Re:Sound Releases 2016 Annual Report

In its just-released annual report, Toronto-based neighbouring rights distribution organization Re:Sound was hit with a $5.5M (CDN) shortfall in 2016.

The not-for-profit music licensing company collected $39.5M (CDN) in 2016 compared to $45.1M in 2015, according to report figures, largely as a result of U.S. counterpart SoundExchange's switch to a new distribution system, which saw SoundExchange suspend payments for six months of the year..

While Re:Sound's 2016 domestic neighbouring rights income of $37.6M (CDN) was down slightly from 2015's $38.9M, international neighbouring rights collection dropped from $8.4M (CDN) in 2015 to $3.6M. 

Re:Sound's Private Copying income remained constant, dropping a tad from 2015's $4.8M to $4.7M in 2016, and Other Income remained constant at $0.3M.

The organization was also able to cut expenses from $7.3M in 2015 to $6.6M in 2016, mainly due to streamlining their processing costs and consolidating its database with CONNECT through its Project Revelation, said Re:Sound president Ian MacKay.

As a result, Re:Sound was able to eliminate data duplication and pay CONNECT's 2700 independent and major record labels directly, putting an additional $2.6M in the pockets of labels and performers in 2016, and helping record companies comply with IRSC standards for higher accuracy in royalty distribution.

The organization also licensed 3000 new businesses in 2016, contacting 26,000 and procuring more than 17,000 payments. They also processed over 100M sound performance plays in 2016.

In partnership with Canadian performing rights organization SOCAN and technology company Core Rights, Re:Sound also announced the planned development of a Canada-wide digital marketplace for music licensing using blockchain technology. The online portal will eventually serve as a one-stop shop between Re:Sound and SOCAN members.

With a four-point mandate to:

  1. Suggest royalty rates for businesses  and file tariffs for the diverse uses of sound recordings to the Copyright Board of Canada

  2. license businesses to use music

  3. distribute royalties

  4. forge international agreements to ensure Canadian labels are receiving payments when their recordings are used in foreign territories.

Re:Sound says it's focused on long-term, big picture results. The organization also established a new partnership with Fédération de l’Âge d’Or du Québec (FADOQ) and renewed agreements with the Film Studies Association of Canada and the Ontario Funeral Service Association.

Re:Sound also revealed the Top 10 tracks of 2016, and a quartet of Canadian artists landed significant showings. Top of the heap was Justin Bieber with "Love Yourself" and Coleman Hell with "2 Heads." The Strumbellas with "Spirits" and Hedley with "Hello" acquitted themselves proudly as well.

You can see the list here 

The 2016 report landed a few days before the election of Anthony Ariganello as the organization's new Chairperson on December 1, taking over from Peter Steinmetz.

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