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MUSICIANS. KNOW YOUR INDUSTRY by Donnie Rust

Music Industry Corporate Brochure

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Music INdustry

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Page 1: Music Industry Corporate Brochure

MUSICIANS. KNOW YOUR INDUSTRYby Donnie Rust

Page 2: Music Industry Corporate Brochure

PRS FOR MUSICWith Barney Hooper

In a nutshell, PRS for Music (formerly the Performing Right Society) is a UK copyright collection society undertaking collective rights management for musical works. As it stands now, PRS for Music was formed in 1997 as the MCPS-PRS Alliance and brought together the two collection societies: the Mechanical-Copyright Protection Society (MCPS) and Performing Right Society (PRS). The PRS for Music brand was adopted in 2009.

“We manage about 10 million musical works on behalf of our songwriter, composer and publisher members,” Barney says, “PRS for Music licenses its members’ musical works whenever they are played, performed or reproduced both in the UK and globally through its partner network.”

One of the biggest challenges young musicians face is the gap between amateur and professional. Ignorance of the systems already in place to protect them mean that they often don’t find themselves in an environment where they can make that necessary step.

PRS for Music forms the keystone to the industry. If you don’t have them on your side then you cannot call yourself a professional.

“If you’re a songwriter, composer or a publisher who has written a song, even if you don’t perform it, PRS for Music are here to look after you,” Barney explains, “Music rights

are complicated and it’s compartmentalized with different organizations looking after different people. We protect the creators.”

Venues are legally obliged to pay for a music licence (PRS for Music ) and this includes clubs, pubs, BBC radio shows, television and online sites such as Youtube and Itunes. As long as you are a member of PRS for Music whenever your songs are played you are entitled to royalties.

“Music used in businesses needs to be licensed. PRS for Music makes it easy and has been around for a hundred years,” Barney says, “We’re owned by the members, there is a one off fee to join and we’re the same organization that every musician you see belongs too,”

Brilliant, seems easy enough, but music is used on many different levels and the question is how do they know when something you’ve written is being used?

“There are different levels depending on where the music is played,” Barney points out, “For example, BBC television and radio are exactly precise and everything is anally recorded in detail. So if a member’s music is played on the radio they’ll get paid for it. The majority of broadcasters are like this. and as the industry has grown thanks to online and digital avenues the ability to collaborate playlists has become easier. Pubs and clubs can be a little less accurate, but our members can keep us up to date and we will connect with the venues to confirm.”

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And, I hear you ask dear reader, what about the money?“The pay depends entirely on venues and how it is used,”

Barney explains, “This is the most honest way to reflect the level of work you’re putting into it. If you’re making money it’s because you’re being listened to in the right places and the music is being used in the best fashion,”

There you go.

IFPIAdrian Stain

The International Federation of the Phonographic Industry (IFPI) is the organisation that represents the interests of the recording industry worldwide. It is a not-for-profit members’ organisation registered in Switzerland and operates a Secretariat based in London, with regional offices in Brussels, Hong Kong and Miami. Donnie Rust caught up with Communications Director Adrian Stain

“We promote the value of recorded music, safeguard the rights of record producers and expand the commercial uses of recorded music,” Adrian says, “Our services to members include legal policy advice, anti-piracy enforcement, litigation and regulatory affairs, market research and communications support.”

When I was younger you listened to music on a cassette tape and for years this was all we knew and we loved it; when my father first bought a CD player it was the closest

thing I had experienced to magic and was in awe of it and were convinced this was where the future of music was. However, the internet and computer age has exploded.

“The digital revolution started ten years ago and it has been a decade of transformation,” Adrian points out, “Unlike other creative medias music has embraced the digital world and music is now 33% digital.

Our priority for the next 12 months is to help the industry adapt to a digital environment while developing a fair and legal environment.”

Are things really changing that radically? Is it time for us to start using our CDs as coasters or frisbees?

“The CD is by no means dead,” Adrian explains, “CDs still contribute 60% of the industry business. But we like to be ahead of the game and so we’re proactively licensing the online and digital mediums through websites such as Veevo.”

Would this licencing affect the websites and the correlating businesses that help promote music in this digital universe?

“Third party companies are cooperating and share our desire for the development of an environment of legitimacy,” Adrian reassures us, “All the major credit cards have gotten on board by choosing not to work with piracy companies and we’re pushing a campaign with Google to prioritize legitimate websites on their searches.”

