Once money has been collected from licensees in the UK and other music licensing organisations from around the world, PPL calculates how much each member has earned and then, after tax and costs have been deducted, distributes the money to the relevant members as royalties. We do not retain a profit for our services.
PPL receives information on recorded music played by TV and radio broadcasters, music suppliers, UK businesses and other music licensing organisations from across the world. From the information gathered, PPL matches the recorded music played against the PPL Repertoire Database, which contains information about millions of commercially released recordings.
A royalty amount is allocated to a single recording in the PPL Repertoire Database depending on how much it has been used by PPL’s licensees. The amount paid is affected by a range of factors, such as which radio station or TV channel the recording has been played on, the amount of airplay it has received in public venues like shops or bars, and the size of the audience who heard it.
In most instances, the total royalty amount for a single recording is divided between the recording rightsholders and the qualifying performers. This is done in accordance with PPL’s Distribution Rules, and the split is typically 50-50. Performer royalties are then usually divided between the performers listed on a single recording, based upon their contribution to that recording.