PPL, the UK’s collective management organization (CMO) for performers and recording rightsholders, has reported the highest annual revenue in its 90-year history.
The CMO said in a release Thursday (April 11) that total revenues for 2023 came in at GBP £283.5 million (USD $352.2 million, at the average exchange rate for 2023), amounting to a 4% increase over 2022.
Thanks to lower cost margins, net revenue after operating expenses and other deductions grew by 5% YoY. Costs as a percentage of revenue fell to 13% in 2023, versus 13.3% the previous year.
Income from recorded music played in public places – collected by PPL PRS Ltd., a joint venture between PPL and copyright collective PRS for Music – came in at £111 million in 2023, up 11% YoY.
“These revenues have now surpassed the pre-pandemic high and continue to demonstrate the value to businesses of investing in music as a driver of customer and employee engagement,” PPL said.
PPL reported earlier this year that it had paid out a record-breaking £276.9 million in distributions to 165,000 performers and recording rightsholders in 2023, a sum that includes a £7.7 million payment from VPL, PPL’s affiliated company responsible for licensing music videos in public venues or TV broadcasts. That was a £1.6 million increase from the previous year.
(PPL’s revenue and payout numbers for 2023 don’t necessarily match, as some of the money paid out in the 2023 distributions was for 2022.)
PPL licenses recorded music in the UK when it is played in public or broadcast, paying out performers, recorded music rightsholders and partner CMOs internationally.
The organization has signed numerous agreements with CMOs internationally for the collection of royalties abroad for UK rightsholders, and in 2023, PPL’s international revenue came in at £75.4 million, down 3.1% from the previous year’s £77.8 million.
“These revenues have now surpassed the pre-pandemic high and continue to demonstrate the value to businesses of investing in music as a driver of customer and employee engagement.”
PPL
PPL attributed the decline to “the impact of declining revenues from monies for past periods already successfully collected… combined with the residual effect of several years of disrupted collections due to the repercussions of Covid-19 on many businesses.”
That was partially offset by growth in collections from most CMOs internationally, PPL said, including first-time collections from CMOs in Guatemala and Indonesia.
The CMO hinted that it expects to see international revenue growth ahead, thanks to new deals signed with CMOs abroad, including the Indian Singers’ and Musicians’ Rights Association (ISAMRA) and RAYS in Azerbaijan.
“The number of performers choosing PPL for their international collections continued to rise amid a competitive marketplace, including artists such as Lewis Capaldi, Central Cee and Libianca,” PPL noted in its earnings release.
“While much has changed in the 90 years since PPL was formed, the power of music to drive commercial value for businesses in the UK and beyond remains ever constant. Research repeatedly shows that music increases both consumer dwell time and propensity to buy, and also drives greater productivity and attention to detail in the workplace. More and more businesses are investing in the power of music and its benefits,” PPL CEO Peter Leathem OBE said in a statement.
“In these somewhat precarious times for performers, we are proud to deliver a consistent stream of income for them and recording rights holders – over £1 billion distributed in the past five years alone. As the world leader in international collections, we will continue to advocate for neighboring rights in new markets to maximize revenue opportunities for all our members.”
“While much has changed in the 90 years since PPL was formed, the power of music to drive commercial value for businesses in the UK and beyond remains ever constant.”
Peter Leathem OBE, PPL
PPL last month reported its payouts to performers and rightsholders for Q1 2024, saying it had paid £18.8 million ($23.7 million) in the quarter, a 7% YoY increase.
Also last month, PPL unveiled a new and updated version of the Get Paid Guide for musical artists, in conjunction with the UK Intellectual Property Office and PRS for Music.
PPL also launched a new initiative called PPL Giving, which dedicates £1 million ($1.3 million) annually to support and invest in the future of music in the UK. The first wave of recipients includes 26 organizations, among them the BRIT School, a renowned performing arts institution, and Youth Music, which advocates for music education opportunities for young people.Music Business Worldwide
