ppluk.com Annual Review 2018

Standing up for music rights since 1934 LOVE PROTECT RESPECT MUSIC

PPL Annual Review 2018 2 01 PPL Annual Review 2018 In 2019, PPL is celebrating 85 years of standing up for music rights. Contents Founded in 1934, we are the UK music industry’s music licensing company for 04 2018 in numbers over 100,000 performers and recording rightsholders. 06 Chairman’s statement We license recorded music in the 08 CEO’s statement UK for broadcast on radio and TV and, through PPL PRS Ltd (our public 10 Financial summary performance joint venture with PRS for Music, launched in early 2018), when it 16 Business review is played in public at businesses such as Annual Review shops, bars, nightclubs and offices. We 24 Delivering more for members also offer a market-leading international collections service, covering similar 26 Driven by data 2018 uses of recorded music overseas. 28 Developing our people All of this helps to ensure the flow of important revenues back to 30 Corporate Social Responsibility our members. These include both independent and major record 36 Testimonials companies together with performers, ranging from emerging grassroots 50 Our team artists through to established session musicians and festival headliners. 56 PPL’s most played 2018 charts

PPL Annual Review 2018 02 03 PPL Annual Review 2018 2018 in numbers 92 2000+ 400,000+ International TV, over the air, and online Public performance agreements radio stations licensed sites licensed

£246.8 million 661 billion £210.1 million 105,192 Revenue Seconds of airplay Net Distributable Performers and recording collected reported and processed Revenue rightsholders paid

PPL Annual Review 2018 04 05 PPL Annual Review 2018 Chairman’s statement OUR CLARITY OF VISION, RICHNESS OF KNOWLEDGE, AND DIVERSITY OF Anniversaries offer a moment by a data-driven approach, TALENT HAS ENABLED US TO GENERATE collaboration with others, and to reflect. In 2019, where we investment in our people. CRITICALLY IMPORTANT REVENUE FOR celebrate 85 years of PPL, we Such success has been achieved in both a THE INDUSTRY look back at the milestones that competitive and challenging environment. In 2018, have defined our history and we witnessed more uncertainty around Brexit and how it could impact the future of our industry; driven our success. we watched music education and arts funding continue to struggle, threatening the health of our The primary aim of PPL always has been, and talent pipeline; and we weathered a war of words continues to be, to help ensure that those who with tech giants who continued to show disregard invest their time, talent and money to make for the value of music rights. recorded music are fairly paid for their work. Over the years, we have sought to do this for We worked with UK Music and the wider industry to our recording rightsholder members and, in support calls for the new EU Copyright Directive to more recent years since the merger of the be adopted, to create an updated legal framework organisations PAMRA and AURA into PPL, the to protect creators’ rights online. This included performer community. Our clarity of vision, support for the industry’s #LoveMusic campaign. choose to work with us. Through your support, we richness of knowledge, and diversity of talent has are able to build a PPL that is increasingly strong, We hope that the Copyright Directive, once enabled us to generate critically important revenue agile, and effective. implemented, will be a significant positive step for the industry, strengthen the awareness of towards ensuring all music creators, including PPL’s Whilst we take this opportunity to reflect upon public performance rights around the world, and members, are fairly rewarded when their music is the past, we also look forward with ambition to contribute to building a regulatory framework that used online. delivering even greater revenue growth and ever- seeks to stand up for the rights of creators. improving customer service to you, our members, We continue to work closely with UK Music and In 2018, I feel that we have delivered results and to continuing to make an ever-important the British Copyright Council to monitor the ever- to support these aims more than ever before. economic contribution to the evolving global evolving situation regarding Brexit and its potential The statistics set out in this Annual Review are recorded music industry. impact on our industry. very impressive - a fitting tribute to PPL’s 85th anniversary. Last year’s efforts culminated in I would like to express my sincere thanks to those John F. Smith PPL’s largest ever collection of revenue and who have been part of PPL’s journey to date, and CHAIRMAN distribution to members, and were underpinned I am grateful that you, our members, continue to

PPL Annual Review 2018 06 07 PPL Annual Review 2018 Chief Executive Officer’s statement

Neighbouring rights revenues performance and dubbing grew by 3% to £92.3 leadership of and participation in international In 2019, we remain dedicated to investing in million. PPL’s third revenue stream, international forums. I was delighted to see our global footprint customer service, innovating in the data space, continue to rise both in the UK collections, totalled £70.9 million (up 43%). expand further in 2018, through our partnership and to impressing upon others the importance of and internationally and are a with CMOs in Malaysia and Nigeria. Working in neighbouring rights, all with a view to delivering The impressive growth in PPL’s international very important component of Asia and Africa is an exciting development for another year of high quality service and positive collections – up £21.3 million from £49.6 million – PPL; it provides the potential to open up further results to you, our members. an evolving revenue mix for the follows sustained longer-term growth over recent opportunities in these rapidly developing markets years. Our agenda of collaboration has led to PPL music industry. that have the potential to drive significant future Peter Leathem now having 92 agreements in place with collective revenue growth for our members. management organisations (CMOs) around the CHIEF EXECUTIVE OFFICER We, at PPL, are privileged to work on behalf of world, allowing us to collect monies where our Underpinning PPL’s success is a sharp focus on more than 100,000 recording rightsholders and members’ repertoire is used overseas in the making sure we have the right people in the right performers and are proud to be making a significant territories covered by those CMOs. positions at every level across the company, and contribution to the growth of this industry. on giving them the knowledge and skills they We also distributed money to 105,192 performers need to deliver exceptional performance. I would Over the last 85 years of PPL’s history, we have and recording rightsholders in 2018, marking the like to thank my colleagues for their unwavering collected more than £3.2 billion for the recording first time that PPL has ever paid over 100,000 support and continued commitment to our rightsholders and performers that we represent. individuals or companies in a single financial year – ambitious objectives. I would also like to thank One third of this revenue has been generated in the up from 98,012 in 2017. you, our members, for your guidance and support last five years. This is the result of having a clear throughout this past year. strategic vision, making smart investment decisions These achievements are something to be proud of, in technology, and building the expertise of our particularly in the year where we launched PPL PRS diverse workforce, all of which combine to form the Ltd, our public performance licensing joint venture modern day PPL. with PRS for Music. The investment of time and effort 2018 WAS that the formation of this new company has received ANOTHER STRONG I am pleased to report that 2018 was another from my colleagues at PPL has been significant, whilst strong year for PPL, with new highs reached in our remaining focused on growing PPL’s revenues for and YEAR FOR PPL, collections and distributions. delivering an excellent service to our members. WITH NEW HIGHS Last year, our revenues totalled £246.8 million, At PPL, we have a global picture of the neighbouring an increase of £28 million (or 13%) from 2017. rights market. Our desire to improve the quality REACHED IN OUR Growth was achieved across all three of our of data being shared within this market has revenue streams; broadcast licensing generated enabled us to drive quality standards forward with COLLECTIONS AND £83.6 million (up 5%) whilst revenue from public our counterparts around the world through our DISTRIBUTIONS

