SOCAN delivers record royalties to members

Story by Howard Druckman | Tuesday June 18th, 2019

In sync with the organization’s annual general meeting in Vancouver, SOCAN announced final financial results for 2018, confirming another record year for royalties earned by its more than 160,000 member songwriters, composers, music publishers, and visual artists.

The largest organization in the Canadian music ecosystem attracted and distributed record amounts to more members than ever, but cautioned that more must be done to ensure that all rightsholders receive a more equitable share of rapidly growing revenues from digital uses of music.

Significant SOCAN results achieved in 2018:

  • A record $320-million distributed to SOCAN members – an 8% increase over the previous year.
  • $375-million in total collections – an 11% increase compared with 2017.
  • Domestic collections at an all-time high of $286-million – 9% more than 2017.
  • A 15% year-over-year increase in royalties from outside of Canada ($87-million), again the top revenue stream for SOCAN members.
  • Even with a substantially more complex environment, and investments in technology to keep SOCAN ahead of the digital curve, SOCAN was able to operate with a 12.6% net expense ratio.
  • A 29% increase in revenue from digital sources ($63-million).

“The popularity of music streaming continues to increase, but a SOCAN member who received royalties in 2018 on average took in only $54 from digital sources,” said SOCAN CEO Eric Baptiste. “Digital platforms are reaping massive value on the backs of music creators and publishers. SOCAN will continue to fight for more equitable and fair compensation for rightsholders as this part of the industry matures.”

Among many topics discussed at SOCAN’s AGM, Baptiste highlighted several key recent advancements for the company’s members, including the full acquisition of Québec-based rights organization SODRAC, bringing mechanical/reproduction rights and royalties to members, as well as the extension of SOCAN’s mandate into visual arts; the creation of Entandem, a combined licensing venture with RE:SOUND that will bring benefits to rightsholders and licensed businesses alike; and the addition of Dataclef, the back-office services arm of the organization.

SOCAN continues to work on harnessing artificial intelligence, and to offer tools that allow third-party organizations to build software from its online application programming interface (API) specifications. These identify and collect on more public uses of music, returning more royalties, with even greater speed and accuracy, to those who’ve rightfully earned them.

Also reviewed at the meeting were SOCAN’s member advocacy accomplishments with the federal government. Several recommendations were included in the recent Standing Committee on Canadian Heritage ““Shifting Paradigms” report, including:

  • Extending the term of copyright protection to the creator’s lifetime plus 70 years.
  • Regulation and clarification of the “charitable exemption” clause for businesses using music.
  • Updating the private copying regime to be technologically neutral.
  • Remuneration for visual artists when their copyright works are re-sold.
  • A more level playing field for rightsholders, across all platforms.

SOCAN’s 2018 annual report and complete financial statement are available at socanannualreport.ca.

Photo by Lindsey Blane

Record 2018 results highlight SOCAN 2019 Annual General Meeting

Story by Howard Druckman | Wednesday June 19th, 2019

A crowd of more than 200 SOCAN members gathered at the Gold Corp stage of the BMO Theatre in Vancouver to attend the SOCAN Annual General Meeting on June 18, 2019, to learn about SOCAN’s major achievements in 2018 – including a record-breaking $375-million in music creator revenues. With a theme of “extended play,” the event was also streamed live in both languages on Facebook, for members who couldn’t attend in person.

Luca Fogale, SOCAN, AGM, 2019

Luca Fogale

After a strong opening performance from singer-songwriter Luca Fogale, SOCAN Board of Directors President and Chair Marc Ouellette reported on various milestones for the organization, including the fact that SOCAN now numbers almost 160,000 members, and discussed the work of SOCAN’s Board of Directors in 2018.

SOCAN CEO Eric Baptiste spoke of SOCAN’s 2018 financial record-setting results – including total revenue of $375 million; more than $87 million of that in international revenue; $320 million distributed to music creators and publishers, including royalties from almost 63 billion online music services performances; and a 29 per cent increase in revenue from digital sources.

Nick Gilder, SOCAN, AGM, 2019, CSHF, Induction

Nick Gilder

Baptiste also discussed the fact that, for the first time ever – thanks to our successful acquisition of SODRAC – SOCAN is now collecting and distributing for mechanical rights; that streaming revenue is increasing, but songwriters, composers and music publishers must receive their fair share, which should be more; how our song camps, song camp Mondays, new office in Los Angeles, and new office space in Vancouver are supporting and accommodating more members; how SOCAN continues to create cutting-edge digital tools and services, including artificial intelligence and our application programming interface (API), to better serve our publisher and writer members; and how our new subsidiary companies, Dataclef, Audiam, and Entandem, are advancing the causes of our members and licensees. For a more complete accounting of SOCAN’s activities in 2018, see our full Annual Report.

Jonathan Simkin, SOCAN, AGM, 2019, Award, "Call Me Maybe", manager

Jonathan Simkin

A lively question-and-answer session followed. At the finale of the AGM, “Hot Child in the City,” a 1978 Billboard No. 1 smash hit co-written by Nick Gilder and James McCullough, and recorded by Gilder, was inducted into the Canadian Songwriters Hall of Fame. Gilder was presented with the honour, and delivered a captivating closing performance of the song.

At the start of the reception following the AGM, SOCAN Chief Membership and Business Development Officer Michael McCarty presented Jonathan Simkin,  of Simkin Artist Management, with a 2019 SOCAN Achievement Award for his role in helping to foster the Most Performed Song in the history of SOCAN, Carly Rae Jepsen’s “Call Me  Maybe.”

At the reception, attending members connected with both SOCAN staff and each other, over drinks and hors d’œuvres.

SOCAN, AGM, 2019, Reception

The Reception

Photo by Grant W. Martin Photography

Meghan Patrick wins SOCAN honour, four others, at 2019 Ontario country music awards

Story by Howard Druckman | Monday June 17th, 2019

Meghan Patrick earned the SOCAN-sponsored Songwriter of the Year honour at the 2019 Country Music Association of Ontario (CMAO) Awards, held June 16, 2019, in Southam Hall, at the National Arts Centre in Ottawa.

Patrick won the award for co-writing “Walls Come Down” with professional Nashville songwriters and colleagues Kelly Archer and Justin Weaver. She also earned four other awards, for Album (for Country Music Made Me Do It), Female Artist, Music Video (for “Walls Come Down”), and Fans’ Choice of the Year.

Other multiple award winners included Tim Hicks (Male Artist of the Year and Nielsen Compass Award), and The Reklaws (Group/Duo and Single of the Year, for “Feels Like That”). The Good Brothers earned the Impact Award for their lasting and encouraging influence on country music in Ontario, and led an “all-hands-onstage” finale performance of their best-known song, “Fox on The Run.”

For a complete list of winners, click here.

Below, in a short interview conducted during The SOCAN Awards on April 1, 2019, Meghan Patrick talks about how she co-wrote “Walls Come Down” (which earned a SOCAN Country Music Award that night), and her songwriting process in general.