3.2% rise in the collection of royalties for 2011
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
Robert Ashcroft, Chief Executive of PRS for Music, said: “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.
Source: PRS for Music
