Nicola Mawson
19 December 2008
Johannesburg — WHILE most South Africans are not expecting to have a very merry Christmas, 6177 music writers and publishers will share a R56,8m bonus.
The Southern African Music Rights Organisation (Samro) earned that amount through investing royalties in its past financial year, and composers, publishers and heirs to deceased composers qualify to share the amount, which had been held in trust.
The annual payout is over and above the performing rights royalties that members receive. Leon van Wyk, executive GM of international affairs at Samro, said royalties were held in trust by the organisation while playlist us age details were worked out and royalties attributed to the correct person.
Samro deposits the licensing revenue it receives from music users in interest-bearing financial instruments such as fixed deposits to ensure there is no financial risk to members until distributions are declared.
Samro has more than 16000 members, of whom almost 7000 are composers whose music is used commercially. Members have assigned their rights to Samro, which collects licence fees on their behalf.
Van Wyk said the organisation paid out the income earned just before Christmas each year and had already made the payouts.
Chief operating officer Gregory Zoghby said the organisation had earned the R56,8m for its members despite volatility in the economy.
Last year, Samro earned R66m, but the interest received this year was affected by the volatile markets.
Van Wyk said the decrease had "nothing to do with the music". However, figures from the Recording Industry of SA show that while the local recording industry had been growing for the previous six years, by October sales were down 10,3%, with local sales down 9,3% and international sales down 11,1%.
At Samro's annual general meeting last month, the organisation reported record gross revenue of more than R350m for the financial year to June. Members received R250m in distributions.
Samro would also administer "needle-time" rights and would pay out royalties to music performers on works that have been broadcast or played in public. The organisation also collects royalties for its mechanical rights members, who are paid for the reproduction of their works on CD s by broadcasters, ring tones and downloads over the internet.
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