Annual Review 2O13 From Earth to Cosmos Cover image PPL licenses recorded music when played in public or broadcast on the radio and Discovery’s cargo bay over TV, as well as certain uses on the internet, and then distributes the revenues collected Earth’s horizon docking with to its members. Established in 1934, PPL exists to ensure that those people who the International Space Station invest their time, talent and money to make music are fairly paid for their work. Photographed by STS–114 Our mission is to manage the sound recording rights entrusted to us by our crew member members, maximise their earnings from the broadcast and public use of those 27.O7.2OO5 recordings both in the UK and globally, and distribute them in the most efficient See page 6 for the full story manner possible.

Contents Welcome to PPL’s 8Oth Anniversary Annual Review. 1 From Recordings to Collections 2 The Phonogram Performing Right We are pleased that 2O13 was, yet again, another 8 Chairman’s Statement 1O CEO’s Statement year of revenue growth which is particularly gratifying 12 Company Strategy as we celebrate our anniversary. At no point in our 18 8O Years Young 32 Financial Summary history has PPL income been so important to our 34 Business Review performer and recording rightsholder members who, 42 Our People 49 The People’s Charts in that time, have created and/or invested in millions of recordings. As the music industry continues to evolve, it highlights the significance and value of our members’ music: to them as a growing revenue stream, to the UK’s economy and culture and to the many thousands of businesses that use their recordings both in this country and around the world. It is therefore more fundamental than ever that a robust copyright infrastructure is in place to protect their rights and enable them to be fairly paid when their recordings and performances are broadcast and/ or played in public. We are delighted that leading copyright specialist Professor Adrian Sterling has kindly contributed an historical overview of ‘performance rights’ to this Review reminding us all of how far the protection of those rights has come and, contemplating what the future may hold, not just in the UK but, as he says, ‘From Earth to Cosmos’.

PPL Annual Review 2O13 From Recordings to Collections

6.7million sound recordings 79,OOO perfomer members 11, 5 O O recording rightsholder members 325,OOO+ licensed public performance sites broadcast and online channels 3.8billion seconds of airplay 61 different PPO tariffs

68 international reciprocal deals = £176.9million licence fee income collected

PPL Annual Review 2O13 1 Sound recordings (phonograms) and films have, from the legal The Phonogram point of view, a number of attributes in common. In the Performing Right: case, for instance, of a sound recording of a song and a film of an adaptation of a novel, From Earth to Cosmos there will in each be a creative work of an author or authors, the performers and the recording By Professor J.A.L. Sterling itself, audio or video.

For the first time we heard I heard some of our records sibilants emerge from the being broadcast this morning. trumpet, loud and hissing. Are we being paid for that? Fred Gaisberg Sir Louis Sterling Record producer Managing Director

1911 19 2 5 19 33 1934 19 3 5 194 6 x Copyright Act provides Invention of electrical Gramophone Co Ltd PPL formed after The year of the first PPL agrees to make for the first time that recording systems brings test case against Carwardine verdict three year licence ex gratia payments sound recordings Carwardine café in confirms public arrangement granted to the Musicians’ Union are protected by Bristol, arguing that performance rights by PPL to the BBC, for the benefit of non- copyright in the UK playing sound recordings in sound recordings at £1O,OOO per annum featured performers in public requires the (in addition to ex gratia By 1939 PPL has permission of the sound payments made to 37 record company recording copyright featured artists) members owners

2 PPL Annual Review 2O13 The techniques of sound recordings and regional law, and in the administration recordings: section 19(1) of the UK and films both came into existence of the rights in many countries. Copyright Act 1911 provided that copyright around the end of the 19th century. The first national recognition of rights subsisted in sound recordings as if they Rights of authors in respect of the in sound recordings came in legislation were musical works. In those days the new media were recognised and in Germany in 191O and the United chief concern was what we now call developed early in the 2Oth century, Kingdom in 1911. record piracy, the unauthorised copying but the battle for national and Under the German Law of 19O1 and sale of the original recording. Public international recognition of the rights as amended in 191O, recordings counted performance of records in cafés and similar of performers and record producers as arrangements of the work recorded, the public places was initially of less concern. has been prolonged. The main performer counting as the arranger, the However in the 192Os, public economic rights sought by performers performers’ right in the arrangement passing broadcasting began. and record producers are those of to the record producer. This system was One day in 1932 Sir Louis Sterling copying (reproduction) and communication replaced by the 1965 Law as amended, (who later became first Chairman of PPL, to the public. Moral rights of attribution granting to performers and record no relation to the author of this text), and integrity of performers are also producers related rights in recordings. one of the heads of EMI (embracing the appropriate. There have been notable In the UK, the record industry was Gramophone Company and the Columbia achievements regarding the recognition successful in obtaining the granting to the Graphophone Company) said to the of these rights in national, international record producer of copyright in sound company’s lawyers ‘I heard some of

8Oth 5Oth

Our authentic weekly survey There can be no resting on of the best-selling pop records. laurels in the record industry. Maurice Kinn Brian Bramall NME Editor Director-General th th A n r y 8O 5O niversa anniversary anniversary

8O 5O 25 anniversary anniversary anniversary

£1million £2million x 194 9 195 O 1952 195 5 195 6 1958 195 9 x PPL revenues First vinyl singles First UK record sales ‘Rock Around The Clock’ New UK Copyright First stereo LPs issued PPL revenues for the 194Os and LPs issued in chart published in by Bill Haley (and his Act confirms public in Britain by Pye for the 195Os Britain by Decca New Musical Express Comets) is Britain’s first performance rights in million-selling record sound recordings and introduces exclusive rights to broadcast copyright works

PPL Annual Review 2O13 3 our records being broadcast this played to customers. On 13 December recognition of sound recording rights morning. Are we being paid for that?’ 1933, Mr. Justice Maugham gave in national and international law. The lawyers decided to consult the judgement in the case of Gramophone IFPI did not overlook the performers – leading UK copyright lawyer of the time, Co Ltd v Stephen Carwardine & Co systems of sharing the revenue received Sir Stafford Cripps, whose initial view [1934] 1 Ch 45O, holding that copyright from public performances were was that section 19(1) of the 1911 Act under section 19(1) indeed embraced introduced, culminating in the IFPI/FIM only covered copying. But Brian Bramall, the record performing right. Thus came Agreement of 1954 between IFPI and a young lawyer at EMI (who later became about the event now being celebrated, the International Federation of Musicians. Director General of the International the founding in 1934 by British record Already in the UK in 1946, PPL had Federation of the Phonographic Industry companies of Phonographic Performance agreed to make ex gratia payments (IFPI)), did an extraordinary thing. He Limited, with the objective of administering to performers from revenues received wrote to Sir Stafford and said, in effect the public performance (including from the exercise of the phonogram ‘Copyright means copyright and copyright broadcasting) rights of its members. performing right. in the record includes the record performing Just before, in 1933, IFPI was formed, Legislation and law cases confirming right in favour of the producer’. Sir Stafford with members of the record industry the phonogram performing right appeared agreed. It was decided to take a test case from many countries, and with the in Austria (1936), Italy (1941) and Spain against the proprietors of the Carwardine objectives of representing the record (1942) and other countries. In Canada café in Bristol, where records were industry as a whole and seeking the campaign for recognition of the right

The Rome Convention proved a breakthrough and put record producers and performers on the international map as right Radio 1 will broadcast owners, as opposed to continuous pop music right users. from 7am to 7.3Opm, followed by light music Stephen Stewart and entertainment Director-General until 2am.

£4.8million £19million x 19 6 O 19 61 19 6 3 1967 1969 19 7 3 19 7 9 x Performing Right International Convention Philips introduces the Marine Broadcasting PPL revenues PPL grants licences to PPL revenues Tribunal rules that for the Protection of cassette tape format Offences Act outlaws for the 196Os first UK commercial for the 197Os jukebox operators Performers, Producers pirate radio stations radio stations must pay fees to PPL of Phonograms BBC launches Radio 1 and Broadcasting and Radio 2 Organisations is adopted in Rome WIPO (World Intellectual Property Organisation) established

4 PPL Annual Review 2O13 extended from 197O for over 25 years, recognised in international law with While all these battles have been culminating in the recognition of the right the adoption of the WIPO Performances going on around the world, PPL has on a remuneration basis1. In the United and Phonograms Treaty 1996 and the forged ahead on the representation and States the right has been recognised in WIPO Audiovisual Performances Treaty administrative fronts. On the representational respect of digital audio recordings but 2O12 and on the European level, by front PPL was successful in achieving, with the battle for comprehensive protection the adoption of the Information Society the BPI, and with the support of IFPI, the of the right still continues there. Directive 2OO1. recognition of the phonogram performing On the international stage, exclusive In general the recognition of right in the Copyright Act 1956 (after copying rights and, as regards public the copying right has been seldom a terrific battle which raged from the performance and broadcasting contested, but the record performing House of Lords to the last moment in remuneration rights were recognised right has been strongly opposed, the House of Commons), and on the in the Rome Convention for the Protection particularly by broadcasting administrative side, by developing means of Performers, Phonogram Producers organisations in certain countries. to meet the almost daily new challenges and Broadcasting Organisations 1961 The successful campaign2 for the of technology. PPL has achieved an (now having over 91 countries as phonogram performing right in amazing licence fee total for distribution to members). As the 2Oth century moved Australia in 1967–1968 was a turning record producers and performers. PPL has on, the phonogram copying and point in assisting the campaign for also established reciprocal agreements with performing rights were more widely recognition of this right in other countries. administration societies in other countries.

8Oth 5Oth

It’s indestructible. You can spread jam on it. Kieran Prendivilleth th A n r y Presenter8O 5O niversa anniversary anniversary

8O 5O 25 anniversary anniversary anniversary

£118million x 1983 198 4 1988 1989 19 9 O 19 9 2 19 9 3 x Philips and Sony PPL reports that Copyright, Designs PPL revenues Broadcasting Act International Sound Copyright Tribunal introduce the £69million was and Patents Act for the 198Os introduces a Recording Code (ISRC) sets a new PPL tariff Compact Disc collected for introduced compulsory licence is launched, with PPL for commercial radio members during for radio airplay appointed as sole Needletime restrictions its first 5O years agent to issue ISRCs are abolished in the UK Of that total £38million following a report by was collected between the Monopolies and 1979 –1984 Mergers Commission Video Performance Limited (VPL) formed, to license the public performance and broadcasting of music videos PPL Annual Review 2O13 5 May I say that I view the constituents Finally, may I look to the future. In extraterritorial areas, including Space. of a sound recording – work, performance the 195Os, when I worked for IFPI, my Last year a performance of a copyright and recording – as a unity in which the chief, Brian Bramall, used to say: ‘There song was broadcast to the public on respective right owners, authors, performers can be no resting on laurels in the record Earth from the orbiting International and producers and their representatives industry’. He saw that the challenges are Space Station. National law may apply may with mutual advantage support each perpetual, despite the great achievements in separate national sections of the Station. other for the recognition and maintenance of the past, of which in its own case PPL But suppose with the expansion of human of their respective rights. can be rightly proud. Now the challenge presence in Space, a website operator What is the secret of PPL’s success? is to ensure that the rights of the creative establishes a website on the Moon, such I believe it lies in three factors – trinity of authors, performers and producers, website giving the public on Earth free the justice of its cause, the excellence are extended throughout the Cosmos. and unauthorised access to recordings in of its administration under the leadership Why do I say this? Because there are the PPL repertoire. No copyright law applies of its executives, and its all embracing no national borders to the possibility of at present to cover such activities taking attitude in bringing collaboration between communicating works and recordings place in areas or on objects in Space. organisations in many countries. Much to the public. National laws apply in In my view it is a matter of the highest more of this is what is needed in the national territories but, in default of priority for the World Intellectual Property world today. specific provisions, do not apply in Organisation to achieve the adoption

