Annual Review 2O12 Raising the volume PPL licenses recorded music when played in public or broadcast on the radio and TV, as well as certain uses on the internet, and then distributes the revenues collected to its members. Established in 1934, PPL exists to ensure that those people who invest their time, talent and money to make music are fairly paid for their work.

Contents Welcome to PPL’s Annual Review. 1 2O12 in Numbers Our mission is to manage the sound recording 2 Chairman’s Statement 4 CEO’s Statement rights entrusted to us by our members, maximise their 6 Company Strategy earnings from the broadcast and public use of those 12 Financial Summary recordings, and distribute them in the most efficient 14 Business Review manner possible. In order to do so, we strive to ensure 18 Our People that our IT systems, our music data, our people and our 25 The People’s Charts customer service are first-class. These are some of the goals and objectives which were reflected in our 2O12 Company Strategy and which form a significant part of this year’s review. We are pleased that 2O12 was a further year of revenue growth. This was achieved against a backdrop of ongoing economic difficulty and continued political focus on copyright’s role in the economy. Both these issues remain challenges. The review also reflects the fact that 2O12 was a year in which UK music was not only celebrated at home (as the spotlight fell on the country during the Olympics) but was also extremely successful around the world on both a commercial and cultural basis.

PPL Annual Review 2O12 Raising the volume

6.2million sound recordings 65,OOO perfomer members 1O,OOO recording rightholder members 3OO,OOO+ licensed public performance sites broadcast and online channels 3.1billion seconds of airplay 1O O + different tariffs

64 international reciprocal deals = £17O.8million licence fee income collected

PPL Annual Review 2O12 1 The excellent 2O12 numbers, as you will read Chairman’s in this review, are simply a reflection of the focus Statement and determination of PPL to deliver again and again first class results and services for its members and wider constituents.

In my first full year solely as This remarkably smooth and effective Chairman, it gives me immense succession and transition is the cornerstone pleasure, following the level of ensuring that under Peter’s leadership of growth achieved last year, PPL continues to strive for and achieve ever to have been able to hand new heights to build on the success that over to Peter Leathem the key has been achieved since the turn of role of the company’s CEO the century. which he is discharging with The income generated by the energy, intelligence, ambition organisation for the benefit of its members and gusto. I feel very proud during these thirteen years has increased of having identified, hired, threefold. This is indeed remarkable nurtured and promoted such considering the recent state of the British Fran Nevrkla OBE an exceptional individual. and global economy. Cost-to-income ratio has been drastically reduced and then maintained at a low level. PPL After seven years we succeeded membership has grown enormously, in changing legislation resulting both in terms of individual performers in the public performance rights of our constituents being on a and record company members. par with those in Europe. The ambitious programme of IT systems developments that was agreed and put in motion five years ago continues apace. International income has grown very substantially in a relatively short period of time. Most importantly a wholly new structure was created, backed by a new constitution, which has embraced the whole performer community, studio producers and all the key music industry sister organisations. This continues to make the company even stronger.

2 PPL Annual Review 2O12 Licence fee income Performer membership £m 17O.8 +11% +16. 5 % Distributable income Record company membership £m 146.6 +12 % +1 7. 6 %

PPL played a key role in ensuring every one of them for making my job so PPL’s job will never be finished. that the term of copyright protection for exciting and enjoyable throughout my However, we are acutely aware of sound recordings was extended for the term in office. From my new vantage how important the various income benefit of all performers and all record point, the most exciting and for me streams have become to all our members, without exception. companies. Similarly, after seven years personally the most satisfying aspect of litigation against the government PPL continues to be the sheer calibre and succeeded in bringing about essential quality of management at all levels changes in legislation which finally resulted throughout the company. in the public performance rights of PPL Today’s world is full of challenges constituents being on a par with those of political, economic and other kinds enjoyed by our counterparts in Europe. and this is unlikely to change soon; In short I genuinely believe that nor will the business environment hugely the company’s standing in the industry improve in a hurry. Therefore, PPL’s job and the respect the organisation now will never be finished. However, we commands in the wider world, including are acutely aware of how important the the political arena, has never been better various income streams have become or higher. I was personally delighted by to all our members, without exception. the two parliamentary Early Day Motions They may rest assured that the organisation last year (one in Westminster and one in will not spare any time or effort in doing Scotland) complimenting PPL on its work the best possible job in managing, licensing for performers. It is high praise and and monetising the precious rights which recognition of how far the company has they kindly vest in us. come and I know that this good work Thank you and ‘Onwards and Upwards’! will continue under Peter’s leadership. I would also like to acknowledge and thank all our friends and supporters in the outside world, the Boards and especially all members of our staff for their loyalty, commitment and hard work coupled with good humour which are all essential ingredients of success. I salute

PPL Annual Review 2O12 3 2O12 was a further year of good progress for PPL CEO’s and this Annual Review sets out the main details of Statement what was achieved in a very busy twelve months.

We know that PPL’s revenue is As well as growing revenue we have increasingly important to all our also sought to provide excellent customer members and so I am delighted service to our licensees and members. to be able to report that, in 2O12, This work has been supported by PPL’s we grew all three of our main launch (as part of a wider initiative by income streams: Broadcast and UK licensing bodies) of Codes of Conduct Online, International and for licensees and members. These set Public Performance. out important information about PPL and As already mentioned, this growth what you can expect from us, supported was notwithstanding the difficult economic by an independent ombudsman should conditions that continued in the UK and any licensee or member ultimately be around the world. It was also in contrast unhappy with the service that they have Peter Leathem to the position for our counterparts in a received from PPL. I was also very proud number of other countries, which made that we reached the finals for two different growing our international collections customer service awards in 2O12. particularly challenging. On the licensing side, we invested greater resource in seeking to ensure that all businesses are aware of the requirement High quality repertoire data is (in almost all cases) for a licence from the key to greater efficiencies PPL if they are playing commercial in the world of licensing for PPL, members and licensees, as well recordings in public. I was particularly as to more accurate payments pleased with the regional campaigns to members. that we conducted where we obtained simultaneous coverage on radio, in local newspapers and in trade magazines and attended trade exhibitions in the area. This work, together with increased online activity, led to a significant increase in visitors to our website and to voluntary applications for a licence – of which you will read more later.