PPL Annual Review 2018 08 09 PPL Annual Review 2018 Financial summary

CONTINUED GROWTH FOR PPL Financial summary

Revenue collected: £246.8 million (up 13%)

Net Distributable Revenue: £210.1 million (up 16%) Revenue collected £246.8 million (up 13%)

Growing PPL’s revenues 2018 saw continued growth for PPL with total revenues of £246.8 million and Net Distributable Revenue of £210.1 million. Net Distributable Revenue The cost to income ratio was 13.9%, compared with 16.5% in 2017. The decrease has been delivered by both growth in income and reduced costs. £210.1 million (up 16%)

The start of the year also saw the launch of PPL PRS Ltd - our public performance licensing joint venture with PRS for Music based in Leicester. This marked an important milestone in the history of both companies as well as the wider music industry.

We continued to invest in both our employees and technologies throughout the year, with the aim of delivering improved services to our members, supporting future revenue growth and achieving increased efficiency across the business.

In this section, we look at our core revenue streams as well as the activities that underpinned another successful year for PPL.

PPL Annual Review 2018 12 13 PPL Annual Review 2018 2018 revenue

Public performance and dubbing £92.3 million (up 3%)

Broadcast licensing International £83.6 million (up 5%) collections £70.9 million (up 43%) Public performance International collections and dubbing £70.9 million (up 43%) £92.3 million (up 3%)

Anti-piracy and industry contributions 2018 Broadcast licensing In 2018, PPL made anti-piracy and industry contributions to the following: AIM £83.6 million (up 5%) (£64,500), BPI (£1,577,984), IFPI (£684,601), IMPALA (£69,477) and UK Music (£602,250).

Charitable donations 2018

In 2018, PPL made charitable donations to BAPAM (British Association for Performing Arts Medicine), the English Schools’ Orchestra and Choir, Hospital Broadcasting Association, PRS Foundation, the Young Musicians’ Symphony Orchestra and the Young Persons’ Concert Foundation.

PPL Annual Review 2018 14 15 PPL Annual Review 2018 Business review

MORE PAYMENTS THAN EVER BEFORE UK Public performance Broadcast licensing and dubbing Licensing Broadcast licensing revenue grew year-on-year by 5% to £83.6 million in 2018, continuing the trend of annual growth maintained PPL’s licensing activity Revenue from public over the last 10+ years. in the UK is centred on performance and dubbing in 2018 totalled £92.3 million. This A rise in the radio sector’s overall advertising distributors, including Channel 5, BBC Studios, public performance, income, driven by strong performances from the Fremantle and UKTV. These TV blanket licences dubbing and broadcast represents an increase of 3% (or major commercial radio groups, contributed to are necessarily complex, providing access to PPL’s licensing. £3 million) from the prior year. this growth. We continued to grow our licensing repertoire for uses across a multitude of different coverage of smaller radio broadcasters and online platforms and services. Our public performance joint venture with PRS for linear webcasters. Public performance is the playing of Music – PPL PRS Ltd – launched in February 2018 recorded music in public such as in following two years of planning and preparation. We also continued our programme of engagement shops, restaurants, offices, gyms and This was a significant moment for both PPL and PRS with the radio sector: as a patron of the Radio hairdressers. Dubbing is the licensing for Music as well as the wider industry and indeed Academy and supporter of its annual awards, the of the commercial copying of music Leicester itself. The city has welcomed the new ARIAS; through ongoing support for community, by specialist companies that supply company and much effort has gone into integrating hospital and student radio; and as a sponsor of the music systems to businesses for the into the business community and working closely Jazz FM Awards and the Radio Festival. playing of recorded music. Broadcast with local colleges, universities, and cultural and With regard to TV licensing, last year saw the licensing refers to our licensing of creative partners. radio stations, TV channels and some successful negotiation of licence deals for online services to include recorded Over the months since the launch, we have a range of public service and commercial music in their broadcasts. continued to work closely with our joint venture broadcasters and TV programme partner PRS for Music as we oversee PPL PRS Ltd transitioning our thousands of customers to the new joint licence, TheMusicLicence – providing a single point of contact, with one invoice and one licence, making it easier for them to be correctly licensed and to enjoy the potential benefits of music in their business or organisation.

PPL Annual Review 2018 18 19 PPL Annual Review 2018 International collections

International revenue grew by 43% in 2018 to Managing international rights data reach a record £70.9 million. A new reporting solution was developed in 2018 to monitor recording rights disputes and highlight where these occur and This impressive growth was due to a number of factors including significant reoccur in multiple countries around the world. This helps payments from GVL in Germany covering a number of prior years, and strong to support their faster identification and resolution performances across a number of CMOs in territories such as Belgium, as well as the prevention of future disputes. France, the Netherlands, and the US.

