Annual Review 2016 A RECORD YEAR OF UK AND INTERNATIONAL GROWTH Founded in 1934, PPL is the UK music industry’s collective management organisation (CMO) for tens of thousands of performers and record companies.

We license recorded music in the UK when it is played in public (shops, bars, nightclubs, offices, etc.) or broadcast (BBC, commercial radio, commercial TV, etc.) and ensure that revenue flows back to our members. These include both independent and major record companies, together with performers ranging from emerging grassroots artists through to established session musicians and influential festival headliners. Contents

04 2016 in numbers 06 Chairman’s statement 09 CEO’s statement 11 Company strategy 19 Financial summary 22 Business review 32 Our people 35 Corporate social responsibility 41 PPL’s 2016 charts 2016 in numbers

4 PPL Annual Review 2016 390,500 Licensed public performance sites 64 Public performance tariffs 11 million+ Sound recordings in PPL’s repertoire database 82 International agreements 92,691 Performers and recording rightsholders paid £212.1m Revenue collected £178.9m Net distributable revenue

PPL Annual Review 2016 5 Chairman’s statement

It has been just over a year since my tenure as PPL Chairman began. And what a year it has been.

Against a backdrop of an ever-evolving and competitive global of Leicester where it is hoped it will add value to the vibrant rights management landscape, PPL has continued to deliver music community and culture. record-breaking levels of financial growth and greater levels As the outgoing General Secretary of the Musicians’ Union, of collaboration with its many partners here in the UK and one of the pivotal moments for me last year was marking around the world. the tenth anniversary of welcoming performers into PPL, I’ve been on an eye-opening journey these past 12 months, following the merger of the performer organisations PAMRA getting further acquainted with the priorities, the processes and AURA into PPL in 2006. I joined the PPL Board at that and – of course – the people behind the scenes at PPL. It has time and I can confidently say that we have come a long way been a real privilege. since then.

As the months have gone by, I’ve witnessed teams of The PPL of today is a forward-thinking, innovative and committed individuals go to great lengths to ensure collaborative organisation that strives to represent the interests performers and all those who invest in music get the of both record companies and performers, to protect their maximum return and reward for their work. rights and to maximise their income.

Whether it be through the continual improvement of the In a political and economic climate that is unsettling for many, data matching process for existing performers and recordings, it is encouraging to know that PPL remains stronger and extensive outreach to engage with unregistered constituents, more successful than ever and entirely focused on delivering investment in leading technologies, the licensing of new maximum return, benefit to and support for its members. customers or, simply, being present up and down the breadth I would like to thank all of you for your continued support of the UK and overseas to support members, not a stone has and would like to take this opportunity to thank each and gone unturned. every one of my colleagues across the organisation for their In a bid for greater efficiencies, cost savings and bigger returns, hard work and dedication to what has been an excellent year the joint venture with PRS for Music for public performance for PPL. licensing was announced in February last year. A great deal of work has since been undertaken to bring the joint venture to John F. Smith fruition, with the new company to be based in my home city CHAIRMAN

6 PPL Annual Review 2016 PPL Annual Review 2016 7 8 PPL Annual Review 2016 CEO’s statement

2016 was a strong year for PPL in many respects. I am pleased to report that revenues were up, distributions were up and the total number of international agreements were up – completing a hat trick of successes of which any collective management organisation (CMO) would be proud.

In 2016 revenue collections experienced a new high, breaking of an internal programme of work called Remix, seven the £200 million barrier for the first time, reaching £212.1 projects have been implemented to enhance the service we million. This was a significant increase of £15.1 million – or offer to members. With the creation of a new Insight and 8% – on 2015. Innovation team, our focus on data has become even stronger as we invest in leading analytics technologies and data This achievement was supported by growth across PPL’s science capabilities. three primary income streams – public performance and dubbing, broadcast and international. In public performance Through coordinated efforts amongst PPL teams and joint and dubbing we collected £86.4 million and in broadcast working with external third parties, PPL completed the year we generated £77.4 million. We celebrated our largest ever with more members, improved efficiencies and another award annual collections in international bringing in £48.3 million, to add to its trophy cabinet in the form of the Company of an increase of a third (32%) on 2015, or 16% on a currency the Year award in the Small to Medium Business category neutral basis. Given the size of our international collections, (for companies of under 500 employees) at the Employee with over 80 international agreements with other CMOs Engagement Awards. now in place, we were able to shop around to find the best 2017 is also a big year for us across the board. Many major exchange rates which, in turn, further increased our broadcast agreements are due to be re-negotiated, including overall performance. with the BBC, Sky, ITV and Channel Four. As always, we PPL paid out more money to more members than ever before will be seeking to ensure that members are fairly paid when last year. Building on the achievements of 2015, we made at their recorded music is broadcast on the relevant TV, radio least one payment to over 83,000 performers, up from 65,000 and digital platforms. We will also continue to expand our performers; and to almost 10,000 recording rightsholders, an global footprint, driving forward discussions with other increase of over 50%. CMOs to improve data matching and embarking upon new partnerships to increase the revenue returned to members. These figures have been supported by forward-thinking and innovative teams across the business. As part of the umbrella