4 PPL Annual Review 2O12 Broadcast and Online income Public Performance income £m £m 69.4 +5% 6 4.8 +18 % International income Cost-to-income ratio £m 36.6 +13 % 14. 4 %

We also continued to extend the way we receive and manage sound assessment of the work that PPL is doing our working relationship with PRS for recording repertoire data, a critical asset to keep licensing as straightforward as Music in 2O12. Collective licensing by for the music business in the digital age. possible. This in particular focused on organisations like PPL and PRS for Music, High quality repertoire data is the key our joint working with PRS for Music on behalf of many thousands of to greater efficiencies in the world of and on our repertoire database work. rightholders, already simplifies copyright licensing for PPL, members and licensees, I would like to finish by thanking licensing. However, we are committed as well as to more accurate payments to the many friends and colleagues who to making the licensing process as clear members. We look forward to building have made my first year as CEO and simple as possible and both companies further on the excellent progress that has such an enjoyable and productive time. are therefore keen to explore where been made. A special thanks goes to Fran as Chairman we can work together for the benefit of This continued drive, not just to who has been so supportive and helpful our respective members and licensees. maximise revenue for our members and who has so easily transitioned into PPL and PRS for Music already operate but also to develop further our systems his new role. Our working relationship several joint licensing solutions and in and service, remains at the heart of our could not have been better. I would also 2O12 we successfully launched our latest company strategy. The next six pages like to thank the PPL Board, Performer joint licence (for community buildings) and of the Annual Review set out a summary Board and various committees for their committed to developing two more. of the key strategic areas on which I continued insight, support and governance On the membership side, we have felt it critical for the Executive Team and during the last twelve months. Above all, been working hard on the services that the entire business to focus on in 2O12. I would like to thank the PPL staff, we provide in order to make our members’ Having introduced this at the beginning whose hard work and dedication engagement and relationship with us as of the year I intend to continue this are very much appreciated. effective as possible. Our investment in disciplined approach in order for us IT systems and data will continue to be to achieve our goals and objectives a key priority going forward. While for 2O13 and in the longer term. we are already seeing the enormous I was very pleased that PPL’s efforts benefits of having made a significant were also recognised in an independent investment in new IT systems we still have report to Government about copyright plans to continue to improve our services. licensing in July 2O12 (‘Copyright Works: I would like to thank all our members Streamlining copyright for the digital age’). for having worked so well with us in In their report, Richard Hooper and seeking to change fundamentally Dr Ros Lynch provided a very positive

PPL Annual Review 2O12 5 In 2O12, we formalised a Company Strategy to Company provide an even clearer roadmap to guide PPL’s key activities during the year and help deliver our Strategy strategic business goals. This Strategy, incorporating ten key areas of focus across our business, formed the basis of our planning and target-setting at all levels of management. It was also used as an important performance management tool, with progress against the Strategy being reviewed throughout the year.

Our ten key areas of focus in 2O12: – Maximise our net distributable income – Participate in copyright consultations and proposals for reform – Develop our People Strategy – Deliver a first class licensee customer experience – Maximise the pay-out of 2O11 collections – Develop the accuracy of our distributions – Deliver a first class member customer experience – Pioneer the management of sound recording data – Develop joint working with PRS for Music – Explore shared repertoire database solutions

Over the next five pages, we provide a top line summary of some of our key achievements in each of these ten areas.

6 PPL Annual Review 2O12 Maximise our net Participate in distributable income copyright consultations and proposals for reform

Agreed new licence with the BBC to Launched Codes of Conduct for licensees cover its use of sound recordings in and members, setting out key information TV and radio programmes until 2O17 and what you can expect from PPL See page 14 See page 4

Copyright works Streamlining copyright licensing for the digital age An independent report by Richard Hooper CBE and Dr Ros Lynch Signed new agreements with internet July 2012 radio and customised webcasting services including Live365 and Last.fm See page 14

Received positive comments about PPL in ‘Copyright Works’, an independent report to Government about licensing See page 5 Received first-time payments from music licensing companies in nine more countries around the world See page 16 C

Participated in the Copyright Licensing Steering Group to take forward the recommendations from the ‘Copyright Works’ report See page 5

PPL Annual Review 2O12 7 Develop our Deliver a first class licensee People Strategy customer experience

Significantly increased our internal Improved the PPL website customer staff training programme experience and implemented regional See page 18 awareness campaigns across a range of media See page 15

COMMUNITY RADIO LICENCE (OPTIONAL INTERNET SIMULCAST VERSION)

LICENSEE: PPL CONTRACT NUMBER: NCRL O1 THIS LICENCE is made from the Improved our working environment day of 2O13 BETWEEN PHONOGRAPHIC PERFORMANCE LIMITED (“PPL”) of 1 Upper James Street, London W1F 9DE with a refit of parts of the PPL offices AND (“Licensee”) of IN RESPECT OF (the “Station”) See page 19 Implemented a simplified licence for community radio stations See page 14

ANNUAL OBJECTIVE SETTING AND PERFORMANCE REVIEW PROCESS 2 O12

Reached the finals of the UK Customer Experience Awards and European Placed additional focus on individual Call Centre of the Year Awards objective setting and performance See page 15 management See page 18

8 PPL Annual Review 2O12 Maximise the pay-out Develop the accuracy of 2O11 collections of our distributions

Created Thursday, April 18, 2013 UK PPB DISTRIBUTION 2010 ALLOCATION SUMMARY - GVL Recording Rights Holder - 300000479

This summary shows how your payments of PPLʼs 2010 licensing revenue have been generated by looking at where your music has been played and your top earnings by recording and band/artist.

