OKTOBER OY

5 MAR SALGADO, PORTUGAL - SP TELEVISÃO S.A 6 LOUDER THAN BOMBS, NORWAY - MOTLYS - NIMBUSFILM - MEMENTO


A G I C O A M E M B E R S

A GICOA’s members are associations of

audiovisual producers or distributors,

audiovisual producer collective rights man-

agement organizations, rights agents and

other film and television rightsholders from

all over the world.

AGICOA’s members define the asso-

ciation’s role through their presence in and

contributions to its supreme decision making

body, AGICOA’s General Assembly.

The members, through the General

Assembly, define AGICOA’s purpose in its

by-laws and fundamental rules of royalty

distribution. They approve the annual oper-

ating budget and the AGICOA fee. They

give discharge to AGICOA’s Executive Board

and Management and elect and dismiss the

auditors. They proclaim the exclusion and

suspension of a member and also decide on

the association’s dissolution.

The purpose of the association AGICOA is to defend, through collective rights management, the interests of its members.

SOUTH AMERICA

ARGENTINA › CAPIT

NORTH AMERICA

CANADA› CRCUSA› APTPA-PBS› IFTA› MPA


AFRICA

UGANDA› UFMI

ASIA

CHINA › CFCAINDIA › THE FILM & TELEVISION PRODUCERS GUILD OF INDIA LTDRUSSIA› PRODUCERS’ GUILD OF RUSSIATURKEY› SE-YAP

EUROPE

AUSTRIA › VAMBELGIUM › BAVP› COMEDIABULGARIA› FILMAUTORDENMARK› CABENGLAND› COMPACT MEDIA GROUP› EMI MUSIC PUBLISHING LIMITED› PACTFINLAND› COFFPA› TUOTOS FRANCE› FIAD› FIAPFGERMANY› GWFF› VDF› VGFGREECE› SAPOEICELAND› SIKIRELAND› SCREEN PRODUCERS IRELAND

ITALY› ANICALUXEMBOURG › ALGOA› SAMSA FILM SARLNORWAY› AGICOA NORGEPOLAND› ZAPAPORTUGAL› GEDIPESERBIA› FILM CENTER SERBIASLOVAK REPUBLIC› SAPASPAIN› EGEDA› IBAIA› PAC› UPCTSWEDEN› FRFSWITZERLAND› SUISSIMAGETHE NETHERLANDS› FINTAGE HOUSE› SEKAMUKRAINE› APU

OCEANIA

AUSTRALIA› SCREENRIGHTS

2 0

1 ZIARNO PRAWDY, POLAND - STUDIO REWERS

2 CÓRKI DANCING, POLAND - WFDIF

3 BONDI RESCUE, AUSTRALIA - CORDELL JIGSAW PRODUCTIONS

4 FOOD & SHELTER (TECHO Y COMIDA), SPAIN - DIVERSA AUDIOVISUAL, S.L.

5 ACHTER DE WOLKEN, BELGIUM - EYEWORKS NV

6 PODEROSAS, PORTUGAL - SP TELEVISÃO S.A.


1 SYLWIA BIADUN 2 DAVID JOHNSON 3 JANE HYNDMAN 4 SAN FU MALTHA 5 MAX RUMNEY 6 NIELS TEVES 7 SUSAN CLEARY 8 JOSÉ ANTONIO SUAREZ 9 JANE SAUNDERS 10 GERTRAUDE MÜLLER-ERNSTBERGER 11 RYSZARD KIREJCZYK 12 MICHAEL BRODIE 13 NICOLE LA BOUVERIE 14 CHRIS MARCICH 15 RONALD FROHNE 16 JOHN M. JACOBSEN

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2 2A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E 2 2A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E

CHRIS MARCICH 14USA | PRESIDENTPresident, International of Motion Picture Associa-tion (MPA), European office, Brussels.

RONALD FROHNE 15GERMANY | VICE-PRESIDENTSUBSTITUTE: GERTRAUDE MÜLLER-ERNSTBERGER 10

Attorney and CPA. Head of New York Office of international Law Firm Noerr LLP. Managing Direc-tor of GWFF (collecting society for private copy) and AGICOA Germany. Board member of various German and international companies.

NICOLE LA BOUVERIE 13BELGIUM | VICE-PRESIDENTCEO of BAVP (collecting society for cable), PROCI-BEL (collecting society for private copy), AGICOA Europe Brussels, Zenab consulting. Director of AUVIBEL (collecting society for the private copying of sound and audiovisual works) and of Eurocopya (European organization of collecting societies for private copy), member of the Belgian Centre of Intellectual Property (CEPI), accredited mediator.