£43Omillion

x 19 95 19 9 6 19 9 9 2OOO 2O O1 2OO2 2OO3 x MP3 format for UK implementation of PPL revenues Fran Nevrkla PPL and a number PPL launches the PPL issues its first digital files appears the EU Rental Directive for the 199Os appointed as first of UK performer CatCo electronic internet radio strengthens performers’ Chairman and CEO organisations establish database of sound licence (to AOL) rights, including a right to of PPL the Performer Forum recordings equitable remunerations, as a means of working where recordings of more closely together qualifying performances on performer issues are broadcast or played in public WIPO Performers and Phonograms Treaty adopted in Geneva

6 PPL Annual Review 2O13 of a Space Copyright Treaty extending Professor Adrian Sterling has recently Footnotes completed 6O years of work in intellectual 1 For detailed description of the history the principle of the Berne Convention, property law particularly in the fields of of the recognition of the phonogram the Rome Convention 1961 and the national, international and regional copyright performing right, see J.A.L. Sterling, law. From 1954 to 1974 he worked with the WIPO Treaties 1996, 2O12 throughout World Copyright Law (3rd Edition 2OO8) 3 International Federation of the Phonographic the Universe . paras 9O.O1–9O.1O. Industry (IFPI). He is a consultant to Lamb So, as Fran Nevrkla says in his Chambers, Middle Temple, London, where 2 The author had the good fortune to Chairman’s statement this year, the he practised while at the Bar, Professorial participate in this campaign. keynote is ‘Onwards and Upwards!’ Fellow of the Queen Mary Intellectual 3 For detailed discussion and draft Property Research Institute, Visiting Professor, Space Copyright Treaty, see J.A.L. Sterling Congratulations PPL on your first 8O years. King’s College London, and Emeritus, ‘Space Copyright Law: The New Dimension: Vice-President of the British Copyright Council A Preliminary Survey and Proposals’ and Honorary Member of the British Literary (54 Journal of the United States and Artistic Copyright Association. Copyright Society 345 (2OO7)). His writings on copyright are extensive and include World Copyright Law, 3rd Edition 2OO8.

£951.5million

PPL plays an increasing and crucial role in the delivery th th of value for music in our evolving industry. 8O 5O Martin Mills Chairman and Founder

th th A n r y 8O 5O niversa anniversary anniversary

8O 5O 25 7O anniversary anniversary anniversary x 2OO6 2OO9 2O1O 2 O11 2O12 2O13 2O14 UK performer PPL revenues PPL now receives UK copyright law is Peter Leathem appointed UK implements EU PPL has 79,OOO organisations for the 2OOOs overseas royalties reformed to remove CEO of PPL whilst legislation increasing performer members PAMRA and AURA from 45 countries anomalous restrictions Fran Nevrkla remains the copyright term for and 11,5OO recording are merged into PPL relating to licensing Chairman sound recordings rightsholder members PPL launches a new with unconditional the not-for-profit sector to 7O years (registering 18,OOO Repertoire Database, PPL licence fee income OFT approval. for the use of sound recordings a week) with strict data quality is £17O.8million recordings PPL Performer Board rules, following a 2.5 8Oth Anniversary PPL adopts Codes of and Annual Performer year project completed Conduct for members Meeting established (on time and on budget) and licensees, as part of to transform PPL’s a self-regulatory system IT systems operated by UK CMOs under the umbrella of the British Copyright Council

PPL Annual Review 2O13 7 It is with a tremendous sense of pride and achievement Chairman’s that PPL is presenting its results for the 2O13 fiscal Statement year. The statistics set out in this Annual Review are very impressive indeed. They are also a fitting tribute to PPL’s 8Oth anniversary which we are celebrating in 2O14.

With the continuing and uninterrupted growth and success which we have been delivering over the last 14 years it is only too easy to get used to good news and yet more good news. It might be useful for all of us therefore to remind ourselves of the following:

2 O13 £176 .9 million Over £1.6billion collected over 14 years, several times more than total previous 65 years Yearly revenues nearly x3 total in 2OOO 2OOO New management Fran Nevrkla OBE 198 4 £38million 1979

£69million Revenues collected in first 5O years

1934

8 PPL Annual Review 2O13 Licence fee income Performer membership £m 176 .9 +4% +22% Distributable income Record company membership £m 152.2 +4% +11%

– Revenues collected during the Long gone are the days when We at PPL shall never stop fighting company’s first 5O years amounted PPL income was regarded, as Beggars’ the good fight, in spite of adversity and to £69million. founder Martin Mills says elsewhere in all the difficulties. We shall remain in the the review, as the ‘icing on the cake’. front line of safeguarding and enhancing – When marking our 5Oth anniversary Quite rightly, these growing revenues are the value of the precious rights vested in in 1984, PPL reported that £38million now seen as crucial income streams for us by our members. We shall do so with of that total had been collected during the performers and record companies alike. courage and determination, taking pride the previous five years. Apart from working in a difficult and in what we do and how we do it. – By 1991 the annual income collected challenging economic environment, we I thank our friends and supporters by PPL was £31million. also face adversity on the political front, everywhere, especially the main PPL especially as far as copyright is concerned. Board, for their faith and confidence – Our yearly revenues are now nearly It seems that as soon as one particular over the last 14 years. The biggest thanks three times what they were in 2OOO ‘copyright review’ is completed, the next must go to all our staff for the quality of when the key management changes one gets under way. The cynics, unlike all their hard work without which nothing occurred and PPL and VPL annual myself, of course, might be forgiven significant could be achieved. income combined is now fast for thinking that someone out there is Lastly, I compliment and congratulate approaching the £2OOmillion mark. determined not to stop until copyright my friend and colleague, Peter Leathem, – During the 14 years of the new is found ‘guilty’ so that the whole intellectual on being such a worthy successor and for management regime, PPL alone property infrastructure can be dismantled making my continuing role as Chairman so generated revenues over £1.6billion, once and for all. No doubt some much fun. several times more than the total over academics would celebrate. After all, Thank you all and ‘Onwards and the entire previous 65 years. musicians and singers do not need to Upwards!’. Here’s to the next 8O years! get paid, do they? And we don’t need record companies, do we? How naïve, ignorant and foolish can you get. And, needless to say, never mind that the creative industries are one of the very few remaining British success stories, something of which this country can still feel proud.

PPL Annual Review 2O13 9 As we celebrate PPL’s 8Oth anniversary in 2O14, CEO’s at a time when the issues of copyright and licensing Statement as a revenue stream in the music industry have never been more important, I am delighted to be able to report that in 2O13 PPL, once again, delivered growth in its total collections.

This was achieved with a The significant investment we have strong uplift across our two made in IT systems over recent years is, income streams in the UK as we planned, delivering ongoing (Broadcast and Online, and benefits. We have an excellent platform Public Performance), while from which to continue to drive further our International revenues accuracy and efficiency in our operations declined slightly, for reasons while at the same time offering improved explained later in the Review. and expanded services to members. In Revenue growth can only continue 2O13 we paid out more money, on more if we also deliver on a range of other recordings, to more record companies related issues – which you will see are and performers than ever before. outlined in the Company Strategy section. I was delighted that the PPL AGM Peter Leathem Fundamental to our growth is service and in 2O13 overwhelmingly approved we invested both time and resource in changes to the PPL Board structure to The company’s progress continuing to raise the level of customer include a further Elected Performer Director. relies on many things service to our licensees and members. This was a direct result of the wide-ranging but the relationships We extended our opening hours and discussions we can now have at board we have with our many stakeholders and the trust also successfully completed the first year level and already has had a very positive they show in us, are key operating under our new Codes of impact with Crispin Hunt having been to our development. Conduct for members and licensees. elected at the Annual Performer Meeting These codes are supported by a at the end of 2O13. This means that both Comments, Feedback and Complaints featured and non-featured performers are process culminating in an independent served more strongly than ever around Ombudsman service should any licensee the PPL Board and Performer Board tables. or member remain unhappy with the There is now key representation from the service that they received from PPL. I was Musicians’ Union (and, currently, with also very proud that, for the second year John Smith as board member, the in succession, we reached the finals of International Federation of Musicians, two different customer service awards. FIM), Equity, and the Featured Artists Coaltion, as well as attendees from the Music Managers’ Forum and the Music Producers’ Guild.

1O PPL Annual Review 2O13 Broadcast and Online income Public Performance income £m £m 73 +5% 6 9. 5 +7% International income Cost–to–income ratio £m 34.4 –6% 14.1%

Our progress over recent years in While these initiatives will take some As we celebrate our 8Oth refining our level of operations means time to complete, in 2O13 we made better anniversary, all of those efforts and that we are now at an interesting point in progress than ever in pursuing a number achievements will stand us in very good our development in regard to embracing of these. Given the size, popularity and stead as we seek to build further on those further opportunities that involve working success worldwide of their recorded music successes in 2O14 and beyond. This is in new and varying ways with other repertoire, PPL’s members should benefit indeed a special year for PPL and comes Collective Management Organisations significantly from more efficiency and at a time of ongoing change for the (CMOs). accuracy across the global community recorded music industry. The company’s In the UK, where our relationship of CMOs if that can be achieved. On progress relies on many things but the with PRS for Music goes from strength to our members’ behalf, this will therefore relationships we have with our many strength, this will benefit our members as be an important strategic priority for PPL stakeholders, and the trust they show in well as licensees as we look to simplify in 2O14 and beyond. us, are key to our development. My thanks further copyright licensing. We launched In conclusion, I would once again like go to all of them and to those whose more joint licensing solutions in 2O13 as to thank Fran Nevrkla OBE as Chairman. testimonials appear in the Review. The well as working together on a range of We have worked closely together for testimonials are very much appreciated other joint activities to support public many years now and Fran has continued and provide a very positive commentary performance licensing and we certainly to be a very good friend and colleague. on the impact of PPL on a range of the have ambitious plans together moving He has been extremely supportive and people and companies with whom we forward. My thanks and congratulations helpful in so many ways and our working work and its growing importance in go to PRS for Music’s CEO Robert Ashcroft relationship could not be better. I would the modern day music industry. It is a and his team as these developments come also like to thank the members of the PPL responsibility, as Chief Executive Officer, propitiously in the year they proudly Board, whose diversity and input adds of which I am very aware and take celebrate their centenary. so much strength to the company, the very seriously. On the International front we have Performer Board and our various also been working hard with overseas committees for their continued insight, CMOs to seek to improve the efficiency support and governance. and accuracy of the International collections I would also like to thank John Deacon process around the world. The ongoing CBE for his sterling service over 12 years evolution of this market is giving rise to as External Adviser to PPL and we all considerable opportunities for collaboration wish him well in his retirement. Above all, and joint working between CMOs. I would like to thank the PPL staff for all of their hard work and dedication and for all that was achieved in 2O13.

