Why SACEM Is Thinking Locally While Growing Globally

SACEM collected a record 1.6 billion euros ($1.73 billion) in 2024, up 7.7% from 2023, the French organization announced this week, fueled largely by international expansion. In France, SACEM collected 852 million euros ($922 million, based on the average annual conversion rate for 2024), up about 2%. Internationally, though, it took in 749 million euros ($811), a gain of 15%. That means that almost half of SACEM’s revenue is international, which is significant for a CMO in a market with a strong national repertoire. Royalty distributions were up 12%, to 1.4 billion euros ($1.5 billion).  

For SACEM, like other big European CMOs, it’s a whole new world, thanks to the ability to represent online rights across much of the world (although not the U.S.). As general music business growth slows, mostly due to streaming subscription saturation in big markets, this has allowed SACEM to continue to grow by signing deals with publishers and other CMOs.  

“The strategy we’ve developed over the last years is to convince publishers and other CMOs to join forces with us to be able to better deal with platforms, not from an equal position but one that’s more balanced, and to invest in tools that benefit everyone,” SACEM CEO Cécile Rap-Veber told Billboard at the Music Biz Conference in Atlanta, where she also did a keynote interview. “We’ve secured new mandates to represent more repertoire, so we can take in more money and reduce our costs.” 

For most of the history of SACEM, which has operated since the 1850s, before any of its peer societies, the organization did most of its business in France. CMOs remitted money to other CMOs, but the European organizations did not really compete with one another. That changes with a 2014 European Union Directive that generally allowed CMOs to maintain their national monopolies but also to compete for online rights. Competition in the decade since allowed two giant “licensing hubs” to emerge: SACEM and ICE, a joint venture of PRS for Music (the UK CMO), GEMA (the German one) and STIM (Swedish). While direct comparisons are difficult because of the way the different organizations report their results, SACEM has become either the biggest CMO outside the U.S. (based on royalties it collects and distributes) or the biggest in the world (based on the total amount of money it takes in, some of which it passes directly to other organizations for them to distribute).  

SACEM now represents 510,000 songwriters and rightsholders worldwide, in 180 territories. Its international royalties, almost all online, have grown 29% since 2023. It signed 16 new deals – mandates is the term used – this year, in addition to the 70 it already had, including with Universal Music Publishing, ASCAP, the Canadian CMO SOCAN, and the Korean CMP KOMCA.  

Rap-Veber’s strategy is that this kind of expansion creates a virtuous circle: Increased scale leads to increased revenue, which allows for increased investment, which in turn leads to further increases in scale. That scale also allows for wider scaring of costs, which lets rightsholders take a higher percentage of the money SACEM collects.  

The industrywide slowdown in growth  is intensifying competition among societies, as limited natural growth means expansion must come from international markets, or at the expense of peer organizations. As fears of economic contraction grow in Europe and the U.S., it is hard to imagine national growth that’s significantly higher than inflation on a sustained basis. That puts the focus on other markets, where the larger international societies can compete. “We have direct license deals now in India, Vietnam and the Philippines,” Rap-Veber says. “With almost 80 partners, we have the weight to be an international player, with more penetration in more countries.” 

As SACEM expands globally, it continues to prioritize local cultural investment in France, where it follows a dedicated cultural strategy. With the money it took in from the blank media levy — a copyright fee charged on blank media and computer memory — it put aside 20 million euros ($22 million) for 3,600 cultural projects in France, including 478 festivals and 185 venues.