18 April 2013
PRS and MCPS boards plan improved business structure, new service level agreement, and commitment to mechanical royalty processing
The joint boards of PRS and MCPS have agreed a plan today to restructure their partnership company known as PRS for Music. The move will enable significant cost saving within MCPS, the society that represents mechanical rights, while continuing licensing administration, royalty processing and account management for members.
As announced in 2012, MCPS faced significant market pressures as the consumer market moved from CDs and DVDs to downloads and streaming. The plan will allow the business to operate more efficiently and maintains its ability to license and administer mechanical rights, still a vital source of members’ income.
The key components of the plan agreed include:
- A change in the ownership of the operating company known as PRS for
Music. MCPS has agreed to sell its shares to PRS
- PRS, as owner of PRS for Music, will deliver royalty processing services to
MCPS members under a service agreement
- A commitment by both societies to further reduce costs, enabling more
Guy Fletcher Chair of PRS commented: “With this deal we will continue to act in
the interests of all of our members, ensuring the business manages its costs
appropriately and delivers stability of royalty income in an ever changing world.”
Peter Cornish Chair of MCPS commented: “Despite collecting royalties of almost £176m* for MCPS in 2012, we have been unable to reduce costs as quickly as we’d like with our current structure. Contracting with PRS will allow us to become more efficient and continue to serve the needs of members.”
All PRS for Music members were notified in 2012 of changes to administration and commission rates in order to allow the business time to agree a restructuring and recovery plan. The change to administration rates will remain in place until December 2013. Members will be notified of changes following the new deal in the coming weeks.
Notes to editors:
*MCPS royalty collections in 2012 including mechanical royalties from television and radio licensing
About the Alliance
The MCPS-PRS Alliance is the operational alliance of MCPS (Mechanical-Copyright Protection Society) and PRS (Performing Right Society), and was rebranded PRS for Music in January 2009.
Under the Alliance, both collecting societies ensure composers, songwriters and publishers are paid royalties when their music is used; from live performance to TV and radio, CDs to DVDs, downloads, streams and everything in between.
MCPS and PRS have their own separate boards, which retain responsibility for licensing and distribution matters. All boards are bound by shareholder agreements and service level agreements.