PPL Annual Review 2O13 11 PPL’s Company Strategy serves as the roadmap for Company our key activities during the year and helps us deliver our strategic business goals. Having reviewed the Strategy ten key areas of focus identified across our business for the previous year, we retained the same ten headings in our Company Strategy for 2O13. These then formed the basis of our planning, target-setting and performance management at all levels of the company during the year.

Our ten key areas of focus in 2O13: – 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 2O12 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.

12 PPL Annual Review 2O13 Maximise our net Participate in distributable income copyright consultations and proposals for reform

7O Launched a new licensing tariff for Worked with other music industry bodies the supply of recorded music to hotel to prepare for implementation of the bedrooms, following consultation with extension of sound recording copyright the British Hospitality Association to 7O years from November 2O13 See page 4O

RUSSIA

KAZAKHSTParticipatedAN in the launch of Phase 1 Launched a new Exercise to Music tariff, of the Copyright Hub, which aims to following consultation withRUSSI industry tradeA provide signposting and education body UK Active and others about copyright licensing UZBEKISTSee pageAN 19 KAZAKHSTAN

T URKMENISTAN Poland

AZERBAIJAN Serbia UZBEKISTAN Czech Jamaica Republic Implemented constitutional reforms T URKMENISTAN to increase the number of Performer Received first-time international royalty IRAN Directors on the PPL Board and payments from collective managementAZERBAIJAN SYRIA Performer Board from four to five organisations in the Czech Republic and IRAQ Jamaica (for recording rightsholders) as KUWAIT See page 1O ISRAEL JORDAN W ESTERN well as Poland and Serbia (for performers) SAHARA ALGERIA IRAN QATAR See page 38 SAUDI ARABIA UNITED SYRIA ARAB EMIRATES LIBYA EGYPT IRAQ MAURITANIA KUWAIT

ISRAEL JORDAN W ESTERN SAHARA ALGERIA QATAR SAUDI ARABIA UNITED ARAB EGYPT EMIRATES LIBYA PPL Annual Review 2O13 13 MAURITANIA Develop our Deliver a first class licensee People+ Strategy– customer experience

+ – Undertook a company–wide job Introduced online licensing functionality, evaluation and benchmarking enabling internet radio broadcasters to exercise in partnership with leading apply and pay for their PPL licence via HR consultancy firm Mercer our website

See page 43 See page 34

Continued to engage with the UK Music Equality and Diversity Charter, including taking on PPL’s first apprentice Launched a new Member/Label Search See page 42 facility, enabling licensees to check via the PPL website which record companies are PPL members See page 35

Carried out our bi-annual employee survey, with very positive results compared to national averages See page 42 8am–6pm Extended our opening hours, to make it even easier for licensees to contact us See pages 1O and 35

14 PPL Annual Review 2O13 Maximise the pay-out Develop the accuracy of 2O13 collections of our distributions

+ + + – – – £152.2million Achieved the largest ever annual UK Delivered a 26% increase in the amount of royalty distribution to our members licensee music usage that was matched to See page 1O recordings in the PPL Repertoire Database for distribution purposes, through improved acquisition and processing of licensee usage data + +– +– – See page 4O Made payments to more members than ever before during 2O13 (39,OOO performers and 3,7OO recording rightsholders) See page 1O Further developed our methodology for the way licensing income from schools, churches and community buildings is + distributed, through use of third party £4.8million survey data See page 35 Released an additional £4.8million to members (comprising previously held balances for pre-2O12 UK collections) through data cleansing, conflict resolution and performer registration activity See page 4O Further developed our distribution methodology for background music licensing income, through data quality improvements (including additional music usage data acquired from music systems providers)

PPL Annual Review 2O13 15 Deliver a first class member Pioneer management customer experience of sound recording data

9am–6pm Extended our opening hours, to make it Delivered a Bulk Repertoire Ingest facility, even easier for members to contact us allowing PPL to more easily load large See pages 1O and 39 volumes of music data into the PPL repertoire database from overseas collective management organisations (CMOs) and others See page 4O

Launched new revenue analysis reports to accompany members’ distribution statements, providing more information Worked with our recording rightsholder about their payments from PPL members on developing improved processes and systems for the delivery See pages 39 and 4O to PPL of multi-territory rights data about their recordings See page 4O

updates Member Services team shortlisted as finalists for two prestigious customer 6OO,OOO service awards Focused on further improvements in performer data quality, making over See pages 1O and 4O 6OO,OOO updates to performer line-ups on recordings as well as processing over 436,OOO online claims from performers to be linked to recordings See page 4O

16 PPL Annual Review 2O13 Develop joint working Explore shared repertoire with PRS for Music database solutions

Partnered with PRS for Music to launch two Led a working group of CMOs to drive new joint licensing solutions covering small adoption of DDEX (a data exchange workplaces and amateur sports clubs format) as a standard method for See pages 11 and 35 receiving and sending music repertoire data internationally, to improve data quality and consistency See page 4O

Worked with fellow members of the Attended various trade shows and international performer organisation events, jointly with PRS for Music, SCAPR on VRDB2, a project aiming to to raise awareness of music licensing deliver effective sharing of repertoire requirements and playlist data to support the See page 39 International collections work of CMOs See page 4O

Exchanged certain data with PRS for Music about businesses licensed by one Worked with overseas CMOs to organisation but not the other, to help explore opportunities for PPL to those businesses become fully licensed provide repertoire–related business (where both licences are needed) services to them See page 11 See pages 4O and 41

PPL Annual Review 2O13 17 Many of our stakeholders have kindly provided 8O testimonials to mark our 8Oth anniversary. As the saying goes: ‘You are only as old as you feel’ and Years we feel ‘8O years young’! These come from a number Young of the many people with whom we work around the world and mean a great deal to us.

Music does not exist without performance. One can write scores on paper but they do not come to life without performance. In our country we are blessed with an organisation that looks after all our recorded musical performances and PPL this year celebrates its 8Oth anniversary. I congratulate PPL and thank all who work so tirelessly on our behalf to protect the performances that we give. Sir George Martin CBE

18 PPL Annual Review 2O13 From the very start of my work on streamlining copyright licensing for the digital age, PPL has been a firm believer and strong supporter – thank you. Richard Hooper CBE Chairman

PPL has been an invaluable partner not only to the BBC but also to the thousands 2O13 has seen our partnership with PPL of artists who do so much go from strength to strength. Our two to make our services special. societies are now collaborating across We are incredibly grateful many areas of our businesses, either to for all their outstanding work, identify opportunities to provide more and I am sure they will efficient and simpler services to our enjoy at least another licensees, or in areas where we can share 8O successful years. effort and cost, to provide greater returns to our members. It has been a pleasure to Tim Davie work with Peter and the team over this CEO period and I look forward to working even more closely with PPL in 2O14. Robert Ashcroft 8O years in business – CEO and you all look so young! Expert, professional and solution-focused – PPL have mastered the recipe, looking The music industry is an important part forward to all the future cakes of a thriving creative economy, helping you make. Encore! to establish the UK’s global appeal. It contributes around £3.5billion annually Claire Jarvis and provides more than 1OO,OOO UK Director of Music jobs. PPL has played a significant role in supporting this. In the past 14 years, the updated PPL regime collected £1.6billion for approximately 7O,OOO performers and 1O,OOO record company members. This is a vital contribution and one that I hope will continue to grow in the future. John Cridland CBE CEO and Director-General

PPL Annual Review 2O13 19 My thanks to Peter and Fran on behalf of Universal Music and all our labels – and of course on behalf of all our artists – for making the company such a success story. PPL income becomes increasingly significant as the industry continues to evolve and at a time when licensing generally becomes a more prominent part of our overall revenues. David Joseph Chairman and CEO

The importance of PPL’s role in the industry, as a facilitator of music usage, as a generator and distributor of revenue for rights participants, and as an advocate, has snowballed in the last ten years. PPL income is no longer the icing on the cake, but is a Soundnet views its relationship with fundamental part of the return on investment in talent, PPL as a partnership. We both strive often making the difference between profit and loss to promote the wonder of music. We for companies, and survival or penury for performers. are never going to agree on everything, In the digital era, the importance of such intangible but we always find a way to achieve rights, and their value to users as an end in our common goals. With this in mind, themselves, cannot be over-stated. over the last 15 years, we have negotiated Martin Mills MBE new licences which supported the Chairman and Founder proliferation of digital jukeboxes and digital background music replacing the CD and tape format and increasing PPL revenues significantly. I can honestly say I can’t imagine a day without that this would not have been achieved music to uplift my mood and if PPL did not possess a management team bring pleasure, which wouldn’t keen to tackle the big issues and promote be possible without the vital new ideas. work conducted by PPL. It is essential that those responsible Here’s to the next 8O years! for bringing music into our Simon Davies lives are appropriately Owner rewarded, and without licensing, the breadth, range and quality of recorded music would be infinitely poorer. Paul Robinson Chief Executive

2O PPL Annual Review 2O13 8O years of PPL revenue growth is applauded by managers and artists who value the income and its efficient distribution as an PPL does an excellent job on increasingly valuable part behalf of both performers and of the income mix in 2O14. record companies ensuring Brian Message that a proper, efficient and Chairman modern licensing environment exists for the playing of recorded music in public. Congratulations on 8O years As a member company, of channelling funds back to Union Square Music is very artists, musicians, and labels grateful to the outstanding so we can all continue to and dedicated team at PPL. invest and create new music. Peter Stack You are an essential part of Managing Director the musical ecosystem. Here’s to the next 8O! Jason Iley Chairman and CEO We congratulate our colleagues from PPL with their 8Oth anniversary. The neighbouring rights sector has grown by storm in recent years to a worldwide turnover of around �1.8billion. PPL definitely is in the forefront of the leading parties in terms of size, quality of service and innovation. Besides the traditionally important broadcasting revenues Persuading the public at large of the great strides are being made to optimise the market need for fair recompense for the public penetration in the Public Performance area in the UK. performance of music is not an easy task, The international exchange of data and monies have but one that PPL has stuck to doggedly, gained in importance significantly in the last decade as well. producing increasing returns for artists and record companies alike, especially We at Sena feel connected with our colleagues at PPL over the past 1O years. As music has in our efforts to further professionalise the performance become more freely available with scant rights sector, maximising distributions for our rightsholders, compensation for producers and artists, record companies and performers. A prerequisite for PPL has helped maintain its true value success is an enhanced international cooperation and and the income generated by them really further digitisation of workflows. However in the end helps Ace Records keep up the quality it all boils down to people’s work. We thank the PPL and depth of physical catalogue releases. team for the cooperation in recent years and look Happy 8Oth and onward to 1OO plus. forward to a successful continuation in the future. Roger Armstrong Markus Bos Managing Director CEO

PPL Annual Review 2O13 21 PPL does an outstanding job working to ensure that record labels and performers are fairly paid when their music is used in the UK and around the world. Its growth over the last ten years has been exceptional and it sets a benchmark internationally Since its foundation, PPL has for the efficiency and professionalism been instrumental in ensuring with which it does its vital job. We wish music creators are fairly all at PPL the very best for the next compensated for their work 8O successful years! and that role has never been Geoff Taylor more important than it is Chief Executive today. We are grateful for the dedication and support of Fran, Peter and their team and look forward to the next 8O years of PPL. Max Lousada CEO

