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 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