More international payments to more members

More than 61,000 performers and recording rightsholders received international allocations in 2018, up by over 12,000 on our previous record Supporting CMOs internationally achieved in 2017 – an impressive achievement for this part of PPL’s business that only started in earnest in 2006. via Business Services Separate from our international collections, we work with a number of CMOs around the world to Number of international agreements continued provide back office support. This offering is known as Business Services and is available to support to grow usage matching, ingestion, and management of repertoire data for other CMOs as well as Six new international agreements were signed in 2018 with performer the calculations to support their distributions, CMOs in Georgia and Albania and recording rightsholder CMOs in Brunei, according to their own distribution rules. Lithuania, Portugal and Romania. This took PPL’s total number of international agreements to 92 by the end of the year. We provide this service to CMOs in Estonia, Ireland, Lithuania, Portugal, and Switzerland. In 2018, we extended our back office support to CMOs based in Malaysia and Nigeria, taking our number of Business Services customers around the world to seven.

PPL Annual Review 2018 20 21 PPL Annual Review 2018 International collections

Germany £25.5m

Others £11.5m

USA £11.0m

Netherlands £6.0m 

Belgium £3.9m

France £3.8m

Sweden £2.8m

Spain £2.1m 

Denmark £1.7m

Japan £1.4m

Ireland £1.2m

Total international collections £70.9 million (up 43%)

23 PPL Annual Review 2018 Delivering more for members

More payments than ever before

In 2018, we made at least one payment to over 10,000 recording rightsholders and to nearly 95,000 performers – the first time we have paid over 100,000 individuals and companies in a single financial year. These include not just our direct members but also those performers and recording rightsholders we represent in the UK via the agreements that we have in place with overseas CMOs.

Extensive member First “in-year distribution” user to link ISRC (International Standard Recording engagement through events Code) and ISWC (International Standard Musical delivered Work Code) information for the first time, providing and outreach the foundation for the linking of sound recording Our first in-year distribution allowed us to pay We attended, organised, sponsored or hosted more than and publishing data sets in the future. out in December 2018 some of the UK revenues 160 events in 2018, 40% of which were outside of London, we collected earlier that same year, meaning allowing PPL to drive further regional, national and international thousands of members received PPL payments engagement with members. We held 15 PPL In Session events six months earlier than they would have done Supporting new music with PRS – free member events – outside of the capital in cities including previously. Belfast, Birmingham, Cardiff, Edinburgh, Glasgow, Leeds, Foundation Leicester, Liverpool, Manchester, and Sheffield. We continued to collaborate with PRS Foundation, Internationally, we also attended a number of events including contributing funding for emerging talent through Improved tool for registering SXSW (USA), Eurosonic (Netherlands), Reeperbahn (Germany), the charity’s Momentum Music and International MIDEM (France) and Canadian Music Week. Attending these repertoire Showcase Funds. Through the Foundation, in 2018, events has helped with further strengthening PPL’s we supported more than 200 diverse acts from An improved Register Repertoire tool was relationships internationally, as well as being an England, Northern Ireland, Scotland and Wales to launched to our recording rightsholder members opportunity to connect with members. in July. The new tool benefits users with a faster develop their careers both in the UK and around process for registering recordings and makes the world. managing recording data easier than ever before. It has been designed so that users have the ability to upload recordings in bulk and edit thousands of recordings at any one time. The tool also enables a

PPL Annual Review 2018 24 Improving data capture in the Driven by data recording studio

In December, PPL and Session – a Swedish tech start-up formerly known as Auddly – announced a strategic partnership and the launch of a new feature which allows performers who use Session to verify Technology is central to our drive to maximise revenue, improve their PPL membership and retrieve their data quality and enhance service levels. A number of initiatives IPN (International Performer Number). were implemented or taken further in 2018, including the following: The initiative will help to improve the quality of performer line-up data across the In-house tool created to improve Trialled use of Music Recognition industry. usage matching Technology (MRT)

Our Smart Match solution went live in July last year We continued to work with PRS for Music on a pilot with the goal of increasing the automation of the project to assess the use of MRT to identify music process which matches the music used by our publicly performed by DJs within our licensed licensees with the repertoire in our database. This clubs, bars and pubs. In June, we made our first Managing increasing enables us to be even more efficient in prioritising distribution of public performance revenues volumes of data how music usage is processed and means we can using initial data collected via this trial, through distribute on even more recordings and for more the installation of MRT devices in a number of In 2018: performers. nightclubs and late night bars. • We received over 50 million lines of territorial rights data from recording rightsholders and CMOs.

Digital Data Exchange (DDEX) • We amended recording rightsholder data on more than 850,000 recordings to resolve disputes or improves the clarity of communication of data In addition to our role as a board member of DDEX, reflect catalogue transfers. PPL is also an active contributor to several working about performers and contributions to recordings, groups. DDEX is a consortium of media companies, and also includes a new type of data message that • We added more than 1.4 million individual music licensing organisations, digital service enables music licensing companies to provide an contributions to performer line-ups. providers and technical intermediaries, focused ‘acknowledgement’ back to a record company • We loaded, on average, data for over 37,000 on the creation of digital supply chain standards. following registration of a recording, to confirm new recordings per week into the PPL We worked as part of the DDEX MLC working group whether the registration was successful or any Repertoire Database (over 1.9 million to launch an updated data standard, focused on issues were identified (e.g. incomplete or invalid recordings in total). making it easier and clearer for record companies data, or conflicts with registrations received from to register data with PPL and other music licensing other record companies). companies. The updated data standard (MLC v1.4)

