ANNUAL PERFORMER REVIEW

RAISING THE VOLUME 01

WELCOME TO THE 2013/2014 ANNUAL PERFORMER REVIEW

We remain committed to maximising THIS REVIEW OUTLINES the royalties due to you when your OUR COMMITMENT TO performances on recorded music are YOU AND SOME OF OUR CONTENTS played in public or in broadcast KEY ACHIEVEMENTS (TV, radio or online), whether in the IN 2013/2014. UK or (if you are a performer using our 01 WELCOME international service) around the world. 02 KEY ACHIEVEMENTS 04 PERFORMER BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OPENING STATEMENTS 08 HOW WE WORK 10 YOUR ROYALTIES EXPLAINED 15 MEMBERSHIP 17 CONTACT US 02 03

KEY ACHIEVEMENTS

We are delighted to report INCOME FROM THREE REVENUE STREAMS IN 2013 that in 2013 we continued to increase revenues for BROADCAST our members. AND ONLINE: PUBLIC PERFORMANCE: INTERNATIONAL: £176.9m £73m £69.5m £34.4m collected in licence fees (+4% on 2012)

£152.2m distributable revenue to members (+4% on 2012) 04 05

PERFORMER BOARD CHAIRMAN’S STATEMENT

DEAR PERFORMER MEMBERS Director (representing featured performers) of sound recordings, streaming, download "Each year we see Welcome once again to another successful joining both Boards. It has been a real to own, and also issues surrounding the year and it is my privilege and honour delight to have the energetic input of Crispin implementation of Copyright Term Extension. better collection to present to you the Annual Performer Hunt (who, as you know, was the candidate It is vital that, in serving you, we are always techniques being Review for 2013/14. elected) and, together with Mark Kelly seeking to do what is in the performer’s best (the other Performer Director re-elected interest and developing systems and implemented and The year has been a remarkable one in in 2013 specifically representing featured processes to maximise your earnings. both the level of collection and distribution fresh and new performers), they have been tremendous to PPL’s members, building upon the As part of our expanding service to assets to the performer community. international previous years of investment, newly signed members we now hold monthly open group agreements being international agreements and greater, Each year we see better collection sessions at Upper James Street where, and more efficient implementation of techniques being implemented and fresh afterwards, it is possible to have direct signed and this has licensing agreements in general. and new international agreements being one-to-one discussions with the team on any led to increasing signed and this has led to increasing aspect of repertoire or other individual PPL The work of the PPL staff has been one revenues for PPL. In addition, with better topics. Alternatively, as part of our open revenues for PPL." of dedication and commitment to the ways of collecting performer data and door policy, members can book one-to-one membership. On behalf of the Performer particularly working ever more closely discussions at their own convenience. Earlier Board, I would like to thank them all. with overseas Collective Management in the year, as part of the extension of the We are proud to be able to report that, Organisations (CMOs), we are able to service, we made it possible for members since 2006 when the Performer Board was distribute more money and more accurately. to join 'PPL in Session' remotely via the web. established, each year has brought more This is always of great importance and, We never forget that it is you, the membership, money to the performer community. Through whilst it has been a long journey, it does that we serve and we are proud of our the streamlined and ever-improving business mean that each year brings greater achievements in doing so. We will continue models that are constantly being worked efficiencies and fairness - which is a key to grow and expand the company so that upon at PPL through the Board, we remain element in PPL’s remit. we can provide you with a first class service optimistic that this will continue. The Performer Board and the main PPL Board which, as performers, you deserve. As previously reported, 2013 saw the debate at the highest industry levels all the key constitutional change in the main PPL Board issues pertaining to performers. These have Gerald Newson which resulted in a further Elected Performer included critical topics such as the definition Chairman, PPL Performer Board 06 07 CHIEF EXECUTIVE OFFICER’S STATEMENT