To the Performer it is hard to overestimate the importance of the work that PPL is doing on our behalf as it opens up a very real and important income stream which is of increasing value to performers as well as an acknowledgement by PPL stands out as a beacon society of our skills and our contribution to the culture and for recording industry Music the economy of the UK. As the importance and the value of Licensing Companies thanks music continues to increase there is a need for a highly skilled to the outstanding performance and efficient representative Performer organisation which is of Fran and Peter and the able to invest in the relevant IT technology and staff, and be team. PPL’s professionalism fully aware of the commercial value of music to businesses, and continuous drive to and that organisation is PPL. Over the past few years there improve all aspects of its has been a substantial increase in revenues collected and the rights management services services provided to performers which has been great to see. has not only benefitted its Congratulations on reaching 8O and may the skills, dedication direct members, PPL’s example and commitment at PPL continue for many more years to come. has helped the industry Music Licensing Companies Gerald Newson worldwide develop their Chairman services. I wish PPL a well PPL Performer Board deserved happy anniversary and look forward to future cooperation. Frances Moore CEO

22 PPL Annual Review 2O13 For a label like Chemikal Underground, PPL revenue can feel like a £1O note being thrust into your pocket by an insistent aunt or, occasionally, the administration of life-saving CPR just as the lights are starting to dim. Music has a ubiquitous, enriching It is hard to overestimate how role to play in all of our lives, so how we important PPL is to the music choose to value that music and support industry. PPL cares deeply the people making it for us, is as important about, and works very hard now as it was 8O years ago. PPL – wittingly to ensure that all companies or otherwise – has helped Chemikal and all performers receive Underground on a number of occasions what is due to them from the and for that we remain enormously use of their copyrights in grateful. PPL’s support for The Scottish public performance and Album of the Year (SAY) Award too, has broadcast. Wishing you been vocal, unswerving and invaluable: a very happy 8Oth Birthday! on behalf of the Scottish Music Industry Alison Wenham OBE Association and its members I’ll simply CEO say ‘thanks’ and ‘many happy returns’. Stewart Henderson Chemikal Underground SMIA and The SAY Award

In 2O14 PPL will celebrate 8O years of collecting income on behalf of its ever increasing membership. With the continuing decline in sales of recorded music, I look forward to the day this income is becoming one of the most important when every company that revenue streams for all creators and owners of operates in the music industry sound recordings. pays the artists they do Conversely the massive increase in music consumption business with in as fair and requires that the PPL team stays ahead of new equitable a way as PPL. They technology and licensing opportunities. I know from are a great example of how my own personal experience the whole PPL team collection and distribution of works extremely hard behind the scenes on behalf licence income should be done. of all of its members to maintain its position as one Mark Kelly of the world’s leading collection societies. Director FAC For many artistes, record producers and smaller Marillion – Keyboard Player record labels, this money is often a lifeline that Songwriter enables them to continue to live, create and trade. The MPG is extremely proud of its continued relationship with both the performer and main PPL boards as well as all the staff at PPL. Steve Levine Chairman

PPL Annual Review 2O13 23 Congratulations to PPL in its 8Oth year. The more I learn about the International Music Business the luckier I feel to be As accountant and tax advisor to recording artists, a UK performer and a part of I see PPL as one of our clients’ strongest allies. this world leading collection PPL has made the successful transition from being a society. PPL is a market leader society representing record labels to a society that now in efficiency, data collection, sits equidistant between label and recording artist. responsibility and service to It has an artist steer, making it an accessible friend. its members and continues to strive to lead the way through Decreasing record sales have made PPL’s endeavours the ever changing musical to seek out public performance revenue for the artist, and copyright landscape. both in the UK and throughout the world through its Most importantly by sharing affiliates, a key contribution to the artists’ earnings. its knowledge and experience PPL revenue has risen over the years. Our recording across multiple territories PPL artists appreciate and value the efforts, expertise and works to benefit not only UK affiliations that PPL have developed to promote their performers and rightsholders work and ensure a fair return. but the entire global music Colin Young community. Director Crispin Hunt Director FAC Performer, producer and songwriter

Congratulations to PPL on celebrating its 8Oth anniversary. The MU and PPL have worked closely together since the very early days. It was in the 194Os, long before the Rome Convention, that PPL acknowledged, in practical terms, the importance of the Congratulations on making contribution of performers. Our two organisations worked in it to 8O! You have matured tandem to secure the agreement with the BBC on ‘needletime’ into a spectacularly successful and our partnership was renewed in the late 9Os when the business, which is now right at transposition of the rental directive gave UK performers the right the heart of essential revenue to Equitable Remuneration. It was on the latter development that generation for the benefit of the I worked closely with Fran and Peter, not just for months, but for whole of the UK recorded music a number of years. We now witness, with the incredible success of industry and its performers. PPL, the fruits of our labours. PPL, one of the largest record label/ It is quite remarkable how your performers’ CMOs in the world has grown its revenue streams business has been transformed year-on-year by levels that could never have been predicted for the better by Fran, Peter when we embarked upon this journey and now provides a and their outstanding team. crucial income stream for tens of thousands of performers. They have positioned you It’s been a pleasure working with you all at PPL and I look marvellously well for the forward to many more years of this success story. next 8O years! John F Smith Ian Mill QC General Secretary – Musicians’ Union President – International Federation Musicians (FIM)

24 PPL Annual Review 2O13 PPL stands out as an organisation which genuinely seeks to engage with its members and customers beyond the Watford Gap. PPL has been a member of the British Copyright The long-standing partnership Council since 2OO7 but even before then there we have enjoyed with Wide was a close relationship. Since joining, PPL has Days, has proved to be a played an active role in the BCC, most recently model we hope other industry through encouraging and participating in our work bodies will seek to emulate. on voluntary codes of conduct for collecting societies. By supporting the convention, PPL’s work demonstrates the value of copyright, PPL has helped countless providing access to protected works while benefiting copyright owners understand increasing numbers of musicians and other performers a crucial revenue source, as well as record companies both here in the UK and has established a and also overseas. The BCC is proud to be associated very important link to with PPL. the Scottish industry. Congratulations PPL on 8O years of great work – Olaf Furniss long may it continue. Director Janet Ibbotson CEO and Company Secretary

Many congratulations to PPL Happy Birthday to PPL and thank you for advising on reaching the grand age of UK Music from our creation in 2OO8. We are only 8O and still being so sprightly. six years old so having your experience guide us Your growing influence and toward a genuine and strong voice on behalf of significant achievements in the music industry is invaluable. Six-year-olds identifying and collecting characteristically enjoy taking on new roles and revenues for record companies responsibilities, but still require much direction and performers is truly from adults and frequently ask questions to ensure remarkable. This is built on that they are completing tasks the right way. the solid foundation of staff, We do frequently ask you questions and we are record companies and grateful for the care and consideration PPL has performers working together given towards our development. PPL continues in partnership and will ensure to succeed in ensuring that those who create that PPL is able to continue recorded music are fairly paid for their work its great work for the next and long may your good work continue. 8O years. Happy Birthday and a big thank you from UK Music. Christine Payne Jo Dipple General Secretary CEO

PPL Annual Review 2O13 25 Music has the power to transform venues and can add real value to any business. Having worked with thousands of performers over many years, I feel it’s important to recognise that creativity, and the joy that it can bring to others. SAMI would like to Plus it’s organisations like PPL that make congratulate PPL and sure those performers are paid fairly for join them in their 8O year their work. celebration. We have enjoyed the good collaboration Tony Moore between our organisations Director of Music over the past years. Both Singer and songwriter SAMI and PPL hold a large The Bedford – a leading pub and international repertoire and music venue, Balham, London thus are constantly striving to improve the bilateral exchange of remuneration for our performers. We look forward to the continued At a time when record labels and challenges and progress recording artists see their income from in our work and the good physical sales diminished on a daily basis collaboration for several to be replaced by revenues from digital years to come. exploitation that are, at the present time, a fraction of the sums lost, PPL’s success in Stefan Lagrell increasing revenues from exploitation by CEO public performance has been (and continues to be) a life saver for them. Fran Nevrkla and now Peter Leathem and their excellent team have achieved remarkable success and that they have continued to do so in such adverse market conditions is exceptional. Without that success there are many labels and artists who would not be able to derive a living from their work and creativity. The entire team at PPL deserves the highest congratulations for a resurgence and contribution that began over 14 years ago and continues today to go from strength to strength. Paddy Grafton Green Senior Partner

26 PPL Annual Review 2O13 There have been many successes since PPL’s inception, but certainly one of the company’s greatest achievements has been the incorporation of performers’ rights alongside and under the umbrella of those of the record companies. Performers, both in the UK and around the world, previously faced many hurdles in order to get accountable and transparent management of their performance rights, as AIE knows well since its formation back in 1996. However, the arrival of performers directly into the PPL fold in 2OO6 marked a turning point for everyone both nationally and internationally. AIE’s relationship with PPL has always been immensely productive and I think the mutual respect between the two organisations has brought about a professional relationship that extends beyond the exchange of rights and data and on to sharing a long term vision of the entire global sector of performance rights. Everyone at AIE wishes PPL and all its members continued Congratulations to PPL on its success for the next 8O years – and beyond! We congratulate 8O year anniversary from PPL, its boards and governing bodies for their good and your Australian colleagues rigorous management in regard to intellectual property and at PPCA. We have enjoyed a rightsholders and we hope that our strong and productive successful working relationship relationship leads us to an even better understanding and with PPL over the years and partnership with all other CMOs around the world. look forward to our continuing partnership for many more Luis Cobos decades to come. President of AIE and FILAIE Composer and conductor The work PPL does in collecting money for its members overseas is an important Since 2OO3 Gramex Denmark have had and an increasingly significant agreements with PPL to ensure payments income stream for recording from Denmark to the members of PPL artists and labels. and vice versa. Over the years more Keep up the great work! than £11.5million has been transferred to Dan Rosen British performers and record companies. Chief Executive This has only been possible due to good PPCA cooperation between our societies. Flexibility and the willingness to find new solutions have been keywords in the corporation between Gramex and PPL, and we look forward to continue and develop the good working relations to the benefit of performers and record companies. John R Kristensen Managing Director and CEO

PPL Annual Review 2O13 27 I warmly congratulate PPL on its 8Oth anniversary. PPL does a fantastic job in ensuring that artists, performers and PPL have a really hard job. Scaling record companies receive the remuneration up the operation to process more that they are due. Britain has arguably data by a factor of millions over the most successful music industry in the the last 1O years. Straddling and world – PPL plays a vital part in ensuring representing and uniting the different that remains the case, by supporting interests of major labels, independent established performers and helping to labels and performers. Migrating generate the investment to develop the from a UK to an international talent of the future. operation. The result is that Peter and his team are the most successful John Whittingdale OBE MP collection society in the world. Chairman They shoot, they score.

