Distribution

Distribution basics

The act stip­u­lates that col­lect­ing soci­eties must set fixed rules for the allo­ca­tion of license fees to exclude any arbi­trary pro­ce­dures. AKM and aus­tro mechana have set such fixed rules. They are called dis­tri­b­u­tion rules and are adopt­ed by the board of AKM and the Gen­er­al Assem­bly of aus­tro mechana respec­tive­ly. Both reg­u­la­to­ry frame­works are reg­u­lar­ly adapt­ed to suit cur­rent require­ments. They apply equal­ly to all music authors irre­spec­tive of their fame.

The act also stip­u­lates that dis­tri­b­u­tion must hap­pen in a pre­cise and trans­par­ent man­ner with­in jus­ti­fi­able efforts. At both AKM and aus­tro mechana, eco­nom­ic aspects are con­sid­ered in the dis­tri­b­u­tion of roy­al­ties while ensur­ing the high­est lev­el of fair dis­tri­b­u­tion, this can only be achieved by apply­ing numer­ous dif­fer­en­ti­at­ed and prac­ti­cal rules.

Dis­tri­b­u­tion reflects the extent of reper­toire usage. Infor­ma­tion about works and rights own­ers is amal­ga­mat­ed with noti­fi­ca­tions of use (music pro­grams, playlists, sales reports, Download/Streaming overviews, etc) and the col­lect­ed license fees.

AKM and aus­tro mechana dis­trib­ute the rev­enues among the musi­cal authors and their pub­lish­ers – direct­ly to our mem­bers or via for­eign sis­ter com­pa­nies to their mem­bers. Pri­or to dis­tri­b­u­tion oper­at­ing costs (AKM) or a com­mis­sion fee (aus­tro mechana) are deduct­ed. AKM and aus­tro mechana do not make any prof­it!

In the past few years the oper­at­ing costs of AKM were around 10% — a very low per­cent­age by inter­na­tion­al com­par­i­son.