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.