PPL Annual Review 2018 26 27 PPL Annual Review 2018 Developing our people

At the heart of our business are our people. Our people strategy Celebrating success First gender pay gap report aims to develop and drive positive performance and behaviour We were delighted to be recognised for our efforts published across the company, resulting in high levels of performance, at the Employee Engagement Awards in 2018. We As a business with more than 250 employees, in retention and engagement. were Highly Commended in the Leadership and 2018 PPL published its first set of gender pay gap Customer Engagement categories as well as being results for 2017. We had a mean gender pay gap shortlisted in the following categories: of 6.6% in favour of men and a median gender pay Revised company brand values • Employee Engagement Company gap of 4.3% in favour of women. The full report can be viewed at ppluk.com. We reviewed and updated our company values to Our revised values continue to place emphasis on of the Year reflect the modern day PPL, taking into account service, teamwork, drive and leadership. They are: T his nomination celebrated what we have the significant corporate and cultural changes Represent, Proud, Maximise and Genuine. These achieved through our reviewed and refreshed for PPL arising from the move of our public values will be used internally and externally to company values, our award-winning Employee Engagement Survey performance operations to PPL PRS Ltd. communicate and strengthen our internal culture. Management Excellence Programme, and the introduction of a new learning management We held our bi-annual Employee Engagement system alongside our improved member Survey with very positive results, which highlighted satisfaction. the value of the investment and improvements that we continue to make in areas such as learning • Diversity and inclusion and development, company culture, and health Thi s nomination related to the work we continue and wellbeing. to deliver to ensure PPL is a diverse and inclusive Championing diversity place to work, following the introduction of in the workplace initiatives including e-learning modules on Unconscious Bias and Equality and Diversity. We were proud to receive the Company • Wellbeing Award for Diversity in the Workplace T his nomination was in recognition of our at the Women in Music Awards 2018. regular Wellbeing Wednesdays where, through Nominated by our industry peers, we a combination of activities like offering healthy were awarded the accolade as a result breakfasts, meditation, yoga, and life coaching, of the initiatives we have driven forward we have aimed to provide employees with in recruitment, training, apprenticeships, some space and time to connect with their own third party collaborations and employee wellbeing needs. engagement.

PPL Annual Review 2018 28 29 PPL Annual Review 2018 Corporate Social Responsibility

PASSIONATE ABOUT SUPPORTING GOOD CAUSES Supporting charitable causes

PPL is proud of our ongoing dedication In 2001, we introduced a Charity of the Year, to Corporate Social Responsibility (CSR). which is nominated and voted on by our Whether it is donating funds to a number employees. Since 2008, over £130,000 has been of charities or supporting numerous raised for a variety of charities including Cancer events through sponsorship, we are Research, Dementia UK, Great Ormond Street passionate about giving to good causes Hospital, Macmillan, Mind, Teenage Cancer Trust, whilst moving the company and our Thames21 and Whizz Kids through activities people forward. including marathons, skydives, and internal raffles.

Our commitment to the Our Charity of the Year: Shelter

environment Last year we were proud to raise over £15,000 for our Charity of the Year, the homeless charity Shelter. To achieve this amount, our staff undertook PPL is committed to integrating a number of sponsored challenges, hosted charity events and contributed environmental best practice into donations throughout the year. our business activities where it is possible to do so. We accept our Sponsored challenges undertaken by individual employees accounted for a environmental responsibilities and large portion of the total raised. PPL CEO Peter Leathem raised almost £6,000 recognise our obligation to reduce from running the Royal Parks Half Marathon in October – making him the the impact of business activities on highest individual fundraiser of the year – whilst others held a silent auction, the environment. More information and took part in running and cycling challenges. can be found on our website at ppluk.com The rest of the fundraising total came from individual donations and various other staff events organised by PPL’s staff CSR committee during the year – including PPL’s very own “Bake Off” competition.

PPL Annual Review 2018 32 33 PPL Annual Review 2018 Giving back to music

PPL is proud to support and work with the following charities Nordoff Robbins The Young Musicians Symphony and organisations: PPL is a longstanding supporter of the music Orchestra industry charity Nordoff Robbins which brings The YMSO is Britain’s leading orchestra for young music’s transforming power to children and adults musicians on the threshold of their professional British Association for excellent general education that helps prepare in need, through its therapy services, music and careers. It provides invaluable experience young people for the future. health projects and community music projects, as to those who are studying or have recently Performing Arts Medicine www.brit.croydon.sch.uk well as education programmes and research. completed their training and exists to give these www.nordoff-robbins.org.uk BAPAM’s mission is to achieve nationwide talented musicians the opportunity to rehearse occupational health provision for professional, and perform as well as receive coaching from semi-professional and student performing artists, Hospital Broadcasting top professionals and work with eminent including health promotion, education and clinical PRS Foundation conductors and soloists. advice for performance-related health problems Association www.ymso.org.uk Through its funding partnership with PRS suffered by musicians, singers, actors, dancers PPL makes an annual donation to the national Foundation, PPL helps to support new and and other performers. charity that supports and promotes hospital emerging talent through the charity’s Momentum www.bapam.org.uk broadcasting in the UK. It currently consists Music and International Showcase Funds. The Young Persons Concert of over 200 individual broadcasting stations, charity is described as the UK’s leading charitable Foundation representing a large number of volunteers. funder of new music and talent development Patients in many UK hospitals benefit from The Foundation, which is chaired by Lady Judy The BRIT School across all genres. programmes designed to make life better for Martin and of which her late husband, Sir George www.prsfoundation.com The BRIT School is a free Performing Arts and people in hospital and aid their recovery. Martin, was a patron, helps young people to Technology School. It is an independent state www.hbauk.com appreciate and enjoy music through educational funded City College for the Technology of the Arts, workshops and live orchestral concerts. dedicated to education and vocational training for The Radio Academy www.ypcf.co.uk the performing arts, media, art and design and the technologies that make performance possible. Music for Youth The Radio Academy is a registered charity dedicated to the encouragement, recognition and As a school for 14 to 19 year olds, it is unique in its Music for Youth is a national youth arts charity promotion of excellence in UK broadcasting and approach to education. Recognising that most of working to provide young people aged 21 and audio production. PPL is a key sponsor at the Radio its students intend to make a career in the arts, under across the UK with free, life-changing Festival and other music related Academy events. entertainment and communications industries, performance and progression opportunities, www.radioacademy.org it expects all students to follow full time courses regardless of background or musical style. to completion. It prides itself on providing an www.mfy.org.uk