PPL Annual Review 2016 9 And, of course, we will launch our joint venture for public performance licensing with PRS for Music in Leicester – a major project that will aim to streamline licensing for customers whilst providing greater returns for PPL and PRS for Music members. It has been a pleasure working more Revenues were up, distributions closely with our friends at PRS for Music, not just on the joint venture but also on other innovative data-led projects, as were up and the total number well as our partnership with PRS Foundation for new and of international agreements emerging talent.

I would like to thank everyone that has been part of our were up – completing a hat journey over the last year, especially the staff of PPL trick of successes. without whom I would not be able to proudly announce our achievements.

As ever, we appreciate support from you – our members. We are proud to be able to give back to music and we are proud to work for you.

Peter Leathem CEO

10 PPL Annual Review 2016 Company strategy

PPL’s company strategy serves as the roadmap for our key activities during the year and helps us deliver our strategic business goals, to better support you – our recording rightsholder and performer members. Ten priorities formed the basis of our planning, target setting and performance management at all levels of the company during the year.

PPL Annual Review 2016 1111 Our ten key areas of focus in 2016

01 Maximise net distributable revenue 02 Maximise the pay-out of 2015 collections 03 Deliver a first-class licensee experience 04 Deliver a first-class member experience 05 Further develop our people strategy 06 Pioneer the management of sound recording data 07 Further develop the accuracy of our distributions 08 Engage with copyright developments and regulatory matters 09 Support international data improvement initiatives 10 Further develop joint working with PRS for Music

A summary of our key achievements in each of these top ten areas is set out in the pages that follow.

12 PPL Annual Review 2016 Maximise net Maximise the pay-out distributable revenue of 2015 collections

Broadcast Payments

Grew broadcast revenue by 2% to £77.4 million, During the year, made at least one payment to driven predominantly by the strong performance of over 83,000 performers and to almost 10,000 commercial radio. recording rightsholders.

Public performance Pay-through rate

Delivered 2% growth in public performance and Paid out 94% of 2015 collections by June 2016 dubbing revenue to reach £86.4 million. which, following additional work, reached 96% by December 2016.

International Copyright term extension

Achieved significant international revenue growth Distributed the second year of supplementary of 32% (16% on a currency neutral basis) to remuneration collected under the copyright £48.3 million. term extension laws, with over 2,000 performers receiving allocations.

PPL Annual Review 2016 13 Deliver a first-class Deliver a first-class licensee experience member experience

Joint licensing with PRS for Music Increased member satisfaction

Delivered two new initiatives with PRS for Music, Achieved an average customer satisfaction score of launching a new joint licence for community radio 85% from surveyed members, up from 75% in 2015, stations and one for nurseries which saw 1,053 new and reached the finals of both the UK Business customers invoiced in its first four months Awards and UK Customer Experience Awards. of operation.

Online licensing Electronic signatures for US tax forms

Extended online licensing capabilities to allow Undertook a project allowing members to use more customers to self-serve when buying a electronic signatures to sign US tax forms they licence, including now offering direct debit submit to PPL online, which improved the member payments online. experience and allowed PPL to pay out more US revenue to members.

Licensee outreach Improved digital support

Undertook a range of activities to raise music Introduced guided, pop-up ‘WalkMe’ tutorials to licensing awareness including trade show help members complete online PPL forms. attendance, trade press advertising and innovative marketing campaigns.

14 PPL Annual Review 2016 Further develop Pioneer the management our people strategy of sound recording data

Award-winning employee engagement Repertoire data

Won the Company of the Year award in the Small Loaded, on average, details of over 30,000 new to Medium Business category (for companies of recordings each week into the PPL repertoire under 500 employees) at the Employee database during 2016, with over 1.7 million new Engagement Awards. recordings being loaded in total.

Enhanced internal communications Project Remix

Introduced a number of initiatives to promote cross- Under this umbrella, completed seven internal departmental interaction and open communication projects to enhance our service to members, to create an engaged workforce. focusing on improving processes and providing greater analysis, insight and data visualisation.

