Collaboration, Transparency and Increasing Profits - While still maintaining one of the lowest administration costs in the world!

In spite of the world-wide financial crisis and the ensuing uncertainty within all markets – not least the music market – 2009 was a satisfactory year for KODA. Therefore, we can once again forward considerable sums to our sister societies all over the world. And, at the same time, we are able to keep our administration costs at approximately 10 percent – one of the lowest administration costs in the world!

2009 ended with the largest distribution ever for KODA!

We are proud to be able to show that during the past decade, KODA’s profits have increased steadily each year. Being a small organisation (110 employees) in a small country, we are particularly proud of our low administration costs and of our image as the cornerstone in the Danish music business. This is very much due to our focus on collaboration, the efforts of our highly skilled employees and our advanced technology base which is used by employees and members alike. Our position is furthermore cemented due to our openness towards new ways of using music and new business models for music use.

A strategy of Collaboration and Business Development

Collaboration with the rest of the music business, affiliated businesses, the political system – and with our customers is a conscious “Very Satisfac tory Results in Uncertain Times” by Managing Director Niels Bak strategy on our part because it creates synergy, promotes cost efficiency and goodwill all around. For decades, KODA and the neighbouring rights organisation for record labels and performing artists in Denmark, Gramex, have jointly licensed and collected royalties for general public performances. This one-stop-shop approach, that also includes a collaboration with Copydan (the umbrella organisation for collective rights management societies in Denmark) , has proven very valuable for music users and rights holders alike, because it creates new business and fewer administration costs for all parties involved. The exceptionally high profits in 2008, as illustrated in the table to the right, are due to a lump sum received after a court case with the largest commercial TV channel in Denmark, TV2. The case ended in favour of our rights holders, resulting in a serious boost in 2008’s profit and loss account.