PPL Annual Review 2018 34 35 PPL Annual Review 2018 Testimonials

BANGING THE DRUM FOR PPL 85 years of PPL

Congratulations to Peter and all the good people Congratulations to Peter and his team at PPL on The importance of PPL’s role in the industry as Peter and all the team at PPL have led a at PPL, past and present, on 85 years of standing the occasion of their 85th anniversary. The work a facilitator of music usage, as a generator and transformed organisation to even greater up for music. they do ensuring artists and record companies are distributor of revenue for rights participants, and heights. They have not only collected record justly rewarded enables us to continue to invest in as an advocate, has snowballed in the last fifteen revenues, both in the UK and internationally, but It is important to be reminded of history and creative talent. years. have provided a clear voice for an industry that celebrate what PPL has achieved because it speaks (or even sings) with more resonance when informs and drives what comes next. Looking PPL stands up for the true value of music and I PPL income is no longer the icing on the cake, but the powerful voices of the record industry are back at our time advising on the merger of PPL, would like to thank them on behalf of Sony Music a fundamental part of the return on investment in combined with those of performers, creating a PAMRA and AURA we can see that the bringing and our artists. talent, often making the difference between profit genuine powerhouse. together of performers and producers into one and loss for companies, and survival or penury for Jason Iley, Chairman & Chief Executive united body has engendered enhanced levels of performers. In the digital era the importance of Since its last milestone, it has created a Officer, Sony Music UK & Ireland trust, transparency and joined up thinking. This such intangible rights, and their value to users as revolutionary joint venture with PRS for Music is one of the reasons PPL has been able to lead an end in themselves, cannot be over-stated. to demonstrate to the whole world how parallel from the front on innovations in systems and rights can be administered more efficiently and in Martin Mills MBE, Chairman & Founder, business models that have significantly improved The international independent sector relies on its harmony with other industry players. Beggars Group the business of collective rights management, not colleagues at organisations like PPL to help ensure just in the UK but across the world. labels and performers are paid fairly for public Sincere congratulations are well deserved. performance and broadcast of their recordings in Cliff Fluet, Managing Director, Eleven As PPL continues to build partnerships with CMOs Making a living from music can often be an increasingly globalised industry. PPL plays a key Advisory and others across different sectors, territories role together with its sister organisations around precarious, and PPL royalty payments frequently and the wider industry, we only hope that it the world to deliver infrastructure and solutions, provide a lifeline to artists, performers and session continues in the same spirit as it has shown to without which many artists and labels would musicians. In an ever-changing world, they remain Congratulations to PPL for 85 years of responsibly date. Well done PPL. struggle to receive the performance revenues they a rock of stability. The MMF is hugely grateful for collecting what is becoming an important revenue are due, especially from overseas. We would like the tireless work of Peter and his team, and trusts Alexander Ross, Partner & Peter Mason, stream for all UK creators. It is great to see PPL to congratulate PPL’s management and technical that PPL will continue to embrace the challenges Senior Associate, Wiggin sharing its knowledge and experience across teams on their hard work in this area. On behalf ahead and ensure creators are fully compensated multiple territories to bring greater value to all of WIN and its independent association and label for use of their music. Here’s to the next 85 years! our work. The MPG is proud of its continued members, happy 85th anniversary, and here’s to Annabella Coldrick, Chief Executive relationship and looks forward to many more years many more years of constructive work! Officer and Paul Craig, Chair MMF working together. Charlie Phillips, Chief Operating Officer, WIN Cameron Craig, Executive Director, MPG

PPL Annual Review 2018 38 39 PPL Annual Review 2018 85 years of PPL

Congratulations to PPL on its 85th anniversary Many congratulations PPL on your 85th Many congratulations to PPL on 85 years of The International Federation of Musicians (FIM) from The Ivors Academy. As music has changed anniversary. As I look at where PPL is now, and collecting and distributing this vital revenue. sends its congratulations to PPL on reaching and evolved, and the size of the job has grown, you its strength as a collection society within the UK I remember only too well how hard it was its 85th anniversary. PPL has been a valuable have remained responsive and efficient. You have music ecosystem, it is remarkable to see how for musicians, both signed and unsigned, to and important partner for FIM in its work in a track record of leading the change and providing far it has come from the more ‘turbulent’ days of sustain careers before the rental directive gave spreading the word of the effectiveness of vital services to the industry. Music creators need PAMRA, AURA and PPL. Way back then I remember performers a right to equitable remuneration. collective management for musicians’ unions a strong PPL and we thank you for the support you being in the audience of quite heated panels Peter and his team have set a standard for and associations across the world. It has been have given us over the years. We look forward to where those organisations were present, and performer collecting societies that CMOs in other a pleasure to welcome a number of PPL experts celebrating your milestone together and building a then later in 2006 marvelling at the ability of Fran territories can only aspire to. to FIM events as their input and advice has been stronger partnership in the future. Nevrkla to successfully bring everyone together invaluable. under one roof. Now under the charge of Peter The MU has enjoyed a very close working Graham Davies, Chief Executive Officer, Leathem, PPL has gone from strength to strength, relationship with PPL for some years now and PPL, as your results show you are doing a great job. The Ivors Academy continuing to navigate amalgamations, such as this has enabled us to jointly embark on the Let us hope you keep on supporting the performer mammoth but vital task of digitizing thousands community for many years to come! their recent joint venture with PRS for Music, and and thousands of studio consent forms to ensure always keeping the interests of the sector at the Benoît Machuel, General Secretary, the highest quality of performer data. Happy 85th The global network of Music Licensing Companies heart of their decisions. International Federation of Musicians provides a vital service to the recording industry, and here’s to the next 85 years! and PPL is a leader in the field. Since we joined In 2018 it was a privilege to present PPL with The Horace Trubridge, General Secretary, Company Award for Diversity in the Workplace at Peter and the team in celebrating the 80th Musicians’ Union anniversary, much progress has been made, with the annual Music Week Women in Music Awards Bon anniversaire PPL! and I have watched the continuing work of Kate the ambitious joint venture with PRS for Music It is a great pleasure and honour to celebrate this Reilly and her team as they lead the diversity and outstanding performance in the area of anniversary with you, dear colleagues from PPL. charge with practical applications within their We have been delighted to work with PPL for the international collections being just two examples. Adami is proud to be a close partner of one of the organisation. Now with over 105,000 performers last 28 years as it has continued to lead the way most important performer organisations in the PPL has its finger on the pulse when it comes to and recording rightsholders receiving a PPL in collecting and distributing monies to performers world and is glad to benefit from the friendship understanding the needs of labels, performers and payment all I can say is long may it continue. and recording rightsholders, while at the same licensing customers, and has shown unwavering time deservedly obtaining recognition for its of its representatives, staff and board members. commitment to continually improving its services. Paulette Long OBE, Music Publisher, customer service and for its diverse and forward Collective management of performers’ rights is We congratulate PPL on reaching this milestone Consultant & Director thinking workplace. strong if international cooperation is possible and 85th anniversary, and look forward to cooperating easy. Amitié fidèle à vous. Saleem R Sheikh, Senior Partner, GSC for many more years to come. Solicitors LLP Bruno Boutleux, Directeur Général, Frances Moore, Chief Executive Officer, Adami IFPI