Engaging work environment Insight and Innovation team

Undertook an office refurbishment in order to Created a new Insight and Innovation team to create a more engaging work environment provide insight and analysis on PPL data to for employees. support the activities of a range of teams across PPL’s operations.

PPL Annual Review 2016 15 Further develop Engage with copyright the accuracy of our developments and distributions regulatory matters

Collective rights management Increased performer identification (CRM) Directive

Identified over 10 million performances across 3 Implemented various operational and million internationally-played recordings in 2016, a constitutional changes as part of compliance with growth of 18% and 31% on 2015 respectively. the UK regulations implementing the CRM Directive.

Music usage data AGM online voting

Utilised music usage data collected from 1,076 Introduced online voting for PPL’s Annual General different sources for PPL’s June 2016 distribution, Meeting, overseen independently by Electoral further ensuring the accuracy of payments in our Reform Services. distribution process.

Performer line-ups European developments

Added over 1 million updates to performer Continued to work with the British Copyright line-up details on the recordings in the PPL Council, UK Music and others on matters such as repertoire database. the EU Digital Single Market strategy and Brexit.

16 PPL Annual Review 2016 Support international Further develop data improvement joint working with initiatives PRS for Music

Joint venture for public performance International business services licensing

Signed an agreement to deliver business services Announced a joint venture with PRS for Music to the Irish music licensing company, PPI. Starting to license public performance customers, due in 2017, PPL will be using its systems and data to launch in 2017, and undertook extensive to calculate distribution allocations for onward preparatory work throughout the year. This payment by PPI, based on the recordings used by included obtaining Competition and Markets PPI’s licensees in Ireland. Authority clearance and securing premises for the joint venture in Leicester.

VRDB2 PRS Foundation funding

Submitted details of 450,000 recordings into the Partnered with PRS Foundation, with the VRDB2 database, an international project to help contribution of £200,000 per year to support CMOs exchange and improve the quality of data to emerging talent through the charity’s Momentum support global royalty collections, with PPL taking Music and International Showcase Funds. a leading role in driving the project forward.

International collaboration Music recognition technology

Continued to develop relationships with a range Undertook a six-month pilot to explore the of overseas CMOs, focusing particularly on potential use of Music Recognition Technology in exploring opportunities for further international venues with specially featured entertainment/ collaboration on data, systems and shared standards. DJ events.

PPL Annual Review 2016 17 Revenue collected and net distributable revenue

£212.1m Revenue collected ↑8%

£178.9m Net distributable revenue ↑7%

18 PPL Annual Review 2016 Financial summary

PPL’s total revenue in 2016 saw significant growth to reach £212.1 million, an overall increase of £15.1 million (8%) on 2015. Annual growth was delivered across all revenue streams, with a strong performance in UK licensing activity and a particularly notable increase in international collections of £11.6 million on 2015. 2016 was a year in which PPL’s operating costs included a level of investment in order to create efficiencies and drive further growth in the future, particularly in terms of the development of the joint venture for public performance licensing with PRS for Music. As a result, the cost-to-revenue ratio increased slightly to 14.8% (from 14.2% in 2015), although without the investment in the joint venture this would have reduced to 13.8%.

PPLPPL AnnualAnnual ReviewReview 20162016 19 £86.4m Public performance and dubbing ↑2%

£77. 4m Broadcast ↑2%

£48.3m International ↑32%

20 PPL Annual Review 2016 2016 Revenue

Broadcast figures are a strong reflection on the Broadcast licensing delivered overall growth Public Performance Operations team in revenue of 2% in 2016. This was largely at PPL, who achieved this result despite achieved through the commercial radio the announcement in early 2016 of the sector, which saw an annual increase of 5%. intention to create a joint venture with In addition, PPL benefited from annual PRS for Music in this area of the business. increases in existing long-term licensing Significant progress was made on the arrangements with the BBC and all major development of the joint venture through commercial television broadcasters. These the year, which will deliver a long-term licensing agreements have been designed commitment towards revenue growth to reflect both the continuing use of and operational efficiencies for many music in linear broadcasting and to years to come. ensure coverage of new media services by International audiences in the UK. In 2016, international revenue collected Public performance and dubbing reached £48.3 million, a 32% increase on With annual growth of 2%, public 2015. On a currency neutral basis, growth performance licensing had another was 16%. Key to success in 2016 was successful year in 2016, continuing the improved collaboration with overseas CMOs. pattern of sustained growth over the There was particular focus on streamlining past five years. There has been a 57% processes between countries and improving increase in revenue collections in this area data quality, which in turn has supported the since 2011. Growth in 2016 was, again, recruitment and retention of an increasing largely achieved through retaining the number of members to our international vast majority of our existing customers collections service. and increasing market penetration. The

Anti-piracy and industry contributions 2016

In 2016, PPL made anti-piracy and industry contributions to the following: BPI (£1,322,145), IFPI (£602,441), UK Music (£556,000), Impala (£66,000).

