PPL Annual Review 2019
Total Page：16
File Type：pdf, Size：1020Kb
ANNUAL ppluk.com REVIEW 2019 Standing up for music rights ANNUAL Contents REVIEW 2019 02 03 05 2019 Chairman’s CEO’s Founded in 1934, we are the UK music in numbers statement statement industry’s music licensing company for over 115,000 performers and recording rightsholders. We license recorded music in the UK for 14 broadcast on radio and TV and, through 07 11 PPL PRS Ltd (our public performance joint venture with PRS for Music), when Financial International Delivering more it is played in public at businesses such for members as shops, bars, nightclubs and offices. summary collections We offer a market-leading international collections service, covering similar uses of recorded music overseas. All of this helps to ensure the flow of 19 21 23 important revenues back to our members. These include both independent and major record companies together with Driven by Developing Supporting charitable performers, ranging from emerging data our people causes grassroots artists through to established session musicians and festival headliners. 26 29 31 Executive PPL’s most played PPL’s most played Management Team track 2019 artist 2019 2019 in numbers Seconds of airplay reported and processed: 805 billion Growth in Public Revenue TV, over the air, Performance and generated: and online radio Dubbing revenue stations licensed: 8% £271.8 million 2,300+ Net Distributable Revenue: £233.7 million International agreements: Performers 99 and recording rightsholders paid: 119,710 02 Annual Review 2019 Chairman’s statement THE REVENUES WE COLLECT AND DISTRIBUTE HAVE NOT JUST GROWN IN SIZE, MAKING THEM MORE IMPORTANT, BUT HAVE BECOME MORE CRITICAL AND RELEVANT TO OUR MEMBERS 03 Annual Review 2019 John Smith Chairman’s statement Looking back on 2019, I am pivotal in leading PPL’s growth and development To date, whilst continuing with our core business throughout the years. operations, we have pledged hundreds of pleased to report that it was thousands of pounds to emergency hardship another great year for PPL as It also marked how far and how fast the company funds to help the music community, and we made has grown, not just in this century, but also an advance payment in April to provide much we continued to represent specifically in this past decade. From 2000 the rights of performers and needed support for our members during these to 2009, PPL collected over £950 million for times of crisis. We have also worked closely with recording rightsholders. performers and recording rightsholders; however, PRS for Music to alleviate the pressures faced by in the ten years just gone, we collected more than businesses that have a licence via PPL PRS Ltd to Continued revenue growth, an increased number double this figure (£1.98 billion). play music in public. of international agreements, involvement in developing IFPI and WIN’s global data exchange The revenues we collect and distribute have not As we move into the second half of 2020, we do initiative RDx (Repertoire Data Exchange), and just grown in size, making them more important, not know what the immediate future may hold. greater engagement with members through events but have become more critical and relevant to our However, with Peter Leathem leading the company, and outreach both in the UK and internationally are members as the modern record industry has gone and with the support of his Executive Management just some of the year’s highlights. through significant change in the last twenty years. Team and wider staff at PPL, we will continue to stand up for music rights, for your rights, to play We continued to provide support to a number of As we publish this Annual Review, we are yet again our part in helping the music economy, which is good causes across the UK, including Music for on the cusp of a new era – one where a global so vital to the UK in both jobs and exports, to get Youth, the Midlands Youth Jazz Orchestra and PRS pandemic is leading us into uncharted territory. back on track. Foundation. Through our closer collaboration with We know that our members are being significantly the latter, we welcomed the renaming of their impacted; recordings and releases face delays flagship fund as the PPL Momentum Music Fund. whilst live performances face postponement or John F. Smith cancellation. CHAIRMAN Such achievements in the company’s 85th year were a fitting way to mark our anniversary, which The impact of COVID-19 is being felt by all. The we formally celebrated in July. We were delighted music community, and indeed the wider creative that so many from across the entire UK music sector, need to come together to support each industry, and internationally, came to celebrate other now more than ever. And PPL is committed with us, including some of those who have been to playing its part. 04 Annual Review 2019 Chief Executive Officer’s