TONO SA (TONO) is a cooperative society that manages performing and recording rights relating to music. In addition to individual administration contracts with 43,272 rights holders, TONO has reciprocal representation agreements with 82 international sister societies, and thereby also manages their rights in Norwegian territory.
TONO har delegated management of its rights holders’ recording rights to the Nordic Copyright Bureau (NCB) in Copenhagen, which is jointly owned by the Nordic collection companies Koda (Denmark), Stim (Sweden), STEF (Iceland), Teosto (Finland) and TONO.
TONO is operated from Oslo. Its office address is Møllergata 4, NO-0179 Oslo, Norway. In 2024, eleven board meetings and three board committee meetings were held.
TONO has purchased directors and officers (D&O) liability insurance pursuant to Section 3-3a of the Norwegian Accounting Act. Coverage amounts to NOK 5,000,000.
At 31 December 2024, TONO had administration contracts with 43,272 rights holders. By comparison, TONO had 41,289 rights holders at 31 December 2023. In 2024, 2,041 new rights holders were added, 16 of whom were music publishers. Women made up 21.7 per cent and men 78.3 per cent of the society’s individual members. Music publishers made up 0.6 per cent of the membership.
At 31 December 2024, TONO had 5,233 voting members, compared with 4,710 voting members at 31 December 2023. Women make up 20 per cent and men 80 per cent of the voting membership. Music publishers make up 1 per cent of the voting membership.
TONO generated gross revenues of NOK 1,017,197,210 in 2024. This is an increase of 2 per cent compared with 2023. After a 2 per cent deduction payable to the Norwegian Composers’ Fund, as well as losses and administrative costs, TONO had NOK 848, 797,071 available for distribution to rights holders. Expenses totalled 14.49 per cent of revenues in 2024, compared with 12.89 per cent the year before.
TONO’s distributable profit normally constitutes 85–90 per cent of its revenues. The distributable amount is whatever is left after all expenses have been deducted. The Board considers TONO’s financial results for 2024 to be good.
TONO has a large and liquid cash management portfolio at all times. Management is in accordance with TONO’s investment strategy, which is adopted by TONO’s annual meeting and was last amended on 6 June 2023. The objective is to achieve the highest possible return on investment at the lowest possible risk. TONO’s conservative investment strategy ensures stable returns. Each individual investment shall be made among those with the lowest risk in their asset class. Risk is further reduced through a broadly diversified portfolio, which also includes real estate. TONO uses several financial services providers to reduce the management risk.
In 2024, both revenues and costs in TONO increased. The increase in revenue comes as a result of an increasingly popular repertoire, good and thorough licensing work, as well as better and more agreements. The cost increase comes as a result of investments in new technology across the entire business. TONO is getting ready for a future market that will be increasingly demanding.
Licence revenues are being challenged by national economic strain, a demanding production market for both TV and radio, slower subscription growth for streaming services, as well as structural changes such as buyouts and consolidation of rights. TONO’s vision Value for everyone who creates and uses music emphasises that we must be relevant and create value for both parties in our ecosystem. This requires an evolving organisation that is able to adapt to change and meet increased market expectations.
It is therefore crucial that we succeed with the “Mjølnir” change programme, which in addition to delivering new technical solutions for members, customers and employees, will make the organisation more competent, robust and efficient.
At the end of 2024, we are still on track with the programme. Some projects have proved more demanding than expected, but the organisational results are already noticeable. TONO was also certified as a Great Place to Work in 2024. In 2025, a number of new solutions will be launched and developed. Investments will therefore continue at least at the same rate as before.
Artificial intelligence dominates all discussions about technological development. In our industry, it is the challenges of licensing, and the lack of licensing, of training data that have received the most attention. We are also working to position TONO for the use of AI. Together with our Nordic sister societies, we introduced new rules for registering works that are partly written with the help of generative AI. We believe there may also be licensing opportunities in the field of artificial intelligence, and this is something we will actively work on going forward.
Through two annual meetings in 2024, new principles for distribution were adopted. This was a very important step in order to have rules that comply with legislation, but also to be able to modernise and streamline TONO. This change work affects many of our members, and like all change, these are demanding processes for members, the board and administration.
In 2025, TONO will move into the premises at Kongens gate 12. It will be a big milestone to move into the members’ own house. Major investments have been made in the building in 2024, and further investments will be made in member and common areas in 2025. This is an investment that will benefit both current and future generations of TONO members. It marks a new age for TONO.
NCB is an independent legal entity led by a board elected by Koda, Teosto, Stim, STEF and TONO. NCB’s operations are carried out by Koda.
NCB collected a total of DKK 94 million in 2024 compared with DKK 91.2 million in 2023. Sales of phonograms (recorded music) generated DKK 23 million in 2024, compared with DKK 27 million in 2023. The decrease is attributable primarily to lower sales of phonograms and missing CLA payments from Germany. CLA (Central European Licensing Agreements) are revenues from BMG, Sony, Warner and Universal, which have centralised their reporting of sales in Europe to GEMA and SACEM. NCB receives semi-annual reports and then invoices the amounts via these companies. In 2024, NCB’s operations made a profit of DKK 112,000, compared to DKK 5.1 million in 2023. This has been transferred to equity, which at 31 December 2024 amounted to DKK 75.47 million.
At the start of 2024, TONO had 67 permanent employees, 3 of whom worked part-time at their own request. At the end of 2024, TONO had 75 permanent employees, 3 of whom still worked part-time at their own request. Out of 75 employees, 8 employees work in temporary positions. In addition, TONO has a trainee programme with 2 trainees on one-year contracts.
It is TONO’s ambition is to achieve full equality between men and women. This means that there must be no discrimination based on gender with respect to e.g. salary, promotion and recruitment.
TONO’s workforce comprises 46 women and 29 men. Two men and one woman are employed in part-time positions at their own request. The average age for all employees in TONO is 46.5 years. The average gross monthly salary for all female employees at the end of 2024, including managers, was NOK 63,500. The average gross monthly salary for male employees, including managers, was NOK 75,565. The higher average salary for men is attributable to the higher proportion of men in senior positions in TONO.
The organisation’s HSE activities are systematised through the Working Environment Committee (AMU). The Working Environment Committee holds regular meetings. Efforts relating to sickness absence shall be discussed in at least two meetings per year.
In 2024, sickness absence was 5.07 per cent, compared with 5.43 per cent the previous year. Sickness absence is followed up in accordance with the provisions of the Norwegian Working Environment Act. TONO does not engage in activities that could pollute the external environment.
“TONO’s Code of Business Conduct, which all its employees have signed, contains the following: “TONO shall be a workplace with an inclusive working environment. Employees shall treat each other and those with whom they come into contact through their work with respect and integrity. TONO shall facilitate a working environment free from discrimination on the grounds of religion, skin colour, gender, sexual orientation, age, nationality or ethnic origin, or disability. TONO’s employees shall also contribute to a working environment free from bullying, abuse, harassment, etc. TONO will not tolerate any behaviour that may be perceived as degrading or threatening.”
TONO complies with the Co-operative Societies Act’s provisions on gender representation, which means that both genders must be represented by at least 40 per cent on TONO’s board of directors.
TONO employs people with a background from all the Scandinavian countries, the rest of Europe, Asia, Africa and the USA. We are therefore of the opinion that TONO promotes equality in accordance with the purpose of the Act.
An account of TONO’s due diligence pursuant to the Norwegian Transparency Act will be published on TONO’s website in June this year.
