PRS for Music announces MCPS changes
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 efficient operations
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.
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.
About PRS for Music
PRS for Music represents the rights of songwriters, composers and music publishers in the UK and around the world. As a membership organisation the company ensures creators are paid whenever their music and songs are played, performed, broadcast or reproduced in public and provides business and community groups with access to 22.2 million songs through its music licences. With over 100 representation agreements in place globally, PRS for Music's network represents over two million music creators.
In 2016, the organisation collected over half a billion pounds (£621.5m) on behalf of its members, making it one of the world’s leading music collective management organisations.