PPL Annual Review 2016 21 Business review

In this section we look in more detail at our three revenue streams: broadcast licensing, public performance licensing and international collections. We worked hard during the year to not only maximise revenue, but also make further improvements to our services to members.

22 PPL Annual Review 2016 Broadcast

Broadcast revenue grew by 2% to £77.4 PRS for Music. This licence provides a million, driven predominantly by strong simple one-stop approach for community growth in commercial radio. radio stations, who often operate with little administrative support. Radio Commercial radio delivered 5% year- Television Broadcast revenue on-year growth in the licence fees paid 2016 saw commercial television revenues grew by 2% to to PPL. This was a particularly strong grow by 2%. During this period, the performance when viewed in the context majority of PPL’s major broadcaster licensees £77.4 million. of the impact on radio advertising were locked into longer term deals, not revenues of the Brexit referendum in the yet subject to renegotiation, and so the second quarter of the year, during which growth came from previously agreed annual much government-funded advertising adjustment mechanisms and fees. was suspended. Outside the major broadcasters, past use PPL continued to take a proactive settlements from two mid-size broadcasters and visible approach with its industry and strong secondary sales figures for UK partners, proudly sponsoring the programming, such as Freemantle’s Britain’s Radio Academy and the relaunch of Got Talent, offset lower than expected its signature awards event, the Arias, in revenues from licensing the use of recorded Leeds. We also supported Radio Festival music when broadcasters’ programming is and the Student Radio Association and included in DVDs and downloads to own. continued our ongoing support of the Hospital Broadcasting Association.

New joint community radio licence In September 2016, following consultation with the market, PPL launched a new joint licence for community radio in conjunction with

PPL Annual Review 2016 23 Public performance and dubbing

In 2016, the Public Performance team, who ended the year well above Competition and Markets Authority Operations (PPO) and Dubbing teams 2015’s numbers. This team works on clearance was granted, PPL and PRS for again delivered solid growth. Public a mobile basis around the UK visiting Music signed a shareholders’ agreement performance and dubbing revenue for and licensing potential new customers. for the joint venture, a location and the year totalled £86.4 million, 2% up We also extended our online licensing building were chosen in Leicester, a on 2015. Public performance revenue capabilities to allow more customers Managing Director was recruited to start contributed £78 million to this total, an to self-serve when buying a licence, in 2017 and the development of a new increase of £1.7 million, or 2% on 2015. including now offering direct debit joint IT system was started. Dubbing revenue, where PPL licenses payments online. the commercial copying (dubbing) The efforts of the PPO team were of music by specialist companies that supported by innovative and integrated supply music systems to businesses marketing campaigns, trade events and for the playing of recorded music, sector-specific PR. contributed £8.4 million. Public performance and PPL and PRS for Music joint venture Driving results In early 2016, PPL and PRS for Music dubbing revenue for Public performance saw healthy results announced that a new joint venture driven by the renewal of existing would be created to serve the two the year totalled £86.4 customers’ licences, as well licensing companies’ public performance thousands of new businesses. We had licensing customers, due to launch million, 2% up on 2015. success through our licensing partners in 2017. Creating this single point of and, in particular, saw an uplift in the contact for our customers will lead fitness industry (where we worked with to the simplification of obtaining a ukactive, the fitness industry trade body licence. This joint venture is seeking to that helps us with licensing fitness underpin a long term commitment to centres) and through a new agency revenue growth and deliver operational agreement covering the licensing of efficiencies, together with a better Subway outlets. customer experience.

A strong contribution was also made Good progress was made in 2016 by the Business Relationship Executive on setting up the joint venture.

24 PPL Annual Review 2016 PPL and PRS for Music announced that a new joint venture would be created to serve the two companies’ public performance licensing customers, due to launch in 2017.

