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  
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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.

Robert Ashcroft, Chief Executive - PRS for Music

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.

PRS for Music 2011 Headline Results

*includes PRS for Music Foundation and the Members' Benevolent Fund

2011

2010

%

Revenue - royalties income (£ million)

630.8

611.2

3.2%

Interest and other income (£ million)

4.6

4.6

-

Total revenue

635.3

615.8

3.2%

Costs (£ million)

76.6

66.4

15.4%

Charitable donations* (£ million)

1.5

1.5

-

Distribution to members

557.2

547.9

1.7%

Royalty income collected by source*

2011

2010

%

Broadcast

149.0

146.7

1.2%

Online

38.5

26.5

45.3%

International

187.7

169.8

10.6%

Public Performance

131.4

130.2

0.9%

Live

22.5%

20.8%

8.2%

Recorded Media

101.6

117.2

-13.3%

Total

630.8

611.2

3.2%

*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 represents the rights of over 125,000 songwriters, composers and music publishers in the UK. As a membership organisation it 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 nearly 22.2m songs through its music licences. In an industry worth over £4.1bn, PRS for Music is uniquely placed to be a voice for music and music creators. Collecting £621.5m in 2016, PRS for Music is one of the world’s leading music collective management organisations. With over 100 representation agreements in place globally, PRS for Music's network represents over two million music creators.