MICHAEL BRODIE 12UNITED KINGDOM | TREASURERBachelor of laws, ACA chartered accountant, UK former Universal Pictures executive.

MIGUEL ANGEL BENZAL MEDINA *SPAIN

SUBSTITUTE: JOSÉ ANTONIO SUAREZ 8

CEO EGEDA, Spain (Audiovisual Producers Rights Management Association) since 1992. At the same time, is CEO of Audiovisual SGR, a mutual guaran-tee society in which EGEDA is a protector member.

BÖRJE HANSSON *SWEDEN | OBSERVERSUBSTITUTE: JOHANNES KLINGSPORN *

Film producer, managing director of Bright Pictures. Earlier head of production at Svensk Filmindustri (SF) and Swedish film company Filmlance that pro-duced among others the famous Swedish criminal series “Beck”. Representative of FIAPF.

JOHN M. JACOBSEN 16NORWAY

Producer and head of Filmkameratene AS, one of the leading Norwegian film and television compa-nies. Their productions include the Oscar nominated “Pathfinder”, the international Emmy nominated animated series “Elias, the little rescue boat” and the recently acclaimed “Max Manus” and “Troll-hunter”. Their TV-series “The Heavy Water War” which premiered in January 2015 is the most seen drama in Norwegian television history.

DAVID JOHNSON 2UNITED KINGDOM

SUBSTITUTE: JANE HYNDMAN 3

CEO of Compact Media Group since 2014, David has worked in media for over 20 years in a variety of senior management, commercial and financial roles. His involvement with Compact as a former client goes back to 2001, when he was at Granada International. He is a FCA qualified Chartered Accountant. He has worked in international distri-bution and licensing, broadcast, new media and production for companies including the BBC and ITV. Most recently he was MD of an independent sports production company. He has extensive expe-rience in negotiating large scale deals for produc-tions, co-productions and international sales.

RYSZARD KIREJCZYK 11POLAND

SUBSTITUTE: SYLWIA BIADUN 1

CEO of ZAPA (Union of Audiovisual Authors and Producers - a collecting society within Polish Film-makers Association). Former film producer and former Director of Gdynia Film Festival and Debut Film Festival - the biggest Polish film events.

SAN FU MALTHA 4THE NETHERLANDS

SUBSTITUTE: DICK VAN DER GRAAF *

Dutch film producer. San Fu Maltha found the pro-duction company Fu Works in 1995 and the company has grown into one of the most leading feature film production companies of the Netherlands. Fu Works is an independent and internationally oriented pro-duction company that produces feature films, docu-mentaries and TV series. Representative of SEKAM.

JEAN PREWITT *USA

SUBSTITUTE: SUSAN CLEARY 7

President/CEO of the Independent Film & Television Alliance (IFTA).

MAX RUMNEY 5UNITED KINGDOM

SUBSTITUTE: VALERIE SMITH *

Deputy CEO and Director of Business Affairs for PACT (Producers Alliance for Cinema and Television in the UK). Solicitor in England and Wales. Negoti-ates terms of trade between Producers and Broad-casters as well as Collective Agreements between Producers and Talent/Authors/Labour Unions.

JANE SAUNDERS 9USA

Senior Vice President, Worldwide Rights Man-agement, Motion Picture Association of America (MPAA).

NIELS TEVES 6THE NETHERLANDS

SUBSTITUTE: MARCEL HOOGENBERK *

Co-owner/CEO of Fintage House, a privately owned global Music, Film & TV Rights company headquar-tered in The Netherlands with offices in the UK and Hungary and global consultants in 14 countries. Over the years, Niels has cultivated and built a fully inte-grated business model connecting all sectors of the entertainment industry. He has created unique ser-vice lines within Fintage as well as securing strategic investments and business developments in cutting edge technology and complete digital eco-systems.

2 0 1 5 A G I C O A E X E C U T I V E B O A R D

*MISSING FROM THE PICTURE

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1 ONNELIN JA ANNELIN TALVI (ONNELI’S AND ANNELI’S WINTER), FINLAND - ZODIAK FINLAND OY

2 INGREDIENTE SECRETO, PORTUGAL - VENDE-SEFILMES

3 À BOLEIA DA FILIPA, PORTUGAL - SP TELEVISÃO S.A.