DISTRIBUTION SUMMARY WHERE YOUR MUSIC HAS BEEN PLAYED REVENUE SOURCES YOUR ALLOCATION BROADCASTSUB TOTAL £188 COMMERCIAL £117 TELEVISION SECONDARY SALES OF £66 PROGRAMMES BBC RADIO£3 BBC TELEVISION £2 PUBLIC PERFORMANCE SUB TOTAL £48 PUBLIC PERFORMANCE SUB TOTAL £124 DUBBING

GRAND TOTAL £359

TOP BROADCAST REVENUE SOURCES WHICH BROADCASTERS HAVE PLAYED YOUR MUSIC RANK STATION / CHANNEL YOUR ALLOCATION 1BBC WW SECONDARY SALES £62 2TV - CHANNEL 4 £45 3TV - DAVE £21 4TV - CHANNEL 5 £15 5TV - VIASAT BROADCASTING UK £11 6TV - MORE4£6 7NEW MEDIA - CHANNEL 4 : 4OD£5 8 OTHER SECONDARY SALES £4 9DUB - CHANNEL 5£4 +9% 10 NEW MEDIA - UKTV CHANNEL MANAGEMENT £3 Significantly increased the first-time Made adjustment payments for pay-out of 2O11 collections, compared the last six years through PPL’s new to the previous year distribution system, to take account See page 17 of extensive data cleansing See page 17

Linked 728,OOO performer Launched new Eligible Studio Producer contributions to recordings in Form, making it easier for eligible the PPL Repertoire Database, producers to claim their fair share to enable payment of PPL income See page 17 See page 17

DISTRIBUTION FUNDS AND PROFILES Public Performance Update

BGM – Pubs/Bars/Restaurants/Café/Hotels Fund (£4.6M) Pubs/Bars/Restaurants/Café/Hotels Fund Pubs/Bars/Restaurants/Café/Hotels Fund Revenue by Region Revenue by Music Source

2%

4% London 3% Own Playlist 4% Central 13% Music System 23% 7% Granada Radio Meridian TV 8% Westward Scotland 19%

9% 13% Yorkshire Anglia 65% Harlech 9% 11% Tyne Tees 10% Ulster

Venues were segmented into TV regions and asked Each music source is profiled based on the Licence fee income from BBC Worldwide’s about their primary source of background music CGA Strategy survey responses use of recorded music in DVDs and DTOs (downloads-to-own) paid out for the first time Conducted new surveys to obtain See page 14 music usage data to support more accurate distribution of public performance collections See page 17

PPL Annual Review 2O12 9 Deliver a first class member Pioneer management customer experience of sound recording data

Launched new online capability for Developed new data quality reports recording rightholders to register to show recording rightholders an details of their repertoire with PPL analysis of their PPL repertoire and See page 17 any data needing to be fixed See page 17

Worked with members to fix significant amounts of invalid Resolved a historical backlog of data and resolved thousands registrations, queries and claims of recording ownership conflicts See page 17 See page 17

Played a lead role in rebuilding the International Performer Database, used by music licensing companies worldwide Provided advice and assistance to See page 16 members in person, at ‘Open Days’ held in locations across the UK See page 17

1O PPL Annual Review 2O12 Develop joint working Explore shared repertoire with PRS for Music database solutions

Commissioned further research on Worked closely with SoundExchange the value of music to businesses, in 2O12 and opportunities to for the joint MusicWorks website collaborate on data solutions musicworksforyou.com continue to be explored See page 15

Worked closely with IFPI, WIN, and Launched a joint licensing solution for other music licensing companies community buildings, administered by PRS for Music on PPL’s behalf See page 5

Worked with independent record companies on the management of

Playing music in your business? territorial rights ownership data Make sure you’re licensed.

PRS for Music composers and music publishers. to ensure all copyright holders are correctly paid for the use of their music.

If you play music in your business, visit ppluk.com and prsformusic.com to obtain the right licences for you.

PRS for Music PRS for Music’s control

need a licence from PPL or PRS for Music in the unlikely event that all the music you play is out of copyright or is not controlled by PPL or PRS for Music.

Worked closely with PRS for Music on joint marketing activities, including collaborations on advertising and sharing stands at trade events See page 5

PPL Annual Review 2O12 11 PPL’s income in 2O12 totalled £17O.8million, an Financial increase of 11% on 2O11 income. Despite the adverse economic environment all three of the company’s Summary income streams – Broadcast and Online, Public Performance and International – achieved growth in 2O12. PPL’s cost-to-income ratio fell in 2O12 from 14.9% to 14.4%.

Licence fee income and distributable income £m +11% 153.5 17 O.8 143.5 129.6 13O.8 + 127.6 124.1 12 % 11O.3 146.6 92.9

Licence fee income 2O12

Distributable 2OO8 2OO9 2 O1O 2 O11 2O12 income 2O12

Licence fee income by sector £m

Broadcast and Online Public Performance International £m £m £m 69.4 +5% 6 4.8 +18 % 36.6 +13 %

While the sale of CDs may be in decline, the public’s appetite for listening to music, and its overall use, continues to rise. PPL’s role in facilitating the collective licensing of sound recordings grows in importance as does the value of the revenues we collect on behalf of all our members.

12 PPL Annual Review 2O12 Licence fee income by sector Anti-piracy and industry contributions * BPI Breakdown % £k £k

1 4 1 1 Funding 2,316 2 Recoveries (2OO) 3 3 Total 2 ,116 3

2 2

1 Broadcast and Online 41% 1 BPI (Net)* 2,116 2 Public Performance 38% 2 IFPI 683 3 International 21% 3 UK Music 432 4 AIM and Impala 65

Broadcast and Online International Summary In the broadcast sector, 2O12 saw The international sector returned to One of the consequences of the digital the renewal of PPL’s agreement with double digit growth in 2O12 with age is the creation of thousands of new its largest single licensee – the BBC. a 13% income uplift reflecting both the small businesses producing music as The new agreement, covering BBC radio success of UK repertoire around the either record companies, performers, and television services, runs to 2O17 world and increasing sources of PPL or increasingly as both. This is reflected and provides a degree of stability to income which were received from nine in the continuing growth of PPL which, PPL income over the medium term. additional territories in 2O12. In addition in turn, builds on the continuing strength Revenues from PPL’s principal licensees even more PPL members signed up to the of the UK creative sector and its growing in commercial radio and television have company’s international collection service. contribution to the UK economy. continued to grow despite increasing The income PPL collects and distributes, competition from new online services. Copyright and legislation whilst of increasing importance for all The use of recorded music by such PPL’s collective licensing is dependent its membership, is particularly important online services is largely licensed directly on a framework for the protection of for such small new businesses which by PPL’s members, limiting the potential long copyright which is currently subject to benefit substantially from the collective term growth of PPL income from this sector. review by the government. In the course licensing of their repertoire alongside of that review process, PPL, along with that of major international labels. Public Performance others in the creative sector, has sought With annual growth of 18%, PPL’s public to explain the key role the copyright performance sector had a particularly regime has played in the success of the Piracy affects artists who have been successful 2O12. An enhanced focus on UK creative sector in general, and the deprived of a fair return for their work. Illegal activity in regard to raising awareness levels of the requirement music industry in particular. 2O12 was jukeboxes not only harms the music for many businesses to hold PPL licences, an outstanding year of success for UK industry but also those landlords supported by improved internal processes, music in the global market place, who, in difficult economic times, believed they were paying for a led to significant increases in the number delivering growth to both PPL’s overall legitimate service when in fact of premises licensed. revenues and the UK economy. they were being exploited. We would like to thank PPL for their ongoing partnership. Dave Wood Director of Anti-Piracy