PPL Annual Review 2018 40 41 PPL Annual Review 2018 85 years of PPL

PPL’s commitment to people and fairness is Congratulations to PPL and its staff on the Recording a song and launching it into the world is Congratulations on an incredible 85 years! We evident throughout the organisation; in their company’s 85th anniversary! We really appreciate an intensely personal statement of achievement, have been delighted to be your employment treatment of their staff and members across both the trust in our partnership and the open craft and risk. Creatives taking that risk are what law advisers for some years now, and this has the rightsholder and performer communities. collaboration with PPL. the music economy and musical lives are built occasionally involved our collaborating together PPL’s approach has created a culture of balance upon. PPL is often the first partner in an artist’s closely on some serious, contentious and sensitive between the various stakeholder interests that we For more than 20 years we have been working career; protecting and appreciating their work and matters, always, I am glad to say, with good have come to value so highly. together successfully, both in terms of our paying the bills. It is a partnership which lasts and results and a lot of laughter on the side too. On a representation agreements and in the context grows with an artist, a constant much needed in day to day basis, we support your busy HR team, Never complacent, PPL are at the leading edge of of joint international projects for artists and an often unpredictable music business. The FAC led by the redoubtable Kate Reilly, on all kinds of innovation and transparency as evidenced in their producers of sound recordings. In our globalised, is proud to work with PPL, supporting all of our people matters and especially the recent merger world-leading systems, good practice and expert digitised and data-driven world, which requires community, from aspiring new entrants to our process. team, who are always there to give advice and co-working solutions and services over national Board Directors and Founder Members. support to even the smallest member. boundaries, our colleagues at PPL are the most I can say that without question you are one of relevant partners for our specific part of the music Lucie Caswell, Chief Executive Officer, our favourite clients. Your people are unfailingly Paul Pacifico, Chief Executive Officer, markets. GVL, which is turning 60 this year, knows FAC professional, thorough, decent and fun, and we AIM the challenges and complexities of collective rights have established great relationships across our management all too well. Therefore we would like teams. We share your core values and it shows in to pay tribute to the creative drive of PPL. Congratulations to PPL for completing 85 years of our interactions. We look forward to continuing to Happy anniversary to PPL and best wishes from success in business. Performance rights income support PPL in the coming years – the century is We wish you all the best for the future and look Finland. It is a great pleasure to have had the has grown substantially over the last decades. It not far away now! forward to many more decades of cooperation- opportunity to work with such a professional has become a significant source of income for based partnership. Russell Brimelow, Partner, organisation. PPL has a great influence on both performers and rights owners alike. the collective management of the copyrights Lewis Silkin Dr. Tilo Gerlach and Guido Evers, for recorded music. Activities in this area are Managing Directors, GVL Both PPL and Sena prioritise making international inherently international and so we need strong exchanges work successfully. We look forward to vision and cooperation to make cross-border continuing that journey together, implementing collaboration leaner. innovative workflows and creating new standards.

All the best to PPL and its marvellous staff for the Congratulations to Peter and his team from all of years ahead. us at Sena.

Ilmo Laevuo, Managing Director, Markus Bos, Chief Executive Officer, Gramex Finland Sena

