10 January 2013
Explaining how royalties are distributed to BBC radio stations
A lot of people have asked us how we distribute royalties from the deal PRS for Music has with the BBC. Here is a simple explanation using Radio Cymru and the BBC Asian Network to help explain how things are calculated.
Royalty payments per station are calculated using a station’s audience size and its reach. These figures are obtained from RAJAR.
More details can be accessed on RAJAR figures from www.rajar.co.uk
The BBC Asian Network royalty rate is £4.08 and the Radio Cymru rate is £0.52 per minute. We allocate royalties to the stations from the overall BBC deal as follows:
- Half of this allocation is over the potential audience, half over the actual number of listeners
- BBC Asian Network is aimed at a UK wide audience of 52 million with an actual audience of 584,000
- Radio Cymru is aimed at a Welsh national audience of 2.5 million with an actual audience of 142,000
- Radio Cymru also plays around 30% less music than BBC Asian Network
- Therefore, given the BBC Asian Network had a potential number of listeners 20 times larger than Radio Cymru, and an actual listenership 4 times greater (as per RAJAR), the per minute rate is more