Koda is close to having calculated our total loss of revenue in 2020 as a result of the coronavirus pandemic, and we expect a loss of approximately DKK 115 million, corresponding to almost 12 percent of the total revenue. The concert area has been hit the hardest, with an expected drop in revenues of more than 60 percent, followed by the hotel and restaurant area, where revenues are expected to drop by 20 percent.
While the loss of revenue is obviously hitting Koda hard, it should be noted that many other European countries are actually seeing ever more drastic declines in revenue. In many places in Europe, revenues are down by around 30 percent, and most recently a report from the global umbrella organisation of author’s societies, CISAC, shows that the worldwide revenue loss is expected to be 20–35 percent in 2020.
Digital revenues more important than ever
Koda's revenues are falling as a direct result of the coronavirus pandemic within five areas. As regards concerts, revenues are affected by mass cancellations. In the field of background music and cinema, Koda loses significant revenue when shops, gyms, cinemas, etc. are closed down and do not pay Koda while they are shut for business. The commercial radio stations’ payments to Koda are typically determined on the basis of their advertising/commercials revenues, and those have fallen due to a general drop in the advertising market due to the coronavirus crisis. As has already been mentioned, the music market abroad has been hit even harder than in Denmark, so we also expect a significant decline in revenue in this field.
By contrast, revenues from the digital field is among the areas that are not expected to be affected by the coronavirus crisis, meaning that digital revenues are now more important to rightsholders than ever.
‘We are approaching a deadline for the implementation of the Copyright Directive, and we are obviously looking forward to the Ministry of Culture’s draft for the new legislation. The developments seen in the digital music market as a result of the coronavirus pandemic call more than ever for efforts to ensure proper conditions for Danish rightsholders on the digital platforms,’ says CEO of Koda, Gorm Arildsen.