Last year, SAMRO addressed operational efficiencies and improved systems and processes. This year, we built on these improvements to add value for our members, paying out R429 million in royalties, a new record for SAMRO. We also experienced double-digit revenue growth, collecting R684 million in licensing fees.

We also explored new royalty collection opportunities. We concluded a R5.4 million licensing deal with technology giant Amazon. These improvements reflect our progress in addressing inefficiencies in our royalty income collection processes.

As part of the strategy review process, we set new targets to achieve revenue of R1.2 billion and distribute R1 billion in royalties by 2028. We upgraded our core system and implemented new IT systems to streamline our finance, licensing, and distribution functions. These enhancements are essential as we aim to further increase distributions and decrease the number of unclaimed royalties due to incorrect or insufficient documentation. This year, we distributed R14.9 million of unclaimed royalties.

SAMRO had an incredible year, achieving double-digit growth and delivering more value to our members. The global music industry is constantly evolving, driven by the emergence of digital technologies that have transformed both music production and consumption. Music royalties are essential for many music creators, songwriters, and composers. As a member-centric organisation, SAMRO administers our members’ musical works and advocates for their intellectual property rights. We maintain strong relationships with both global and local industry peers. SAMRO has 89 reciprocal agreements with Collective Management Organisations (CMOs) worldwide, ensuring that we collect revenue for our members in the relevant jurisdictions. SAMRO remains one of 18 CMOs represented on the CISAC board and is also a member of the CISAC Africa Region Executive Committee, which was established in November 2023.

SAMRO had an outstanding financial year, achieving double-digit growth in collections despite a challenging economic environment. This growth highlights the effectiveness of our strategic focus on increasing revenue and confirms that licensees recognise the value of music in their businesses. We also saw an increase in digital revenue, fueled by the global rise of music and video-on-demand streaming services. Digital platforms continue to present significant growth opportunities for rights holders, and we are moving in the right direction to capitalise on these opportunities. In addition, we achieved the lowest cost-to-income ratio in a decade by implementing cost-containment measures, including reassessing supplier and service costs and managing headcount. These efforts enabled us to allocate more resources towards creating value for our members. In 2024, we distributed R429.2 million, the highest amount to date, and increased the royalties available for distribution by 12.6%, reaching R622.2 million (2023: R552.8 million).

We also reduced the undocumented works balance by 1.9% to R284.9 million (2023: R290.4 million). Moreover, SAMRO has made significant progress in paying out unclaimed royalties to members whose details have not been updated. Since 2021, we have focused on tracking members with unidentified or undocumented works due to insufficient details, improving distribution and enhancing our reputation among rights holders and the public.

Thank you for your trust in SAMRO.

Chief Executive Officer (CEO) of SAMRO