Martin Goldschmidt I am old enough to remember the days Chairman when PPL seemed like a mysterious secret benevolent society which periodically distributed cheques to grateful record companies and artists alike, much like premium bonds today. No one really As the managing director of Island appeared to know how the income was Records throughout the 199O’s I watched calculated or by virtue of what right you the growing importance and efficiency were entitled to receive it. All that has of PPL with interest. Year-on-year the changed and Fran and latterly Peter have numbers reflected the growing importance led PPL ‘Into the 21st century and beyond’ of the society and became more and more making the organisation more transparent, important to the success of the Island efficient and inclusive than ever before. Records business. Now, as the Chairman The importance of PPL in this ever changing of a management company with a world of music which we try to navigate number of successful artists including cannot be overstated and should not Jessie J, I can say without equivocation be underestimated. I am very happy that our relationship with PPL has grown to congratulate them on 8O years in more important than many of the the business, marginally longer than traditional bodies that spring to mind. my own tenure. This is an organisation that has grown Chris Organ to become an ‘August body’ by sheer Senior Partner dint of efficiency and transparency. Here’s to PPL’s next twenty years and beyond. Marc Marot Chairman

28 PPL Annual Review 2O13 We have been privileged to work alongside PPL in Congratulations PPL on your 8Oth improving the protection anniversary. During my long career given to recorded music, in the record industry I have seen many helping to ensure a fair return different sources of income. As both a to the talented individuals and customer and a PPL Board member I am companies responsible for so firstly very grateful and secondly very many memorable recordings, proud, to be associated with an incredibly and look forward to continuing well run company that has consistently to assist such a world leader. delivered above expectations every year Saleem Sheikh and developed its business strategy to Senior Partner reflect the fast moving music industry. I hope to be around for its centenary. All the best PPL! Adrian Sear Commercial Director

As partners in connecting audiences with music, the There are many reasons why I enjoy working with BBC congratulates PPL on PPL. The ability to obtain detailed analysis of income its 8Oth anniversary and sources; the approachability of all of its staff to help looks forward to continuing with providing historical information and documents to work collaboratively without any fuss or delay or general advice; the fact together on effective solutions that we have regular discussion groups/workshops for music licensing. at our offices with PPL experts, has enabled our staff Roger Leatham the ability to understand more clearly the way that Controller of Rights collections are made and distributed. There are Legal and Business Affairs plenty of other examples that I could list but above all these, is knowing that PPL has been in existence for 8O years that gives me the total comfort that the organisation is reliable, efficient and totally transparent in its dealings with each of my clients. Chris Panayi Senior Partner

PPL Annual Review 2O13 29 As a Co-Chair of the FAC, I know from As Secretary General of CPRA/Geidankyo, speaking to many of our members how I offer my heartfelt congratulations to incredibly important PPL’s diligent work PPL on its 8Oth anniversary. Over the is for performers. The revenues they collect years, PPL has made a significant and distribute are absolutely critical in contribution to the major task for the the complex world of the 21st century accurate rights protection and management, music business. and also very close and confidential The FAC was only formed in 2OO9, so we relationships have been established are youngsters compared to PPL, but they between PPL and CPRA/Geidankyo. have not only warmly welcomed us into In this respect, both organisations are their organisation, but have provided making a considerable contribution to invaluable help and support. This is a the future capabilities of the performers’ great opportunity for me to personally rights. I’m sure the collaboration with you thank Fran and Peter in particular. will be as productive as it was in our past years, and may PPL and the staff be Nick Mason prosperous for many of the years to come. Co-Chair FAC Pink Floyd – Drummer Shu Masuyama Secretary General CPRA/Geidankyo The Malaysian recorded music industry has benefited over the years and continues to benefit significantly from PPL’s considerable expertise and professionalism. Commencing with It is a pleasure to congratulate PPL in its 8Oth licensing tariff guidance back in 1991 anniversary. The work performed by PPL’s teams to central music recording database have throughout the years proven to be essential to development advice in 2O1O and the music industry. Performers and record companies reciprocal representation support for can now safely rely on a source of income that would both recording labels and performers be unimaginable without collective management. more recently, PPL has proven to be an invaluable partner for the RIM Group ABRAMUS specifically has benefited very much from and we heartily congratulate PPL on PPL’s international activity. PPL was one of the first their 8Oth anniversary as we continue societies to support ABRAMUS and its staff and has to work closely for the mutual benefit always been available to help us with understanding of our respective stakeholders. the Neighbouring Rights international network and with developing our systems to exchange more R Ramani Ramalingam fluently with foreign societies. Group CEO Recording Industry Association I believe no one can argue that PPL’s role in the future of Malaysia (RIM) developments of the music market is of absolute Public Performance Malaysia importance. Moreover, we at ABRAMUS hope that Sdn Bhd (PPM) our partnership can persist and grow so that RIM Digital Music Brazilian and British artists and record companies Sdn Bhd (RDM) can make the most out of their music. Robert Correa de Mello President

3O PPL Annual Review 2O13 PPL as a professional, resourceful and diligent organisation remind us all, at a time when our rights and the revenues we collect are becoming more and more critical to performers, of the responsibilities that all CMOs have to their members. Since joining SCAPR in May 2O13, I am pleased that PPL has played a significant role in SCAPR’s initiatives around the world. Brad Keenan PPL in recent years invested in modern IT technology in Chairman of the Board pursuit of its vision of distributing its collections fairly, accurately and transparently. They continue to develop that technology and it is way ahead of anything else we have seen in the music industry attempting to do the same task. Most do not understand how complex it is to keep the multiple-sourced recording data clean, to match it in as granular a way as is possible to the usage returns from Warm congratulations the licensees, and then to apply the funds to that matched from Finland to PPL on your usage to distribute in a timely and accurate manner. 8Oth anniversary. We have This is akin to a stock exchange – the amounts may be really high respect for PPL’s a little smaller – but the complexity is as high. contribution to improve collective management of Working with PPL over the last eight years we have seen copyrights of recorded music. the leadership create a clear and tangible vision, backed As the leading organisation it with sensible and well thought through technical and in this field, PPL has a great organisational investments, and followed through on significance for all musicians those to create a cost efficient collection society ready and producers not only in to cope with the digital age. Britain but also worldwide. PPL is an organisation that puts its members first and PPL and its staff deserve a that has been the ultimate design principle in all of their great commendation for your developments. They balance it with creating a happy long career for the benefit and productive workplace, and always retain that of the music industry. sense of belonging to the music industry. Ilmo Laevuo We wish them a very happy anniversary, and more than President anything look forward to them exerting their influence and professionalism across the rest of the world. Much can be learned from PPL’s journey over recent years. Neil Allcock Partner UK Media Leader

PPL Annual Review 2O13 31 PPL’s income in 2O13 was £176.9million, an increase Financial of 4% on 2O12 income. Despite the adverse economic environment year-on-year growth was delivered in Summary both major UK income streams, Broadcast and Online, and Public Performance. In addition PPL’s cost-to-income ratio was 14.1%, reduced from the 2O12 level of 14.4%.

Licence fee income and distributable income £m

+ 176 .9 4% 17O . 8 + 153.5 4% 146.6 143.5 152.2 13O.8 129.6 12 4 .1

92 .9

Licence fee income 2O13

Distributable 2O13 2 O12 2 O11 2 O1O 2OO9 income 2O13

Licence fee income by sector £m

Broadcast and Online Public Performance International £m £m £m 73 +5% 6 9. 5 +7% 34.4 –6%

32 PPL Annual Review 2O13 Licence fee income by sector Anti-piracy and industry contributions *BPI Breakdown % £k £k

1 3 4 1 1 Funding 2,526 2 Recoveries (31) 3 Total 2,495 3

2 2

1 Broadcast and Online 41.3% 1 BPI (Net)* 2,495 2 Public Performance 39.3% 2 IFPI 652 3 International 19.4% 3 UK Music 562 4 AIM and Impala 65

The appetite of businesses to Public Performance Summary make use of recorded music With annual growth of 7%, PPL’s public One of the consequences of the digital continues to rise. PPL’s role in performance sector had another successful age is the creation of thousands of new facilitating the collective licensing year in 2O13. An enhanced focus on small businesses producing recorded of sound recordings grows in raising awareness levels of the requirement music as either record companies, importance, as does the value for many businesses to hold PPL licences, performers, or increasingly as both. of the income we collect on behalf supported by improved internal processes, This is reflected in the continuing growth of all our members. This reflects led to significant increases in the number of PPL which, in turn, builds on the the music industry generating its of premises licensed. continuing strength of the UK creative revenues from an increasingly sector and its growing contribution diverse range of business activities. International to the UK economy. The income The international sector achieved PPL collects and distributes, whilst Broadcast and Online £34.4million in 2O13, which was 6% of increasing importance for all its In the broadcast sector, overall growth lower than 2O12. The ability to achieve membership, is particularly important in income of 5% was achieved in 2O13 growth in international income has been for such small new businesses which despite difficult conditions in the commercial hampered by a number of factors such as benefit substantially from the collective radio sector and increasing competition delays in distributions by some overseas licensing of their repertoire alongside from new online services. The use of collective management organisations and that of major international labels. recorded music by such online services the impact of significant historical payments is largely licensed directly by PPL’s members, collected in 2O12 which were non- limiting the potential long term growth repeatable in 2O13. Despite this PPL of PPL income from this sector. Growth continued to increase the number of in income was mainly achieved through members using its international service annual increases in long-term licensing and the number of territories from which arrangements with major television income was collected. broadcasters.

PPL Annual Review 2O13 33 In this section we look in more detail at PPL’s Business three Business income sectors: Broadcast and Review Online, Public Performance and International. We worked hard during the year not only to maximise licensing income but also to make further improvements to our services to members, and this section summarises those developments as well.

Broadcast and Online Commercial radio continued to As partners in connecting audiences with music, the BBC congratulates 2O13’s 5% growth in broadcast experience challenges in maintaining PPL on its 8Oth anniversary and and online revenues to £73million its share of advertising revenue. The looks forward to continuing to work was principally driven by the slow recovery in PPL receipts from this collaboratively together on effective solutions for music licensing. commercial television sector. sector noted in recent years stalled in Roger Leatham Outstanding licensing agreements 2O13, with revenues flat year-on-year. Controller of Rights with a number of major commercial Alongside the commercial radio sector, Legal and Business Affairs broadcasters were satisfactory concluded PPL continued to license a diverse range in the course of the year, including of other radio services including community settlement payments in respect of some radio, student radio, hospital radio, past periods. Agreements are now in prison radio and various restricted place with all of PPL’s major commercial service broadcasters. television partners and revenue from The number of small online radio this sector is now expected to stabilise broadcasters licensed by PPL continued I can’t imagine a day without music to uplift my mood and bring pleasure, in the coming years. to grow, facilitated by the introduction of which wouldn’t be possible without A similar stable position can be ‘self-service’ online licensing functionality the vital work conducted by PPL. projected for PPL’s revenues from the on the PPL website. Revenue growth from It is essential that those responsible for bringing music into our lives are BBC, with licensing arrangements such licensees however, was offset by a appropriately rewarded, and covering BBC television, radio and decline in revenue from the larger online without licensing, the breadth, iPlayer services in place through to the radio services licensed by PPL, where the range and quality of recorded music would be infinitely poorer. renewal of the BBC Charter in 2O17. market has moved to more interactive online In addition to its licensing of services licensed directly by rightsholders. Paul Robinson Chief Executive broadcasts, PPL facilitates the inclusion of recorded music in UK television programmes sold to the international market. The success of such sales in recent years has been a further source of growth in PPL revenues.

