Digital Services and International Use Boost Royalties

PRS for Music, the organisation that represents 85,000 songwriters, composers and music publishers in the UK, today reported a 3.2% rise in the collection of royalties for 2011 to £630.8m (2010 = £611.2m).

PRS for Music, the organisation that represents 85,000 songwriters, composers and music publishers in the UK, today reported a 3.2% rise in the collection of royalties for 2011 to £630.8m (2010 = £611.2m).

The continued strength of UK music in international markets, the growth of new licensed digital services and music’s essential role in television and radio, led to the collection of an additional £19.6m in royalties for the creators of music.

Only royalties from recorded media, including CD and DVD sales, declined.

Royalties collected are distributed to songwriters, composers and music publishers when their music is played, performed or reproduced either in the UK or abroad.

• 45.3% rise in royalties from licensed digital services to £38.5m. Royalties from services such as iTunes, Spotify, Amazon and we7 now account for a record 6% of total collections
• Royalties collected from the use of UK music overseas up 10.6% to £187.7m. International income is now one of the largest revenue streams for UK music creators, highlighting both the popularity of UK music around the world and better coordination and cooperation with collecting societies in other countries, ensuring that PRS for Music members are paid wherever their music is heard
• Live music royalty collections grew 8.2% to £22.5m on the popularity of the UK festival market and stadium tours by acts including Take That
• A drop of 13.3% to £101.6m in royalties for music products including CDs and DVDs. Declining collections reflect the market shift away from these formats towards digital distribution of music and entertainment  

The continuing popularity of our music in other countries demonstrates the global success of the UK music industry. Our efforts to support copyright at home and abroad, combined with the energy we continue to put into the licensing of new digital services enabled us to pay additional royalties to our members last year. 

The licensed digital market is now delivering a significant income stream for our members. This goes some way to replacing revenues lost from the declining CD market although online piracy continues to be a problem. The way we consume music is changing, but PRS for Music is adapting to ensure those that create it can continue to earn a living.

Costs rose £10.2m as a result of investment in future revenue growth and cost reduction initiatives. The cost increase also reflects a one-off charge for historic pension related issues that is not expected to reoccur.

*An explanation of royalty sources:

1. Broadcast – covering all radio, TV & ringtone services
2. Online – royalties from digital services including download, streaming and subscription
3. International – use of our member’s music abroad in any form
4. Public Performance – music used in business including pubs, clubs, shops and offices
5. Live – music performed live from festivals to stadium gigs
6. Recorded Media –CDs, DVDs and other physical music products

About PRS for Music

PRS for Music is a world-leading music collective management organisation representing the rights of more than 165,000 talented songwriters, composers and music publishers around the globe. Headquartered in the UK, it works diligently on behalf of its members to grow and protect the value of their rights. With a focus on innovation and integrity, PRS for Music is redefining the global standard for music royalties to ensure creators are paid whenever their musical compositions and songs are streamed, downloaded, broadcast, performed and played in public. In 2022, PRS for Music collected £964m and paid out £836.2m in royalties. prsformusic.com