"Over the years DEAR PERFORMER MEMBERS We have also been seeking to deliver a first class GROWTH OF TOTAL DISTRIBUTABLE REVENUES TO MEMBERS we have seen Over the years we have seen how PPL revenues experience to our members, in order to make your have become much more significant as the music engagement and relationship with us as effective how PPL revenues industry continues to evolve. In 2013 I am as possible. We attended numerous events across have become delighted to report that we increased licence the country to help inform you of how you can £92.9m £124.1m £130.8m £146.6m £152.2m fee income by 4%, to £176.9m, and distributable maximise your royalties. We also extended our much more income by 4% to £152.2 million. While working hours and made improvements to our significant as the international revenues declined slightly for reasons systems so that you can search the repertoire music industry explained later in the review, we saw a strong database and make claims more easily. Having uplift in broadcast and public performance seen the considerable benefits of recent IT systems continues to 175 revenues. This good progress has continued investment, ongoing work in that area remains evolve." in 2014 which is particularly gratifying as we a key priority and further changes will be celebrate our 80th anniversary. delivered through 2015 and beyond in response 150 to the feedback that you provide to us. We continued our efforts to provide an excellent 125 customer service to members and licensees, and On the international front, we have been working completed the first year operating under our new hard to improve the efficiency and accuracy 100 Codes of Conduct. These are codes supported by of the collections process around the world. a Comments, Feedback and Complaints process The ongoing evolution of this market is giving rise 75 culminating in an independent Ombudsman to considerable opportunities for joint working service should any member or licensee remain between international CMOs. Given the size, 50 unhappy with the service that they have received popularity and success worldwide of their from PPL. I was also very proud that, for the recorded music repertoire, PPL’s members should 25 second year in succession, we reached the finals benefit significantly from more efficiency and of two different customer service awards. accuracy across the global community of CMOs 0 if that can be achieved. On our members’ behalf, On the licensing side, we invested greater this will therefore be an important strategic priority resources in seeking to ensure that all businesses for PPL going forwards. 2009 2010 2011 2012 2013 are aware of the need for a licence if they are playing commercial recordings in public. In conclusion, I would like to thank the Performer We also extended our working relationship with Board and main PPL Board for their continued PRS for Music. Not only do we now operate insights, support and governance. Above all, a number of joint licensing solutions, we have I would like to join Gerald in thanking the PPL also been raising awareness of the value of your staff, whose hard work and dedication are very music to businesses across the country through much appreciated. Here’s to the next 80 years. our joint MusicWorks initiative, ultimately helping us to maximise the licensing revenues Peter Leathem that we are able to collect on your behalf. Chief Executive Officer, PPL 08 09

HOW WE WORK

BROADCAST AND ONLINE

PUBLIC PERFORMANCE

INTERNATIONAL

1. LEGAL 2. OUR THREE REVENUE STREAMS 3. DATA AND SYSTEMS 4. PAYMENTS The law gives our performer and PPL exists to ensure that all those that invest their time We process billions of seconds of airplay data From that we are able to pay you record company members the right and talent in making recorded music are paid fairly for their work. which we receive from broadcasters, businesses for the use of your recorded music. to be paid when their recorded music and international CMOs to understand what is Broadcast & Online: We work with and license hundreds of broadcasters is played in public and broadcast being played where and when. to make sure that you are paid fairly whenever your repertoire is aired. (on TV, radio and online). We use this information and match it with the Public Performance: We license hundreds of business premises across repertoire held on our database. the UK that play recorded music. International: We have agreements with 71 overseas CMOs to help you get paid when your music is played internationally. 10 | YOUR ROYALTIES EXPLAINED 11