4 SUNSET SONG, LUXEMBOURG / UNITED KINGDOM - IRIS PRODUCTIONS - HURRICANE FILMS – SELLOUTPICTURES

5 T., BELGIUM - SKYLINE - DEMENSEN

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AGICOA and its partners organizations

A lliance partners accommodate different

national legal requirements but embody

common practices to manage rightsholders’ inter-

ests in a consistent, cost efficient way. The single

declaration of an audiovisual work enables the

collection of royalties wherever collective manage-

ment operates.

Alliance partners have deep knowledge of

their own broadcast markets. Aggregation of the

interests of international rightsholders adds consid-

erable weight to the collective licensing agreements

they negotiate with national and local operators.

Equal treatment of all rightsholders, irrespective of

size and nationality, is guaranteed.

The AGICOA Alliance is a unique partnership that enables the efficient international collection and distribution of royalties for the retransmission of audiovisual works.

A G I C O A A L L I A N C E

BELGIUM› AGICOA EUROPE BRUSSELSFINLAND› TUOTOS FRANCE› ANGOA GERMANY› AGICOA GMBH

LUXEMBOURG› AGICOA EUROPE› ALGOANORWAY› AGICOA NORWAY POLAND› ZAPA PORTUGAL› GEDIPE

SPAIN› EGEDA SWEDEN› FRFSWITZERLAND› AGICOA


People in Geneva

O f these, 34 worked at AGICOA in Geneva in 2015. Right-

sholder Relations managed client portfolios. Distribution

and Identification tracked use of work and organized distri-

butions. Legal and Licensing negotiated new license agree-

ments, renewed and extended existing contracts. Finance

and Administration managed the collection and distribution

of funds. Information Systems was responsible for the quality

and performance of the information systems that support our

operations, and Information Technology and Security ensured

the protection and failsafe back-up of rightsholders data.

Almost 90 people located in 11 countries are involved in the management of rightsholder interests by the AGICOA Alliance.

THE AGICOA TEAM IN GENEVA

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1 FOOD FACTORY, CANADA - CINEFLIX (FOOD FACTORY) INC - SHAW MEDIA - CINEFLIX RIGHTS

2 SUNSET SONG, LUXEMBOURG / UNITED KINGDOM - IRIS PRODUCTIONS - HURRICANE FILMS – SELLOUTPICTURES

3 JUNTOS FAZEMOSE FESTA, PORTUGAL - CORAL EUROPA

4 EN UNDERBAR JÄVLA JUL, SWEDEN - SWEETWATER PRODUCTION AB

5 CAFE DERBY, BELGIUM - MENUET

6 SPITSBROERS, BELGIUM - DEMENSEN

7 ZOO TALES, AUSTRALIA - SEVEN NETWORK - CINEFLIX RIGHTS

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2 7A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E 2 7A G I C O A A N N U A L R E P O R T 2 0 1 5 T H E R I G H T S P E O P L E

A fter years of debate, a new collective licens-

ing agreement concluded in Finland in July

2015 will significantly increase rightsholder revenue

streams through the inclusion of Network Personal

Video Recording (NPVR) services.

The Finnish market is particular in a number

of respects. Consumers have traditionally had free

access to high quality programming on public

broadcasting and commercial channels and are

reluctant to pay for content. Services such as Net-

flix have been notably less successful than in other

Scandinavian countries.

NPVR services, launched about 10 years ago,

proved popular and were also free to consumers.

They were not covered by any licensing agreement,

and there was no remuneration to rightsholders for

re-use of work. Licensing discussions between the

major operators and producers initiated by TUOTOS

in 2009 were unproductive.

Gradually, however, Finnish rightsholders got

together to increase pressure on the major opera-

tors to reopen the issue and reach an agreement. A

successful court action against one platform made

it very clear that positioning NPVR services as pri-

vate copying was not a sustainable proposition.

The parties regrouped for further discussions

in a more accommodating frame of mind, and the

eventual outcome was an amendment to the Finn-

ish regulatory framework to enable collective licens-

ing of this category of secondary use of content.

The Scandinavian model of Extended Collec-

tive Licensing (ECL) helped considerably in reaching

a satisfactory conclusion. This mandates collective

societies to negotiate on behalf of all rightshold-

ers in the categories they represent. In effect, it

assumes consensus and dissenting rightsholders

can opt out of any subsequent agreements.

Stakeholder reaction has been overwhelm-

ingly positive. The new agreement will directly ben-

efit national and foreign rightsholders, and provides

operators with a straightforward, one-stop solution

to managing their licensing obligations.

Collections have begun and TUOTOS will

make a first distribution in 2016. Current projections

suggest that NPVR royalties will increase the annual

amount in distribution from €600,000 for cable and

educational copying to around €2.5m in all. We use

AGICOA systems and its IRRIS database to facilitate

local collection and distribution in parallel with AGI-

COA’s management of international rights.

