- Statement of the General Management
- 2020 key operating figures
- Distributions and payouts
- Focus: COVID-19
- Studies on the German music business landscape
- Initiative Musik in the year 2020
- GVL grants and culture support schemes
- Interview with Marc Westphal, IT department manager
- In dialogue with GVL
- VUT: Fourth GVL shareholder
Statement of the General Management on 2020
Guido Evers and Dr. Tilo Gerlach, the Managing Directors of GVL, look back on the year which has been impacted by the COVID-19 pandemic. GVL allocated €292m to its rights holders in 2020 and a €283.3m were paid out to rights holders. “GVL payments remained a financial constant for many performers and labels”, state the two Managing Directors.
2020 key operating figures
Annual comparison of total revenues*
At €216.1m, which was €0.6m more than in 2019, the annual financial results of GVL in 2020 visibly exceeded the estimates made at the beginning of the COVID-19 pandemic. Compared to many other businesses in the culture and creative sector our income has thus remained stable during the first year of the pandemic.
*To display the figures, please move the mouse pointer over the graphic.
2020 revenue structure
As expected, collections in the public performance sector collapsed due to COVID-19-induced closures of clubs, restaurants, hotels and many other places by nearly 40%. Broadcast remuneration paid by private radio and TV channels also declined. This decrease could, however, be offset by a growth in income from the private copying remuneration (reproduction).
Annual comparison of the number of GVL right holders
GVL managed to continue the trend of constantly growing the numbers of rights holders in the 2020. Overall, GVL represented 166,635 rights holders.
Distributions and payouts
Annual comparison of paid out remuneration
Despite the exceptional year due to COVID-19, GVL distributed €283.3m to its rights holders. This is an increase of €90m compared to the previous year where €193m were paid out (2019). In total, €292m were allocated to rights holders last year.
As such, the remuneration paid to our rights holders in the financial years 2018 to 2020 stayed steadily above the gross distributable amount of the respective financial year. In 2020 alone, more than €100m more were paid out. Reserves were significantly reduced, particularly in 2018 and 2020 as a result of the final performers’ distributions for the years 2010-2012 (2018) and 2013-2014 (2020).
In 2021, the objective of GVL continues to be that every distributable cent is paid out.
Thanks to consolidated IT systems in 2020, we carried out all regular distribution runs as scheduled and were able to allocate advances and corona support payments to our rights holders. Overall, eight distributions were processed in 2020, including a total of 31 distribution events; in addition, we forwarded international payments.
From the first day of the COVID-19 pandemic, GVL staff were working from home. GVL has already drawn a positive conclusion from this period.
Due to many cancelled events in March 2020, it became clear very quickly that many of our rights holders would find themselves in an exceptional financial situation. We intended to provide quick and unbureaucratic support via various measures.
Culture is an indispensable part of a society and creates space for understanding and community, for exchange and democracy. Together with the leading associations of the music industry, among them the four shareholders of GVL, we stood up for the interests of more than 160,000 rights holders in the corona year at social and political levels.
GVL grants and culture support schemes
With our grants, we take on responsibility for the creative sector above and beyond our distributions. We make up to five percent of our annual distribution volume available for supporting measures. On the basis of grants for cultural and social purposes, GVL rights holders benefit directly, but also indirectly when money reaches them via the promotion of cultural-political projects.
Apart from other projects, we supported the following organisations in 2020:
“To continually improve is what drives us”
Interview with Marc Westphal, IT department manager
GVL has undergone a fundamental change during the past years: Today, IT systems are an integral part of the value creation and digital data processing is the core of the business model. We spoke with Marc Westphal, IT department manager, about this development.
In dialogue with GVL
Over the past years, we have been working intensively to improve our processes, portals and data. A lot has already been achieved at GVL. Some of it is still being implemented, while other crucial items are yet to be realised next year. To talk about this suitably and to inform about the modernised processes in a comprehensive manner is part of this learning process at GVL.