10th of January 2025
Koda should not only keep up with the times, but also actively take responsibility for and shape the world we are a part of.
The music industry and Danish music scene have always been evolving. This unique and dynamic sector is a cornerstone of our national cultural history and identity. Koda must and will be part of this ongoing development.
We must not only keep up with the times but also actively shape and change the world and society we are part of. We must take responsibility for the immediate issues, evolve in harmony with society, and find solutions to future challenges that can quickly become reality.
This is evident when I reflect on the past year.
A year in which we continued our efforts for an economically fair music market and a more sustainable music industry. Simultaneously, we consolidated and further developed the paths of change and objectives set out in our new business strategy presented two years ago. This strategy will ensure Koda adapts to the complex challenges the rights industry and Danish music scene will face in the coming years.
2024 marked the beginning of our mission to enhance international collaboration, essential for tackling the numerous challenges ahead.
I am particularly proud that Koda, along with the industry, has successfully put social sustainability on the agenda, developing analyses and recommendations that benefit the global industry.
In October, we presented a new Nordic report highlighting social challenges such as financial uncertainty, job security, well-being, and diversity. These are key issues that music organizations should prioritize and address. The report's conclusions allow us to better target our efforts and influence other organizations in the same direction. This work will continue into the new year.
Fundamentally, it requires strengthened collaboration within the industry, both domestically and globally, to advance agendas like a more equitable streaming economy, political regulation of generative AI, climate action, well-being, diversity, and gender equality.
Generative AI has been a major topic on our agenda in 2024, particularly the unauthorized use of copyrighted music for training AI services. To put it bluntly, this could be considered one of the biggest thefts in music history.
Therefore, we have dedicated much of 2024 to raising political awareness of this issue, emphasizing the urgent need for regulation to prevent significant income loss for music creators and publishers.
A new report from the international rights organization CISAC indicates that music creators and publishers could lose about a quarter of their revenues to AI within the next four years if no regulation is implemented.
It is important to emphasize that Koda is not against generative AI. We welcome it as an innovative tool. However, clear frameworks must be established to integrate this technology without undermining the economic ecosystem of music or displacing human art.
Denmark should lead the way in responsible, fair, and sustainable AI development. Technological advancement and copyright can coexist, but it requires that artists are recognized and rewarded for their creative contributions, which form the foundation of AI companies' business models.
Overall, it became clear in 2024 that the economic value chain in the music industry is under pressure. A new study found that 94 percent of Danes stream music, but only 60 percent pay for it. It's not the consumers' fault; the problem is that streaming services offer a free model.
To put it simply: The time for free music streaming has passed. By shifting free consumption to premium services, we can move closer to a fairer music streaming model where artists receive the payment they deserve for their work.
Therefore, it is very positive that in one of the year's most talked-about cases in the Danish music and rights industry – the conflict between YouSee and the rights holders over what should be paid for the use of rights in YouSee's TV packages – a temporary solution has been found while the cases proceed through the legal system.
This solution means that payments can continue to be made to Koda's members for the use of rights on TV at the same level as before. At Koda, we expect the cases to take several years, and we are pleased that orderly conditions have been established to ensure payments to our members while the cases are ongoing.
Another area of major concern for us is the unequal gender balance. For the fifth consecutive year, Koda's gender statistics unfortunately confirmed that women are significantly underrepresented among our members.
Additionally, the documentary 'Sexism in the Music Industry' highlighted the urgent need for cultural change throughout the industry. The inappropriate behavior and widespread sexism revealed by the documentary must not and cannot be tolerated in the music industry.
Therefore, it is crucial that we create a professional and healthy work environment where women and everyone else feel safe and respected, regardless of their role. Currently, the music industry is losing talent every year due to its work culture.
This year, in collaboration with the Music Industry Partnership for Sustainable Development, we presented the final results from the extensive survey on mental health and well-being initiated in the spring of 2023. The survey concludes that collaboration, community, and education are essential factors that can make a positive difference.
In the new year, we will continue to develop and implement solutions based on the survey's recommendations, aiming to create a more sustainable and stronger music scene where everyone can thrive.
This brings me to Koda's core mission. For nearly 100 years, Koda has ensured that songwriters, composers, and music publishers are fairly compensated when their music is used. This task remains unchanged.
However, accelerating digital development, new forms of distribution, increased competition, declining revenues in traditional markets, and growing pressure from international tech giants have made this task more complex.
Therefore, it is crucial that we continue to earn the trust you – our members – place in us. Trust that we do our best every day to secure the best possible legal, political, and economic framework conditions and agreements in a changing music industry. And trust that when the playing field changes drastically and new challenges arise, Koda is at the forefront in protecting and managing your rights.
We know that your music is your lifeblood. Therefore, we do not take this trust for granted and approach this responsibility with great humility and respect. This applies both when we negotiate deals with those who use the music – at home and abroad – and when we work dedicatedly to improve the data that can increase the quality and transparency of payments.
As I look ahead to 2025, I see an industry and music scene dominated by many of the same topics as the past year: striving for a more economically fair music market, a sharper focus on metadata and transparency, and a strong emphasis on sustainability, inequality, and the importance of representation and diversity.
Generative AI and the influence of big tech will undoubtedly continue to shape the agenda for many years to come.
These are significant and complex issues that won't be solved overnight. Addressing them requires strong cooperation and an international perspective.
At Koda, we are committed to strengthening international cooperation to tackle these challenges. We can't solve these problems individually, but we must be brave, lead the way, and set a direction. Together, we can create an industry and music scene with equal access for all, focusing on social, environmental, and economic sustainability.
Thank you for the past year. Happy New Year.
Gorm Arildsen
Director at Koda
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