PPL, the music licensing company which works on behalf of over 90,000 record companies and performers to license recorded music played in public (at pubs, nightclubs, restaurants, shops, offices and many other business types) and broadcast (TV and radio), has today published its financial results for 2013. The company generated licence fee income of £176.9 million, a 4% increase (£6.1m) on 2012.
COMMENTARY ON PPL REVENUE STREAMS
The rising appetite of businesses playing recorded music to their staff and customers, increased awareness of the need for a music licence and improved internal processes helped to drive significant growth in public performance income, despite difficult trading conditions. The revenue stream saw an increase of 7% on the previous year's income to £69.5m, making up 39.3% of the company's overall revenues.
In the broadcast sector, growth of 5% on 2012 saw revenues reach £73m in 2013, making up 41.3% of overall revenues. This was mainly achieved through annual increases in long-term licensing agreements with major television broadcasters such as the BBC (also including its radio and iPlayer services), ITV and Sky, amongst others.
While there was a 6% decline in International revenues compared to 2012, good progress was made on the whole, with the majority of the top ten countries by total collections reporting increased payments. The impact of some distribution issues in Germany had a large impact on 2013 collections but International collections will be a growing revenue stream for the company moving forward. The majority of the sum collected was on behalf of performers, which amounted to £30 million (87% of the total), while the remaining £4.5 million (13%) was collected for record companies and represented 15% year on year growth. PPL's international revenues for performers already now account for over half the global market for international performer payments for recorded music performance rights.
PPL is also the global leader in managing recorded music data and the company is working on developing new technology in collaboration with its international counterparts to maximise revenues for the global recorded music industry. Future developments in this area will assist PPL to further increase collections for its members, moving forward.
The company's membership has also seen record growth over the past year; performer memberships are up by 22% to 79,000 and record company members have increased by 11% to 11,500.
PPL CEO, Peter Leathem said: "Over the years we have seen our revenues grow significantly, as performance rights continue to become a major revenue stream for the music industry. We are delighted that in our 80th year we are now paying out more money, on more recordings, to more performers and record companies than ever before."
"We have been, and remain, committed to investing in IT systems and technologies to help improve the accuracy of the payments that we are able to make to our members. Given that the UK is one of only three net exporters of music in the world (along with the US and Sweden), we are leading the way in addressing some of the issues affecting revenues in this market through collaboration with other collective management organisations internationally."
To coincide with the release of its annual results, the company also announced its annual PPL People's Charts of the most played recordings, compiled from music usage data from PPL's licensees across the UK: including radio stations and television channels as well as public performance locations such as pubs, clubs, bars, jukeboxes, gyms and shops. Daft Punk's 'Get Lucky', Olly Murs and Ludivico Einaudi's 'Nightbook' were confirmed as topping the 2013 PPL People's Pop Chart, Artist Chart and Classical Chart respectively.
Please download a copy of the PPL 2013 Annual Review.
PPL People's Charts 2013
PPL's annual 'People's Charts' are compiled from music data from PPL's licensees across the UK (including radio stations and television channels as well as public performance locations such as pubs, clubs, bars, jukeboxes, gyms and shops) to find the most played recordings of the year.
The PPL People's Pop Chart 2013
The 'girls' domination after six years comes to an end with Daft Punk's gloriously uplifting 'Get Lucky' coming in at number one ahead of Robin Thicke's admittedly ubiquitous 'Blurred Lines' and 'Mirrors' from Justin Timberlake.
1) Get Lucky – Daft Punk, Feat. Pharrell Williams
2) Blurred Lines – Robin Thicke /T.I / Pharrell
3) Mirrors – Justin Timberlake
4) Locked Out Of Heaven – Bruno Mars
5) Just Give Me A Reason – P!NK Feat. Nate Ruess
6) Let Her Go – Passenger
7) Wake Me Up – Avicii
8) La La La – Naughty Boy featuring Sam Smith
9) Troublemaker – Olly Murs Feat. Flo.Rida
10) When I Was Your Man – Bruno Mars
The PPL People's Artist Chart 2013
Despite tough competition, Olly Murs comes in ahead of Bruno Mars, P!nk, Rihanna and Calvin Harris to take this year's number one slot.
1) Olly Murs
2) Bruno Mars
5) Calvin Harris
6) Robbie Williams
7) Justin Timberlake
8) Katy Perry
9) Taylor Swift
The PPL People's Classical Chart 2013
Having been knocked off the number one spot last year Einaudi reclaims it in 2013 with 'Nightbook' which was number 4 in 2012 and number 2 in 2011. Einaudi is a true people's choice with no less than 19 recordings in the PPL classical charts in the last five years.
1) Nightbook – Ludovico Einaudi
2) The Nutcracker – Mariinsky Orchestra with Valery Gergieve
3) Primavera – Ludovico Einaudi
4) O Fortuna – Crouch End Festival Chorus and City of Prague Philharmonic Orchestra with Nic Raine
5) On The Beautiful Blue Danube – City of Prague Philharmonic Orchestra with Paul Bateman
6) Divenire – Royal Philharmonic Orchestra with Ludovico Einuadi
7) The Armed Man – National Youth Choir of Great Britain and London Philharmonic Orchestra with Karl Jenkins
8) Concerto for Four Harpsichords – English Concert with Trevor Pinnock
9) Concerto for Two Pianos – The Labèques (Pianos), Philharmonia Orchestra with Semyon Bychkov
10) Le Onde (album version) – Ludovico Einaudi
CEO Peter Leathem, members and supporters talk about the importance of PPL revenues to them: