ANNUAL REVIEW 2OO9 WELCOME TO THE 2OO9 PPL ANNUAL REVIEW.

OUR MISSION IS TO MANAGE THE RIGHTS AND MAXIMISE THE EARNINGS FROM THE BROADCAST AND PUBLIC USE OF RECORDED MUSIC, AND DISTRIBUTE THEM IN THE MOST EFFICIENT MANNER POSSIBLE. WE LOOK TO CREATE MAXIMUM VALUE FOR OUR RECORD COMPANY AND PERFORMER MEMBERS AT ALL TIMES AND A FIRST CLASS SERVICE TO ALL OUR CUSTOMERS, ALL OF WHOM ARE IMPORTANT TO US.

TO ACHIEVE THIS, AND TO SET GLOBAL STANDARDS OF EXCELLENCE, IT IS ESSENTIAL FOR US TO MAINTAIN AND INVEST IN FIRST CLASS PEOPLE AS WELL AS MAINTAIN AND INVEST IN FIRST CLASS SYSTEMS AND DATA. 2 OUR YEAR 28 OUR PEOPLE 4 CHAIRMAN AND CEO’S STATEMENT 3O EXECUTIVE MANAGEMENT TEAM, SENIOR MANAGEMENT TEAM 6 BUSINESS REVIEW AND BOARD OF DIRECTORS 8 2OO9 HEADLINE: MUSICWORKS 32 PPL LIVE 1O FINANCIAL SUMMARY 34 CORPORATE SOCIAL RESPONSIBILITY 12 2OO9 HEADLINE: TRIBUNAL 36 OUR PEOPLE 14 BROADCASTING AND ONLINE 15 PUBLIC PERFORMANCE AND DUBBING 38 THE PEOPLE’S CHARTS 17 TRIBUNAL 4O 2OO9 HEADLINE: 18 2OO9 HEADLINE: INTERNATIONAL THE PEOPLE’S CHART SHOW SERIES 2O INTERNATIONAL 42 THE PEOPLE’S CLASSICAL CHART 2OO9 22 2OO9 HEADLINE: 44 THE PEOPLE’S POP CHART 2OO9 INVESTING IN THE FUTURE 46 THE PEOPLE’S CHART 2OOO – 2OO9 24 MEMBER SERVICES 26 PPL CLOSING THE RIGHTS GAP

1 “…THIS IS A ROLE % WHICH [THE COPYRIGHT 9.8 TRIBUNAL] IS ILL-EQUIPPED Commercial radio revenue OUR decline in 2OO9 TO PERFORM…” YEAR COPYRIGHT TRIBUNAL (Source: RAB/Ofcom)

2OO9 MAY HAVE BEEN “ …UNLESS OUR RIGHTS 1 IN 56 ARE PROPERLY VALUED, A TOUGH YEAR BUT IT Business failures reached an THEN MUSIC MAY MERELY STRENGHENED estimated 36,OOO in 2OO9 – CEASE TO BE A VIABLE OUR DETERMINATION the equivalent of one in BUSINESS…” TO UPHOLD THE every 56 companies FRAN NEVRKLA (Source: BDO Stoy Hayward CULTURAL AND Industry Watch) COMMERCIAL VALUE OF OUR REPERTOIRE 87% 2,36O Of musicians earn less The number of pubs than £16,OOO a year that closed in 2OO9 from their profession (Source: BBPA) (Source: Musicians’ Union)

“ …2OO9 WAS A YEAR WHEN MANY COMPANIES ROYALTIES WERE PREOCCUPIED The Copyright Tribunal WITH SURVIVAL …” decision led to a CBI reduction in royalties

2 “ A RESTAURANT “UK LABELS HAVE % WITHOUT MUSIC, ARGUABLY DONE 95 IS LIKE A CURRY 2.9BN A BETTER JOB OF MusicWorks survey WITHOUT SALT” Seconds of music usage DIVERSIFYING THEIR shows 95% of people ENAM ALI MBE, data matched by PPL REVENUE STREAMS, prefer shopping when FOUNDER OF Distribution team in 2OO9 DUE IN PART TO music is playing BRITISH CURRY AWARDS THE SUCCESS STORY THAT IS PPL...” WILL PAGE, PRS FOR MUSIC

“ MUSIC IS GROWTH “ THANKS SO MUCH VALUABLE AND Estimated 3% increase FOR ALL YOUR MUSICIANS HELP! I AM INDEED 2 on the previous SHOULD BE VERY PLEASED. Removing 2 music 12 months for market licensing exceptions COMPENSATED value of leisure industry YOU HAVE BEEN FOR MAKING IT” A GREAT HELP AND would mean (Source leisuredatabase.com) more revenue for THE GUARDIAN A BLESSING TO ME” performers and QUINDON, PPL RIGHTS HOLDER record companies

+ * “ FOR MOST + “ WE HAVE % BUSINESSES, % SUCCESSFULLY 2 INTANGIBLE ASSETS 3 COMPLETED THE Year on year income REPRESENT WELL Predicted growth FIRST STAGE OF growth at PPL OVER HALF OF for UK advertising THE PPL SYSTEMS * See page 11 CORPORATE VALUE” revenues in 2O1O UPGRADE for more information (Source: Magna) ACCA ON TIME AND ON BUDGET…” PETER LEATHEM

3 CHAIRMAN AND CEO’S STATEMENT

In 2OO9 we experienced some stormy waters which certainly made plain sailing very difficult. In spite of the awful economic climate and other adversities, mentioned below, PPL succeeded in raising the bar yet again by increasing some of its main income streams. It is easy to forget that not so many years ago PPL was not expected to reach the magic number of £100 million of annual income. Now the company exceeds that figure substantially and can aim for the next significant target on the road to obtaining a proper return for the many broadcasts and public uses of the fantastic sound recordings in our repertoire. Similarly, we forget that only a few years ago PPL was collecting no overseas income at all, simply because it had no authority and remit to do so. The year on year growth in recent years has been remarkable and the 2009 international collections totalling £21.6 million represent a fantastic achievement on the part of our International Department. And yet, all this is achieved in spite of enormous obstacles, negativity and, at times, outright hostility. I refer to LICENCE FEE INCOME £M the current mindsets and the nearly schizophrenic relationship modern society * has with culture, all things creative and 129.6 especially music. +2% *See page 11

4 On one hand, there is a growing The working conditions of most British Happily, that decision was reached in appetite for general consumption of musicians are something of which we a statutory context that will shortly cease music, although, unfortunately this is should not feel proud. The same is true to have any application, and it is not the frequently based on the premise that of the levels of remuneration with the end of the story by any means. It is likely all music should be easily accessible sole exception of a small number of that the Copyright Tribunal will be asked and “for free”. On the other hand, there extremely successful superstars. It is not to consider again these PPL tariffs and is also a general realisation that music generally appreciated that approximately it is essential that the Tribunal has all the is probably the single most powerful 90% of the tens of thousands of British facilities, time and expertise to make well tool when advertising products, services musicians, singers and other performers informed, balanced and commercially or anything else. Most individuals and earn less than £16,000 a year from sustainable judgements about the companies are also aware that music their profession. My colleagues and value of music and the underlying rights alone creates a better, softer and more I have also highlighted on many occasions of performers and record companies. effective working environment which the fact that, generally speaking, the Unless such rights are properly valued, undoubtedly helps businesses and other licence fees which the vast majority of then music may cease to be a viable organisations to keep their staff happy, businesses have to pay annually for the business. This would be a disastrous to sell more products and therefore use of music, are pitifully low. It is ironic development for modern society, for increase their profits. Quite often, and sad that all these businesses have our culture and for UK plc generally. the use of music results in the creation to pay several times more for cleaning In my view, the above represents the of wholly new businesses which or garbage collection. biggest challenge going forward and become highly successful and In 2009 PPL faced a Copyright Tribunal our constituents, both the performers and immensely profitable. Reference in relation to several of its public the record companies, can rely on our Whilst we are happy to applaud most performance tariffs. This is nothing unusual complete determination to carry on the of these trends, we feel very strongly that in itself and, whilst PPL tries its hardest good fight in safeguarding and enforcing the use of music should and must be to conduct its business in an intelligent, the rights vested in us and in obtaining paid for. Moreover, it has to be valued flexible and user-friendly manner, it is their proper value. I thank all our friends properly and therefore at commercially inevitable that occasionally tricky situations and supporters in the music industry and viable but sensible rates. This is particularly and disputes arise which undoubtedly elsewhere for helping us in this difficult, important in the inevitable process of require adjudication by an impartial extremely challenging but essential task. physical format sales continuing to decline. and objective body. Onwards and upwards! It follows, therefore, that other income That said, we are very unhappy about streams including broadcast, public the latest Copyright Tribunal decision. performance and other types of usage, Surely it cannot be right that talent which hitherto have been considered should be ignored and that something secondary and therefore “complementary”, as precious as music should be valued are now becoming prime revenue sources at such low rates as those applied by for performers, as well as for those who the Tribunal to the thousands of premises invest in existing and new talent. Fran Nevrkla who for several years voluntarily agreed Chairman and to pay the fees sought by PPL. Similarly, Chief Executive Officer how can it be right that performers and record companies/rights holders should receive so much less than composers and publishers in respect of the licensing of public performances in the same premises?

5 BUSINESS REVIEW

WE LISTEN...

6 ... AND WE RESPOND

7 MUSICWORKS COMMUNICATING THE BENEFITS OF PLAYING MUSIC IN PUBLIC.

77% 92% OF PEOPLE SAY OF PEOPLE LIKE THEY ARE MORE A BAR WITH LIKELY TO VISIT BACKGROUND A HAIRDRESSING MUSIC SALON WHICH IS PLAYING MUSIC

8 % OF PEOPLE SAY MUSIC MAKES THEIR 8O GYM WORKOUT MORE ENJOYABLE WHY MUSICWORKS? MUSIC WORKS, AND THE MUSICWORKS PROGRAMME WAS LAUNCHED IN THE SUMMER OF 2OO9, IN CONJUNCTION WITH PRS FOR MUSIC, TO COMMUNICATE TO BUSINESSES THE BENEFITS OF PLAYING MUSIC IN PUBLIC. INVALUABLE RESEARCH CARRIED OUT BY ENTERTAINMENT MEDIA RESEARCH (EMR) HIGHLIGHTS POTENTIAL COMMERCIAL GAINS TO BUSINESSES.

More at musicworksforyou.com

74% OF EMPLOYEES ENJOY GOING TO WORK MORE WHEN MUSIC IS PLAYED

9 FINANCIAL SUMMARY

THE COMPANY’S PRINCIPAL During the year the company increased In tough market conditions for PPL’s ACTIVITY IS THE COLLECTION OF its licence fee revenue from most sources members, the changes within the music LICENCE FEES FOR BROADCASTING in accordance with management business in recent times have been AND PUBLIC PERFORMANCE objectives. It is expected that this trend immense. The economy continues to play OF RECORDED MUSIC ON BEHALF will continue. PPL considers its key a part in our ability to collect licensing OF OUR MEMBERS. performance indicators to be revenue, income and 2009 proved particularly revenue growth and cost to revenue ratio. difficult in some markets such as the retail THE TOTAL AMOUNT AVAILABLE 2009 was a difficult year financially, and pub industries where business closures FOR DISTRIBUTION IS PAID OUT given the Copyright Tribunal decision resulted in fewer venues playing music. TO THE COMPANY’S MEMBERS, (see page 17) on three public As the economy is expected to improve RECORD COMPANIES AND performance background music tariffs. throughout 2010, we would hope to see PERFORMERS, WITH THE INTENTION collection rates and revenues increase. The decision required PPL to establish THAT THERE ARE NO RETAINED Whilst sales of physical music carriers a refund scheme for customers on the RESERVES AT ANY PARTICULAR continue to decline generally around affected tariffs for licences purchased BALANCE SHEET DATE. the world, the ‘use’ of music continues between 2006 and 2009. Income to grow as media expands and ‘public before accounting for backdated refunds performance’ and dubbing increases. was £129.6 million, an increase of 2%. After accounting for this exceptional It is critical that the company plans item (£18.1million), income declined by carefully for the future. Investment in 13% from 2008. Broadcasting income systems has to meet the demands of grew by £1.0 million (2%) despite an increasing membership, evolving media, approximately 9% fall in commercial new tariffs and the developments that the radio revenues which was as a direct company continues to make in overseas result of a downturn in advertising revenue collection for all members. in this sector. Public Performance and Dubbing revenue in the year declined by 10%, due to a direct impact on collections throughout 2009, from the Copyright Tribunal decision. International revenue increased by £6.2 million (40%) to £21.6 million. The cost to revenue ratio remained at 14.6%.

1O LICENCE FEE INCOME £M

‘O9 111.4 18.1 129.6* Licence fee income year on year:

2OO9 2OO8 ‘O8 127.6 £M £M

‘O7 115.O Public Performance and Dubbing 48.9 54.2 Broadcasting and Online 59.1 58.1 ‘O6 97.9 International 21.6 15.4 Licence fee income before refund 129.6 127.6 ‘05 86.5 Public Performance refund (18.1) Licence fee income 111.4 127.6

* This total has been rounded upwards £ ** 129.6M ** As a result of the Copyright Tribunal decision, on three Public Performance background music tariffs: PPL has + accounted for refunds totalling £18.1 million, relating % to the period 2006 – 2009. This reduces licence fee 2 income from £129.6 million to £111.4 million

DISTRIBUTABLE REVENUE £M FEE INCOME BY SECTOR %

‘O9 92.9 1 Public Performance and Dubbing 3 38% ‘O8 11O.3 2 Broadcasting ‘O7 99.5 1 and Online 45% ‘O6 84.4 3 International 17% ‘O5 75.4

2

11 TRIBUNALS WE WILL ALWAYS STAND UP FOR OUR MEMBERS’ RIGHTS.

51 THE NUMBER OF TRADE ASSOCIATIONS PPL INVITED TO TAKE PART IN THE CONSULTATION PRIOR TO THE TRIBUNAL

12 3 THE NUMBER OF TARIFFS AFFECTED 5 THE NUMBER OF YEARS COPYRIGHT TRIBUNAL TOOK TO REACH A DECISION ON BACKGROUND MUSIC TARIFFS O THERE WERE NO OBJECTIONS TO THE TARIFF RELATING TO OFFICES AND FACTORIES

TRIBUNAL DECISION SETBACK THE COPYRIGHT TRIBUNAL DECISION TO REVERT BACK TO THE OLD TARIFFS WAS A BLOW TO PPL AND OUR MEMBERS. WE CONTINUE TO FIGHT ON AND NOTHING DIMINISHES OUR RESOLVE AND BELIEF THAT MUSIC RIGHTS MUST BE PROPERLY VALUED.

13 BROADCASTING AND ONLINE

PPL’s broadcasting and online Whilst PPL’s revenue from commercial BROADCAST AND income grew by 2% in 2OO9 radio fell again in 2009, improved results ONLINE INCOME £M to £59.1 million. in the final quarter of the year suggest that the radio sector may be turning the The overall pattern was broadly similar corner. The substantive consolidation and to that experienced in 2008, with revenue ownership changes which took place 59.1 growth from the BBC and commercial in 2008 have resulted in a small number + television being substantially offset by % of major radio groups which should be the continuing decline in receipts from 2 well placed to take advantage of any commercial radio. recovery, whereas at the other end of the 2009 was a testing year for commercial market 2009 saw increasing numbers of television broadcasters, with a downturn small local stations going out of business. in the advertising market coinciding 2009 saw continuing debate within the with the development of new distribution music industry as to the merits of varying platforms for the on-demand delivery business models which seek to monetise of television programmes and continuing the transmission of recorded music over debates over the regulatory environment. the internet. PPL currently licenses such ‘’ WHILST TRADITIONAL PPL’s licensing fees from television internet services where they largely TERRESTRIAL AND SATELLITE broadcasters are not directly related equate to the traditional radio service BROADCASTING REMAIN THE to broadcasters’ revenues (unlike fees model, with the on-demand streaming PREDOMINANT TELEVISION for commercial radio), but the decline and downloading of recorded music PLATFORMS, BROADCASTERS in advertising revenue inevitably leads being licensed directly by its record AND PROGRAMME MAKERS to pressure on all suppliers of content company members. 2009 saw growth in ARE INCREASINGLY LOOKING including PPL. Whilst traditional terrestrial both the number of PPL licensees and the TO ALTERNATIVE PLATFORMS and satellite broadcasting remain revenue generated from internet radio, FOR THE FUTURE.” the predominant television platforms, but this market remains small and volatile. broadcasters and programme makers are Going forward PPL will continue to work increasingly looking to alternative platforms closely with its members to determine the for the future. PPL has facilitated such appropriate scope for collective licensing developments through a range of ‘new in this area. media’ licensing initiatives with its partners in commercial television. 2009 also saw an agreement reached with Channel 4 for the licensing of PPL repertoire in television programmes delivered to the consumer as downloads and DVDs, following a similar agreement reached with BBC Worldwide in 2008.

14 PUBLIC PERFORMANCE AND DUBBING

2OO9 was naturally a very We recognised in 2008 as the downturn PUBLIC PERFORMANCE difficult year for many of our first became evident that, for the company AND DUBBING INCOME £M customers, large and small and, to maintain growth, it was critical we in turn, the economic downturn continued to develop our operations and * coupled with the Tribunal decision, systems and put in place new initiatives 48.9 clearly impacted on the company. to maintain existing customers as well as develop new business. – % Statistics reveal how tough the year 1O was for businesses through the UK. To this effect we conducted a number of *See page 11 One survey, for example, carried out team re-structures to drive efficiencies and by the Local Data Company in the autumn improve both performance and customer of 2009, showed that 10% of shops service. This was also enhanced by the in 700 towns had been forced to close implementation of a new telephone system in the first nine months of the year. which has brought increased visibility of types of customer contact as well as The same survey went on to show measurement of our performance. This has that in the first nine months of 2009 led to improved management reporting 4,143 restaurants and cafés, 2,201 and more informed management decisions hairdressers and 1,146 corner shops about how best to serve our customers. closed. This list runs on. The British Beer and Pub Association (BBPA) stated One of the side-effects of the recession that 2,360 pubs closed in 2009. was, and still is, a greater general reluctance from our customers to voluntarily However, notwithstanding the impact of ‘’ IT IS CRITICAL WE CONTINUE pay us. Once again a range of industry customers closing and businesses seeking TO DEVELOP OUR OPERATIONS statistics across the whole business to hold onto their money for longer, we AND SYSTEMS AND PUT IN PLACE community show debtor days increasing were still able to grow the number of NEW INITIATIVES TO MAINTAIN and the number of invoices paid declining public performance sites that we licensed. EXISTING CUSTOMERS AS WELL substantially in 2009. We responded In fact we would have seen revenue AS DEVELOP NEW BUSINESS.” accordingly by putting more effort and growth in 2009 for public performance of resources into managing late payers, somewhere around 6% were it not for the the results of which will be further adverse effect of the Copyright Tribunal enhanced in 2010 by the company decision (discussed in more detail on page operating a 50% late payment surcharge, 17) - and despite the recession. one of the few, but fair, benefits introduced by the Copyright Tribunal on the three tariffs impacted by the Tribunal’s decision – as well as on the tariff for hairdressers.

15 PUBLIC PERFORMANCE AND DUBBING continued

In order to support our drive to find new Despite the difficult economic climate, customers to be licensed, a new sales dubbing income again grew significantly and marketing tool was developed to in 2009 through strong relationship 4,143 fully utilise the existing Oracle system for management, tight financial control RESTAURANTS AND CAFES CLOSED our new business team. This is a key and innovative new licensing solutions. area for us going forward and we will The internal changes carried out in late be looking at how best we can continue 2008 have enabled us to respond faster to grow the number of customers that and more efficiently to changes in the we have. market and further increase the number of services licensed. 1,146 We also looked to develop joint licensing PRS for CORNER SHOPS CLOSED projects and other initiatives with Music. In support of the Government’s proposal to allow PPL to license the not- for-profit sector for the first time we made proposals, which are still ongoing, to 1,57O conduct our licensing jointly with them. In addition, the two companies together FLORISTS CLOSED launched MusicWorks – a business tool to demonstrate the value and benefits of recorded music in public. Following independent research by Entertainment Media Research (EMR) we have jointly developed a website (musicworksforyou. com) to convey a host of information to a wide range of businesses across all our sectors.

16 TRIBUNAL DECISION

In 2OO9 the Copyright Tribunal The historical background to the In October 2009 PPL appealed the finally ruled on three of PPL’s Copyright Tribunal decision dates back decision to the High Court though our public performance background to 2003. Following legal action by appeal was limited to establishing an music tariffs. The decision was PPL against the UK Government and error of law. Unfortunately, while there not a favourable one to PPL in a change in the law, the company was, were some aspects of the Tribunal’s that our proposals were rejected, for the first time, entitled to license the decision with which the High Court Judge the Tribunal deciding to revert public performance of sound recordings did not agree, he found that the Tribunal to the company’s old tariffs contained in a broadcast. This meant had a wide discretion and was entitled to (subject to a 1O% uplift). that we were entitled to license the come to the decision that it did. This has use by businesses of the radio and TV now left PPL in the unsatisfactory position, to play recorded music in public. which is also unfair to music users, of effectively one price applying to the vast Following lengthy consultation with the majority of the pubs market and the retail relevant markets, PPL lodged three new market. It is this ‘one-size-fits-all’ approach, tariffs with the Secretary of State for coupled with the disregard for the value Trade and Industry on 1 December 2004 of our members’ rights which we strongly who in turn referred the three tariffs to the believe is not the correct approach Copyright Tribunal under a new, fast-track moving forward. regulatory approach. As a consequence of the substantial Finally, over four years later, the Tribunal ‘’ WE ARE EXTREMELY delays, despite the new fast track sat for a one day hearing and, despite DISAPPOINTED BY THE procedure introduced by the Government, stating that it was “ill equipped to DECISION OF THE TRIBUNAL PPL is in the process of making refunds perform“ its statutory task of acting WHICH, EVEN BY ITS OWN to licensees. ADMISSION, IS ‘ILL-EQUIPPED’ as an investigatory body, the Tribunal TO PERFORM ITS NEW nonetheless decided it had enough INVESTIGATORY ROLE. representations before it to make its THE TRIBUNAL HAS FAILED ‘one-size-fits-all’ decision across the three TO HAVE PROPER REGARD tariffs – despite there being no opposition FOR THE REAL VALUE OF from one sector, Factories and Offices, MUSIC TO BUSINESSES.” in regard to that tariff. FRAN NEVRKLA The Tribunal was placed in a very 22 OCTOBER 2OO9 difficult situation by the new regulatory regime and, as mentioned, admitted that it was not set up to operate under this new investigatory process and the UK Government is now proposing to remove the regulatory regime.

17 INTERNATIONAL

15 MULTI-LINGUAL STAFF IN THE INTERNATIONAL DEPARTMENT TO DEAL WITH ENQUIRIES

18 % OF PERFORMERS REGISTERED WITH PPL USE 8O OUR INTERNATIONAL COLLECTION SERVICE 21,OOO INTERNATIONAL PERFORMERS REPRESENTED BY PPL 4,OOO INTERNATIONAL RECORD COMPANIES REPRESENTED BY PPL

WORKING HARDER INTERNATIONALLY OUR INTERNATIONAL SERVICES CONTINUE TO GROW YEAR ON YEAR AND WE CAN NOW PROUDLY CLAIM TO BE THE WORLD LEADER IN GLOBAL MUSIC RIGHTS MANAGEMENT.

19 INTERNATIONAL

2OO9 was another year International collections are an INTERNATIONAL INCOME £M of growth for the company’s additional, optional service for PPL’s International Department. record company and performer members. ‘O9 21.6 Total collections in 2OO9 were 80% of performers who register with £21.6 million which represents PPL and 88% of record companies • ‘O8 15.4 approximately 4O% growth chose to take advantage of this service. over 2OO8. These performers and record companies ‘O7 9.1 benefited from a 40% growth in the Performer revenue grew by 24% whilst revenue received in 2009. record company revenue grew by 16%. ‘O6 6.O This represents approximately a 260% PPL’s International Department is involved growth over the last three years, with in a business to business collection ‘O5 2.9 over £46 million having been collected process. It does not presently undertake since the start of 2007. the direct licensing of users, broadcasters or venues in other territories. Rather it PPL’s International Department identifies, identifies licensing revenue which has collects and distributes money that is already been collected by PPL equivalents due to record companies and performers $ in other countries and ensures that the from the exploitation of broadcast, • 1.6BN correct share of this revenue is returned public performance and other TOTAL VALUE OF GLOBAL to PPL members. In undertaking this PERFORMING RIGHTS IN 2OO9 collectively managed rights outside business it uses the skills and processes (Source: IFPI) of the United Kingdom. which are core to PPL’s operation: Significant achievements through the negotiation, rights management and year included the agreement reached data processing. in Norway regarding private copying % The actual cost of the services provided remuneration; in Spain for rental, audio- by PPL’s International Department ranges 68 • visual performance rights and private VALUE OF GLOBAL PERFORMANCE from 2% – 10% for the collections it RIGHTS MARKET COLLECTED IN EUROPE copying remuneration; and the first undertakes and such revenues are (Source: IFPI) payments of private copying revenue distributed to performers and record from Sweden and Denmark. This new companies within 90 days of receipt, revenue, coupled with considerable provided the relevant distribution data growth in the US, Dutch, Japanese is supplied. and Swedish markets ensured that the company’s international revenue collection was able to counter prevailing economic trends.

2O PPL is now collecting and distributing PPL’s International Department has remuneration from 45 countries. been heavily involved in technological INTERNATIONAL INCOME BY COUNTRY £M Some of the key strategies for growth developments, both at PPL and with in 2009 were: other music licensing companies. 1O Robust, scalable IT solutions and usable 9 • Managing and resolving technological standards are integral to 8 recordings rights disputes efficient rights management and this will 7 The lack of structured systems be a key focus to support future revenue 1 internationally for territorial rights 6 growth and operational efficiencies. management means that ownership disputes frequently arise, often Historically, development has been 5 between distributors and rights holders. undertaken at national level which By raising and resolving disputes PPL has led to inefficiencies and a lack of 4 is able to ensure that the correct revenue interoperability between various systems. 3 is paid to the correct rights holders Moving forward the international team 2 and to reclaim revenue which has will remain fully focused on working been allocated incorrectly. with a core group of other companies to find long term solutions to enable • Repertoire identification 1 Netherlands 6 Ireland more cost-effective collaboration and Through the more effective identification £8.6 £1.2 greater transparency. of repertoire we have been able 2 Others 7 Japan to significantly increase the amount £3.0 £1.1 of revenue paid through to PPL. 3 Sweden 8 France PPL uses third party datasets to validate £1.8 £1.O information provided by local music 4 Spain 9 Switzerland licensing companies. £1.7 £1.O 5 Denmark 1O USA • Maximising available rights £1.5 £O.7 During 2009 the first payments of private copying remuneration from certain countries were made to PPL members. Further payments from other collectively managed rights will continue to be collected and paid to PPL members during 2010.

21 INVESTING IN THE FUTURE WE FULLY RECOGNISE THE RESPONSIBILITY WE HAVE TO OUR MEMBERS.

2O11 SEES THE FINAL DELIVERY OF OUR INTEGRATED REPERTOIRE, MANAGEMENT, REPORTING, RIGHTS AND DISTRIBUTION CAPABILITY

22 2,953,546,817 SECONDS OF AIRPLAY PROCESSED FOR THE 2OO9 DISTRIBUTION PAYOUT INVESTING IN THE FUTURE THE COMBINATION OF A RAPIDLY GROWING MEMBERSHIP AND OUR VISION OF PROVIDING AN EVER BETTER SERVICE IS ACHIEVED BY INVESTMENT IN TECHNOLOGY. 2OO9 SAW THE START OF A SUBSTANTIAL BUSINESS SYSTEMS UPGRADE PROGRAMME USING SOME OF THE MOST ADVANCED TECHNOLOGY AVAILABLE IN ORDER TO DRIVE EFFICIENCIES THROUGH STREAMLINING AND AUTOMATION OF BUSINESS PROCESSES.

6,5OO NEW TRACKS RECEIVED INTO THE PPL REPERTOIRE DATABASE EACH WEEK

23 MEMBER SERVICES

Membership of the company Indeed many of the new members joining PPL’s licensing deal with the BBC for continues to grow rapidly. as owners of recorded music rights are the UK and international distribution We now have over 42,OOO performers acting as sole traders/rights of television and spoken-word radio performer members, an annual holders. These new members, as well programmes – containing recorded increase of 11%, and over as the existing record companies, now music – that are released on DVD/CD 5,OOO record company/ benefit from an ever increasing range or as downloads to own. rights holder members which of services that the company offers, Specifically for performer members in represents a 32% increase which we strategically worked on through 2009 we improved both the overall on 2OO8. 2009. We are seeing a continuing shift level of held data in relation to historical in the broadcast sector away from linear recordings as well as new ones. delivery of TV/radio programming towards multiple distribution channels One of the big projects over the last and increased ‘on demand’ consumption 18 months has been the programme by the audience. internally known as the ‘Gold Repertoire Project’ and which was mentioned in last To reflect this, PPL has been updating the year’s review. While the company had membership documentation for its record some information concerning performers company members introducing a single linked to recordings that were made Rights Appointment Agreement containing in the 1950s through to the 1970s, all of the rights appointments that members it was difficult in many instances for can give to the company. members to prove on which recordings Three new appointments are now they had played given the paucity of being offered: contemporaneous data.

“ THE INCREASE IN MEMBERSHIP • International New Media In an attempt to deal with this problem, AND DATA WILL CONTINUE Rights Appointment PPL, in conjunction with a chosen number of performers, devoted an TO REQUIRE SIGNIFICANT • UK Programme Distribution immense amount of effort to develop UPGRADE IN OUR IT SYSTEMS Rights Appointment WITH THE NEED FOR IMPROVED a revised and fair system for distribution. LEVELS OF REPORTING • International Programme The objective of this was to release AND COMMUNICATION.” Distribution Rights Appointment monies held for tracks recorded in those In addition to being optional, these decades and which had not already been new mandates are non-exclusive, distributed. This process was completed and operate on the basis of PPL’s new in December 2009 and the 1980s service category system. This means phase of this project, which focuses that, after signing up to these new on track-specific research, is scheduled mandates, members still have control to be completed by summer 2010. and flexibility over their participation in the different licensing services covered by each. This will enable members to participate in, for example,

