PERFORMING RIGHT SOCIETY LIMITED DISTRIBUTION RULES Full document PRS Distribution Policy Guide Contents DISTRIBUTION POLICY INTRODUCTION .................................................. 3 DISTRIBUTION CYCLES AND CONCEPTS ................................................... 6 BROADCAST REVENUE ............................................................................ 17 BBC radio ................................................................................................. 23 Commercial radio ...................................................................................... 25 UCB Radio ................................................................................................ 27 BBC TV .................................................................................................... 28 ITV .......................................................................................................... 30 BSkyB...................................................................................................... 31 Channel 4 ................................................................................................ 33 Channel 5 ................................................................................................ 34 Discovery ................................................................................................. 35 Turner ..................................................................................................... 37 MTV ......................................................................................................... 38 PBS America ............................................................................................. 39 B4U ......................................................................................................... 40 BT Sport .................................................................................................. 41 Fox Television ........................................................................................... 42 The Box Plus Network ................................................................................ 43 UKTV ....................................................................................................... 44 CBS/AMC Network ..................................................................................... 45 NBC Universal ........................................................................................... 46 Walt Disney Co ......................................................................................... 47 Scripps Networks International ................................................................... 48 Other TV stations/channels ......................................................................... 49 Educational Recording Agency .................................................................... 50 PUBLIC PERFORMANCE REVENUE ........................................................... 51 Public reception ........................................................................................ 52 Pop concerts ............................................................................................. 54 Classical concerts ...................................................................................... 57 DJ events ................................................................................................. 59 General live .............................................................................................. 61 Gigs and clubs scheme............................................................................... 63 Cinema .................................................................................................... 64 General recorded – pubs ............................................................................ 67 General recorded – shops ........................................................................... 69 1 General recorded – restaurants ................................................................... 70 General recorded – jukebox ........................................................................ 71 General recorded – karaoke ........................................................................ 72 General recorded – South Asian restaurants ................................................. 73 General recorded – East Asian restaurants ................................................... 74 General recorded – other ........................................................................... 75 General recorded – aerobics ....................................................................... 76 General recorded – shops at Christmas ........................................................ 78 General recorded – Welsh language analogy ................................................. 79 Background music system suppliers ............................................................ 81 Sports stadiums ........................................................................................ 83 UK Airlines ............................................................................................... 84 UK Churches ............................................................................................. 86 UK Schools ............................................................................................... 87 TFL Busking .............................................................................................. 88 ONLINE REVENUE ................................................................................... 89 Apple Music and Apple iTunes ..................................................................... 91 YouTube................................................................................................... 92 Spotify ..................................................................................................... 94 GEOL within broadcast blanket .................................................................... 95 Blanket GEOL standalone licences ............................................................... 97 BBC iPlayer .............................................................................................. 98 Multi-territory online licences ...................................................................... 99 Cloud locker services ............................................................................... 100 Limited Online Music Licence .................................................................... 101 Online karaoke services ........................................................................... 103 Business to business music suppliers (MSB2B) ............................................ 105 Performing right online ............................................................................ 106 INTERNATIONAL REVENUE ................................................................... 107 Revenue received from affiliate societies .................................................... 108 Retransmission revenue ........................................................................... 112 Revenue collected in PRS managed territories ............................................. 114 APPENDIX ............................................................................................ 116 GLOSSARY ............................................................................................ 133 INTRODUCTION 2 DISTRIBUTION POLICY INTRODUCTION Scope of the PRS Distribution Policy We pay royalties to our members and rights holders in batches called distributions throughout the year. The PRS Distribution Policy relates to royalties paid for the performance of music - known as the ‘performing right’ in law. This policy document explains how we work out the royalties and schedule when they’ll be paid. It’s not just about the technologies and methods we use, but also the principles we use for guidance. Fairness, accuracy, cost effectiveness and transparency are all very important for our members. However, sometimes these principles are at odds. This policy document sets out how we strike a balance. Before we get any further into the PRS Distribution Policy there are few important things to set out: When we say ‘we’ in this document we’re referring to PRS for Music and the Performing Right Society (PRS) specifically. PRS for Music is the home of both PRS and the Mechanical-Copyright Protection Society (MCPS). MCPS pay royalties to MCPS members and rights holders in a separate set of distributions throughout the year. These are for a number of rights, which are detailed separately in the MCPS Distribution Policy. MCPS typically look after mechanical rights, as referred to in law. Why is this distinction important? In some cases we collect the licence fee for both PRS and MCPS under a joint licence, sometimes as one lump sum. Where this is the case we’ll refer to PRS and MCPS specifically, so you can see how the proportion made available for the PRS Distribution is worked out. While this document covers aspects of policy, it does not cover every aspect of the distribution process. Further details can be found on our website. Alternatively, members may raise queries via our website or contact our member services teams by email at [email protected] or [email protected]. Affiliated collecting societies may contact [email protected]. All policies, rates and information are valid as of April 2021, unless otherwise mentioned. General distribution policy principles Our general