34 PPL Annual Review 2O13 Public Performance Our aim has been to continue this Asha’s is renowned for creating a 2O13 was a year that saw long term, strategic approach to build great atmosphere in the Birmingham further consolidation and awareness of the value to businesses of restaurant both at lunchtime and in downturn in several of our recorded music. In addition we carried the evenings, when recorded music sets just the right mood for customers licensees’ sectors. new research to support our MusicWorks and staff. At Asha’s we firmly believe However, despite difficult trading initiative (www.musicworksforyou.com). that playing music is a vital ingredient conditions for many businesses (including We gained significant media coverage in our business success. our own members, the overwhelming through both regional and sector driven Dominic Norunha majority of whom are small businesses research, focusing on Scotland, the General Manager or sole traders), the growth achieved West Midlands and retail businesses. was a credit to the Public Performance We will be focusing similar efforts and Operations (PPO) team. research on various other areas across This strong performance was the UK in 2O14 and beyond. achieved for a number of reasons which We increased the level of joint work include adopting a variety of new work with PRS for Music and the MusicWorks Music is great at helping to create practices, such as multi skilling staff. project is one of several we carried out and set the right tone and ambience, as well as adding to the overall We also extended our opening hours, together. Other projects included shared customer experience at enhanced our training processes and, marketing and PR work as well as The Butterfly and The Pig. through the course of the year, made collaboration at licensee events where Paul Banham it even easier for customers to obtain our joint presence enables customers General Manager a licence, particularly through the to learn about both companies. Most development of online licensing importantly we launched two new joint introduced in the spring. In addition licensing solutions, for Amateur Sports we introduced a new Label Search Clubs and Small Workplaces (those facility on our website which allows with fewer than four employees), which our potential customers to see whose increase the number of PPL and PRS for repertoire is included in their licence. Music joint licensing solutions to seven. All of these initiatives made it easier for The Business Relationship Executive customers to engage with us and pay (BRE) team (who look to improve the us. These significant improvements to understanding and communication internal processes and systems continued between PPL and businesses and trade to lead to more effective and efficient associations around the country) continued customer service delivery as well as to play a key role and attended a helping to increase our market penetration. growing number of events including We continued our drive to raise local Chamber of Commerce meetings awareness of licensing requirements and trade events in order to build with geographic campaigns, focusing relationships with yet more businesses. on the wider business community, as the base for regional and national presence throughout the UK. We continued to work in Scotland and our new sponsorship of the Scottish Album of the Year (SAY) Awards helped us enormously in our efforts to extend important relationships across our Scottish customers – as well as members, MPs and MSPs.

PPL Annual Review 2O13 35 We increased the level of our In addition to licensing the public We find having music playing in business-to-business marketing and performance of recorded music, PPL our stores creates a relaxed and our pay-per-click (ppc) advertising also licenses the commercial copying of informal environment for both was particularly effective with an 11% those recordings. This is for companies customers and staff. We are the world’s leading student and youth increase on our return on investment. that supply music systems for businesses travel company and are here to We sought to ensure that the design wishing to enhance their environment help young people start their and navigability of the PPL website through the playing of recorded music. adventure. Having a range of music playing in our 5O UK stores creates was simple and user-friendly with an We have continued to work with our a great atmosphere to allow time enhanced emphasis on public performance licensees to create new and innovative to chat to our travel experts and licensing. This resulted in a 1O% licenses to enable a positive response ensure our customers have all the tools necessary to create increase in web traffic year-on-year – to customer demand. their ideal itinerary. with 7O% of all visitors being new. In For example, in 2O13 we updated Laurence Bresh addition we developed our social and our digital jukebox licence to cover the Marketing Director online presence significantly and saw scenario where people use their mobile our number of Twitter followers grow phones to order and pay for tracks to 34% since the autumn to the end of the be played on digital jukeboxes, without year. This increased level of one-to-one having to leave their seat. We understand engagement with our customers is critical that this has proved very popular with for us to develop relationships and the customers of our digital jukebox Music is very important to creating understand better their respective operator licensees; it has also increased the right atmosphere for our businesses. The newsletters proved PPL’s revenue from this sector. customers here at Waxy O’Connors. increasingly popular – in particular the We are committed to developing Our guests expect to hear traditional Christmas quiz – and our animated Irish music and that’s what we give further new licensing solutions going them through the week. We mix it introductory film, launched in the spring, forward, to adapt to the constantly up with some modern music too was particularly effective and well-received changing market as well as responding and come the weekend, we also play live music. and is something we will continue to to customer demand, in order to ensure develop though 2O14. that we maximise our members’ revenue I would agree that music definitely contributes to keeping our customers All this activity helped to deliver in the years to come. staying in the venue for longer and a healthy percentage of customers even spending more at the bar. renewing their PPL licence for a further It also keeps the staff motivated, especially when we download a year and prompted a significant increase new playlist of music, which we in the number of new applications for do every couple of weeks. licences made via the PPL website. Therese Grethe On average we had 6OO voluntary Venue Manager applications for licences per month through the year (which was in addition to the continual process of PPL contacting businesses to raise awareness of music licensing requirements throughout the year). This is an extremely encouraging trend and we would like to extend our thanks not only to these businesses but also the many customers who pay on time for their PPL licences. This avoids unnecessary administration and cost and allows us to focus on providing a high standard of service.

36 PPL Annual Review 2O13 International Ongoing difficulties with the International income by country After 1O years of consistent distribution system in Germany in % growth 2O13 saw a decline in particular mean that significant past international revenue of 6% to revenues are currently held there and 1 £34.4million. The majority of the it will be several years before a clear sum collected was on behalf of pattern of revenue from Germany emerges, 1O 9 performers, which amounted to which for such a significant country 8 £3Omillion (87% of the total), has a big impact on the entire market 7 while the remaining £4.5million including PPL. While we achieved an 6 (13%) was collected for recording increase in collections for the majority of 5 2 rightsholders and represented CMOs in 2O13, collecting £5.6million 4 3 15% year-on-year growth. less from Germany (GVL) year-on-year The decline on the performer and £1.4million less from Belgium collections was down to what is still a (Playright) had a significant impact International income by country relatively new market which makes it on the overall performance. £m difficult to maintain an even growth International collections will be 1 1O.1 pattern, particularly as we have settlements a growing revenue stream moving 2 4 from collective management organisations forward. It is interesting to note that, (CMOs) for past years being made following all of the good progress 3 3 from time to time as PPL expands its that we have already made, PPL’s 4 2.8 international collection activities. international collections for performers 5 1. 8 The table of the top 1O countries now account for over half the global 6 1. 6 by total collections for record companies market for performer international 7 1. 6 and performers shows that on the whole payments from performance rights 8 1. 4 good progress was made with most income, which is no small achievement 9 1.2 of the top 1O countries, leading to since PPL fully started collecting overseas 1O 6.8 increased payments, with particularly for performers in 2OO6 following the good progress having been made merger of the performer CMOs PAMRA with SoundExchange in the US, who and AURA with PPL. Key have been doing such a good job of This wider market often suffers 1 USA 29.4% 6 Denmark 4.8% significantly increasing their collections from poor data quality, which is then 2 France 11.6% 7 Japan 4.6% in recent years. compounded by the sheer volume of 3 Netherlands 8.9% 8 Sweden 4.1% 4 Germany 8.2% 9 Norway 3.5% that data and a lack of the necessary 5 Spain 5.3% 1O Others 19.7% IT systems within all CMOs to support those volumes. These are issues that PPL is currently seeking to address collaboratively with a whole range of CMOs and we are delighted at the level of interest among CMOs to work on these issues, which we all have inherited as a result of the collection and management of data over the last 5O years of the music industry not always being as important as it is today.

PPL Annual Review 2O13 37 PPL’s international services are I believe no one can argue that 84% of PPL’s new members now PPL’s role in the future developments dedicated to the active collection of sign up to the company’s international of the music market is of absolute international revenues via agreements collection service and there are now importance. Moreover, we at with other CMOs around the world. approximately 47,OOO members who ABRAMUS hope that our partnership can persist and This means that PPL members using our have appointed PPL to collect for them grow so that Brazilian and British international service can receive monies internationally. During 2O13 over artists and record companies can when their repertoire is used in the countries 23,OOO members received an make the most out of their music. with which PPL has reciprocal agreements. allocation of international revenues – Robert Correa de Mello These include the USA as well as most President an increase of 5% over the previous European countries through to the Asian year. In addition, there are approximately and South American continents with 8,OOO members who have now deals in Japan and Brazil – the latter benefited since PPL was granted Qualified being one of the fastest growing Intermediary’ (QI) status by the IRS countries in regard to performance (Internal Revenue Service) in the US, rights. PPL only charges the actual costs meaning that royalties collected by There have been many successes of collection, which differ depending PPL from the US need not be subject since PPL’s inception, but certainly on the amount of work required, and to US withholding tax of 3O%. one of the company’s greatest achievements has been the which for most countries range between Moving ahead, at a time when incorporation of performers’ rights 2% and 1O%. we processed more claims than ever alongside and under the umbrella In 2O13 PPL concluded new deals before, it is critical that we continue to of those of the record companies. in Serbia (with PI, the organisation further the strong relationships we have Performers, both in the UK and around the world, previously responsible for the collective administration around the world and work with other faced many hurdles in order to of performers’ rights) as well as in Poland CMOs in an entirely consensual manner get accountable and transparent (with STOART, the Polish CMO looking and around the constraints and issues management of their performance after the rights of performers, and ZPAV, that many of them face. rights, as AIE knows well since its formation back in 1996. However, which represents the rights of sound the arrival of performers directly recording and music video producers). into the PPL fold in 2OO6 marked PPL will work with both to ensure that the a turning point for everyone both nationally and internationally. members represented by each organisation Luis Cobos receive royalties for any recorded music President of AIE and FILAIE broadcast or publicly performed in the Composer and conductor UK and respectively Serbia and Poland. This now means that, by the end of 2O13, PPL had 68 reciprocal deals in 34 different countries. In addition, PPL received recording rightsholder payments in 2O13 for the first time from the Czech Republic (INTERGRAM) and Jamaica (JAMMS).

