The Southern African Music Rights
Organisation’s (SAMRO) executive management team has begun putting measures in
place to ensure it operates on principles of prudent financial management to
the benefit of its primary stakeholders.
“We are well aware of public perceptions
about SAMRO due to events in recent years. While awaiting finality on ongoing
investigations, we, as a collective, have decided to take the bold step to
future proof the organisation,” says interim CEO, Ditebogo Modiba.
The biggest issue facing SAMRO is the
non-payment of licence fees by the organisations that broadcast music, which
directly hurts the musicians waiting for their royalty fees. SAMRO’s members
are made up of authors, composers and musical publishers, whose music can be
played by broadcasters, retailers, live music venues, promoters and shopping
centres and other organisations in return for licence fees that are distributed
to members as royalties.
Companies that fail to pay their licence
fees are putting the organisation’s roughly 20,000 members at financial risk,
and also threaten the sustainability of the organisation as a whole.
Some of the licensees that SAMRO has been
working with are experiencing financial constraints which are impacting
negatively on the payment of royalties to its members. “Our licensing team
continues to seek new commercially viable licensees in the Southern African
region, and prospects are promising,” says Modiba.
In the meantime, every area of SAMRO’s
business is being assessed to maximise its operational efficiency and identify
cost-saving measures, especially in view of the current declining economic
climate and potential impact on members and staff. “We have begun to tighten
the belt from within,” Modiba says. “Unfortunately this affects the
organisation’s ability to employ more personnel, but we cannot continue
increasing staff at the expense of our members. This is why we have put a
freeze on our head count and reduced the use of temporary staff.”
SAMRO’s Board of Directors is also
assessing various technology options to help modernise its operations and make
them more efficient.
“Unfortunately, the measures we have taken
as an Executive Management team, are unpopular and will not please everybody.
However, our core reason for existing is for the benefit of our members, and as
such we will always prioritise their needs. When our members are rightfully
taken care of, then so are we. It is in the interests of all at SAMRO to carve
out a respectable space for South African musical talent both locally and
abroad. As custodians of these talented people’s intellectual property, we
intend to deliver on our promise,” she says.
“Overall, we remain committed to serving
our members as best as we can. We understand the times we are operating in are
not just challenging to SAMRO, but to every organisation nationally. To this
end, we will continue to find ways to adapt to the economic climate in order to
remain an efficient and commercially viable entity” concludes Modiba.
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