PPL Annual Review 2O12 13 In this section we look in more detail at PPL’s three Business income sectors: Broadcast and Online, Public Performance and International. We worked hard during the year to Review make further improvements to our services to members, and this section summarises those developments.

Broadcast and Online The renewal of PPL’s long term licensing When I think of PPL as a company, Darwin springs to mind – it’s not the In the course of 2O12 PPL arrangements with a number of major strongest of the species that survive renewed its licensing commercial television broadcasters also nor the most intelligent but the one arrangement with the BBC, commenced in 2O12, and these are most responsive to change. with the new agreement running expected to be concluded in the Claire Jarvis Director of Music through to the expiry of the first half of 2O13. BBC’s current Charter in 2O17. Following significant falls in the Accounting for over 5O% of UK years 2OO5 to 2OO9,income from radio listening, 3O% of television commercial radio continued its more viewing and with a major presence recent pattern of slow recovery, but online, the BBC is understandably 2O12 income remained 16% below The cost effective collective licensing PPL’s largest single licensee. The BBC its peak in 2OO4. From its beginnings arrangement provided by PPL for licence covers the use of PPL sound in 2OO5, community radio has the BBC’s use of commercial sound recordings in radio and television developed an established niche in the recordings works very well, facilitating the provision of a programmes broadcast throughout the UK radio market, with nearly 2OO wide range of PPL repertoire UK and increasingly distributed online stations now licensed by PPL. Following which enhances the quality of through the iPlayer service. As an extensive discussions with the Community our programming and is enjoyed Media Association, PPL launched a new by millions of our viewers, listeners innovative broadcaster and a major and online users. The arrangement user of music, the BBC has for a number licensing arrangement at the end of 2O12 also ensures that record companies of years been at the forefront in seeking to specifically address the needs of and performers are appropriately to broaden the scope of the collective this sector. recompensed, whilst minimising the administrative time and cost licence on offer from PPL in order to The scope of PPL’s online licensing of doing so. meet the challenge of making its content rights remains largely limited to online Roger Leatham available whenever and wherever the radio, and income from this sector Head of Talent and UK consumer wishes to access it. At showed further growth in 2O12, albeit Rights Negotiation a time when the BBC is also under from a modest base. The majority of unprecedented pressure to control its online usage of sound recordings is costs, it is particularly satisfying for PPL directly licensed by rightholders and to have reached an amicable agreement PPL maintains a regular dialogue with which meets the BBC’s requirements for its members as to the appropriate extent the use of PPL repertoire. of PPL’s online licensing.

14 PPL Annual Review 2O12 Public Performance We also appointed five regional BREs, Given the difficult trading conditions with the aim of further improving for many businesses (including our the understanding and communication own members, the overwhelming between PPL and businesses and trade majority of whom are small associations around the country. Music is very important. When you get it right, you can businesses or sole traders), the This activity helped to deliver a create a place people want to growth that was achieved was healthy percentage of customers renewing be and you can build a little a tribute to the Public Performance their PPL licence for a further year and community of like minded people who will stay loyal to your bar. Operations (PPO) team. prompted a significant increase in the This strong performance was achieved number of new applications for licences Amanda Rennie Manager through a continued drive to raise awareness made via the PPL website. This is an of licensing requirements with new encouraging trend and we would like geographic campaigns as the base for to extend our thanks not only to these regional and national presence throughout businesses but also the many customers the UK. In addition improvements to internal who pay on time for their PPL licences. processes and systems continued to lead This avoids unnecessary administration We are renowned for creating a to more effective customer service delivery. and cost and allows us to focus on convivial atmosphere at our Chop Our efforts to educate and raise providing a high standard of service. House dining pubs in Manchester awareness within the wider business We were delighted that PPL made and Leeds. At lunchtime or in the evening, recorded music sets just community included a range of local it to the finals in 2 O12 of both the UK the right mood for our customers campaigns across England (notably Customer Experience Awards and the and staff. Manchester, Birmingham, Sheffield European Call Centre and Customer Roger Ward and Newcastle) as well as activity in Service Awards. While we did not win Co-owner Scotland. This all forms part of a long term, either award on this occasion, it is very strategic approach to build awareness positive external recognition of the high of the value to businesses of recorded standards of service that we deliver. music and we will be focusing similar In addition to licensing the public efforts on various other areas across performance of recorded music, PPL also the UK in 2 O13 and beyond. licenses the commercial copying of those This marks the result of four years Various members of PPO and the recordings by companies that supply music of discussions between ukactive, field-based Business Relationship Executive systems for businesses to play recordings a working group of experts drawn from across the industry and PPL (BRE) team also attended events such as at their premises. The continuing economic with the full support of the ukactive local Chamber of Commerce meetings difficulties made trading equally tough in Board of Directors. ukactive is now and trade events to communicate with 2 O12 for such licensees – a situation working closely with PPL to establish the process for collecting the fees as many businesses as possible. We exacerbated by piracy. PPL and the BPI due from ukactive members under undertook new ‘value of music’ research Anti-Piracy Unit cooperated on a number the new tariff. to help demonstrate to new and existing of cases during the year, removing 2OO David Stalker licensees the potential benefits that using illegal jukeboxes and over 1O,OOO CEO recorded music can bring to their businesses pirate DJ CDs from circulation in 2 O12. (musicworksforyou.com) and this gained These cases and a number of other national and local media coverage. anti-piracy prosecutions will come to court We increased the level of our in 2 O13 and PPL will be looking to the business-to-business marketing and courts to send a strong message that piracy sought to ensure that the design and is not a victimless crime and substantially navigability of the PPL website was harms our members. simple and user-friendly with an enhanced emphasis on public performance licensing.

