UK-based royalty collection society PRS for Music says it will be paying out an additional GBP £6 million (approx. USD $7.7 million) in royalties from online services to songwriters and composers annually, thanks to a reduction in its administration rate.
The collection society said it’s reducing its admin rate on multi-territory online (MTOL) royalties by 20% – from a 10% rate to an 8% rate – as a result of the CMO “surpassing its targets, delivering historic distributions and revenues, and becoming a billion-pound society.”
Announced at its 2024 AnnualGeneralMeeting (AGM) today (June 4), PRS estimates the reduction will see £1.5 million more paid out to members in each of its quarterly royalty distributions starting from October this year.
The collection society, which represents some 175,000 songwriters, composers and music publishers in the UK and worldwide, reported last month that in 2023 it had collected £1.08 billion ($1.343 billion at the average exchange rate for the year), an increase of 12.5% YoY.
Of that, it paid out a record £943.6 million ($1.17 billion) to members.
“I believe that the success of the society should be defined by the success we pass on to songwriters and composers,” CEO Andrea Czapary Martin said in a statement.
“I am delighted to announce that the reduction in multi-territory online licensing admin fees is a real tangible example of how we are constantly working on behalf of members to be competitive, and to get more money to them, more quickly.”
Martin said next year the society will begin a comprehensive review of its admin rates across all revenue streams, with an eye towards reducing and simplifying them.
Martin made the announcement at PRS for Music’s annual general meeting held on Tuesday (June 4), at which the society also announced four newly-elected members to the PRS Council.
Phil Rose of Sentric Music Group and Laura Young of S2K Music were appointed to the Publisher Council, while Mike Stobbie and Peter Woodroffe (now serving his second term) were appointed to the Writer Council.
Meanwhile, Stevie Spring CBE was appointed to the Members’ Council as the successor to Stephen Davidson as Chair of the PRS for Music Board. Davidson had held the position since 2014.
Additionally, Erica Ingham was reappointed as Independent Non-Executive (iNED) Council Member, and Simon Platz stepped down as a member of the Publishers Council, having served on it since 2008, including a stint as Deputy Chair.
Credit: Garry Jones/PRS For Music
“I believe that the success of the society should be defined by the success we pass on to songwriters and composers.”
Andrea Czapary Martin, PRS for Music
“A vital component of PRS’s achievements is the role the Members’ Council serves in representing the concerns and needs of songwriters, composers, and music publishers,” PRS for Music Members’ Council Chair Julian Nott said.
“Congratulations to newly elected Directors Phil Rose, Laura Young and Mike Stobbie, and Pete Woodroffe on his reappointment, whose combined knowledge and expertise will be an asset in the next chapter of the society.”
The society also ratified a number of new resolutions at this year’s AGM, in an effort to improve its management and increase fairness and representation.
Among them is an expansion of the Members’ Council to 10 writers and publisher representatives, “to ensure more ideas, expertise and lived experiences are represented.”
Additionally, the society introduced a new “Voting Plus” category to encourage more writers to engage in the society’s democratic process, as well as enhancements to its annual transparency report.
PRS for Music’s announcements coincided with the unveiling of a new round of grants from the PRS Foundation, a charitable organization funded by PRS for Music.
The foundation announced the names of 21 artists and seven early-career music industry professionals who will receive funding from the PPL Momentum Music Fund and two PPL Momentum Accelerator funds, one focused on Liverpool and the other on Wales.
The foundation noted that, since 2013, it had awarded more than £5.2 million to artists across the UK, helping to generate an estimated £22 million for the UK music industry.Music Business Worldwide