In the case of NPVR, TUOTOS was able to

broker a specific solution to a very specific problem.

But it is also a useful start to broader resolution of

the kinds of licensing issues raised by technology

developments and new operator business models.

We will see how things work out, but can foresee-

ably draw on this experience to look into other new

forms of content use where it is difficult to negoti-

ate individual licenses.

G U E S T E D I T O R I A L

Positive Outcome

TUOTOS was founded in 1998 to represent and collectively manage producers’ rights to royalties for retransmission and educational copying of audio visual works in Finland. It represents 220 national film and TV producers, and has also worked closely in partnership with AGICOA since 2004 on the collective management of international rightsholder interests.

KIRSI COLLIANDER

EXECUTIVE DIRECTOR TUOTOS

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Financial Statements of AGICOA (CHF)

Summary balance sheet 2015 2014

Assets

Current Assets

Cash and term-deposits 13,124 34,784

Receivables from the fiduciary funds 476,484 621,711

Other receivables and prepaid expenses 658,678 796,389

1,148,286 1,452,884

Non-Current Assets

Deposits and guarantees 54,516 44,399

Investments in affiliates 99,828 99,828

Other receivables 71,295 71,295

Receivables ISAN International Agency 2,544,265 2,562,265

Tangible fixed assets 95,902 144,652

2,865,806 2,922,439

Total Assets 4,014,092 4,375,323

Liabilities

Current Liabilities

Accounts payable 677,043 840,730

Accounts payable related to affiliates 19,083 16,760

Accruals/provisions 193,464 382,035

Other short term liabilities 580,237 573,533

1,469,827 1,813,058

Non-Current Liabilities

Provision ISAN International Agency 2,544,265 2,562,265

Equity 0 0

2,544,265 2,562,265

Total Liabilities and Equity 4,014,092 4,375,323

Summary statement of income 2015 2014

Operating Expenses

Salaries and social charges 4,472,779 4,575,002

Professional fees and administrative expenses 1,692,444 1,950,360

Depreciation 52,948 96,977

Costs incurred by partner organizations 4,060,276 4,638,312

Modernization of information systems 510,272 491,100

Special projects 53,399 50,000

Total Operating Expenses 10,842,118 11,801,751

Financial (Income)/Expenses

Interest and bank charges, net 5,630 6,876

Exchange (gains)/losses, net 52,838 (144,528)

Total Financial (Income)/Expenses 58,468 (137,652)

Miscellaneous (Income)/Expenses

External services (309,708) (331,733)

Rent office space (130,934) (123,823)

Other income (89,256) (29,614)

Exceptional (income)/charges 13,912 0

Total Miscellaneous Income (515,986) (485,170)

Total Net Expenses before Taxes 10,384,600 11,178,929

Direct Taxes 100,000 71,051

Total Net Expenses 10,484,600 11,249,980

Funding of Net Expenses

Operational budget 11,973,531 11,295,373

Allocation from fiduciary provision 510,272 491,100

Operational budget (surplus)/deficit (1,999,203) (536,493)

Total Funding of Net Expenses 10,484,600 11,249,980

F I N A N C I A L I N F O R M A T I O N

FIGURES FOR THE YEAR ENDED DECEMBER 31


Fiduciary Funds Managed by AGICOA (EURO)

Summary fiduciary funds balance sheet 2015 2014

Current Fiduciary Assets

Cash and term-deposits 189,132,260 179,111,365

Other assets 1,306,460 639,637

190,438,720 179,751,002

Non-Current Fiduciary Assets

Investment property 5,183,250 5,183,250

5,183,250 5,183,250

Total Fiduciary Assets 195,621,970 184,934,252

Fiduciary Liabilities, Reserves and Provisions

Short-Term Fiduciary Liabilities

Payable to rightsholders 5,700,325 4,177,646

AGICOA current account payable 440,126 516,921

Payables of national partner organizations 111,941 525,448

Fiduciary funds put into distribution pending allocation to rightsholders

79,533,078 72,538,785

Fiduciary funds to be put into distribution 85,988,803 86,126,269

171,774,273 163,885,069

Fiduciary Reserves and Provisions 23,847,697 21,049,183

Total Fiduciary Liabilities, Reserves and Provisions 195,621,970 184,934,252

Summary fiduciary funds statement of income 2015 2014

Revenues

Royalties earned 111,195,238 102,538,195

Financial and other revenues 485,813 691,952

Total Revenues 111,681,051 103,230,147

Distributions and other Charges

Fiduciary funds put into distribution (104,968,992) (92,789,047)

AGICOA fees (7,765,879) (7,507,018)

Bank charges (12,909) (19,817)

Foreign currency translation adjustment 2,389,564 462,336

Total Distributions and other Charges (110,358,216) (99,853,546)

Net Surplus prior to Allocations 1,322,835 3,376,601

Total Allocations (1,322,835) (3,376,601)

Net Surplus after Allocations 0 0

The fiduciary funds financial statements exclude the fiduciary funds managed by AGICOA

Urheberrechtsschutz GmbH (Germany), ANGOA (France) and EGEDA (Spain).