PPL Annual Review 2018 42 43 PPL Annual Review 2018 85 years of PPL

Peter and his dedicated team at PPL sit right at the Sound Advice is a law firm that works only with Congratulations to PPL on its 85th birthday. Those At the British Association for Performing Arts heart of our industry, protecting the rights of those artists, across all genres of music. At times who founded PPL in 1934 would be truly astounded Medicine, a small national charity looking after who shape our culture and ensuring that they the music industry can be an imperfect world, by the success achieved, in particular since the the health of performers, we cannot thank PPL are being compensated both fairly and equitably. with disruptive changes and movements. But turn of the century, in expanding revenue sources enough for its enormous support over the years. As PPL moves into its 85th year we look back on there is one thing we have always been able for the benefit of record companies and artists. PPL not only gives us grant funding to provide the giant strides they have made in significantly to take for granted and that is the impeccable The challenges presented by the digital age have health services to performers, but their top team improving collections and distributions, and look professionalism and efficiency of PPL, from top to been formidable and that they have been met gives us valuable advice and expertise. From ahead with the confident knowledge that they will bottom. Fran Nevrkla was a tough act to follow but with such success is thanks to the intelligent way HR, communications and events to IT and legal continue to take that same progressive approach Peter Leathem has risen to the challenge and is a in which the PPL management has handled them support, PPL’s senior staff has gone above and as our business evolves further. formidable leader of the ever-friendly, ever-helpful under its outstanding leadership. beyond its role in helping our team successfully PPL team. navigate the challenges of running a growing Peter Breeden, Chief Financial Officer & The music community has benefitted hugely from organisation. Chief Operating Officer, Warner Music UK Congratulations! such dedication and determination, for which it should be profoundly grateful. An exemplar of corporate social responsibility, Robert Horsfall, Partner, Sonia Diwan, PPL’s support has enabled us to develop a valued Partner, & all at Sound Advice LLP Paddy Grafton Green, Chairman, service to the performing arts sector. PPL was also Congratulations to Peter and the team at PPL on Simkins your 85th anniversary. Each year we find ever responsible for establishing the Performing Arts greater ways to collaborate and provide better Medicine MSc programme at UCL, the only one in We love working with Peter, Christine and services to those creating and performing music the country, which has produced over 50 alumni, PPL’s knowledgeable team to support the and the many businesses that choose to use it. I PPL plays an important if often unsung role in expert in caring for the health of performers. We next generation of PPL members through am delighted that together we created PPL PRS Ltd our industry, providing an increasingly significant are very grateful to Peter Leathem’s significant our Momentum and International Showcase and TheMusicLicence, representing our combined source of income for our artists and labels. personal commitment to BAPAM as the Chair of our Funds. I have particularly appreciated PPL’s rights. For the first time, businesses have only one My thanks to Peter and his team on behalf Trustee Board and look forward to continuing this straightforward, practical approach to licence to obtain and one point of contact for all of everyone at Universal Music for the hard valuable relationship. collaborating with us at the Foundation and we the music they require. work which turns licensing income into such a are extremely grateful that PPL has now become a prominent part of the industry’s overall revenues. Claire Cordeaux, On behalf of everyone at PRS for Music, I would like major donor. It reinforces the positive relationship Director, BAPAM David Joseph, Chairman and Chief to wish PPL and its members every success for the between PRS for Music and PPL and I hope it is  Executive Officer, Universal Music UK future. something we can build on over the next 85 years. & Ireland Happy Birthday PPL! Robert Ashcroft, Chief Executive Officer, PRS for Music Vanessa Reed, Chief Executive Officer, PRS Foundation

PPL Annual Review 2018 44 45 PPL Annual Review 2018 85 years of PPL

Happy anniversary to all our friends at PPL! In my music practice as a barrister it used Congratulations on your 85th anniversary; well PPL is increasingly becoming the main income Throughout our years of cooperation, STOART and to, in the dim past, seem preferable to act done for staying ahead of the huge changes source for so many producers and non-featured PPL have worked with utmost care to ensure the against, rather than for, PPL. There seemed technology has wrought on the music industry. performers. best treatment for performers. to be no cohesion or empathy in a body Thanks for being there for artists - your role is, and which was perceived as merely contributing will always be, vital. In this constantly shifting musical landscape, We are proud to say that our relationship with PPL “secondary income” to its members. With the having a strong, robust and trusted partner like Tim Clark, Co-founder, has improved over the years, which is evident in arrival of Fran and, subsequently, Peter, PPL has PPL protecting our rights, whilst also collecting and ie:music the amount of royalties exchanged yearly. been transformed into a dynamic and vibrant distributing licence income, benefits the whole creative community. Agnieszka Parzuchowska-Janczarska, organisation whose activities are absolutely Managing Director, STOART integral to the continuing health of the music Steve Levine, industry. It has been my privilege to represent and Congratulations to the whole team at PPL on your Producer & Songwriter advise PPL throughout the past 20 years. I look 85th anniversary. forward to continuing to do so in the future. Gramex Denmark congratulates our colleagues Thank you for all you do, day in, day out, to ensure from PPL on their 85th anniversary. The Many congratulations to PPL on its 85th birthday. performers are rightly rewarded for their work In a constantly evolving and often fickle music neighbouring rights sector has grown in the last Long may it thrive! and that record companies can see a return business, PPL is an organisation that is of decade and PPL is definitely at the forefront. The that enables them to invest in future talent and enormous value to artists, appreciating their value international exchange of data and monies has Ian Mill, QC, maintain the global success of our world-leading and protecting their work. I have been particularly Blackstone Chambers gained importance and we feel very connected music industry. grateful, not only for what they have done for me, with our colleagues at PPL. but also for their terrific support of the FAC, an Peter Leathem is extremely well-regarded in the organisation dear to my heart! Since 2003 Gramex has had agreements with I remember a PPL that had no credibility with artists corridors of power and is seen as an outstanding PPL to ensure payments between Denmark and no transparency. Then Fran and Peter arrived industry leader. At PPL he has assembled an Happy Birthday! and the UK and vice versa. Over the years more inspiring team of professionals who remain totally and transformed it into a future-facing gold standard Nick Mason CBE, Performer & Founder than £13 million has been transferred to British dedicated to the people they serve with such in collection societies for labels and artists. Member, FAC performers and record companies. This can only distinction. And of course without PPL there simply be possible due to good cooperation between our The UK is lucky to have them and should be very would not be a UK Music - committed to driving the two societies. Flexibility and the willingness to find proud. big changes we need to protect, nurture and grow new solutions have been key in the cooperation our industry for the future. between Gramex and PPL, and we look forward to Martin Goldschmidt, Co-founder & Managing Director, Cooking Vinyl continuing our good working relationship for the So happy birthday PPL. Long may you continue! benefit of performers and record companies. Michael Dugher, Chief Executive Officer, John R Kristensen, Managing Director and UK Music Chief Executive Officer, Gramex Denmark

PPL Annual Review 2018 46 47 PPL Annual Review 2018 85 years of PPL

We would like to extend our congratulations to PPL A few of the many highlights: the vision the on its 85th anniversary. Music is a vital part of BBC leadership showed in bringing artists, featured content and services and, as technology evolves, and non-featured, into the organisation and our licensing agreement means we can deliver the giving them a voice; the wisdom in uniting to get best of British programming to audiences around proper payment for overseas performance; the the globe. We value the team’s professionalism determination to push through enormous change and hope our collaboration continues to thrive. in delivery to a modern, highly efficient data management system and most recently the joint Tim Davie, Chief Executive Officer, BBC venture with PRS on licensing. These all seemed a Studios dream a decade ago.