38 PPL Annual Review 2O13 Member Services We attended and supported more PPL have a really hard job. Membership of PPL continues events on a national and international Scaling up the operation to process to grow as we register over basis than ever before – and enhanced more data by a factor of millions 25O recording rightsholder this with more pre-planned media over the last 1O years. Straddling and representing and uniting the and over 3OO performer coverage to assist with the awareness different interests of major labels, members on average each and image of PPL. These included events independent labels and performers. month. Total membership now in, amongst others Belfast, Birmingham, Migrating from a UK to an international operation. The result stands at 79,OOO performers Brighton, Bury, Cardiff, Edinburgh, is that Peter and his team are the and 11,5OO owners of the Glasgow (our sponsorship of the Scottish most successful collection society in copyright in sound recordings. Album of the Year (SAY) Awards was the world. They shoot, they score. The latter are those who own or very successful), Liverpool, London, Martin Goldschmidt exclusively control sound recording Newcastle and Norwich. These are Chairman copyrights in the UK – traditionally important opportunities to explain more record companies, but now increasingly about PPL’s services and often benefitted performers themselves. In addition from our working with other music industry we register around 18,OOO sound associations around the country. We recordings per week. also held a series of workshops and We are committed to delivering clinics around the country for members, As a Co-Chair of the FAC, I know a first class member customer service to help answer any queries. from speaking to many of our experience and worked hard to continue members how incredibly important In addition we developed newly PPL’s diligent work is for performers. to increase engagement with members designed distribution statements with The revenues they collect and and enhance aspects of their involvement increased information for members, as distribute are absolutely critical with the company and their personal well as making significant improvements in the complex world of the 21st century music business. data. We extended our opening hours, to repertoire search functionality on the The FAC was only formed in 2OO9, increased both the number of open days myPPL portal. All of this is important as so we are youngsters compared to as well as the number of newsletters we look to offer an increasingly bespoke PPL, but they have not only warmly (which are now monthly), greatly service to members. Finally, we launched welcomed us into their organisation, extended the information available on but have provided invaluable help a significant marketing campaign to and support. This is a great the website (resulting in fewer phone raise awareness of PPL’s international opportunity for me to personally calls) and introduced an enhanced mandates, which allow members to thank Fran and Peter in particular. training programme for staff to assist collect performance revenues from Nick Mason them with service delivery. We also around the world. The campaign was Co-Chair FAC started a member experience survey strap-lined: ‘Because It’s Yours’. Drummer in Pink Floyd in order to understand the service The investment in our systems requirements of members better so that continues to allow us to improve our we can deliver the level and type of internal efficiencies and effectiveness. service required. The positive changes This investment is critical if we are to in the social media strategy (outlined build on the level of service at a time in the Public Performance section of the when, as can be seen in the numbers review) also helped enhance the level elsewhere in this report, we are handling of direct communication with members. an ever growing business. Indeed, we now interact with members via email and telephone on over 4,OOO occasions per month.

PPL Annual Review 2O13 39 We also worked hard on improving Technology In terms of extending PPL’s repertoire the quality of data we hold and made PPL has been investing considerable database, we delivered a new capability over 6OO,OOO updates to performer effort in a range of international through the year that makes it much line-up information on recordings following initiatives designed to increase easier for us to load large catalogues research by PPL staff, as well as accepting the efficiency and effectiveness of international repertoire data into in excess of 436,OOO online claims of the CMO sector. it. This allows us to protect better any from performers asking to be linked to Drawing on the expertise and repertoire not released in the UK and recordings. All of this enabled us to pay experience we have gained from our therefore not delivered through the over 29,7OO performer members, own systems transformation, we are regular data feeds from our record company 3,OOO recording rightsholder members, looked to by a range of industry members. This in turn ensures even greater over 3,OOO of whom were paid for stakeholders to play a lead role in accuracy in our distribution to overseas the first time, in the main annual distribution delivering solutions that are increasingly performers and record companies. in June, which was the largest number ever critical to the continued success of the The bulk repertoire ingest tool that – as was the first time pay through rate sector. Notable initiatives that we have we developed provides us with a range of over 9O%. delivered during the year or continue of tools to inspect the quality of data that PPL was delighted that its member to be involved with include DDEX. we receive from other CMOs before services team made it to the finals in DDEX is a consortium of leading loading it into our database. This allows 2O13 of both the UK Customer Experience media and technology companies us to ensure we grow the database in Awards and the European Call Centre focused on the creation of digital supply a controlled and managed fashion and Customer Service Awards in the chain standards. The primary output of ensuring we maintain the high levels New Product/Product Improvement and DDEX is a standardised suite of message of accuracy in our distributions. Having Best Online Customer Service categories formats that can be used for data exchange developed the software tool, we have respectively. These nominations provide between business partners. DDEX has successfully loaded large repertoire files us with an opportunity to test our levels been adopted widely across the digital from several overseas CMOs. of service against a multitude of different music supply chain. PPL is leading an Moving forward, a number of companies and give us impartial, international working group to determine initiatives are currently underway looking external recognition of the level of how these data formats can be further at how repertoire and playlist data can service provided by PPL. developed to support the flow of music be shared more effectively across the It is clear that we have many data between CMOs and with record world’s CMOs. Representing the challenges but they are ones that we companies. Widespread adoption performer community, SCAPR has look forward to: the increase in data, across the CMO community will make it initiated a project by the name of the rise in membership, the growing easier to get consistent data and will take VRDB2. This project is looking to volume of sound recordings, greater cost out of the market as we move to a establish a consolidated repertoire transparency and enhanced quality reduced number of more widely database, a central usage matching of service. In addition the session fund understood data formats. capability and a playlist sharing facility. coming out of copyright term extension PPL is playing a lead role in this project, takes us into a new area of business. engaging significantly in the requirements However it is all this work that we definition process and in the technology do surrounding our members’ sound vendor selection process. recordings that allows us to ensure even greater accuracy in the data as well as the ability to extract its maximum value.

4O PPL Annual Review 2O13 On behalf of the record company In regard to multi-territory rights, PPL’s complex technology landscape community, IFPI has initiated a similar we initiated a critical project during is supported by a professional IT project to look at how a shared repertoire 2O13 to improve the way in which team who provide and maintain database can be established that provides we receive data from our rightsholder a first class service. We really enjoy working with the PPL team who are a central place for record companies to members about the ownership of their consistently approachable, eager to deliver repertoire data and for CMOs to recordings in territories outside the UK. learn and focussed on embracing access. PPL is also heavily engaged in We have been leading a range of new technology for the benefit of all members. We wish all at PPL the very this project. As a joint record company workshops with various record companies best for the next 8O successful years! and performer society, PPL is leading to understand how they hold such Andy Schoka efforts to explore how the potential multi-territory rights information and Managing Director overlap in these projects can be delivered how they can provide this to PPL in

The Trusted Leader in through a single, unified solution. a consistent and efficient manner. Enterprise Cloud Transformation This leads to the issue of back office This project will continue through 2O14 service provision. For the past few years, and beyond as we develop additional PPL has provided a range of ad-hoc technology solutions to support this services to other CMOs, particularly process and will include solutions in relation to matching playlists against Although we have worked with PPL that are suitable for both small and for less than one year it has been a our repertoire database. Using the PPL large organisations. great pleasure and I can only wish systems and database in this way to for more customers like PPL. Their the benefit of other CMOs has obvious IT team has achieved a rare feat of building an in-house Oracle team benefit in terms of increasing the accuracy with significant expertise that has of distributions and allows the other enabled PPL to build a highly effective CMOs to avoid building local systems and efficient licensing and collection system. However, they are also open which are typically costly and high risk and genuine in their approach to projects. Recognising the benefit that this partnering with us as a supplier, has for the wider industry, PPL has been and that makes it a highly productive and enjoyable relationship. I wish formalising its service offering. Over PPL all the best for further successes recent months, we have been engaging in the next 8O years. with a range of other CMOs and we Jonathan Stuart are already progressing into detailed Managed Services Director service design with some of them.

PPL Annual Review 2O13 41 This is a critical part of our Company Strategy. Our We seek to focus on retention, engagement and People management development, and to drive positive performance and behaviour across the company.

Total employees Employee Engagement Equality and Diversity Charter Employee engagement has As part of PPL’s continued been proven to impact positively engagement with the music on organisation results, across industry Equality and Diversity all sectors. Charter, we hired our first 283 In particular, a high level of employee apprentice who is now working Employees with over engagement has been shown to lead in the Music Reporting Team. ten years’ service to improved productivity, quality and Now that we have laid these customer satisfaction (and for commercial foundations and been through the organisations, increased profit), whilst process once, we are confident that reduced absence and lower staff turnover we will be able to include the option 12 % are amongst many of the other benefits. of having an apprentice as part of the Employees with over In July 2O13 we carried our bi-annual regular recruitment conversations that five years’ service employee survey as the company believes take place with managers throughout that it is very important that employees give the company. their views on what it is like to work at We took on nine students for one PPL. It is their chance to and help shape week in May. The children were 15–16 24% the future of PPL, to engage staff as fully years old and just about to sit their as possible and so make it an even better GCSEs. They were selected on their place to work. interests and were placed in PPO, Our internal engagement score is Member Services, Finance, Business the headline result for our survey and is Projects, Facilities, International and IT. presented as a single measure of employee We continue advertising or seeking engagement. In the 2O13 survey, it was help in sourcing candidates in different up again, by 3% compared to two years places to ensure a mixture of applicants ago. We were very pleased to see from different backgrounds, of different so many positive responses. We take ages with different skills. the feedback very seriously and devote appropriate time and attention to considering it and developing plans accordingly.

42 PPL Annual Review 2O13 Reward and Recognition Corporate Social Responsibility This has always been an important PPL continued its support of part of PPL and we launched a number of projects including a new employee recognition music and the local community, programme called PPL Performers. the charity chosen annually by Recognition is most effective when it staff and those causes generally takes place on a regular basis and in a supported across the industry. variety of different ways. It is also important We place a high degree of that recognition activities be aligned with commitment to our CSR programme and the culture of the workplace. The new continued support was given to the various scheme provided an opportunity for our charities PPL has been involved with, some employees to share their insight into others for many years, along with new initiatives and celebrate their contribution to PPL. and projects. PPL provided three different opportunities There is a small but dedicated group for acknowledging co-workers and peers of staff from across the entire company who under three separate categories, Customer meet monthly to drive the CSR programme Learning and Development Service, Team Player and Drive for Results. all of whom give generously of their time 2O13 saw the continuation There were 63 individual nominations for despite busy schedules. of many of the learning and PPL Performers during 2O13. Finally the long-standing sponsorship development initiatives that Following feedback obtained through of various music industry events continued. were launched in 2O12, as the survey and in exit interviews it was PPL sponsored the ninth Parliamentary Jazz well as additional tools and decided that, for a variety of reasons it Awards in May which was compered for resources that we have added would be valuable to carry out a job the first time by Moira Stuart OBE and to our Learning and Development evaluation. Job Evaluation is a technique of attended by, amongst others, Norma repertoire, including individual job analysis, assessment and comparison, Winstone, Gwilym Simcock and Stan employee coaching sessions and and it is concerned with the demands Tracey OBE (who sadly died in December) internal courses run by employees. of the job, experience and degrees of and, in conjunction with APPJAG (The All We rebranded our Learning and responsibility. To ensure robustness and Party Parliamentary Jazz Appreciation Development areas and distributed objectivity, the review was underpinned Group), also hosted their summer event in an entirely new training booklet. We through the use of an externally recognised July where we once more partnered with separated learning and development and tested job evaluation methodology, Yamaha in their scholarship programme. activity into two sections – anything that Mercer International Position Evaluation (IPE). We also sponsored, amongst several is job specific and is required in order This large scale project looked at events, the Classical Artist Award at the for employees to better themselves in every role at PPL, evaluating role value Silver Clef lunch, the MIT Award and the their current role, will fall under the and taking into account a number of Football Extravaganza all in aid of Nordoff heading ‘Here and Now’ and anything factors including the skills, knowledge Robbins and/or other industry charities related to future progression and additional and experience each role-holder requires including the BRIT Trust. development, will be addressed by in order to thrive. We then worked closely In addition we continued our activities that sit under the ‘Tomorrow with Mercer to review salaries across PPL sponsorship of a wide number of music and Onwards’ category. The Training against comparable market rates. In all industry not-for-profit organisations via their Booklet highlights the opportunities the process has been very successful. awards including the MPG Awards, the available at PPL in both areas. Colin Edwardson (PPO) was ‘Most Played UK Artist on Commercial recognised for 2O years’ service; Radio’ and ‘Breakthrough’ categories at the Mark Steel (Tariff Development) and Arqiva Commercial Radio Awards, the PPL Cheryl Harper (PPO), for 15 years’ service; Hall of Fame dinner at the Radio Academy Steve Macchia (Business Projects), Adam Conference and the PPL Award for ‘Most Smith (Member Services), Joleen Evans Played New Independent Act’ at the AIM (Finance) and David Harmsworth (Legal Independent Music Awards, which went and Business Affairs) for 1O years’ service. to Macklemore and Ryan Lewis.