PPL Annual Review 2016 25 International

PPL achieved its largest ever annual for performer CMOs) is focused on The sheer volumes of data involved, international collection for members delivering a far more efficient exchange variable data quality across different of £48.3 million, up 32% on 2015. We of performer data and payments between countries and issues over contractual collected revenue from 33 countries CMOs. PPL has played a leading role interpretation mean that double claims in 2016. On a currency neutral basis, in its design and governance since the are an inevitable challenge within the international collections grew by 16%. initiation of the project in 2014. The international collections market. PPL has project achieved a significant milestone dedicated resources for managing double International agreements in August 2016 when technical claims and, where these are resolved, has In 2016, PPL added new international development was completed and, by the a system for storing outcomes on a time, agreements with CMOs in Romania end of the year, PPL and 10 other CMOs territory and usage basis. This approach (CREDIDAM), Korea (RIAK) and Brazil had between them already uploaded means that PPL has increasingly (ASSIMI). At the end of 2016, PPL had 1.3 million recordings into VRBD2 as authoritative data in this respect, which 82 international agreements across part of a carefully-phased sequence that helps to underpin our international 39 countries. continues into 2017. collections and our service offerings to International business services other CMOs. Data management In October 2016, PPL signed an PPL continued to work closely with agreement to deliver business services to members and CMOs across the world the Irish music licensing company, PPI, to maximise the amounts distributed by starting in 2017. Under this agreement, those CMOs to PPL for onward payment PPL will use its IT systems, recordings to our members. An important part of data, territorial rights data and performer this work is rights and data management, line-up data to calculate distribution PPL achieved its largest an example of which is dealing with allocations for onward payment by PPI, double claims. based on the recordings used by PPI’s ever annual international licensees in Ireland. We also provided In the global music market, record collection for members of various back-office services to Audiogest companies will often own different in Portugal, LaIPA in Latvia, AGATA in rights, in different recordings, across £48.3 million, up 32% Lithuania and EFU in Estonia. different countries. International on 2015. VRDB2 recording rights disputes (also known The Virtual Recording Database as double claims) occur when two or (VRDB2) project, run by SCAPR (the more recording rightsholders claim international umbrella organisation overlapping control of a recording.

26 PPL Annual Review 2016 International revenue by country

£9.8m USA

£7.9m France £5.0m Germany £8.3m Others £4.1m Belgium £3.9m Netherlands £3.3m Italy £1.7m Denmark £1.6m Japan £1.6m Spain £1.1m Sweden

PPL Annual Review 2016 27 Member Services

Member payments We made numerous improvements reporting for each member interaction We are proud that, once again, PPL paid to our systems and processes, all of evaluated. out more money to more members than which will allow us to become more UK and international outreach ever before. efficient and give us more time to deal We have continued to strive to meet with members. For example, we moved At least one payment was made to over members both in our office as well our storage of member agreements 83,000 performers last year, an increase as around the UK. Member Services (including international mandates) of 28% on 2015; and to almost 10,000 attended over 100 events, conferences, onto a single system. This has allowed recording rightsholders, an increase of seminars and festivals such as Wide us to respond to member queries about 57% on 2015. These include not just Days in Edinburgh and The Great these topics more quickly and efficiently. our direct members but also those Escape in Brighton. In addition we The next stage will be to make this performers and record companies we ensured that PPL staff were available at information available for members represent via the agreements that we international events such as Eurosonic, on myPPL. A project to improve the have in place with overseas CMOs. We MIDEM, IAMA Conference and South experience for members completing paid out 96% of 2015 collections by the by SouthWest (SXSW) in the USA. US tax forms has also delivered end of 2016. Attending these events has enabled us to time savings. meet members face to face and provide Continuous improvements for members So that we continue to improve our personal service when required. The team is supporting a continuously services, we introduced a new internal growing membership with, on average, Striving for excellence system for Member Services to 500 new members joining every The team assisting our members streamline quality evaluations across the month. In order to further improve continued to provide excellent service, team. These evaluations measure our the registration process, we introduced as underlined by a 10% increase in content and delivery style when dealing ‘WalkMe’ guided tutorials in 2016. customer satisfaction scores from The with a member query, to ensure that the This provides step-by-step guidance Member Experience survey, which we required standards are met or exceeded. and additional help text on each part send to members who have contacted The new system increases engagement of the registration forms. As a result, the team. We were also, for the third with our Member Services staff by we have seen a marked increase in the time, finalists in the UK Business providing them with real time feedback, number of registration forms completed Awards and UK Customer Experience ensuring our members receive a high successfully by new members and a Awards, in the category of Customer quality service. The system also allows reduction of calls into Member Services. Centric Culture. our management team to receive clearer