PPL Annual Review 2O12 15 International (UMA). PPL was also able to increase The increase in income was the area of rights managed in Norway partly driven by new international (to include cable retransmission through Intergram in the Czech Republic agreements with a range of an agreement with NORWACO) and, in has one of the highest levels of countries, and partly by achieving the Netherlands, via an agreement with collections per GDP in the world and engaging with PPL in a greater operational effectiveness NORMA that now extends PPL rights to professional collaboration has leading to the identification and include revenue from the lending of greatly improved the level of management of more repertoire. CDs in public libraries. return for all performers which is important. This in turn leads us to being 9O% of PPL’s new members now able to claim income for a sign up to the company’s international Martin Maran Managing Director greater volume of recordings collection service. During 2 O12 nearly and performers. PPL also offers 22,OOO members received an allocation a simple one-stop collections and of international revenues – an increase registration process, and now of 15% over the previous year. In addition, collects for more performers 1,69O more members benefited from PPL and record companies than being granted ‘Qualified Intermediary’ We enjoy working with PPL. Theirs ever before. (QI) status by the IRS (Internal Revenue is always an interesting challenge PPL’s international services are dedicated Service) in the US. – delivering a scalable, cost effective to the active collection of international 2 O12 also saw PPL play a lead role and high quality IT service to their business against a backdrop of revenues via agreements with other music in the rebuilding of the shared system for increasing data volumes driven by licensing companies around the world. uniquely identifying performers: the the ever growing use of music. We, This means that PPL members using our international performer database (IPD). and they, together produce solutions The effective management of rights across in order to deliver for their performer international service can receive monies and rightholder members. when their repertoire is used in the countries borders requires global identifiers to Tom Needs with which PPL has reciprocal agreements. ensure that when two parties talk to each Director These include the USA as well as most other they know that they are referring to Enterprise Client European countries through to the Asian the same thing, be it a company, a sound Services and South American continents with deals recording or a performer. The IPD is therefore in Japan and Brazil – the latter being one a valuable resource. This project, using a of the fastest growing countries in regard partner in Spain and involving multiple to performance rights. PPL only charges the stakeholders from around the world, required actual costs of collection, which differ solid project management (plus a little depending on the amount of work required, diplomacy!) and knowledge of business and which for most countries range processes in multiple companies. The new between 2% and 1O%. system was launched on time and on In 2 O12 PPL concluded new deals budget and is being used by over 3O with the music licensing companies in seven performer organisations around the world European countries – Croatia, Estonia, to support the identification and correct Greece, Hungary, Latvia, Lithuania and payment of performers. Portugal. These new deals now mean that PPL has 64 bilateral agreements in 35 different countries. In addition, PPL received payments for the first time from Croatia (HUZIP), Czech Republic (INTERGRAM), Estonia (EEL), Hungary (EJI), Iceland (SFH), New Zealand (PPNZ), Portugal (GDA and Audiogest), Russia (VOIS) and Ukraine

16 PPL Annual Review 2O12 Member Services improve the quality of the the performer Membership of PPL continues details they provide when registering to grow and now totals 65,OOO their recordings with PPL. To support this, performers and 1O,OOO owners of we launched the online Register Repertoire All dealings with PPL have been the copyright in sound recordings. (‘Reg Rep’) functionality for members early straightforward, honest and clear. The kindness of the PPL staff and These are recording rightholders, in 2 O12, and it has become an increasingly their integrity have helped us so traditionally record companies, popular tool actively used by nearly much. I will always be so thankful but now increasingly the 5,OOO recording rightholder members. to them, and I trust them completely. performers themselves. We We also introduced the Eligible Studio Dee Mitchell Widow of Mitch Mitchell are registering over 3OO such Producer Form as an enhancement to The Jimi Hendrix Experience members per month and in industry working practice. Whilst not a 2O12 we accepted over 436,OOO change in policy the form offers a simple, online claims from performers practical solution for studio producers to to be linked to a recording in claim royalties from PPL. the PPL Repertoire Database. In 2 O12 we built on our communication The investment in our systems continues programme to members (and prospective If it wasn’t for PPL I wouldn’t know to allow us to improve our internal efficiencies members) and as part of this we attended when and where my music was and effectiveness which in turn benefits all more industry events than ever before, both being played in the UK and around our members. This is critical if we are to nationally and internationally. These are the world – it’s great to know they provide that service and make sure build on the level of service which is our important opportunities to explain more I receive all the royalties I’m due. goal at a time when, as can be seen in the about PPL’s services and often benefitted The money I receive is especially numbers, we are handling more requests from our working with other music industry important for me as I am now associations around the country. We also retired and I speak for many of from more members than ever before. my ex-colleagues in saying that I PPL is committed to releasing monies held a series of workshops and clinics really appreciate the hard work that we are holding on recordings with for members, to help answer any queries they do for musicians. PPL, I can’t incomplete data and in 2 O12 we about using the new systems, and due thank you enough. continued to work with our members to popular demand we held quarterly Iain MacKinnon Classical/Session Violinist (retired) on ‘data cleanse’ activities to aid this. ‘members’ open days’ which we continue We have further developed our systems with in 2 O13. and reporting to ensure that rightholders can better manage the quality and completeness of recording data they submit to us. We have also run campaigns to identify the correct recording rightholders PPL makes sure I receive all the royalties I’m due and I have also for recordings which have monies allocated seen the work they do in trying to to them (this included the resolution of over make sure that deceased performers’ 1O,OOO recording rightholder disputes). families continue to benefit from their work after they’ve passed on. We continue to focus further on performer That is work behind the scenes line-up data provided to us by rightholders, which is hugely valuable to and PPL’s Repertoire and Member Data the performer community. Team made over 292,OOO updates in Ray Thomas regard to performer line-up information on The Moody Blues PPL recordings, which was in addition to the 436,OOO online performer claims mentioned above. We would expect to see this volume of performer claims reduce as rightholders

PPL Annual Review 2O12 17 This is a critical part of our Company Strategy. Our We seek to focus on retention, engagement and management development, and to drive positive People performance and behaviour across the company.