PUBLIC PERFORMANCE

We license hundreds of thousands of IN 2013: business premises across the UK that play recorded music. These include bars, nightclubs, shops, offices, factories, gyms and many other business types. £69.5M 350,000 There has been a continued focus on raising WAS GENERATED IN PUBLIC VENUES ACROSS THE WE FIND HAVING MUSIC awareness of the need for a licence and the PERFORMANCE INCOME UK WERE LICENSED PLAYING IN OUR STORES benefits of music to business – particularly in our joint work with PRS for Music. Along CREATES A RELAXED AND INFORMAL with the development of online licensing, " WE ISSUED IN EXCESS OF WE INTERACTED WITH staff training and extended opening hours, ENVIRONMENT FOR BOTH CUSTOMERS this led to significant increases in the number AND STAFF. WE ARE THE WORLD'S of premises licensed. All of these initiatives 10,000 6,500 made it easier for customers to engage with LEADING STUDENT AND YOUTH TRAVEL and pay us, helping to increase the revenues INVOICES A WEEK CUSTOMERS A WEEK that we are able to distribute to members. COMPANY AND ARE HERE TO HELP YOUNG PEOPLE START THEIR ADVENTURE. HAVING A RANGE OF MUSIC PLAYING IN OUR 50

Our research tells us that licensees UK STORES CREATES A GREAT ATMOSPHERE place value on music in their businesses. TO ALLOW TIME TO CHAT TO OUR TRAVEL Our website musicworksforyou.com now forms a central pillar of our messaging EXPERTS AND ENSURE OUR CUSTOMERS to the UK business community. 91% HAVE ALL THE TOOLS NECESSARY TO

73% OF BUSINESSES CREATE THEIR IDEAL ITINERARY. AGREE THAT MUSIC OF BUSINESSES INCREASES SALES SAY THAT PLAYING OR RESULTS RECORDED MUSIC 68% OF BUSINESSES MAKES STAFF AND " SAY THAT MUSIC CUSTOMERS HAPPIER ENCOURAGES REPEAT BUSINESS

LAURENCE BRESH MARKETING DIRECTOR AT STA TRAVEL 12 | YOUR ROYALTIES EXPLAINED 13 INTERNATIONAL BROADCAST AND ONLINE PPL recognises the value of your recorded makes it difficult to maintain an even growth PPL’s international collections for performers We work with hundreds of radio and television broadcasters to ensure that they are music overseas. We have reciprocal pattern, particularly as we have settlements now account for approximately half the appropriately licensed and that you are paid fairly whenever your repertoire is aired. agreements in place with 71 CMOs from CMOs for past years being made from global market for international performance In 2013 we saw broadcast revenues grow by 5% to £73m. This was mainly the result internationally - including the USA, most time to time as PPL expands its international rights income for performers between of annual increases in long-term licensing agreements with the BBC (covering its radio, of Europe, and various Asian and South service. While we achieved an increase CMOs, which is no small achievement, television and iPlayer services), ITV and BSkyB, amongst others. American countries including Japan and in collections for the majority of CMOs especially in a highly-competitive market. Brazil - to help you get paid when your in 2013, collecting lower than expected We currently collect from CMOs representing The recent trend of declining revenue generated by the commercial radio sector appears recorded music is played internationally. payments from Germany (GVL) and Belgium over 90% of the total value of the global to have bottomed out, with 2013 revenue being consistent with the prior year. (Playright) had a significant impact on performance rights market. After 10 years of growth, 2013 saw Alongside the commercial radio sector, PPL continues to license a diverse range of other overall income. This revenue is not lost to a 6% decline in international revenues. services including community radio, student radio, hospital radio and prison radio. PPL performer members, rather it is paid This is mainly due to the fact that this is still in subsequent years. Approximately 800 online radio services are also licensed by PPL, the overwhelming majority a relatively new and volatile market which of which are small webcasters operated by “bedroom DJs” and not for profit radio enthusiasts.

