GVL 2020 income above expectations
Colletions in the public performance sector have, as projected, collapsed due to the COVID-19 induced closures of clubs, restaurants, hotels and many other places by nearly 40%. Broadcast remuneration of private radio and TV channels also declined. The decrease could, however, be offset by a growth in income from the private copying remuneration.
Guido Evers and Dr. Tilo Gerlach, Managing Directors of GVL, explain: “We are pleased that GVL was able to stand by its rights holders in a historic year of crisis as a stable and reliable partner. Despite existing restrictions and a volatile income situation, we managed to release a maximum level of remuneration for performers and producers. At the same time, we continued to push the further development of our IT systems forward with unabated energy and made significant progress. Overall, we were successful at reliably navigating GVL through these uncertain times.”
During the exceptional COVID-19 year, the central objective of GVL was to make a maximum level of remuneration available to performers and producers: It paid out EUR 283.3m to its rights holders during the 2020 pandemic year. In addition to the eight regular distributions with 31 distribution runs, GVL also initiated advance payments and additional COVID-19 aid payments amounting to tens of millions of Euros for performers and producers.
The most important figures at a glance
GVL generated the highest revenues in the reproduction sector: During the lockdown, sales figures of computers increased massively. The reproduction rights collections led to fees amounting to EUR 92.1m compared to EUR 72.6m in the previous year (+26.9%).
In terms of broadcast remuneration, EUR 86.3m were yielded compared to EUR 88.4m in the previous year. This means that the overall result for broadcasting remuneration dropped by 2.4%. The decrease is due to the drop in advertising revenues of private channels as a result of COVID-19. GVL’s collections in this sector are based on the volumes of said advertising revenues.
Public performance remuneration dropped by EUR 15.8m to EUR 26.5m. Due to COVID-19 related closures of restaurants and shops and culture and sport event venues, the income situation for public performance deteriorated visibly by 37.4%.
In all other sectors, GVL’s income situation is stable overall and therefore lies within expectations.
Before deprecitation and costs for anti-piracy operations, GVL's own administration expenditure increased slightly from EUR21.3m in the previous year to EUR 23.0m. As a result of rising administrative costs, the cost rate, at 10.7%, was 0.8% higher than in the previous year. In this context, the cost for own personnel including social security contributions increased by EUR 1.9m. This effect is a result from the strategy launched in 2019 focussing on running projects at lower costs with staff in-house.
Grants for cultural, cultural-political and social purposes amounted to EUR 5.1m. These include payments in the course of the immediate emergency relief for COVID-19 of EUR 2.0m.
You can download the 2020 GVL Transparency Report (VGG) now at www.gvl.de.
First meeting of the newly elected delegates
In the course of the ordinary Assembly of Shareholders and Delegates, GVL also welcomed six new delegates and 16 re-elected delegates in the core body of GVL. The election of the representatives for more than 160,000 rights holders took place during the Assembly of Rights Holders on 4 June 2021.
In its first meeting, the GVL Assembly of Shareholders and Delegates confirmed Detlev Tiemann, singer in the choir of the Hamburg Staatsoper, for the position of Chairman. Tiemann has been active in the governing bodies of GVL since 2000, holding positions such as Board member, member of the Distribution Committee and Chairman of the Tariff Committee. Tiemann’s deputies are Andreas Klöpfel (COO & CFO Central Europe, Warner Music Group) and Tonio Bogdanski (CFO Central Europe, Universal Music Group).
Detlev Tiemann stated: “I would like to extend my thanks for the trust placed in me by the delegates with this re-election as Chairman. I am very much looking forward to continuing the work we have begun. At the same time, I am curious to see the impulses and perspectives which the newly elected delegates will bring to the Assembly of Shareholders and Delegates. The mix between long-standing and new representatives will enrich the work at committee level and help take GVL further along its journey.”
- Detlev Tiemann, Chairman of the Assembly of Shareholders and Delegates of GVL (Photo: Stefan Wieland)
- Guido Evers (left) and Dr. Tilo Gerlach (right), GVL Managing Directors (Photo: Dirk Deckbar for GVL)
You can find additional image material here.