Total employees Objective setting and We increased the number of company performance management communication events to three. At the By harnessing talent and ensuring first in March we explained and reviewed each person understands their the 2O12 results at the famous Ronnie contribution and impact to the Scott’s venue close to PPL’s offices. In June, 264 wider PPL priorities we can ensure at an event put together by staff working Employees with over both success and opportunities for across business departments to encourage ten years’ service growth in the future, individually greater understanding and cooperation, and for the company. we focused on a wide range of topical In 2O12 we modified our objective concerns surrounding both PPL and the setting process to reflect PPL’s Company overall recording music industry. This 9. 5 % Strategy. We want our staff to fulfil their was then followed by an event in Employees with over potential, be challenged, rewarded and September where attention was re-drawn five years’ service motivated and this revised process is to the Company Strategy to ensure that designed to support this. all company objectives and goals would In 2O12 we increased our internal be met by the end of the year. communication to staff to make sure

15 % they were better informed as to what Increased internal the company was working on and training programme targeting. This increased communication At PPL we believe it is important came in many different forms. It to build a culture that provides included a quarterly update for all employees with the opportunity staff of achievements against the to develop and progress towards main priorities for the year. their career aspirations. We want employees to understand the benefits of playing a part in their own career development, and allowing them to identify their strengths and development needs.

18 PPL Annual Review 2O12 To ensure that across PPL we Improved working environment Corporate Social Responsibility showcase equality of opportunity for The overall refurbishment of PPL continued its support all and guide decision making around the building should not go of a number of projects. As is career development as effectively as unmentioned. This is being customary the focus was on the we can, we provided information, carried out in phases and some environment and community, guidance and support to enable major areas were completed the charity annually chosen by managers and employees to identify in 2O12. staff and those causes supported needs and aspirations. We encouraged The boardroom was one of several across the music industry. opportunities for learning and knowledge areas that has benefitted hugely from We place a high degree of sharing across teams and departments both a significant design upgrade as commitment to CSR and continued in ways that become beneficial to both well as from a technological perspective. support was given to the various the employee and the organisation. Under the guidance of CFO Ben Lambert, charities PPL has been involved with, We continued the monthly ‘PPL MoreySmith carried out a carefully some for many years, along with new People Workshops’, open to all managed refurbishment programme that initiatives and projects. employees of the company set up has hugely enhanced the building and There is a small but dedicated to provide staff with the opportunity to its attractiveness as a working environment group of staff from across the entire learn about other areas of the business for staff. This has been commented on company who meet monthly to drive and meet their colleagues. There was not only by visitors for meetings but also the CSR programme – all of whom give also a monthly sandwich lunch in the by the passing public taken by the generously of their time despite boardroom with Peter Leathem so décor in reception! busy schedules. that staff could ask him about Finally the long-standing sponsorship the business. Reward and Recognition of various music industry events continued. In 2O12 we launched several Many thanks from PPL to all PPL sponsored the eighth Parliamentary new training initiatives as a result of those who reached long service Jazz Awards in May (attended by the feedback received in the employee milestones, for all their hard work amongst others Acker Bilk and Jamie survey. These include a Career and loyal service and especially Cullum) and, in conjunction with APPJAG Development Academy, Career Ladder for their personal contribution (The All Party Parliamentary Jazz Framework, Management Training towards the success of our Appreciation Group), also hosted their and Accreditation, and an Aspiring organisation in recent years. summer event in July where we partnered to Management Programme. Pam Evans (PPO) was recognised with Yamaha in their scholarship The company also continued to for reaching an incredible 25 years’ programme. We also sponsored, support a number of individuals who, service at PPL; Panos Hadjinicolaou (IT), amongst several events, the Classical as part of their roles, need to study for Christopher Barrett (IT) and Kelly-Jane Artist Award at the Silver Clef lunch, professional qualifications and it is Bradley (PPO) were recognised for 15 the MIT Award and the Football pleasing to note that over 15% of years’ service. Ben Lambert (CFO), Extravaganza – all in aid of Nordoff our existing employees were either Peter Leathem (CEO), Lucy Murphy Robbins and/or other industry charities. promoted or transferred to a different (PPO), Sacha Fernando (Broadcasting), In addition we sponsored the MPG role which demonstrates the career Barry Reynolds (IT), and Gareth Jenkins Awards, the ‘Most Played UK Artist on development opportunities that exist (PPO) were all recognised for their 1O Commercial Radio’ and ‘Breakthrough’ at PPL. years’ service. The 2O12 Employee categories at the Arqiva Commercial Whilst we continued to work with of the Year was Josh Cook, Desktop Radio Awards, the ‘Artist of the Year experienced and valued agencies when Administrator, IT. Award’ at the Artist and Manager Awards, recruiting new staff, always ensuring the ‘PPL Award for Most Played competitive rates, 48% of vacancies filled Independent Act’ at the AIM Independent were by alternative methods to agencies Music Awards and the ‘Best Student which included internal employees, Writer’ at the Record of the Day Awards. employee referrals or direct applicants.

PPL Annual Review 2O12 19 Our Charity of the Year The biggest event, in a year Each year employees choose that collected more money for the a charity that they would Charity of the Year than ever before, like to support as the PPL was the Ride Across Britain. This was ’Charity of the Year’. from Land’s End to John O’Groats In recent years this has included organised by Deloitte in September. Whizz-Kidz, Thames 21 and MacMillan It would be remiss not to mention at Cancer Support. this juncture the valiant efforts, in the At the end of 2O11 the staff elected order in which they finished (!), of Great Ormond Street Hospital (GOSH) our CFO, Ben Lambert and our CTO, and throughout the year there were several Mark Douglas. Between them they fundraising initiatives and programmes to raised a significant portion of the participate in and/or donate to including year’s annual total given to GOSH. auctions, raffles, cake-baking, cycling, In addition they made personal running, golf, swimming and more. donations to their chosen charities. gosh.org/gen/about-us/our-fundraising