24 PPL FINANCIAL CONTRIBUTIONS

In PPL’s continuing mission to maximise As the programme continues to develop, income from the broadcast and public we will keep members informed via our ANTI PIRACY & INDUSTRY CONTRIBUTIONS £K use of recorded music we have now recently upgraded newsletter and via our become the first music licensing company website, as well as increase our presence to be granted Qualified Intermediary at events nationally and internationally in 1 Status (QI) by the IRS. Until now, all a cost-effective manner. 4 income received from SoundExchange Keith Harris, Director of Performer Affairs, in the United States has been subject to continued to be involved in spreading a 30% tax deduction, regardless of US the word about performer rights in the tax status. This latest development means UK and in a variety of countries including that the gross income generated by British Barbados, Ghana, Namibia, Trinidad, 3 recordings in the US can now be paid South Africa and St. Lucia. It is very without tax being withheld. 2 much in members’ interests to assist these The increase in membership and countries in setting up suitable systems data will continue to require a significant to make sure that performers get paid upgrade in our IT systems with the wherever and whenever their work need for improved levels of reporting gets used. 1 BPI 3 Impala and communication. £117K* £65K Finally, members continue to play various In March 2009, the company embarked key roles on the main PPL Board as 2 IFPI 4 UK Music £794K on a major new IT system and process well as the Performer Board. Through £4O7K upgrade using Deloitte as its consulting the course of 2009 Rachel Evers from * Funding of the BPI Anti Piracy Unit (APU) was partner. Progress has been good with the Warner Music UK joined as a main £1.9 million in 2OO9. Anti Piracy recoveries first key milestone in the project successfully board member replacing John Watson. (including CDWow of £1.4 million) reached • reached in January 2010 on time and Following the first contested election £1.8 million. Therefore net funding for 2OO9 within budget. at the Annual Performer Meeting in was £117K. • November 2009 for one of the two This was to complete the build of electable Performer positions on the a new Repertoire Database, transfer the Performer Board, Mark Kelly, keyboard • sound recording data from CatCo and player from the band Marillion, was to soft launch the new PPL Repertoire elected narrowly beating Nigel Parker. Database. A testing phase was The company thanks both John and subsequently carried out with a small Nigel for all their work and support selection of record companies and over their respective years of service, performers ahead of its full launch due and also Robin Millar for his many years in the summer of 2010. These upgrades of hard work and good counsel. are essential if the company is to develop its role as a global leader of rights In addition Steve Levine, Chairman of management and member affairs in order the Music Producers’ Guild and Dave to maximise the revenue paid to record Rowntree, Co-chairman of the Featured companies and performers on a timely Artists’ Coalition joined the PPL Board and accurate basis. and Performer Board as attendees.

25 PPL CLOSING THE RIGHTS GAP

A year is a long time in the music However, in order to become law, the industry, yet 5O years is nothing. draft Copyright Term Directive also has In 2OO9, all the recordings from to be adopted by the Council of Ministers 7O YRS 1958 fell into the public domain of the Member States. The Presidency at PPL COPYRIGHT TERM PROPOSAL and the musicians, solo artists, the time failed to put the proposal on the producers and record companies agenda so it is now left to the Spanish who created and invested in those Presidency in 2010 to bring it forward for recordings will now get nothing a vote, provided sufficient Member States from their exploitation. For those support it to deliver the required majority. affected by the shorter copyright 2 In another area where performers COPYRIGHT EXCEPTIONS TO BE term, it has been a year of being and record companies have weaker REMOVED BY THE UK GOVERNMENT so close and yet so far. rights than other creators, we achieved It is the same story on other major gaps a significant break-through. After years in our rights. 2OO9 was a year when of lobbying and litigation, the $ we made major progress on copyright Government agreed to remove two O term, music licensing exceptions, the copyright exceptions which prevent PPL WHAT PERFORMERS AND Copyright Tribunal and the business from licensing members’ repertoire in RECORD COMPANIES GET environment for music licensing but the not-for-profit sector. They are Sections FOR AIRPLAY ON US RADIO we still do not have the final results. 67 and 72 of the Copyright Designs and Patents Act 1988. The Government The copyright term proposal, which announcement of the changes in would extend the term to 70 years for November 2009 brought a sharp reaction performers and record companies, was from some parts of the charity sector, debated in committee in Brussels and even though PPL had enjoyed a amended to give performers additional constructive dialogue with representatives benefit. The amended proposal included of community buildings and had agreed provisions for a session fund, a use-it- to a trial joint licence with PRS for Music or-lose-it clause, which would enable to cover the sector. At the time of writing, performers to release their recordings if the terms of the implementation of the the record company chose not to, and legislative changes were still being a clean slate provision, effectively writing worked out between PPL, the Government off any unrecouped balance on an artist’s and charity representatives. account after fifty years. PPL organised events in London and in Brussels where musicians Pat Halling, Tom McGuinness and Phil Pickett spoke and played to generate support among politicians. The proposal was then voted by the European Parliament on 23 April 2009 and adopted with a large majority.

26 ‘’ THE COPYRIGHT TRIBUNAL HAS The other area of significant progress was PPL was a key witness in the Select BECOME A CRUCIAL ELEMENT IN in the campaign for a performance right Committee Inquiry and has been closely THE CREATIVE INDUSTRIES YET in the USA. The radio industry in America engaged with the Government on the THE MOST SIGNIFICANT REFORMS has grown into a $16bn business, while reforms. The Government has already RECOMMENDED BY PARLIAMENT paying not a cent to performers and appointed Lay Members to the Tribunal ARE STILL TO BE IMPLEMENTED.” record companies who provide so with expertise in IP, created a separate DOMINIC MCGONIGAL much of the programming. PPL has been administration and revised the Rules to DIRECTOR OF GOVERNMENT RELATIONS supporting the musicFIRST Coalition improve case management. The most PPL in Washington right from its inception significant reforms recommended by and over 6,000 PPL performers signed Parliament are still to be implemented the petition in support of US artists. and PPL will pursue these. Following the election of Barack Obama, Throughout the year, PPL has worked the Performance Rights Bill was tabled in closely with others in the music industry, early 2009 and it successfully completed in particular the new pan-industry body its passage through the Judiciary UK Music, jointly funded by PPL and Committees of both Houses. The final PRS for Music on behalf of creators stage is a vote on the floor of the Senate and rights holders. During the year, PPL and Congress although the outcome is far became a founding member of the new from decided. The NAB launched a series Creative Coalition Campaign, bringing of adverts calling for the Bill to be axed together the talent unions, creative and the debate in the final stages is likely businesses and artists from across the to be heated. creative industries to deal with online Looking forward, there are more legislative piracy. PPL’s active engagement with issues to be tackled to give performers the Broadband Stakeholder Group and and record companies full rights over the CBI also proved valuable as high their recordings and to facilitate licensing speed broadband raised the stakes for at a fair rate. Chief of these is reform of all creators. The Digital Economy Bill, the Copyright Tribunal, as recommended with substantive provisions for bringing by a Parliamentary Select Committee ISPs and rights holders together to tackle Report. The Copyright Tribunal has illegal filesharing, was announced in the become a crucial element in the creative Queen’s Speech in November 2009 industries in the UK, making commercial and became law in April 2010. judgements where thousands of users So, while performers and record and tens of millions of pounds of creators’ companies ended 2009 with better revenues are at stake. In the digital prospects for licensing but with an attack world, the Copyright Tribunal is being on the value of their rights, PPL will called upon to take on additional duties, continue to press for improvements in the including supervising the licensing of legislative framework, so that the true value so-called orphan works. of our members’ repertoire is reflected in the revenues that flow through PPL.

27 OUR PEOPLE

AT THE HEART...