28 PPL Annual Review 20162015 Who we paid in 2016

83,102 Performers

9,589 Recording rightsholders

PPL Annual Review 2016 29 Technology

2016 saw significant milestones The Remix programme comprises a PPL staff and members will notice achieved across a number of technology broad range of projects, which will further benefits when Remix delivers initiatives for PPL, all of which will gradually replace or re-platform PPL’s more substantial projects through 2017 support PPL’s continued growth core systems onto newer and more such as a new member registration and performance. scalable technologies, while continuing portal, improved tools for identifying to deliver incremental improvements to and associating the performer names The launch of the Remix programme our services. that get reported to us during the PPL last undertook major systems’ repertoire registration process and development in 2010-2011. This has Members may already have noticed real time integration of our proven to be a key enabler for the some of the benefits, such as the international collection mandates success of PPL over the subsequent integration of DocuSign. Members can data with the shared International years, to the point where PPL’s back- now complete certain types of tax forms Performer Database. office systems now support the business electronically online, using DocuSign. operations of an additional five CMOs This means the forms can be completed A new technology department and process several times more data per in minutes and no longer require them More organisations than ever before are month than at their inception. to be downloaded, printed, signed, now creating and managing data about scanned and returned by email. The music. This can present both challenges To continue to enable PPL’s growth and resulting increase in returned forms and opportunities for PPL and, in to take advantage of the availability and demonstrates that members find this a recognition of this, a new department – cost-efficiency of modern, cloud-based much better experience, and it allows Insight and Innovation – was created technologies, PPL launched the Remix PPL to pay out more US revenue to in 2016. programme in mid-2016. members without tax being withheld.

30 PPL Annual Review 2016 The mission of Insight and Innovation is the last quarter of 2016 saw us begin to ensure that PPL uses data as effectively to work together to address one as possible to empower PPL’s staff to of the biggest music industry data make more informed decisions, drive challenges: the linking of authoritative increasingly efficient and targeted ways data about sound recordings to that The mission of Insight of working, and streamline data exchange of musical works, in order to ensure and processes between PPL and our that all rightsholders can be accurately and Innovation is to industry partners. Practically, this includes identified and remunerated. In the first developing analytics services that enable exploratory phase of this initiative, 2.4 ensure that PPL uses internal staff to work more efficiently million of PPL’s sound recordings were data as effectively through the ever-increasing volume of linked to 1.2 million musical works data that PPL receives and processes every registered with PRS for Music. as possible. year, driving improvements to the quality Looking ahead to 2017, subsequent of data PPL gathers and holds, and phases of this initiative will seek to identifying and leading data partnerships engage a wider range of organisations with other organisations for the benefit of and work towards creating a pan- PPL and our members. industry resource. Collaborative data initiatives In addition to the major joint venture for public performance licensing that PPL and PRS for Music are undertaking,

PPL Annual Review 2016 31 Our people

PPL’s business is driven by our people. Our people strategy aims to develop and drive positive performance and behaviour across the company, resulting in high levels of retention and engagement.

32 PPL Annual Review 2016 308 Members of staff

19 29% Long service 5 or more milestones years’ service

PPL Annual Review 2016 33 Our people

Employee engagement new internal magazine for employees. space for overflow working or meetings. At PPL, employee engagement is a The new platform not only allowed We are now able to hold roadshows, priority. It has been proven to positively us to communicate company updates informal stand-ups, company inductions impact results, productivity, quality but also share employees’ personal and staff social events, such as music and customer satisfaction. In addition, stories and music industry news. We quiz nights and hosting live bands. We it contributes to reduced absence and encouraged employees to get involved also hosted the first UK Music Diversity lower staff turnover. PPL won the with shaping the news by being part of Taskforce event led by Keith Harris OBE Company of the Year award in the our internal communication committee and attended by CEOs, MPs and those Small to Medium Business category (for known as the PULSE Crew. working to make the music industry companies of under 500 employees) at more diverse. In addition to this, we continued the Employee Engagement Awards. We holding quarterly events for all staff Quality standards were up against seven other finalists and to share company news, introduce We were Highly Commended in the won this award in recognition of PPL’s motivational guest speakers and involve Employee Engagement Awards in the focus on all of the internal engagement PPL’s employees in the development of Customer Engagement category. This initiatives that have taken place as a the company strategy. was for the development of our Quality result of listening to our employee Assurance process, which introduced feedback in the 2015 Employee Survey. Work environment a more efficient and effective system to We undertook an office refurbishment In 2016, across the business, we were monitor and score calls as taken by our during 2016 in order to create space finalists in more awards than ever staff when dealing with PPL’s members for additional employees as well before. We entered 11 awards, reaching and licensees. We further improved as create a more engaging work the finals in eight of these. As a result our quality standards in both Member environment. The refurb allowed us to of being finalists in the awards, we Services and PPO to have a greater reconfigure the internal seating layouts, have been able to promote PPL as an focus on staff development as well helping to further build relationships employer of choice. as implementing Scorebuddy, a new amongst internal departments and quality management system. Internal communications improve the effectiveness of cross- We introduced a number of initiatives departmental working. to promote cross-departmental The creation of a breakout area on one interaction and open communication floor now provides an opportunity to to create an engaged workforce. At the host company events in-house or act as a start of 2016, we launched PULSE, a

34 PPL Annual Review 2016 Corporate social responsibility

PPL is proud of its ongoing dedication to its CSR programme. Whether it is ensuring that PPL donates funds to a number of charities or supports numerous projects through sponsorship, we are passionate about giving back whilst moving the company and our people forward.