PPL LICENSES 300+ 60+ 24,106 COMMERCIAL BBC RADIO performer members received RADIO STATIONS STATIONS £34.4m one international allocation was collected in international in the year to June 2014 revenues in 2013; £30 million 230+ 300+ (87% of the total) was on HOSPITAL RADIO TV CHANNELS behalf of performers We collected, processed STATIONS and distributed international payments 21,495 for performers in performer members received Poland and Serbia for more than one international the first time, having allocation in the year concluded new deals to June 2014 with CMOs in those countries in 2013 14 15 MEMBERSHIP Although our membership continues to grow, it is important that we adapt to your needs in a fast-moving, global environment. We are proud to provide a first class service to our members, dealing with in excess of 4,300 enquiries a month. In 2013 we increased our interaction with members and tried to meet many of you personally OVER THE through attending events across the country and internationally to inform you of how you can YEARS MORE THAN better maximise your royalties. We also made improvements to our repertoire search functionality on the myPPL portal to make it easier to find the sound recordings that you have £11.5" MILLION HAS BEEN performed on and improved the claims process, so that you can provide a single piece of TRANSFERRED TO BRITISH evidence in support of multiple claims. Additionally, we worked hard on improving the quality of data we hold to help enhance the PERFORMERS AND RECORD accuracy of your payments; following research by PPL staff we made over 600,000 updates to performer line-up information on recordings. We also accepted in excess of 436,000 online COMPANIES. THIS HAS ONLY BEEN claims from performers asking to be linked to recordings. POSSIBLE DUE TO GOOD COOPERATION IN 2013: BETWEEN OUR SOCIETIES. FLEXIBILITY AND WILLINGNESS TO FIND NEW £152.2m 3.8 billion SOLUTIONS HAVE BEEN KEYWORDS IN DISTRIBUTABLE REVENUE SECONDS OF AIRPLAY DATA TO MEMBERS PROCESSED FOR THE MAIN THE COOPERATION BETWEEN GRAMEX JUNE DISTRIBUTION AND PPL, AND WE LOOK FORWARD TO CONTINUE AND DEVELOP THE 300 18,000 38,887 GOOD WORKING RELATIONS TO PERFORMER MEMBERS SOUND RECORDINGS performer members THE BENEFIT OF PERFORMERS REGISTERED ON REGISTERED ON paid in main June AVERAGE A MONTH AVERAGE A WEEK 2014 distribution, AND RECORD COMPANIES. of which 17,111 were performers 90,000+ registered via an PERFORMER AND overseas CMO RECORD COMPANY " MEMBERS JOHN R KRISTENSEN MANAGING DIRECTOR AND CEO, GRAMEX, DENMARK 16

OUR MEMBERS TELL US ABOUT THE IMPORTANCE OF THEIR PPL REVENUES…

" Without you I wouldn't have "Many thanks for your help. I’m grateful for the good work that known that money existed you do on behalf of working musicians, past and present, WE WOULD LIKE TO SAY A BIG for me and I cannot thank around the world – and to meet people who actually care THANK YOU TO ALL OF OUR you enough. When you do about what they do. I couldn't be happier in my PERFORMER MEMBERS FOR THEIR session vocals, you might not dealings with you good folks at PPL." SUPPORT, PROVIDING US WITH be aware that when someone GOOD DATA, REACTING TO ALL Bill Rieflin,drummer (King Crimson, Ministry, R.E.M., Swans, Robbie Williams) else has a hit you sang on, OF OUR REQUESTS AND FOR there is money for you too. CHOOSING TO WORK WITH PPL. So PPL is really important!" We are happy to answer your queries and questions. If you’d like to get in touch, you can contact our Awsa Bergstrom, solo artist/session "I’m very happy to have Member Services team on: vocalist (Blue, Nick Cave, Emeli Sandé, my account with PPL. Professor Green) Email: [email protected] You're extremely helpful , Telephone: 020 7534 1234 informative - and great at Fax: 020 7534 1383 explaining all the complexities." ppluk.com Jem, singer/songwriter You can also keep up to date with "  " You are seriously on the case all our news on Twitter @PPLUK I appreciate your efforts very much. Thank you, PPL, for everything you are doing for me and my bank balance!" Andy Newmark, session drummer (ABC, , , , , Sly & The Family Stone) 1 UPPER JAMES STREET LONDON W1F 9DE +44 (O)2O 7534 1OOO PPLUK.COM @PPLUK