PPL Annual Review 2O13 43 Our Charity of the Year The support and generosity of all Each year employees choose the staff at PPL has been amazing in a charity that they would like 2O13. TCT leads the world in the care to support as the PPL of young people with cancer. In the UK ‘Charity of the Year’. around seven young people between In recent years this has included 13 and 24 are diagnosed with cancer Whizz-Kidz, MacMillan Cancer Support on a daily basis and TCT is the only charity and Great Ormond Street Hospital (GOSH). dedicated to to bringing the expert At the end of 2O12 the staff elected treatment and support needed from the to support Teenage Cancer Trust (TCT) moment they hear the word ‘cancer’ – a well-known charity within the music and provide a comfortable environment industry. Throughout the year there where they have the opportunity to meet were several fundraising initiatives and young people their age who they can programmes to participate in and/or relate to. PPL staff are proud to provide donate to including auctions, raffles, support and indeed continue their efforts cake-baking, cycling, running, golf, for TCT through 2O14. swimming, film nights and more. Yet teenagecancertrust.org again it was the cycling and the sterling efforts of Mark Douglas that raised the largest individual amount of money and the first floor that was the most successful in their fund raising efforts!

We have been blown away by the incredible support we have received from everyone at PPL since being selected as your charity of choice. As the only UK charity dedicated to providing expert care and support for this specific age group we rely on donations to fund our vital work. The money you have raised, and continue to do so, is helping to transform the lives of young people with cancer and we cannot thank everyone enough for all they do in the name of Teenage Cancer Trust. Jane Ashton Music Events Manager

PPL staff Barry Reynolds, Gemma Lee, Mark Douglas, Demelza Gosbell and Kevin Puttock all completed the half marathon, Run To The Beat on 8th September 2O13

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

PPL Annual Review 2O13 45 Executive Management Team

Fran Nevrkla OBE Peter Leathem Chairman Chief Executive Officer

Tony Clark Mark Douglas Kate Reilly Director of Licensing Chief Technology Officer Head of HR

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

46 PPL Annual Review 2O13 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. Crispin Hunt David Stopps Performer Director Music Managers’ Forum Distribution Committee The Distribution Committee’s primary Mark Kelly Geoff Taylor function is to review and approve Performer Director BPI proposed distributions of revenue Peter Leathem Alison Wenham OBE to PPL members (and the rules and PPL AIM processes underpinning them). Martin Mills MBE External Adviser Audit Committee Beggars Group John Deacon CBE The Audit Committee is a forum for Gerald Newson Political Adviser PPL’s auditors to talk directly to PPL’s Performer Director management and external stakeholders about their audit work with PPL. Christine Payne Performer Director Remuneration Committee (Equity) The Remuneration Committee’s role James Radice is to review executive remuneration. Warner Music UK Limited This is the one committee which consists entirely of PPL Board directors. 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 2O13 47 Credits Design Our thanks to all contributors Typematic to this year’s Annual Review. typematic.co.uk Special thanks to Dave Laing for Print his patience and valuable input. PurePrint For more information on the use pureprint.com of music in business please visit The paper used in this review musicworksforyou.com is environmentally friendly Edixion. Photography No part of this review may Cover be reproduced in any form Getty Images without permission from PPL (or, as appropriate, its licensors). Pages 6 – 8 and 1O Alan Cook © 2O14 PPL (or its licensors) afcook.co.uk This review is available online at ppluk.com Page 46 Timothy Charles Smith Photography [email protected]

The PPL People’s Classical Chart National Youth Choir of Great Britain and London Philharmonic Orchestra with Karl Jenkins by Benjamin Ealovega/ London Philharmonic Orchestra (LPO) English Concert with Trevor Pinnock by Clive Barda Orchestre de L’Opéra de Lyon with Kent Nagano by J.P. Maurin Antonio Meneses (Cello) with Northern Sinfonia by Mark Savage (Northern Sinfonia)

The PPL People’s Pop Chart Bruno Mars by Kai Z. Feng Passenger by Jarrad Seng

The PPL People’s Artist Chart The Beatles courtesy of Apple Corps Ltd

48 PPL Annual Review 2O13 AGMRO4 JUN14 Classical The PPL People’s No.1

Charts 2O13

Pop No.1

Artist No.1

AGMRO4 JUN14 PPL Annual Review 2O13 49 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.

2O13 was yet again another The PPL People’s Pop Chart outstanding year for British Artists The women’s domination after when they continued to dominate six years comes to an end with the Official Charts domestically Daft Punk’s gloriously uplifting and achieve much success all ‘Get Lucky’ coming in at number around the world. The UK remains one ahead of Robin Thicke’s one of only three net exporting admittedly ubiquitous ‘Blurred countries of music with a value Lines’ and ‘Mirrors’ from Justin of £1.4billion when the core Timberlake. ‘Get Lucky’ is one music industry’s worth to the UK of those recordings that will be economy is £3.5billion. It is fitting played in public and broadcast that PPL tracks the data of music for years to come. Music to usage as performance rights PPL ears! become an increasingly important part of this economic success. The PPL People’s Artist Chart This was a very close run thing The PPL People’s Classical Chart but in the end Olly Murs just Having been knocked off the edged it in front of very tough number one spot last year competition from Bruno Mars, Einaudi reclaims it in 2O13 with P!nk, Rihanna and Calvin Harris. ‘Nightbook’ which was number He made it through having two four in 2O12 and number two in songs in our the PPL People’s Pop 2O11. He is a true people’s choice Chart (‘Troublemaker’ featuring with no less than 19 recordings Flo Rida and ‘Dear Darlin’) and in our classical charts in the last only just missing out with a third. five years.

5O PPL Annual Review 2O13 The PPL People’s Classical Chart

Einaudi Dvoˇrák 1 Nightbook 11 Symphony No.9 (From The New World) Ludovico Einaudi Royal Concertgebouw Orchestra with Mariss Jansons Decca (Universal Music) Royal Concertgebouw Orchestra (Royal Concertgebouw Orchestra)

Tchaikovsky Delibes 2 The Nutcracker 12 Coppélia Mariinsky Orchestra with Valery Gergiev Orchestre de L'Opéra de Lyon with Kent Nagano Philips (Universal Music) Erato (Warner Music)

Einaudi Jenkins 3 Primavera 13 Palladio Ludovico Einaudi London Philharmonic Orchestra with Karl Jenkins Decca (Universal Music) Sony Classical (Sony Music Entertainment)

Orff Britten 4 O Fortuna 14 Death in Venice Crouch End Festival Chorus, Sir Peter Pears and Soloists, City of Prague Philharmonic Orchestra with Nic Raine English Chamber Orchestra with Steuart Bedford Silva Screen (Silva Screen) Decca (Universal Music)

Johann Strauss II Einaudi 5 On the Beautiful Blue Danube 15 I Giorni City of Prague Philharmonic Orchestra Ludovico Einaudi with Paul Bateman Decca (Universal Music) Silva Screen (Silva Screen)

Einaudi Schumann 6 Divenire 16 Piano Concerto Royal Philharmonic Orchestra with Ludovico Einaudi Howard Shelley (piano) with Opera North Orchestra Decca (Universal Music) Chandos (Chandos)

Jenkins Haydn 7 The Armed Man 17 Cello Concerto No.1 National Youth Choir of Great Britain, Antonio Meneses (cello) with Northern Sinfonia London Philharmonic Orchestra with Karl Jenkins Avie (Music Company (London) Limited) Virgin (Universal Music)

J.S. Bach Einaudi 8 Concerto for Four Harpsichords 18 Eros English Concert with Trevor Pinnock Ludovico Einaudi Archiv Produktion (Universal Music) Decca (Universal Music)

Mendelssohn Puccini 9 Concerto for Two Pianos 19 Nessun Dorma The Labèques (pianos), Luciano Pavarotti, John Alldis Choir, Philharmonia Orchestra with Semyon Bychkov London Philharmonic Orchestra with Zubin Mehta Philips (Universal Music) Decca (Universal Music)

Einaudi Rutter 1O Le Onde (Album Version) 2O For the Beauty of the Earth Ludovico Einaudi The Cambridge Singers, Decca (Universal Music) City of London Sinfonia with John Rutter Collegium (Collegium) The PPL People’s Pop Chart

Get Lucky Beneath Your Beautiful 1 Daft Punk Feat. Pharrell Williams 11 Labrinth Feat. Emeli Sandé Columbia (Sony Music Entertainment) Syco (Sony Music Entertainment)

Blurred Lines Love Me Again 2 Robin Thicke/T.I./Pharrell 12 John Newman Interscope (Universal Music) Island (Universal Music)

Mirrors Stay 3 Justin Timberlake 13 Rihanna Feat. Mikky Ekko RCA (Sony Music Entertainment) Def Jam (Universal Music)

Locked Out Of Heaven Dear Darlin’ 4 Bruno Mars 14 Olly Murs Atlantic (Warner Music) Epic (Sony Music Entertainment)

Just Give Me A Reason Roar 5 P!nk Feat. Nate Ruess 15 Katy Perry RCA (Sony Music Entertainment) Virgin (Universal Music)

Let Her Go I Knew You Were Trouble 6 Passenger 16 Taylor Swift Nettwerk (Nettwerk) Mercury (Universal Music)

Wake Me Up Don’t You Worry Child 7 Avicii 17 Swedish House Mafia Feat. John Martin Virgin (Universal Music) Virgin (Universal Music)

La La La Candy 8 Naughty Boy Feat. Sam Smith 18 Robbie Williams Virgin (Universal Music) Island (Universal Music)

Troublemaker Burn 9 Olly Murs Feat. Flo Rida 19 Ellie Goulding Epic (Sony Music Entertainment) Polydor (Universal Music)

When I Was Your Man It’s A Beautiful Day 1O Bruno Mars 2O Michael Bublé Atlantic (Warner Music) Reprise (Warner Music) The PPL People’s Artist Chart

1 Olly Murs 11 Michael Bublé

2 Bruno Mars 12 Adele

3 P!nk 13 Avicii

4 Rihanna 14 Daft Punk

5 Calvin Harris 15 Coldplay

6 Robbie Williams 16 Michael Jackson

7 Justin Timberlake 17 David Guetta

8 Katy Perry 18 Madonna

9 Taylor Swift 19 Take That

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