Fiduciary Funds Split AGICOA & Partner Organizations (EURO)

Summary fiduciary funds balance sheet 2015 2015 2015

AGICOA Alliance AGICOA Geneva Partner OrganizationsCurrent Fiduciary Assets

Cash and term-deposits 189,132,260 108,355,605 80,776,655

Other assets 1,306,460 330,003 976,457

190,438,720 108,685,608 81,753,112 Non-Current Fiduciary Assets

Investment property 5,183,250 5,183,250 -

5,183,250 5,183,250 -

Total Fiduciary Assets 195,621,970 113,868,858 81,753,112

Fiduciary Liabilities, Reserves and Provisions

Short-Term Fiduciary Liabilities

Payable to rightsholders 5,700,325 4,025,294 1,675,031

AGICOA current account payable/(receivable) 440,126 (628,771) 1,068,897

Payables of national partner organizations 111,941 22,134 89,807

Fiduciary funds put into distribution pending allocation to rightsholders 79,533,078 45,987,314 33,545,764

Fiduciary funds to be put into distribution 85,988,803 46,298,486 39,690,317

171,774,273 95,704,457 76,069,816 Fiduciary Reserves and Provisions 23,847,697 18,164,401 5,683,296 Total Fiduciary Liabilities, Reserves and Provisions 195,621,970 113,868,858 81,753,112


Summary fiduciary funds statement of income 2015 2015 2015

AGICOA Alliance AGICOA Geneva Partner OrganizationsRevenues

Royalties earned 111,195,238 59,992,712 51,202,526

Financial and other revenues 485,813 40,362 445,451

Total Revenues 111,681,051 60,033,074 51,647,977

Distributions and other Charges

Fiduciary funds put into distribution (104,968,992) (55,933,686) (49,035,306)

AGICOA fees (7,765,879) (5,213,814) (2,552,065)

Bank charges (12,909) (10,112) (2,797)

Foreign currency translation adjustment 2,389,564 2,389,564 0

Total Distributions and other Charges (110,358,216) (58,768,048) (51,590,168)

Net Surplus prior to Allocations 1,322,835 1,265,026 57,809

Total Allocations (1,322,835) (1,265,026) (57,809)

Net Surplus after Allocations 0 0 0


A U D I T O R ’ S R E P O R T

Report of the independent auditor on the summary financial statementsTo the General Meeting of the Members of Association de Gestion Internationale Collective des Œuvres Audiovisuelles (AGICOA), Geneva

The accompanying summary financial statements, which comprise the summary bal-ance sheet as at December 31, 2015, the summary statement of income for the year then ended, and related notes, are derived from the audited financial statements of Associa-tion de Gestion Internationale Collective des Œuvres Audiovisuelles (AGICOA), for the year ended December 31, 2015. We expressed an unmodified audit opinion on those financial statements in our report dated April 22, 2016.

The summary financial statements do not contain all the disclosures required by Swiss law and the association’s By-Laws. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of AGICOA.

Executive Board of the Association’s Responsibility for the Summary Financial Statements The Executive Board of the Association is responsible for the preparation of the sum-mary financial statements in accordance with Swiss law and the Association’s by-laws.

Auditor’s Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Swiss Auditing Stan-dard (SSA) 810, Engagements to Report on Summary Financial Statements.

Opinion In our opinion, the summary financial statements derived from the audited financial statements of AGICOA for the year ended December 31, 2015 are consistent, in all material respects, with those financial statements, in accordance with Swiss law and the Association’s by-laws.

Deloitte SA Geneva, April 22, 2016

AURÉLIE DARRIGADE SENIOR MANAGER

FABIEN BRYOIS PARTNER

EDITORIAL AGICOA, GENEVA – GRAPHIC DESIGN SFX MEDIA, LUTRY

1 rue Pestalozzi – CH-1202 Geneva – Switzerland T: +41 22 340 32 00 F: +41 22 340 34 32 www.agicoa.org

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