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Monday 28th March 2011

Slowing music sales reduce royalty collections for creators

PRS for Music, the organisation that represents 75,000 songwriters, composers and music publishers in the UK, today reported a 1% fall in the collection of royalties for 2010 to £611.2m.  (2009 = £618.2m)

A fall in high street sales of recorded music, and difficulties capturing the full value of music use online, led to a £7m decline in royalties collected. 

The drop in royalty collections was in part offset by stronger international and radio royalty revenues.  Royalties collected are distributed to creators when their music is played, performed or reproduced in the UK or abroad. 

  • 8.8% fall in royalties from recorded media – primarily CDs and DVDs as a result of tough trading conditions and customers switching to digital formats both legal and unlicensed.
  • Growth in royalties from legal digital services slowed to 4.3%; 63 digital music services are now licensed in the UK. 
  • An improving commercial radio advertising market contributed a 2.1% rise in royalties collected from music use in this sector.
  • An increase of 1.7% to £169.8m in royalties collected from licensing British music use internationally.   Royalties are now collected from 155 countries worldwide.

Robert Ashcroft, Chief Executive of PRS for Music, said: “The loss of high street outlets, the slowdown in physical music sales as well the challenges capturing the full value of music usage online has meant for the first time we have seen royalties collected dip.   Previously, any reduction from falling physical sales had been offset by our strong performance in music licensing both in the UK and internationally.  In 2010 slower growth at home and abroad failed to fully mitigate the decline.

We predict future growth from the developing legal digital market, and from licensing the use of UK music abroad, especially in emerging markets. Collectively, the industry needs to work together to support the fledgling digital market in the UK ensuring legal choice for consumers and vital income for creators.”

A focus on reducing administration costs and improved efficiency at PRS for Music meant that whilst revenue collected reduced by £7m, the amount paid to songwriter, composer and music publisher members only reduced by £0.8m. 

  

PRS for Music 2010 Headline Results

 

 Business Area*  2010 (£m) 2009 (£m) % Change 
 Broadcasting & Online  173.2 172.5   0.4%
 International  169.8  166.9  1.7%
 Public Performance Sales  151.0  150.2  0.5%
 Recorded Media  117.2  128.5  -8.8%
       
 Total  611.2 618.2   -1.1%

 

*An explanation of business areas:
1. Broadcasting & Online – covering all radio, TV & digital services
2. International – use of our member’s music abroad in any form
3. Public Performance Sales – including clubs, music venues, businesses & commercial premises
4. Recorded Media – such as CDs & DVDs

 

See attached appendix for full breakdown of royalty collections for each business area.


www.prsformusic.com/financial2010


ENDS


For more information, get in touch:

Nicola Formoy, Public Relations Manager:
nicola.formoy@prsformusic.com
02073064229 / 07843 529537

Barney Hooper, Head of PR:
barney.hooper@prsformusic.com
02073064548 / 07979 757052


PRS for Music represents 75,000 songwriters, composers and music publishers in the UK.  PRS for Music ensures creators are paid whenever their music is played, performed or reproduced; championing the importance of copyright to protect and support the UK music industry.  The UK has a proud tradition of creating wonderful music that is enjoyed the world over and PRS for Music has been supporting the creators of that music since 1914. 

PRS for Music provides business and community groups with easy access to over 10m songs through its music licences.  In an industry worth £3.9bn PRS for Music is uniquely placed to be a voice for music and can provide data and comment for all aspects of the business: live, broadcast, sales, online, touring and music creation and up to date analysis, research and trends about the industry.

www.prsformusic.com
www.m-magazine.co.uk
 

 
Press contacts

PRS for Music
29-33 Berners Street
London
W1T 3AB
Tel: +44 (0)20 7306 4777
e: press@prsformusic.com

Press Office Staff:
Olivia Chapman

Please note these contacts are for press enquiries only. If you have a general enquiry call the Switchboard on

020 7580 5544 

or visit Contact Us to find the number you need.

 
 
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PLEASE NOTE: On 1 July 2013 the legal entity behind the PRS for Music brand changed its registered name from The MCPS-PRS Alliance Limited to PRS for Music Limited.