28 ...OF WHAT WE DO

29 OUR PEOPLE

EXECUTIVE MANAGEMENT TEAM

Fran Nevrkla Peter Leathem Tony Clark Janice Davies Keith Harris Chairman and CEO Executive Director Director of Licensing Director of HR Director of and Facilities Performer Affairs

SENIOR MANAGEMENT TEAM Sarah Axson David Harmsworth Laurence Oxenbury Richard Stewart HR Development Manager Head of Legal Head of International Head of Dubbing and Business Affairs and Tariff Development Christian Barton Vicki Pomphrey Financial Controller Fiona Haycock Head of Facilities Danielle Tilley Events Manager Head of Public Iestyn David Barry Reynolds Performance New Business Head of Radio Licensing Shula Kerr Business Systems Manager Money Out Penny White Kate Finley Jason Roberts Programme Manager Head of Member Services Marketing Manager IT Development Manager Aman Khullar Suzanne Willems Rob Fish Tim Silver Head of TV Licensing Production Manager Business Head of Music PPL Video Store Development Manager Matt Linin Reporting and Distribution IT Service Christine Geissmar Vickie Spencer Delivery Manager Head of Public HR Manager Performance Operations Steve Macchia Head of Clare Goldie Distribution Systems Press Officer

3O Frank Jaschinski Ben Lambert Dominic McGonigal Jonathan Morrish Director of IT Finance Director Director of Director of PR and Government Relations Corporate Communications

BOARD OF DIRECTORS ATTENDEES EXTERNAL ADVISER Fran Nevrkla Julian French James Radice Steve Levine John Deacon CBE PPL (Chairman) EMI Music UK Polydor Limited Music Producers’ Guild Political Adviser and Ireland Glen Barnham Adrian Sear Robin Millar Performer Director Peter Leathem Demon Music Group Music Producers’ Guild (British Actors’ Equity) PPL (Resigned 16/O7/O9) Rt Hon Lord Smith Mike Batt Mark Kelly of Finsbury Dave Rowntree Dramatico Performer Director Independent Director Featured Artists’ Coalition Entertainment Ltd (Elected 19/11/O9) John Smith David Stopps (Resigned 26/1O/O9) Dominic McGonigal Performer Director Music Managers’ Forum Ted Carroll PPL (Musicians’ Union) Geoff Taylor Ace Records Limited Martin Mills MBE Michael Smith BPI Tony Clark Beggars Group Limited Sony Music Alison Wenham PPL Entertainment UK Ltd Gerald Newson AIM Rachel Evers Performer Director Peter Stack Warner Music UK Union Square Music Nigel Parker (Appointed 13/1O/O9) (Appointed 16/O2/1O) Performer Director (Resigned 19/11/O9) John Watson Warner Music International (Resigned 13/1O/O9)

31 PPL LIVE

Our commitment to strong < BRIT Awards 2O1O working relationships is Pictured here at the 2010 built around our personal BRIT Awards are, back row: involvement in a wide range L-R Peter Leathem (Executive of events and activities in Director, PPL), Rt. Hon. Lord the UK and globally. Smith of Finsbury and Dominic McGonigal (Director of Government Relations, PPL). Front row: L-R Laura Johnson and Rt. Hon. Alan Johnson MP, John Deacon CBE (PPL Political Adviser), Chris Deacon, Michael Connarty MP, and wife Margaret.

< PPL Competition winners > MITS Award Ceremony Huntingdon Dance School, Broadcaster Paul Gambaccini, the winners of a PPL competition Keith Harris (Director of Performer Affairs, to win a sound system, pose PPL) and Ben Lambert (Finance Director, PPL), with the highly collectable PPL backstage at the PPL sponsored 2009 bags at their performance studio MITS Awards where Jonathan Ross was in Cambridge. the guest recipient.

Music Producers’ Guild Awards Dominic McGonigal spoke at the 2OO9 Board Members On behalf of the legendary Chris Blackwell, Future and Music conference in Spain. Gerald Newson (Chairman, PPL Performer Joe Boyd (left) collected the inaugural PPL Pictured here (L-R) with Miguel Ángel Rodríguez Board), Mark Kelly (PPL Board Member) sponsored Outstanding Contribution to UK (Bird & Bird), José Luis Sevillano (AIE), and Fran Nevrkla (Chairman and CEO, PPL) Music Award. He is pictured with Jonathan Dominic McGonigal (PPL) and Antonio López are pictured at Abbey Road Studios at the Morrish (Director of PR and Corporate (Logos Abogados). November 2009 PPL Annual Performer Communications, PPL). Meeting on the occasion of Mark’s election.

32 > The People’s Chart Show The first show, featuring the Top 75 most played and used songs in PPL’s 75 year history, was broadcast on Radio 2 over Easter Monday, 2009. Pictured are Mark Goodier (Managing Director, Wise Buddah), Procol Harum’s Gary Brooker, Fran Nevrkla (PPL) and Producer Paul Sexton. The Parliamentary Jazz Awards 2OO9 PPL is proud to be involved with The All Party Parliamentary Jazz Appreciation Group (APPJAG). The annual awards are held at the House of Commons and celebrate the best of UK jazz. Pictured are some of the winners with Michael Connarty MP (Co-chair, APPJAG), and Fran Nevrkla (PPL).

< Annual < Nordoff-Robbins Performer Meeting Staff from across PPL entered Peter Leathem (PPL) the Nordoff-Robbins Pop Quiz talks to performers and came a very respectable and attendees at the second. The Pop Quiz is one of 2009 PPL Annual several Nordoff-Robbins events Performer Meeting. that PPL supports.

Hairspray winners In the City Pictured here with Michael Ball Filip Nallamilli (Record Company are the winners of PPL’s national Services, PPL) and Penny White competition to win tickets to (Head of Member Services, PPL), see Hairspray and meet the at Manchester’s music conference At the launch of UK Music’s Liberating star of the show himself. ‘In The City’. PPL was one of the Creativity Manifesto in Parliament The winners, who came from sponsors and had a stand at the L-R Patrick Rackow (CEO, BACS), Alison Wenham (Chief Executive, a hairdressing salon in Devon, event where staff were on hand AIM), Jonathan Morrish (PPL), Steve Levine (Chairman, Music Producers’ had a fantastic night. to talk to members and attendees. Guild and PPL Performer Board Attendee) and musician/broadcaster Tom Robinson.

33 CORPORATE SOCIAL RESPONSIBILITY

PPL continued its support of The CSR programme is headed up Charities supported by PPL a wide range of projects for by Finance Director, Ben Lambert, with environmental, community and a core team of 20 dedicated individuals music industry initiatives driven who organise and orchestrate the by the commitment and energy fundraising events, the environmental from the company staff. campaigns and general CSR awareness to the rest of the company. For the second year in succession, PPL chose Whizz-Kidz as its charity of the year and the biggest fund raising event was the climb of Mount Snowdon by 25 staff which raised over £16,000. PPL charity of the year 2OO9 A further highlight was the first ‘Open Whizz-Kidz Mic’ night jointly held by PPL and Whizz-Kidz is a charity dedicated PRS for Music. Talented performers from to giving disabled children the chance both organisations put on a showcase to lead a more independent life. Snowdon climb for staff and friends to raise money for By providing children with customised PPL staff make it to the top of Snowdon in their respective charities. mobility equipment, training, advice an epic climb to raise money for Whizz-Kidz. and life skills, Whizz-Kidz can provide The PPL workplace continues to be an immediate difference to their lives • a conscientious environment, with and their families. centralised bins on each floor encouraging whizz-kidz.org.uk •

everyone to recycle responsibly and • automatic light sensors ensuring that electricity is not wasted and the carbon British Association for • footprint reduced. In lieu of sending Performing Arts Medicine Christmas cards, PPL continues the BAPAM’s mission is to achieve nationwide donation of all used postage stamps occupational health provision for to the RSPB. professional, semi-professional and student performing artists, including health Sport Relief telethon promotion and education and clinical PPL staff with artist Bashy at the launch advice for performance-related health of this year’s Sport Relief telethon. problems suffered by musicians, singers actors, dancers and other performers. bapam.org.uk