The support and generosity of all the staff at PPL has been amazing this year. Great Ormond Street Hospital treats some of the most seriously ill children from all over the UK. Unfortunately not all of the surroundings reflect the very high standard of care that the hospital delivers; this is why the charity is currently fundraising to rebuild two thirds of the hospital and that is thanks to individuals and companies just like PPL. £17,557 Hayley Richardson raised for several charities Senior Fundraising Executive Community Fundraising

Mark Douglas Ben Lambert

2O PPL Annual Review 2O12 Hospital Broadcast Association British Association for BRIT School for Performing PPL makes a significant annual donation Performing Arts Medicine Arts and Technology to the national charity that supports and BAPAM’s mission is to achieve The BRIT School in Croydon provides promotes hospital broadcasting in the nationwide occupational health provision a unique education for over 1,15O UK. It currently consists of 227 individual for professional, semi-professional and students. It is the only free performing broadcasting stations, representing a student performing artists, including arts school in the country with a diverse large number of volunteers. Patients in health promotion, education and clinical intake of talented students. Most leave many UK hospitals benefit from programmes advice for performance-related health for higher education or for employment designed to make life better for people problems suffered by musicians, singers, across the creative industries. PPL annually in hospital and aid their recovery. actors, dancers and other performers. hosts final year Music Business students hbauk.com bapam.org.uk from the School who spend the day meeting all the departments and learning The Young Musicians The Radio Academy more about PPL and the music industry. Symphony Orchestra The Radio Academy is a registered brit.croydon.sch.uk The YMSO is Britain’s leading charity dedicated to the encouragement, orchestra for young musicians on the recognition and promotion of excellence PPL is proud of its ongoing dedication threshold of their professional careers. in UK broadcasting and audio production. to its CSR Programme. Whether it is It provides invaluable experience to PPL is a key sponsor at the Radio Festival ensuring that the PPL workplace remains those who are studying or have recently and other music related Academy events. a conscientious environment, donating completed their training and exists to radioacademy.org funds to a number of charities or supporting give these talented musicians the numerous projects through sponsorship, opportunity to rehearse and perform The Young Persons PPL is passionate about giving back as well as receive coaching from top Concert Foundation (the 2O13 charity is Teenage Cancer professionals and work with eminent PPL’s donations are used to fund Trust) whilst moving the company and conductors and soloists. workshops for schools in the Soho and our people forward. ymso.org.uk Westminster vicinity near the company offices. The Foundation, which is chaired Nordoff Robbins by Lady Judy Martin and of which her PPL is a longstanding supporter of the husband Sir George Martin is a patron, music industry charity Nordoff Robbins helps young people to appreciate and which brings music’s transforming power enjoy music through educational workshops to children in need, through its therapy and live orchestral concerts. services, music and health projects and ypcf.co.uk community music projects, as well as education programmes and research. nordoff-robbins.org.uk

PPL Annual Review 2O12 21 Executive Management Team

Fran Nevrkla OBE Peter Leathem Chairman Chief Executive Officer

Tony Clark Mark Douglas Vickie Farrell Director of Licensing Chief Technology Officer HR Director

Christine Geissmar David Harmsworth Keith Harris Operations Director Director of Legal and Director of Performer Affairs Business Affairs

Ben Lambert Jonathan Morrish Laurence Oxenbury Chief Financial Officer Director of PR and Director of International Corporate Communications

22 PPL Annual Review 2O12 Board of Directors Attendees Committees Fran Nevrkla OBE Keith Harris Finance Committee PPL (Chairman) Director of Performer Affairs The Finance Committee is primarily tasked with reviewing and setting PPL’s Roger Armstrong Steve Levine revenue and costs budget each year, Ace Records Ltd Music Producers’ Guild prior to ratification by the PPL Board. Tony Clark Dave Rowntree PPL Featured Artists’ Coalition Distribution Committee The Distribution Committee’s primary Jonathan Cross David Stopps function is to review and approve Warner Music UK Limited Music Managers’ Forum proposed distributions of revenue Mark Kelly Geoff Taylor to PPL members (and the rules and Performer Director BPI processes underpinning them). Ben Lambert Alison Wenham OBE Audit Committee PPL AIM The Audit Committee is a forum for Peter Leathem External Adviser PPL’s auditors to talk directly to PPL’s PPL John Deacon CBE management and external stakeholders about their audit work with PPL. Martin Mills MBE Political Adviser Beggars Group Remuneration Committee James Mullan The Remuneration Committee’s role EMI Music UK and Ireland is to review executive remuneration. This is the one committee which Gerald Newson consists entirely of PPL Board directors. Performer Director Christine Payne Performer Director (British Actors’ Equity) James Radice Polydor Limited Adrian Sear Demon Music Group Rt Hon Lord Smith of Finsbury Independent Director John Smith Performer Director (Musicians’ Union) Michael Smith Sony Music Entertainment UK Ltd Peter Stack Union Square Music Ltd

PPL Annual Review 2O12 23 Credits Design Our thanks to all contributors Typematic to this year’s Annual Review. typematic.co.uk For more information on the use of music in business please visit Print musicworksforyou.com CPI Colour FSC and ISO 14OO1 certified, Photography a CarbonNeutral company. Cover The paper used in this review Getty Images is environmentally friendly Edixion. Pages 2 and 4 No part of this review may Alan Cook be reproduced in any form afcook.co.uk without permission from PPL Page 22 (or, as appropriate, its licensors). Timothy Charles Smith Photography © 2O13 PPL (or its licensors) [email protected] This review is available online The PPL People’s Classical Chart at ppluk.com Vangelis by Stathis Zalidis Orchestra of the Royal Opera House with John Lanchbery by J Persson Philharmonia Orchestra with Kurt Sanderling by Benjamin Ealovega Richard Hickox by Greg Barratt Pascal Rogé by Nick Granito Marin Alsop by Kym Thomson Sir Roger Norrington by Manfred Esser Choir of King’s College Cambridge, Academy of Ancient Music with Stephen Cleobury by Benjamin Ealovega Orpheus Chamber Orchestra by Larry Fink The PPL People’s Pop Chart Emeli Sandé by Simon Emmett Flo Rida by Alex Kirzhner The PPL People’s Best of British Take That by Bryan Adams The Beatles courtesy of Apple Corps Ltd

24 PPL Annual Review 2O12 AGMRO3 JUN13 Classical 1 The Vangelis Chariots Of Fire People’s Charts 2 O12

Pop 1 Jessie J Domino

Best of British 1 Coldplay PPL’s annual ‘People’s 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, jukeboxes, gyms and shops all across the UK.