PPL Annual Review 2016 35 Our Charity of the Year Through these events we well and Each year PPL employees choose a truly exceeded our fundraising target charity that they would like to support of £10,000 and thanks to PPL staff’s as their Charity of the Year. For 2016, generosity we raised over £26,400 for Thank you to PPL for the PPL staff voted to support Cancer Cancer Research UK. We are extremely Research UK, one of the UK’s leading proud of everyone’s achievements. raising an absolutely cancer charities whose vision it is to exceptional £26,405.41 bring forward the day when all cancers are cured. Cancer Research UK helps (including Gi­ Aid). fund scientists, doctors and nurses This amount will cover to help beat cancer sooner. They also provide cancer information to the cost of a lung cancer the public. trial for two years, which As part of our fundraising efforts, PPL is working to discover if staff ran and took part in tombolas, cake sales, sweepstakes, music poster sales, radiotherapy will pack various sporting pursuits and even a more of a punch to cancer chilli growing competition. We had staff taking part in Tough Mudder, Shine cells and stop the disease Night Walk, the Ride London cycle ride coming back a­er surgery. and the Reading and Royal Parks half marathons, amongst others. We are delighted that PPL

Our biggest fundraising contributions has absolutely smashed came from three specific events: Mark their target! Douglas and Matt Phipps-Taylor raised £3,000 cycling across the Pyrenees; Liz Earl organised a Three Peaks challenge and was joined by Chris Barton, Josh Cook, Luke Boyns, Mark Douglas and Ruth Blackwell Jo Tosko, raising £2,500; while Peter Senior Central Fundraising Executive Cancer Research UK Leathem ran a half marathon through the streets of Ealing and completed the 13.1 miles in 1 hour 49 minutes. Peter raised over £10,000 for this event alone.

36 PPL Annual Review 2016 Hospital Broadcast Association and health projects and community chaired by Lady Judy Martin and of PPL makes an annual donation to music projects, as well as education which her late husband, Sir George the national charity that supports programmes and research. Martin was a patron, helps young and promotes hospital broadcasting www.nordoff-robbins.org.uk people to appreciate and enjoy music in the UK. It currently consists of through educational workshops and 227 individual broadcasting stations, British Association for Performing live orchestral concerts. representing a large number of Arts Medicine www.ypcf.co.uk volunteers. Patients in many UK BAPAM’s mission is to achieve hospitals benefit from programmes nationwide occupational health The BRIT School designed to make life better for people provision for professional, semi- The BRIT School is a free Performing in hospital and aid their recovery. professional and student performing Arts and Technology School. It is www.hbauk.com artists, including health promotion, an independent state-funded City education and clinical advice for College for the Technology of the Arts, The Young Musicians Symphony performance-related health problems dedicated to education and vocational Orchestra suffered by musicians, singers, actors, training for the performing arts, media, The YMSO is Britain’s leading orchestra dancers and other performers. art and design and the technologies that for young musicians on the threshold www.bapam.org.uk make performance possible. As a school of their professional careers. It provides for 14 to 19 year olds, it is unique in invaluable experience to those who are The Radio Academy its approach to education. Recognising studying or have recently completed The Radio Academy is a registered that most of its students intend to their training and exists to give these charity dedicated to the encouragement, make a career in the arts, entertainment talented musicians the opportunity to recognition and promotion of and communications industries, it rehearse and perform as well as excellence in UK broadcasting and expects all students to follow full time receive coaching from top professionals audio production. PPL is a key sponsor courses to completion. It prides itself and work with eminent conductors at the Radio Festival and other music on providing an excellent general and soloists. related Academy events. education that helps prepare young www.ymso.org.uk www.radioacademy.org people for the future. www.brit.croydon.sch.uk Nordoff Robbins The Young Persons Concert PPL is a longstanding supporter of the Foundation music industry charity Nordoff Robbins PPL’s donations are used to fund which brings music’s transforming workshops for schools in the Soho and power to children and adults in need, Westminster vicinity near the company through its therapy services, music offices. The Foundation, which is