34 BRIT Trust & BRIT Performing Julie’s Bicycle The Young Musicians’ Arts & Technology School PPL makes an annual financial contribution Symphony Orchestra The BRIT School in Croydon provides to this not-for-profit company which helps The YMSO is Britain’s leading orchestra a unique education for over 900 students. the music industry cut its greenhouse for young musicians on the threshold of It is the only free performing arts school gas emissions and create a low carbon their professional careers. It provides in the country with a diverse intake of creative future. invaluable experience to those who are talented students. Most leave for higher juliesbicycle.com studying or have recently completed their education or for employment across the training and exists to give these talented creative industries. PPL annually hosts musicians the opportunity to rehearse final year Music Business students from Nordoff-Robbins and perform as well as receive coaching the School who spend the day meeting PPL is a longstanding supporter of the from top professionals and work with all the departments and learning more music industry charity Nordoff-Robbins eminent conductors and soloists. about PPL and the music industry. which brings music’s transforming power ymso.org.uk brit.croydon.sch.uk to children in need, through its therapy services, music and health projects and community music projects, as well as The Young Persons’ CRISIS education programmes and research. Concert Foundation Crisis is the national charity for single PPL’s donations are used to fund In 2009 PPL sponsored the following homeless people. They are dedicated workshops for schools in the Soho and fundraising events: to ending homelessness by delivering Westminster vicinity near the company life-changing services and campaigning • HMV Football Xtravaganza offices. The Foundation helps young for change. PPL gives a donation to people to appreciate and enjoy music • Silver Clef Awards Crisis in lieu of sending Christmas cards. through educational workshops and live crisis.org.uk • Music Industry Trusts Award Dinner orchestral concerts. • Nordoff-Robbins Music Therapy ypcf.co.uk Pop Quiz Hospital Broadcast Association nordoff-robbins.org.uk PPL makes a significant annual donation Finally, we continued to support to the national charity that supports and through sponsorship, a number promotes Hospital Broadcasting in the The Radio Academy of related music industry events. UK. It currently consists of 227 individual The Radio Academy is a registered We were headline co-sponsors broadcasting stations, representing a large charity dedicated to the encouragement, with Radio 1 at the Student number of volunteers. Patients in many recognition and promotion of excellence Radio Awards, we sponsored UK hospitals benefit from programmes in UK broadcasting and audio production. the Best Student Writer at the designed to make life better for people Record of the Day Awards in hospital and aid their recovery. PPL is a key sponsor at the Radio Festival (both in November) and in June hbauk.com and other music related Academy events. we sponsored the ‘Most Played radioacademy.org UK Artist on Commercial Radio’ category at the Arqiva Commercial Radio Awards.

35 OUR PEOPLE

We place huge value on our Communication We continued with the development people and in 2OO9 continued to Following on from last year we held: of our management team by providing strive to provide an environment internal workshops on recruitment and • An Employee Communication Session selection, performance management which allows employees the for all employees where we presented and attendance management. Along ability to grow and develop their an update on key areas of business with the new HR reporting system potential whilst supporting our strategy and initiatives. company mission and goals. (outlined below) this has resulted • A Senior Management Team Away in managers being able to manage Day where plans to address challenges these issues much more pro-actively. identified as part of the Employee The company supports employees Survey (outlined below) were discussed who wish to study for a professional and agreed. qualification and in 2009 we had • ‘PPL People’ internal workshops where 15 people who were actively studying. employees gain an understanding of what other departments in the company do and meet the teams. Employee Engagement Survey We conducted a survey in May 2009

and overall we saw an improvement Training and Development in our ratings across many areas. We launched a new and creative Key strengths identified were: approach to Training and Development 15 in partnership with The Mind Gym. • Confidence in the leadership of PPL, PPL EMPLOYEES ACTIVELY The objective was to deliver a well- a clear understanding of mission and STUDYING FOR PROFESSIONAL planned programme of learning and goals as well as a management team QUALIFICATIONS IN 2OO9 development to align individual objectives which is supportive and encouraging. with our strategic business objectives and • A strong commitment to delivering performance values. As part of this launch good customer service. we ran an online diagnostic tool which all employees completed to identify what • Excellent working relationships training sessions they would most benefit within teams. from to develop their skills and experience. Key challenges were identified and, To coincide with the launch of our new following the survey, the Senior phone system we also ran a programme Management Team discussed the areas of customer service and telephone for development, the implementation of skills training across the organisation. which is now underway.

36 HR and Payroll System Reward and Recognition £ In 2009, following the implementation We launched two new benefits in 83,8OO of the new HR and Payroll system, 2009 – Childcare Vouchers and • MONEY SAVED IN RECRUITMENT we launched a self-service programme a Holiday Buy Scheme. COSTS BY USE OF NEW PPL WEBSITE which allows employees access to their Our 2009 Employee of the Year was files. In addition, our managers also Vickie Spencer, Human Resources now have access to their employees’ £ Manager. Vickie was nominated for • information which acts as a management 62,582.O7 the service she provided to the business reporting tool in a number of key areas MONEY RAISED FROM THE 1,837 in ‘sustaining a strong and ambitious including attendance. TELEPHONE CALLS TAKEN BY PPL team of people in an environment that STAFF FOR SPORT RELIEF encourages and rewards commitment and delivery of results’ and ‘creating Recruitment and Selection • maximum value for our record company Following a new recruitment policy and performer members’. % and subsequent management training, 2O we now have a recruitment and selection Louise Allotey (PPO), Mary Hutchings OF PPL STAFF ARE INVOLVED accreditation process for our managers (PPO), James Lavelle (Music Reporting), IN MUSICAL PURSUITS OUTSIDE which sets a series of standards and Kieran Walsh (PPO) and James Ward OF WORK measures their ability to recruit effectively, (Distribution) were recognised for in line with best practice. We also achieving the 10 year service milestone launched a new induction programme with the company. Sacha Colgate

• and ‘buddy scheme’ for new starters to (Distribution) and Jackie Lau (PPO) were ensure that we integrate new employees recognised for 15 years’ service, whilst into the company as quickly and effectively Kirk Annett (Distribution) reached 20 years. as possible.

• In addition, we focused on improving service levels and costs in this area. We reviewed recruitment methods • across the business and implemented Preferred Supplier Agreements with a number of recruitment agencies which has resulted in a reduction in placement fees across the business. Secondly, we focused on direct recruitment either via our website, our Employee Referral Scheme or from speculative CVs. These initiatives have proven to be very successful and as a result in 2009 we saved 44% on our recruitment costs against 2008.

37 THE PEOPLE’S CHARTS

FROM AMERICA...

38 ...TO ZINMAN

39 THE PEOPLE’S CHART SHOW SERIES MILLIONS OF RADIO 2 LISTENERS TUNED IN TO THE SERIES.

FANDANGO THE TOP TWO SONGS IN THE 75 YEAR CHART BOTH FEATURED THE WORD ‘FANDANGO’. THIS SET OFF A TRAIL OF CORRESPONDENCE IN THE DAILY TELEGRAPH

4O 2X3 TWO ACTS FEATURED IN THE FIRST ‘THE PEOPLE’S CHART SHOW’ WITH THREE SONGS EACH. THESE WERE THE BEATLES AND ROBBIE WILLIAMS 2 THE NUMBER OF RECORDINGS IN THE PEOPLE’S CLASSICAL CHART OF 75 YEARS FEATURING PERFORMER BOARD CHAIRMAN GERALD NEWSON 1939 THE OLDEST SONG TO FEATURE IN EITHER OF THE POP AND CLASSICAL CHARTS WAS GLENN MILLER’S ‘IN THE MOOD’ RECORDED THAT YEAR

THE PEOPLE’S CHARTS WE HAVE UNIQUE AND EXTENSIVE DATA FROM WHICH WE ARE ABLE TO COMPILE EXCLUSIVE HISTORICAL CHARTS. THE FIRST ‘THE PEOPLE’S CHART SHOW’, BASED ON 75 YEARS OF AIRPLAY AND PUBLIC USE, WAS BROADCAST OVER EASTER 2OO9 ON RADIO 2. THE CLASSICAL SHOW FOLLOWED AT CHRISTMAS. 41 THE PEOPLE’S CHARTS

THESE TOP TWENTY CLASSICAL THE PEOPLE’S RECORDINGS ARE THE UK’S FAVOURITES OF 2OO9. SOME ARE RECORDINGS STILL POPULAR AFTER MANY YEARS AND CLASSICAL CHART SOME ARE PIECES WHOSE POPULARITY HAS GROWN THROUGH USAGE 2OO9 IN MAINSTREAM FILM AND TV. ONE COMPOSITION ACTUALLY APPEARS TWICE, MORE POPULAR THAN EVER THANKS TO ITS USE AS THE THEME TUNE FOR ‘THE APPRENTICE’. ALL THE PIECES ARE EMOTIVE, POWERFUL AND RIGHTFULLY DESERVE THEIR PLACES WITHIN THE PEOPLE’S CLASSICAL CHART 2OO9.