2O12 was an extraordinary year The People’s Pop Chart for British artists. Their music The ‘girls’ continue their performed incredibly well in the domination at the top of charts both in the UK and around this chart for the sixth year the world, and in a year which running. Jessie J made her was dominated by the Olympics, first appearance last year with we were all reminded of the rich ‘Price Tag’ at number four but heritage of the country’s music and now the former BRIT school its power to captivate and raise the student takes the honour of spirit! It is fitting therefore that our becoming the people’s choice third chart for the year celebrates as their favourite track of 2O12. ‘The People’s Best of British’. The People’s The People’s Classical Chart ‘Best Of British’ Chart Despite an even stronger presence In 2O12, the world was watching in the top 2O last year with six and listening to Great Britain and recordings (compared to the five at number one as the most played in 2O12), Einaudi misses out on artist in the PPL ‘Best of British the top slot. The new number one, Chart’ is Coldplay. in keeping with the olympic 2O12 saw the band perform at theme, is the famous recording the Paralympic Games closing from Vangelis of his ‘Chariots ceremony and ended with them Of Fire’ which was played and as the true music choice of the used extensively and became, people. This brings the sounds again, a true people’s choice! and music of all played recordings throughout such a magnificent and celebratory year to a perfect and fitting end. We salute all these wonderful artists whose recordings were played and used so extensively. The PPL People’s Classical Chart

Vangelis Puccini 1 Chariots Of Fire (Edit) 11 Nessun Dorma Vangelis Luciano Pavarotti, John Alldis Choir, Polydor (Universal Music) London Philharmonic Orchestra with Zubin Mehta Decca (Universal Music)

Lanchbery Górecki 2 Mrs Tiggywinkle’s Laundry 12 Symphony No.3 (from ‘Tales of Beatrix Potter’) Doreen De Feis (soprano), Orquestra Filarmónica Orchestra of the Royal Opera House with John Lanchbery De Gran Canaria with Adrian Leaper EMI Classics (EMI) Arte Nova (Sony Music Entertainment)

Beethoven Einaudi 3 Symphony No.5 13 Eros (Album Version) Philharmonia Orchestra with Kurt Sanderling Ludovico Einaudi EMI Classics (EMI) Decca (Universal Music)

Einaudi Grieg 4 Nightbook (Album Version) 14 Peer Gynt Suite No.1 Ludovico Einaudi Berliner Philharmoniker with Herbert von Karajan Decca (Universal Music) Deutsche Grammophon (Universal Music)

Einaudi Satie 5 Nuvole Bianche 15 Gymnopédie No.1 Ludovico Einaudi Pascal Rogé Decca (Universal Music) Decca (Universal Music)

Einaudi Dvorák 6 I Giorni (Album Version) 16 Symphony No.9 (From the New World) Ludovico Einaudi Baltimore Symphony Orchestra with Marin Alsop Decca (Universal Music) Naxos (Select)

Einaudi Mozart 7 The Tower (Album Version) 17 Ave Verum Corpus Ludovico Einaudi Schütz Consort, London Classical Players Decca (Universal Music) with Sir Roger Norrington Virgin Classics (EMI)

Handel Handel 8 Music for the Royal Fireworks 18 Zadok the Priest English Baroque Soloists with Choir of King’s College Cambridge, Sir John Eliot Gardiner Academy of Ancient Music with Stephen Cleobury Philips (Universal Music) EMI Classics (EMI)

Barber Schubert 9 Adagio for Strings 19 Rosamunde (Excerpts) City of London Sinfonia with Richard Hickox Orpheus Chamber Orchestra Virgin Classics (EMI) Deutsche Grammophon (Universal Music)

Einaudi Suppé 1O Divenire 2O Overture: Die leichte Kavallerie Royal Philharmonic Orchestra Orchestre Symphonique de Montréal with Ludovico Einaudi with Charles Dutoit Decca (Universal Music) Decca (Universal Music) The PPL People’s Pop Chart

Domino We Are Young 1 Jessie J 11 fun. Feat. Janelle Monáe Island/Lava (Universal Music) Atlantic (Warner Music)

Somebody That I Used To Know Paradise 2 Gotye Feat. Kimbra 12 Coldplay Samples ‘n’ Seconds Records/Island Parlophone (EMI) (Universal Music)

Next To Me Drive By 3 Emeli Sandé 13 Train Virgin Records (EMI) Columbia (Sony Music Entertainment)

Moves Like Jagger Lego House 4 Maroon 5 Feat. Christina Aguilera 14 Ed Sheeran A&M/Octone (Universal Music) Asylum (Warner Music)

Titanium Black Heart 5 David Guetta Feat. Sia 15 Stooshe Positiva/Virgin Records (EMI) WEA (Warner Music)

Dance With Me Tonight Good Feeling 6 Olly Murs 16 Flo Rida Epic (Sony Music Entertainment) Atlantic (Warner Music)

Stronger (What Doesn’t Kill You) Rolling In The Deep 7 Kelly Clarkson 17 Adele RCA Records (Sony Music Entertainment) XL Recordings (Beggars Group)

We Found Love Alone Again 8 Rihanna Feat. Calvin Harris 18 Alyssa Reid Def Jam (Universal Music) All Around The World (All Around The World)

Call Me Maybe Princess Of China 9 Carly Rae Jepsen 19 Coldplay Feat. Rihanna Interscope (Universal Music) Parlophone (EMI)

Payphone Call My Name 1O Maroon 5 2O Cheryl A&M/Octone (Universal Music) Polydor (Universal Music) The PPL People’s Best of British Chart

1 Coldplay 11 Elton John

2 Adele 12 The Wanted

3 Olly Murs 13 Oasis

4 Jessie J 14 Labrinth

5 Ed Sheeran 15 Pixie Lott

6 Take That 16 Will Young

7 Emeli Sandé 17 Cheryl

8 Queen 18 Paloma Faith

9 Robbie Williams 19 Florence + The Machine

1O The Beatles 2O The Rolling Stones PPL 1 Upper James Street London W1F 9DE T +44 (O)2O 7534 1OOO ppluk.com