Well done team. Although I have not been around for all of PPL’s Robin Millar, CBE Chairman, Blue Raincoat 85 year history, contrary to some popular belief, Chrysalis Group; Director, Institute for I have been engaged with the society since 1987 Apprenticeships; Global Ambassador, when I became Chairman of what is now The Leonard Cheshire Music Producers Guild.

At that time, payments to musicians, if and when they occurred, were ex gratia and ad hoc. There seemed little chance of a change and even less chance of studio producers participating.

Then Fran Nevrkla and Peter Leathem arrived and the culture transformed. Conflict became collaboration; division became harmony and powerlessness became equality between record company and creator.

This shift went far beyond PPL. It gradually transformed the whole landscape of relationships into what we now recognise as the modern music business.

PPL Annual Review 2018 48 Our team

DRIVEN BY OUR PEOPLE John Smith Peter Leathem Christian Barton Jez Bell Mark Douglas Executive Chairman Chief Executive Officer Chief Financial Officer Chief Licensing Officer Chief Technology Officer Management Team

Christine Geissmar David Harmsworth Sarah Mitchell Laurence Oxenbury Kate Reilly Chief Operating Officer General Counsel / Director of Member Director of International Director of People & Company Secretary Services Organisational Development

PPL Annual Review 2018 52 53 PPL Annual Review 2018 Board of Directors Committees

John Smith (Chairman), PPL Attendees Finance Committee Steve Levine, music producer Roger Armstrong, ACE Records Ltd The Finance Committee is primarily tasked with reviewing and setting PPL’s community Roxanne de Bastion, Performer Director revenue and costs budget each year, prior to ratification by the PPL Board, Paul Pacifico, AIM and monitoring progress throughout the year. Robin Firman, Performer Director Geoff Taylor, BPI Julian French, Universal Music Group Distribution Committee Rob Gruschke, Beggars Group Ltd The Distribution Committee’s primary function is to review and approve Nick Hartley, [PIAS] proposed distributions of revenue to PPL members and the rules and Crispin Hunt, Performer Director processes underpinning them.

Mark Kelly, Performer Director

Peter Leathem, PPL Audit Committee

James Radice, Warner Music UK The Audit Committee is a forum for PPL’s auditors to talk directly to PPL’s Finance Committee about their audit work with PPL. Adrian Sear, Demon Music Group

Rt Hon Lord Smith of Finsbury, Independent Director

Michael Smith, Sony Music Entertainment UK Ltd Remuneration Committee The Remuneration Committee’s role is to review executive remuneration. Peter Stack, BMG

David Stopps, Performer Director

Horace Trubridge, Performer Director

PPL Annual Review 2018 54 55 PPL Annual Review 2018 PPL charts

PPL’s annual charts are compiled from music usage and airplay data from radio stations and television channels as well as public performance locations such as pubs, clubs, bars, PPL’S ANNUAL jukeboxes and shops all across the UK. MOST PLAYED CHARTS Most played track 2018

01 06 11 16 Feel It Still Lullaby Beautiful Trauma Promises Portugal. The Man Sigala & Paloma Faith P!nk Calvin Harris & Sam Smith Atlantic (Warner Music) Ministry Of Sound (Sony Music Entertainment) RCA (Sony Music Entertainment) Columbia (Sony Music Entertainment)

02 07 12 17 These Days Anywhere no tears left to cry Never Be The Same (Feat. Jess Glynne, Macklemore Rita Ora Ariana Grande Camila Cabello Atlantic (Warner Music) & Dan Caplen) Republic (Universal Music) Epic/Syco (Sony Music Entertainment) Rudimental Asylum (Warner Music) 03 08 13 18 For You Flames 2002 Meant To Be (Fifty Shades Freed) David Guetta & Sia Anne­-Marie (Feat. Florida Georgia Line) What A Music/Parlophone (Warner Music) Liam Payne & Rita Ora East West (Warner Music) Bebe Rexha Capitol (Universal Music) Parlophone (Warner Music)

04 09 14 19 One Kiss Paradise Solo I Miss You Calvin Harris & Dua Lipa George Ezra (Feat. Demi Lovato) (Feat. Julia Michaels) Columbia (Sony Music Entertainment) Columbia (Sony Music Entertainment) Clean Bandit Clean Bandit Atlantic (Warner Music) Atlantic (Warner Music)

05 10 15 20 Shotgun What About Us Breathe Shape Of You George Ezra P!nk (Feat. Ina Wroldsen) Ed Sheeran Columbia (Sony Music Entertainment) RCA (Sony Music Entertainment) Asylum (Warner Music) Jax Jones Polydor (Universal Music)

PPL Annual Review 2018 58 59 PPL Annual Review 2018 Most played artist 2018

01 06 11 16 Ed Sheeran P!nk Justin Timberlake Sam Smith

02 07 12 17 Calvin Harris Clean Bandit Maroon 5 Ariana Grande

03 08 13 18 Little Mix Dua Lipa Paloma Faith Bruno Mars

04 09 14 19 Rita Ora George Ezra David Guetta Liam Payne

05 10 15 20 Coldplay Jess Glynne Sigala Anne-Marie

PPL Annual Review 2018 60 61 PPL Annual Review 2018 Our thanks to all contributors to this year’s Annual Review.

Photography: Standing up for music rights since 1934 Page 25 Classic BRIT Awards: John Marshall SXSW: Jenna Million Photography

Page 28 Music Week - Women in Music: Paul Harries

Design and print: Preview Design

This review is available online at ppluk.com

© 2019 PPL (or its licensors) ppluk.com

STANDING UP FOR MUSIC RIGHTS

1 Upper James St. London W1F 9DE 020 7534 1000