statement THIS IS THE FIRST TIME THAT PPL HAS PAID MORE THAN 100,000 PERFORMERS IN A SINGLE FINANCIAL YEAR, A NEW LEVEL OF SUCCESS IN OUR ANNIVERSARY YEAR 05 Annual Review 2019 Peter Leathem Chief Executive Officer’s statement In 2019, PPL celebrated 85 Turning to our international collections, our RDx (Repertoire Data Exchange), a centralised revenues grew by £15.8 million (22%) to £86.7 industry data exchange service that will enable years of supporting the music million, up from £70.9 million in 2018. This was an record companies and CMOs to submit and access community; the anniversary exceptional result in a year where we received authoritative recording data via a single point. strong payments from a number of territories as provided a moment for us to This will help to improve the timeliness, accuracy well as one-off backdated payments from our and efficiency of CMOs’ revenue distributions come together with our friends overseas counterparts. By the end of 2019, we had to rightsholders worldwide and represents a and partners to reflect upon our 99 agreements in place with collective management significant step forward in global data management achievements as well as focus organsations (CMOs) around the world, allowing us for our industry. As ever, we remain committed to to collect monies where our members’ repertoire is on our future. I would like to growing the global market for neighbouring rights used overseas. thank all of those who joined us and improving global data standards. We also distributed money to over 119,000 in our celebrations. Underpinning all of our achievements is the individuals and music companies – amongst expertise of the dedicated teams of people at PPL them more than 100,000 performers. This is the 2019 was a strong year for PPL; we collected a working on your behalf. Our success is the result first time that PPL has paid more than 100,000 total of £271.8 million, an increase of £25 million of a real team effort and I would like to thank all of performers in a single financial year, a new level of (10%) from 2018, with growth achieved across all my colleagues for their support. success in our anniversary year. three of our core revenue streams. At the time of writing, the world is slowly emerging With a growing membership and increased In the UK, broadcast and online licensing revenues from lockdown in response to the COVID-19 international collections, we are now managing totalled £85.5 million, an increase of £1.9 million pandemic. While we all face challenging times record volumes of data. We now have details of (2%) on the prior year whilst revenues from ahead, from both a domestic and business point more than 15 million recordings in our Repertoire public performance and dubbing increased to of view, I know that PPL will continue to innovate, Database and receive tens of thousands more each £99.6 million, up by £7.3 million (8%) in 2018. To develop its services and work hard on behalf of week. We are a company that is truly driven by data. achieve such growth in only the second year of performers and recording rightsholders throughout our joint venture for public performance licensing Our in-house expertise in this field was recognised 2020 and beyond. with PRS for Music – PPL PRS Ltd - is recognition in 2019 as we were selected by IFPI and WIN, of the successful collaboration between our representing the global recorded music industry, to Peter Leathem three companies in transitioning customers to deliver and operate a new technical service for the TheMusicLicence and promoting the value of music. industry. In the past year, PPL has been building CHIEF EXECUTIVE OFFICER 06 Annual Review 2019 FINANCIAL SUMMARY 07 Annual Review 2019 2019 revenue International collections Public performance and dubbing £86.7 million (up 22%) £99.6 million (up 8%) Anti-piracy and industry contributions 2019 In 2019, PPL made anti-piracy and industry contributions to the following: AIM (£62,000), BPI (£1,283,792), IFPI Revenue collected (£731,557), IMPALA (£69,500) and UK £271.8 million Music (£576,000). Charitable donations 2019 In 2019, PPL made charitable donations to BAPAM (British Association for Performing Arts Medicine), the English Schools’ Orchestra and Choir, the Hospital Broadcasting Association, the Midland Youth Jazz Orchestra, Music for Youth, PRS Foundation, the Young Musicians’ Symphony Orchestra and the Young Persons’ Concert Foundation. Broadcast licensing £85.5 million (up 2%) 08 Annual Review 2019 Growing PPL’s revenues Revenue Net Distributable collected Revenue £271.8 million £233.7 million (up 10%) (up 11%) 2019 saw continued growth core revenue streams, namely public performance The cost to income ratio was 13.4% in 2019, compared to and dubbing, broadcast licensing and international 13.9% in 2018; this reduction was the result of continued for PPL with total licence fee collections.