PRS for Music submission to the Culture, Media and Sport Select Committee’s inquiry into Grassroots Music Venues
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About PRS for Music PRS for Music is a world-leading music
collective management organisation representing the rights of more
than 175,000 songwriters, composers and music publishers around the
globe. Headquartered in the UK, it works diligently on behalf of
its members to grow and protectthe 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...Request free
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About PRS for Music PRS for Music is a world-leading music collective management organisation representing the rights of more than 175,000 songwriters, composers and music publishers around the globe. Headquartered in the UK, it works diligently on behalf of its members to grow and protectthe 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. PRS for Music response PRS for Music welcomes the opportunity to feed into the Culture, Media and Sport Select Committee's inquiry into Grassroots Music Venues (GMVs). Achieving a sustainable future for GMVs is within the interests of all parties across the breadth of the music industry and we are grateful to the Committee for its important work in this area. The UK's world-leading music industry is an ecosystem made up of interdependent constituent parts, where none can thrive or even exist in isolation. GMVs, specifically, play an important part in showcasing emerging talent.This includes providing a platform for songwriters' works to be performed live, often by others; a valuable source of income for music creators. PRS for Music licensing activities PRS represents 42 million musical works and has more than 175,000 songwriter, composer and music publisher members in the UK, and millions more globally.[1] Each year, thousands of talented songwriters and composers join PRS. In just the last 5 years, we have welcomed 37,000 new members. PRS has a responsibility to its songwriter and composer members, who own and control PRS, to license the use of their musical works at live events. In 2022, PRS paid out £45.9m in live royalties. As soon as the songs they write are released onto the market, which can be as simple as clicking a button, emerging songwriters typically join a collecting society. Becoming a member makes financial sense to receive royalties generated from the use of one's works. The joint venture PPL PRS Ltd In 2018, PRS and PPL, the collecting society which administers sound recording rights for performers and record labels, established the joint venture PPL PRS Ltd to streamline licensing activities for public performance customers. PPL and PRS continue to set tariffs separately for the rights they respectively represent, but PPL PRS Ltd manage the relationships and licensing of customers via a simple unified licence, TheMusicLicence. Obtaining a licence is an easy and cost-effective way for customers to access the extensive PRS repertoire (including that of foreign societies) and remunerate songwriters for an array of music uses, covering not only musicplayed on stage but also background music. Tariff LP PRS is committed to setting reasonable tariffs that balance the needs and expectations of customers and members, both in their simplicity of design and ensuring they fairly reflect the value of music. There are over 110 published licence schemes and tariffs, the details of which are available via the PRS website. Live music events in grassroots venues where a charge is made for admissions will typically be licensed under Tariff Live Popular (LP). Theterms of Tariff LP were agreed following public consultation and extensive negotiation with key representative bodies in the live music industry, including the Music Venues Trust (MVT), Concert Promoters Association (CPA), and National Arenas Association (NAA), and then ratified by the independent Copyright Tribunal in 2018. Tariff LP is reviewed periodically to ensure its terms are appropriate and to account for any significant changes in the market. An upcoming review of Tariff LP will commence later this year, which all parties across the ecosystem will have the opportunity to feed into. LIVE (Live musicIndustry Venues & Entertainment) did not exist at the time of the last Tariff LP review, but it is expected they will take part in future discussions. Terms of Tariff LP The rate of Tariff LP is set at 4% of gross receipts per event, or 4.2% in cases where a customer has opted not to declare other charges, such as booking fees. This is lower than that of most European collecting societies. Any additional revenues deriving from sources other than box office are not payable to songwriters and composers. PRS is reliant on information about which musical works are performed at events to pay music creators accurately. This is why we ask customers to comply with the requirements of Tariff LP to submit set list information, as well as accurate accounts of gross receipts. The termsof the tariff are set with the aim of striking a balance between the administrative requirements of providing information and the need for usagedata to pay songwriters and composers correctly. We take a flexible approach to reporting, allowing for set lists to be submitted by either venues or PRS members, in whichever form best suits their needs, such as by taking a photo of a set list in a venue, sending information via email, sending paper copies by post, orvia our digital tool, Set List Hub, which allows PRS members to conveniently submit set list information on the go using their mobile phone. Support for GMVs PRS is committed to working collaboratively with GMVs. We have established the following practices to support customers in the live sector:
commitment to obtaining accurate set list data and supporting customers facing cost pressures.
whereby our team review any disputes between venues and PPL PRS Ltd regarding Tariff LP before actions can be escalated. Litigation, orthe threat of litigation, is an absolute last resort that will only be pursued once all possible options to resolve disputes have been exhausted.
managers have a direct line to the Head of Joint Ventures and Revenue Assurance at PRS to raise any potential issues or concerns.
and efficiency of data collection for the benefit of customers and songwriters, we are investing in MRT. We currently have 167 Audoo devices installed in a range of locations such as pubs and hairdressers to monitor the use of background music, and we are increasing the number of music venues equipped with DJ Monitor devices, used to monitor tracks played in DJ sets, to 70 bySeptember 2024. With respect to non-recorded live events, we conducted a trial using live MRT at Boardmasters Festival in 2023 and continue to explore further opportunities as new technologies are brought to market. The cost of MRT at present is usually not negligible. Therefore, in deciding whether to install MRT devices, the main criteria being considered are the precision/quality of the technology and the cost implications, which are borne by PRS for Music. Initiatives to support the wider grassroots sector PRS has led and supported initiatives to invest in the grassroots sector to sustain the talent pipeline and ensure new and developing artistshave a place to play in their local community. Initiatives supported by PRS for Music include:
creation in 2000, the PRS Foundation has awarded more than £44m through a wide variety of initiatives to over 8,500 new music projects.
competition which provided financial support to venues dedicated to improving live music experiences in their local communities across the UK.
Glastonbury Festival, with development grants awarded to runners-up. Transparency and accountability PRS is owned and governed by its members. As a Collective Management Organisation, PRS is subject to the rigorous transparency and accountability requirements set out in the Collective Management of Copyright (EU Directive) Regulations 2016 (“Regulations”)[2]. The Regulations set standards for the governance, transparency, and behaviour of CMOs, as well as certain requirementsfor rightsholders and users. The UK Intellectual Property Office is the National Competent Authority overseeing compliance. PRS committed to distributing royalties fairly and accurately, for which usage data such as set list information, is paramount. Last year, PRSreported more distributed royalties than ever for the second year running to over 81,000 different members, and in 2022 we achieved a cost-to-income ratio of 9.3%, which is a historic low by our own and by international standards. Transparency is fundamental to how PRS conducts its operations and we recognise that the way information is presented is key. Our recently enhanced Annual Transparency Report gives a comprehensive breakdown of all royalties collected, distributed, and received. To advance our commitment to transparency, we are constantly exploring ways to improve accessibility of information so that it reaches as broad an audience as possible. [1] PRS public performance licences also cover the works of members of foreign CMOs with whom PRS has a reciprocal agreement. PRS reciprocal agreements cover over 100 territories. [2] https://www.legislation.gov.uk/uksi/2016/221/contents/made |