PPL Annual Review 2016 37 Executive Management Team

John Smith Peter Leathem Christian Barton Chairman Chief Executive Officer Finance Director

Jez Bell Mark Douglas Christine Geissmar Chief Licensing Officer Chief Technology Officer Operations Director

David Harmsworth Laurence Oxenbury Kate Reilly Director of Legal and Business Director of International Director of People and Affairs/Company Secretary Organisational Development

38 PPL Annual Review 20152016 Board of Directors Attendees Committees

John F Smith Steve Levine Finance Committee (Chairman) PPL Music Producers Guild The Finance Committee is Roger Armstrong Paul Pacifico primarily tasked with reviewing Ace Records Ltd AIM and setting PPL’s revenue and costs budget each year, prior to Roxanne de Bastion Geoff Taylor ratification by the PPL Board, Performer Director BPI and to monitoring progress Julian French throughout the year. Universal Music Group

Nick Hartley Distribution Committee [PIAS] Group The Distribution Committee’s Crispin Hunt primary function is to review and Performer Director approve proposed distributions of Mark Kelly revenue to PPL members and the Performer Director rules and processes underpinning them. Peter Leathem PPL Audit Committee Martin Mills MBE The Audit Committee is a forum Beggars Group Ltd for PPL’s auditors to talk directly Christine Payne to PPL’s Finance Committee about Performer Director (Equity) their audit work with PPL. James Radice Warner Music UK Remuneration Committee Adrian Sear The Remuneration Committee’s Demon Music Group role is to review executive Rt Hon Lord Smith of Finsbury remuneration. Independent Director Michael Smith Sony Music Entertainment UK Ltd Peter Stack BMG David Stopps Performer Director Horace Trubridge Performer Director (Musicians’ Union) PPL Annual Review 2016 39 40 PPL Annual Review 2016 PPL’s 2016 charts

PPL’s annual ‘most played’ 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 and shops all across the UK.

PPL Annual Review 2016 41 PPL’s most played tracks 2016

01 Can’t Stop The Feeling Justin Timberlake RCA 02 Lush Life (Sony Music Entertainment) Zara Larsson Epic/Record Company Ten (Sony Music Entertainment) 03 Cake By The Ocean DNCE Republic Records 04 This Is What You Came For (Universal Music) Calvin Harris feat. Rihanna Columbia (Sony Music Entertainment) 05 7 Years Lukas Graham Warner Bros 06 Hymn For The Weekend (Warner Music) Coldplay Parlophone (Warner Music) 07 Stitches Shawn Mendes EMI 08 Love Yourself (Universal Music) Justin Bieber Def Jam (Universal Music) 09 Don’t Be So Hard On Yourself Jess Glynne 10 Adventure Of A Lifetime Atlantic Coldplay (Warner Music) Parlophone (Warner Music)

Justin Timberlake’s awesomely funky Can’t Stop The Feeling (written for the soundtrack to the film Trolls) is our 2016 number one and is certain to be played and loved for many years to come. It marks Timberlake’s third appearance in PPL’s most played tracks chart. What Goes Around...Comes Around was at number 8 in our very first chart back in 2007 andMirrors reached number 3 in 2013. He also reached number 7 in the artist chart in 2013 and is at number 5 this year. Zara Larsson at number 2 with Lush Life and DNCE at number 3 with Cake By The Ocean both make their debut appearance in any PPL chart.

42 PPL Annual Review 2016 PPL’s most played artists 2016

01 Coldplay 02 Adele

03 Olly Murs 04 Little Mix

05 Justin Timberlake 06 Ellie Goulding

07 Justin Bieber 08 Jess Glynne

09 Calvin Harris 10 Taylor Swift

Coldplay are top of PPL’s most played artists chart in 2016 and, following on from Ed Sheeran last year, ensure that the coveted number one spot is retained by a British act. This is their fourth time in the most played artists chart top ten, which is a real indication of their popularity, longevity and, of course, their supreme talent. It’s not the first time they have been number one, having achieved the top spot in 2012. Back then, their success came with tracks such as Paradise and Princess of China. Now it is the likes of Hymn For The Weekend and Adventure Of A Lifetime that will ensure their success and popularity is certain to continue for a long time to come. The band fought off stiff opposition from Adele and Olly Murs – both of whom have topped this chart in the past.

PPL Annual Review 2016 43 Credits

Our thanks to all contributors to this year's Annual Review.

Photography Page 7: John Smith, Chairman Page 8: Peter Leathem, CEO Page 38: Executive Management Team All Dolly Clew

Page 42 Entry 5: Danny Clinch Entry 6: Julia Kennedy Page 43 Entry 3: Simon Emmett

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