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15.06.12 MusicWeek 13


The below is based on radio and TV broadcasts and plays in venues such as pubs and clubs PUBLIC PERFORMANCE


PPL OVERCAME A HARSH economic environment to post a near double-digit growth in public performance income last year thanks to system improvements and making businesses more aware about licensing rules. The organisation managed to


bring in around £5m extra compared to the year before to increase its public performance income to £55.0m as it stepped up its efforts to make those using recorded music on the high street and elsewhere more aware of the organisation and the need to be licensed. “It’s creating a greater


awareness of PPL because we have to acknowledge there are still businesses who are not terribly familiar with PPL and what it’s about,” says PPL chairman Fran Nevrkla. “We have been consciously putting more effort into that, going out there to the wider world and explaining hopefully in a user-friendly way what PPL is all about and the fact we don’t retain


are all over the shop. We are now getting close, certainly when you look at PPL/VPL combined, to very nearly three times the income the organisation generated when I took over in October 2000.” After administration costs


any of the income and it all goes out to the performers and record labels.” At a time when


lots of businesses it deals with are struggling or going to the wall, PPL CEO Peter Leathem (right) says the organisation has to make sure its licensing processes are working as effectively as possible. “With the number of businesses


Peter Leathem


that are changing hands or closing down it’s very challenging just standing still, so one of the aspects of the recession has been you have a lot more work and actions and transactions that take place for no additional money,” he notes. Although it did not affect 2011’s


numbers, PPL can now collect from the not-for-profit sector for the first time following changes last year to the Copyright, Designs and Patent


Act 1988. PPL gave a year’s grace to such organisations, but on January 1 2012 it rolled out a new joint licence with PRS covering community buildings and Nevrkla anticipates more joint working with the sister collection society. “I am cautiously, quietly


confident that more joint initiatives will emerge,” he says. “We’ll be able to do more things collectively in a mutually supportive way, which hopefully will be more effective from a music industry and licensee’s point of view, but it will take time.”


Fran Nevrkla


and other deductions, including anti-piracy and industry contributions, that left £130.8m to be distributed to its members. This was up 5.4% on the year, although costs to revenue rose, too, increasing from 13.6% to 14.9%, mainly because of the growing contribution of public performance revenue to overall income. This is more expensive to collect than other revenue. In fact, public performance was the fastest


expanding of PPL’s income streams with £55.0m collected during 2011, 9.8% higher than the year


PPL INTERNATIONAL INCOME 2011 2010 COUNTRY / INCOME


1 2 3 4 5 6 7 8 9


10 3 US £5.0m


2 NETHERLANDS £4.0m 1 FRANCE £3.3m 5 GERMANY £3.1m 7 DENMARK £3.0m 6 SWEDEN £2.8m 4 NORWAY £1.8m 8 SPAIN £1.7m ­


BELGIUM £1.1m n/a OTHERS £6.6m


for the previous 12 months. A year earlier it had been placed behind France and the Netherlands whose revenues to PPL both fell sharply during the year. In France income dropped from £6.3m to £3.3m, while Dutch money to PPL declined from


Dollar days: The US topped PPL’s international chart in 2011


£5.4m to £4.0m. However, there were rises in territories including Germany (up from £2.4m to £3.1m), Denmark (from £1.5m to £3.0m), Sweden (£2.1m to £2.8m) and Spain (£1.3m to £1.7m).


Source: PPL


before. Money brought in from overseas and from broadcasting and online was also on the rise, although in the case of international at a much smaller rate than PPL has got used to in recent years, 2.2% higher at £32.4m. Broadcast and online income was up 7.3% on the year to


£66.2m, a period which saw PPL


signing a new deal with ITV. PPL also reached a new


membership milestone last year with the


number of individual performers registered rising to around 51,500. The number of record company/rights holder members was heavily up again, increasing to about 8,500, from 6,300 in 2010. The big hike was largely down to a growing number of performers acting as sole traders controlling their own recordings.


BROADCAST AND ONLINE


PPL 2011 NUMBERS suggest the UK’s commercial radio sector is now firmly back on track with revenues brought in from non-BBC stations rising for a second successive year. After three consecutive years of


decline, the money the society collected from commercial stations went back up in 2010 and this trend continued last year, a period which included the sector’s biggest player Global Radio rolling out the quasi-national Capital Network. “All the excellent efforts


commercial radio are making, consolidating their businesses, looking to diversify is starting to pay dividends,” says PPL CEO Peter Leathem. “For a number of years we used to turn up every year and receive less money from them because we get a percentage of their advertising/ sponsorship revenue so we would end up with a hole [in our revenues]. One of the things that has helped us is by not having


commercial radio declining because at times that has masked other deals we’ve been doing.” PPL also increased the number


of online radio stations it licenses, including at the beginning of this year signing a deal with US-based digital services aggregator Live 365, which streams more than 8,000 internet stations. The society further continued to


license customised online radio services for players such as Last.fm and We7, although its online revenues overall remain limited as the majority of online sound recording licensing is undertaken by individual rights holders rather than collectively. However, PPL chairman Fran Nevrkla believes this is changing. “The proliferation of services


and the huge explosion which has taken place of music usage globally will be such that no individual performer and frankly not even a largish company will be able to deal with it individually,” he says.


PPL’S MOST-PLAYED ARTISTS AND RECORDINGS


PPL’s THE ARTIST CHART ARTIST / LABEL


Adele Lady Gaga


1 ADELE XL 2 LADY GAGA Interscope/Polydor 3 RIHANNA Def Jam/Mercury 4 TAKE THAT Polydor 5 BRUNO MARS Elektra/Warner Bros 6 COLDPLAY Parlophone 7 KATY PERRY Virgin 8 JESSIE J Island/Lava 9 OLLY MURS Epic 10 DAVID GUETTA Positiva/Virgin


Rihanna


Ludovico Einaudi


Source: PPL


ADELE ADDED ANOTHER ACCOLADE to her many 2011 feats by topping PPL’s first-ever chart of the year’s most-played artists in the UK. Compiled from a mixture of radio and TV broadcasts and what recordings were played last year in the likes of pubs and clubs, the XL signing beat off Universal’s trio of Lady Gaga, Rihanna and Take That to lead the countdown. Adele also heads PPL’s chart of the most-played pop tracks of 2011 with


Rolling In The Deep, which is joined in the top five in third place by Set Fire To The Rain and in fifth position by Someone Like You. Universal provides 10 of the 20 most-played artists of the year, mostly


made up of contemporary names but also including in 19th place Queen, reflecting the chart tracking exposure not just for current repertoire but back catalogue, too. On PPL’s chart of the most-played classical works a clean-sweep of the


top three by Universal’s Decca division is led by Italian pianist and composer Ludovico Einaudi’s Primavera.


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