1 2 3 4 5

Johann Strauss II Verdi Barber Prokofiev On the Beautiful Ingemisco Nocturne Dance Of The Knights Blue Danube (From Requiem) Eric Parkin (Piano) Cleveland Orchestra City of Prague Luciano Pavarotti Chandos with Lorin Maazel Philharmonic Orchestra La Scala Orchestra Milan (Chandos Records) Decca with Paul Bateman Riccardo Muti (Universal Music) Silva Screen EMI Classics Debussy (Silva Screen) (EMI) Clair De Lune CSR Symphony Orchestra Bratislava with Keith Clark Naxos (Select Music & Video)

42 6 7 8 9 1O

Karl Jenkins Vaughan Williams Arvo Paäärt Adams Einaudi Palladio Fantasia On Greensleeves Fuür Alina The Chairman Dances Nefeli London Philharmonic Orchestra Academy of St Martin in the Alexander Malter (Piano) San Francisco Symphony Ludovico Einaudi with Karl Jenkins Fields with Sir Neville Marriner ECM Orchestra with John Adams Ricordi Oggi Sony Classics Philips (ECM) Nonesuch (Sony Music Entertainment) (Sony Music Entertainment) (Universal Music) (Warner Music)

11 12 13 14 15

Glass Elgar Gorecki Prokofiev Tchaikovsky Glassworks In Smyrna Symphony No.3 Dance Of The Knights 1812 Overture Philip Glass Ensemble Peter Pettinger (Piano) Dawn Upshaw (Soprano) Philadelphia Orchestra Chicago Symphony Orchestra with Michael Riesman Chandos London Sinfonietta with with Riccardo Muti with Claudio Abbado Sony Classics (Chandos Records) David Zinman EMI Classics Deutsche Grammophon (Sony Music Entertainment) Nonesuch (EMI) (Universal Music) (Warner Music)

16 17 18 19 2O

J.S Bach Vivaldi Reich Delibes Handel Schafe Konnen Sicher The Four Seasons Music For 18 Musicians Sylvia Zadok The Priest Weiden (Sheep May Nigel Kennedy (Violin) (Section II) Philharmonia Orchestra Westminster Abbey Choir, Safely Graze) English Chamber Orchestra Steve Reich and Musicians with Richard Bonynge English Concert with Trevor Stuttgart Chamber Orchestra EMI Classics Nonesuch Decca Pinnock & Simon Preston with Karl Munchinger (EMI) (Warner Music) (Universal Music) Deutsche Grammophon Decca (Universal Music) (Universal Music)

43 THE PEOPLE’S CHARTS

THE PEOPLE’S POP CHART CAN TRULY THE PEOPLE’S CLAIM TO BE THE NATION’S FAVOURITE SONGS OF 2OO9. COMPILED UNIQUELY BY PPL, FROM RADIO AIRPLAY AND PUBLIC POP CHART USAGE DATA, THESE 2O SONGS BY 17 DIFFERENT MUSICAL ACTS SHOW 2OO9 JUST WHAT THE PUBLIC WAS LISTENING TO IN 2OO9. FROM ESTABLISHED GLOBAL BANDS THROUGH TO BRITISH BREAKTHROUGH ACTS, THE LIST IS DIVERSE AND COLOURFUL.

1 2 3 4 5

Broken Strings Human Halo Poker Face James Morrison The Killers Beyoncé Lady Gaga featuring Nelly Furtado Vertigo Columbia Interscope Polydor (Universal Music) (Sony Music Entertainment) (Universal Music) (Universal Music)

The Fear Lily Allen Parlophone (EMI)

44 6 7 8 9 1O

Just Dance Red Use Somebody Please Don’t Leave Me Mama Do (Uh Oh, Uh Oh) Lady Gaga Daniel Merriweather Kings of Leon P!nk Pixie Lott Interscope RCA/JIVE RCA LaFace Mercury (Universal Music) (Sony Music Entertainment) (Sony Music Entertainment) (Sony Music Entertainment) (Universal Music)

11 12 13 14 15

Love Story Hot N Cold My Life Would Suck Sober Jai Ho! (You Are Taylor Swift Katy Perry Without You P!nk My Destiny) Mercury Virgin Kelly Clarkson LaFace The Pussycat Dolls (Universal Music) (EMI) RCA (Sony Music Entertainment) Interscope (Sony Music Entertainment) (Universal Music)

16 17 18 19 2O

Takin’ Back My Love Love Sex Magic Breathe Slow Greatest Day Up All Night Enrique Iglesias Ciara featuring Alesha Dixon Take That Take That Interscope Justin Timberlake Asylum Polydor Polydor (Universal Music) RCA/JIVE (Warner Music) (Universal Music) (Universal Music) (Sony Music Entertainment)

45 THE PEOPLE’S CHARTS

THIS PEOPLE’S CHART FEATURES THE THE PEOPLE’S MOST POPULAR SONGS OVER THE PAST TEN YEARS FROM BOTH RADIO AIRPLAY AND PUBLIC PERFORMANCE CHART USAGE. SONGS THAT HAVE RESONATED WITH THE BRITISH PUBLIC 2OOO–2OO9 AND MADE A LASTING IMPACT. SOLO SINGERS, GROUPS AND COLLABORATIONS EMBODY THE BEST OF THE PAST DECADE’S MUSIC. THE FAMILIAR MELODIES OF ALL TWENTY TRULY STANDING THE TEST OF THE TIME.

1 2 3 4 5

Shine I Don’t Feel Love It When You Call About You Now Take That Like Dancin’ The Feeling Sugababes 2OO6 Scissor Sisters 2OO5 2OO7 Polydor 2OO6 Island Island (Universal Music) Polydor (Universal Music) (Universal Music) (Universal Music)

Chasing Cars Snow Patrol 2006 Fiction (Universal Music)

46 6 7 8 9 1O

Rule The World You’re Beautiful I Predict A Riot Can’t Get You Out Crazy Take That James Blunt Kaiser Chiefs Of My Head Gnarls Barkley 2OO7 2OO4 2OO4 Kylie Minogue 2OO6 Polydor Atlantic Polydor 2OO1 Lifetime (Universal Music) (Warner Music) (Universal Music) Parlophone (Warner Music) (EMI)

11 12 13 14 15

America The Boys Are The Sweet Escape Dakota Groovejet (If This Ain’t Razorlight Back In Town Gwen Stefani featuring Akon Stereophonics Love) Extended Vocal Mix 2OO6 Thin Lizzy 2OO6 2OO5 Spilller Mercury 1976 Interscope V2 2OO5 (Universal Music) Mercury (Universal Music) (Universal Music) Postiva (Universal Music) (EMI)

16 17 18 19 2O

Patience Say It Right Grace Kelly Torn Young Hearts Run Free Take That Nelly Furtado Mika Natalie Imbruglia Candi Staton 2OO6 2OO6 2OO6 1997 1976 Polydor Geffen Island RCA Warner Bros (Universal Music) (Universal Music) (Universal Music) (Sony Music Entertainment) (Warner Music)

47 CREDITS

Photography Alan Cook: afcook.co.uk (Cover, pages 6, 7, 29 and 4O) Other images by: Hayley Madden: hayleymadden.com John Marshall: jmenterainment.co.uk Tim Smith: [email protected]

Images Claudio Abbado: Cordula Groth Samuel Barber: G. Schirmer Archives Thin Lizzy: Robert Ellis/Repfoto Lorin Maazel: Decca Sir Neville Marriner: Decca Karl Munchinger: Decca Steve Reich: Jeffrey Harmann Candi Staton: Alan Mercer

Design and Production Typematic: typematic.com

Print Fulmar

FSC and ISO 14OO1 certified, a CarbonNeutral company

This paper used in this report is environmentally friendly HannoArt Silk.

No part of this review may be reproduced in any form without permission from PPL.

© 2O1O PPL (or its licensors) This report is available online at ppluk.com

48