Top Artists Leave Tono: A Corrupt System

by Chief Editor

Why Norway’s Top Artists Are Fleeing TONO—and What It Means for Global Music Royalties

Norway’s music industry is in turmoil as some of its biggest artists—including Kygo, Stargate, and Sigrid—have abandoned TONO, the country’s rights collection society, for international alternatives. The exodus, driven by dissatisfaction over revenue distribution and governance, raises questions about Norway’s ability to compete in the global music economy.

According to Finansavisen and VG, the conflict centers on TONO’s 8% allocation to “cultural funds”—money that bypasses artists earning royalties and instead flows to three organizations: Nopa (pop composers), Norsk Komponistforening (classical composers), and Musikkforleggerne (music publishers). These groups control six of TONO’s 11 board seats, critics argue, creating a system where commercial success doesn’t guarantee fair compensation.

Key figures: TONO collects roughly NOK 1 billion annually in licensing fees, with NOK 60 million (about $5.5 million) directed to cultural funds in 2023. Yet artists like Kygo and Stargate—whose hits generate millions—report earning more by routing royalties through societies like BMI (U.S.) or STIM (Sweden).

### Why Are Artists Leaving TONO? The Money—and Power—Behind the Exodus

At the heart of the dispute is how royalties are distributed. TONO’s “cultural funds” (45% to Nopa, 35% to Norsk Komponistforening, 20% to Musikkforleggerne) are not tied to commercial performance. Instead, they’re allocated based on fixed percentages, regardless of whether an artist’s music is streamed, played on radio, or performed live.

“It’s a corrupt system where artists who actually get their music played don’t see the money,” says Aslak Klever, CEO of Popular Demand, a music publishing firm representing artists like Synne Vo and Petter Kristiansen. “We saw we could earn significantly more by moving our catalogs abroad.”

Klever’s clients—including hitmakers Jesper Borgen and Kristoffer Tømmerbakke—are among those who’ve shifted to international societies. TONO counters that these moves don’t boost earnings, but artists dispute this, pointing to higher payouts and better contract terms elsewhere.

Did you know? Norway’s system isn’t unique—similar debates rage in PPL (UK) and SACEM (France), where artists also push for performance-based distributions. However, Norway’s fixed allocations are among the most rigid in Europe.

### The Power Struggle: Who Really Controls TONO?

Beyond money, the conflict is about governance. TONO’s board includes six seats reserved for Nopa, Norsk Komponistforening, and Musikkforleggerne, ensuring these groups hold a majority. Critics argue this creates a conflict of interest, as the same organizations that receive cultural funds also influence how they’re allocated.

TONO’s administrative director, Karl Vestli, defends the system, stating it aligns with EU-wide practices for collecting societies. Yet 50% of TONO’s control committee and three of five spots in the election committee are also held by these three organizations, reinforcing their dominance.

Comparison: In Sweden, STIM’s board is 50% artist-elected, while the U.K.’s PRS for Music allows independent artists to nominate directors. Norway’s structure, by contrast, centralizes power in a small group with vested interests in the status quo.

Pro Tip: Artists considering a move should compare administrative fees (TONO charges ~15–20% of royalties, while BMI/STIM typically charge 10–12%) and payout speed—some international societies distribute earnings quarterly vs. TONO’s annual cycles.

### What Happens Next? The Future of Norway’s Music Industry

The exodus of artists like Kygo, Stargate, and Sigrid signals a growing rift between Norway’s commercial and classical music sectors. If the trend continues, Norway risks losing its competitive edge in global music markets, where artists prioritize societies that offer transparency, lower fees, and performance-based payouts.

Potential outcomes:

  • Reform or collapse: TONO may face pressure to democratize its board or risk further defections. The Norwegian Ministry of Culture has yet to intervene, but EU copyright directives could force changes.
  • Brain drain: Top Norwegian songwriters (e.g., Caroline Ailin, who co-wrote Dua Lipa’s hits) may permanently relocate their catalogs to societies like ASCAP (U.S.) or SACEM (France).
  • New competitors: If TONO’s model fails, private equity-backed firms (like IPX) may step in to compete for Norwegian artists, offering tech-driven royalty tracking.

Why it matters: Norway’s music industry generates NOK 12 billion annually (SSB), with exports like Kygo and Stargate driving 20% of that revenue. A prolonged conflict could hurt Norway’s cultural diplomacy and reduce tax revenue from international hits.

### FAQ: Your Questions About Norway’s Music Rights Crisis

1. Why do artists earn more abroad than in Norway?

TONO’s 8% cultural fund allocation and high administrative fees (15–20%) reduce payouts. International societies like BMI (U.S.) or STIM (Sweden) offer lower fees (10–12%) and faster distributions. For example, a Norwegian artist earning $500K/year from TONO might see $70K–$100K more annually by switching to an international society.

2. Can TONO change its system?

TONO’s structure is governed by Norwegian law and EU copyright directives, but reforms could include:

  • Reducing the cultural fund percentage (currently 8%).
  • Opening board seats to independent artists.
  • Adopting performance-based distributions for cultural funds.

Pressure from artists and the Norwegian government could force changes.

3. Will more artists leave TONO?

Likely. Aslak Klever (Popular Demand) says “several of our clients are evaluating exits”, and industry sources suggest 10–15% of Norway’s top commercial artists could follow Kygo and Stargate within 12–18 months. The lack of trust in TONO’s transparency is the biggest driver.

4. Does Norway have any advantages over international societies?

Yes, but they’re shrinking:

  • Local market control: TONO manages all Norwegian radio, TV, and live performance royalties—critical for artists relying on domestic streams.
  • Cultural subsidies: Some funds support Norwegian language music, but critics argue these don’t reach commercial artists.

However, global reach and lower fees now outweigh these perks for most.

5. What can Norwegian artists do now?

### The Bottom Line: Norway’s Music Industry at a Crossroads

The exodus from TONO isn’t just about money—it’s a vote of no confidence in Norway’s ability to adapt. As global streaming and international hits dominate, artists are choosing flexibility over tradition. For Norway to retain its status as a music powerhouse, TONO must either reform or risk becoming a relic.

What’s your take? Should Norway’s music rights system be overhauled, or are there ways to fix it without losing control to international players? Share your thoughts in the comments—or explore more on our Music Industry Hub.

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