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PPL UKJonathan Morrish

Established in 1934, PPL exists to ensure that those who invest their time, talent and money to make recorded music are fairly paid for their work when it is broadcast and/or used in public. Donnie Rust spoke with Jonathan Morrish.

PPL licenses recorded music played in public or broadcast and then distributes the licence fees it collects to its performer and rights holder members.

“Two hundred and seventy people work for us here at PPL,” Jonathan details, “Due to the nature of our roles and the people we represent there is a lot of training involved.”

And what kind of training goes into it? “Our training provided includes Customer Service

Training, Presentation Skills, Negotiation, Influencing, Key Performance Indicators, Management Training, Aspiring to Management Programme, Career Development Academy such as time management, self awareness, personal impact to name a few,” Jonathan reveals, “Then there is networking, Coaching, IT Training (Excel, VBA), Health and Safety, Study Support across IT, HR, Finance, more recently Entertainment Law, Seminars, Online Policy Courses - Bribery Act, Copyright Training and other more specific on-the-job training.”

That’s very extensive. What unique and vital services are offered to your members?

“The services we provide to our members, which are by definition unique, are many and varied,” Jonathan says, “We

collect a vital revenue stream when their music is used in public and/or broadcast on radio/TV and the internet. PPL’s mission is to manage the rights and maximise the earnings from the broadcast and public use of recorded music and videos, and distribute them in the most efficient manner possible.”

And what are the new developments and plans for the immediate-to-long term future?

“There are so many to include,” Jonathan says, taking a breath, “To continue to offer a first class service to our members and customers befitting of a performance rights music licensing company in the 21st century, delivering Codes of Conducts for PPL licensees and members, further joint working with PRS for Music, increasing efficiencies and developing further accuracy of PPL’s distributions to members and to continue the upgrade of systems and continue to pioneer the management of sound recording data through further innovation.”

History and ActivitiesPPL is the UK-based music licensing company which

licenses recorded music for broadcast, online and public performance use. Established in 1934, PPL carries out this role on behalf of thousands of record company and performer members. In 2011, PPL collected revenue of £153.5m.

PPL’s Broadcast and online licensing covers the use of recorded music on the BBC’s television, radio and iPlayer services and by hundreds of commercial broadcasters.

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These include ITV, Channel 4, Five and Sky, together with services such as Virgin Media and BT Vision. PPL also licenses commercial radio networks such as Capital, Heart and Absolute Radio, online services such as Last FM and community, hospital, student and prison radio stations.

Public Performance licences are issued by PPL to hundreds of thousands of businesses and organisations from all sectors across the UK who play recorded music to their staff or customers and who therefore require a licence by law. These can range from bars, nightclubs, shops and hotels to offices, factories, gyms, schools, universities and local authorities. PPL also licenses music service providers to copy recorded music for services such as in-store music systems, jukeboxes, fitness compilations and in-flight entertainment systems.

PPL also operates an International service, used by many of its members. Through agreements with over 50 music licensing companies globally, PPL is able to collect licensing revenue from the use of its members’ recorded music around the world. Under these agreements with other music licensing companies, PPL also acts on behalf of its members to license their recordings and pay for their performances in the UK. The international collections market is very competitive, with numerous commercial companies offering similar services, but despite this PPL’s International service continues to grow significantly.

After the deduction of PPL’s running costs, all revenue

collected is distributed to members based on the music used by licensees and the extensive information contained in the PPL Repertoire Database. PPL does not retain a profit for its services.

With over 8,500 members who are record companies or other recorded music rights holders and 51,500 performer members, PPL has a large and diverse membership. Members include major record labels and globally successful performers, as well as many independent labels, sole traders and session musicians ranging from orchestral players to percussionists and singers – all of whom are entitled to be fairly paid for the use of their recordings and performances.

In 2009, PPL and PRS for Music jointly launched ‘MusicWorks’, an independent study aimed at highlighting the financial and emotional benefits music in the workplace can bring to both staff and customers. In 2012 they commissioned further research and found that over three quarters (77%) of small to medium sized businesses said that playing music in the workplace increases staff morale, and creates a better atmosphere and working environment for staff and customers.

The research also found that 75% of small to medium businesses believe that background music can help to relieve tension and awkward silences in the workplace. Further findings and more information about the study can be found at www.musicworksforyou.com.