Diversifying Income Streams Boost 2011 Records Label Revenues

Revenues outside CD, DVD and digital services rise to £205.3m – a fifth of record company turnover

Film, TV and advertising sync income grows by 12%

Artist-related revenues from “all rights” deals increase 14%

London, 4 October 2012 – Revenues from music synchronisation, “360 degree” artist deals, concerts, music-related TV production, broadcasting and public performance grew strongly in 2011 to £205.3m, now accounting for a fifth (20.5%) of record industry trade turnover, figures published by industry trade body BPI revealed today.

The market for music synchronisation - the use of recordings in films, TV programmes, adverts and games – grew substantially to £18m, an increase of 11.9% year-on-year.  This was achieved despite a fall in games-related synchronisation deals, from £5.4m to £3.6m, as sales of games centred on music softened in 2011.

Artist-related revenues from multiple-rights “360 degree” deals, including concerts, merchandising, touring and sales of music direct from artist and label websites, remained strong during 2011.  Almost £76m was generated from these broader partnerships with artists, an increase of 14% on the previous year.

Licensing income from television, radio and online broadcast in addition to public performance revenues, collected by PPL, combined with VPL revenues, increased to £83.2m.

Commenting on the annual figures, BPI Chief Executive Geoff Taylor said:

“British music companies have reinvented their businesses for the digital age, marketing and promoting music intelligently through every channel available.  They have diversified their revenue base and this has established a solid platform for future growth as the transition to a majority digital business continues.

“British music is on a global high and the UK’s creative industries have enormous potential to generate new jobs and economic growth, if Government gets serious about tackling online theft of content.”

The new figures demonstrate that music companies have continued their successful strategy of diversifying revenue streams to respond to a rapidly evolving digital environment.

The industry has already broadened its core revenue base by licensing a wide range of innovative digital music services, with a variety of new business models.  The UK has the world’s most advanced digital music market, with over 70 legal digital music services - more than any other country in the world.  These new channels are also showing strong growth.  Digital album sales grew by 26.6% to £26.6m in 2011 and premium subscription services were up 43% to £23m in the same period.

ENDS

NOTES FOR EDITORS

For more information, please contact:

·  Adam Liversage, BPI Director of Communications, adam@bpi.co.uk / 07801 179032

·  Lynne McDowell, BPI Senior Communications Manager, lynne@bpi.co.uk / 07763 619709

·  Jonathan Morrish, PPL Director of PR and Corporate Communications / jonathan.morrish@ppluk.com / 07802 239416.

Categories of Income Included In Diversified Revenues

Synchronisation – Copyright licensing income received from the use of sound recordings in films, TV, games and advertising.

Premiums – Covermounts and consumer promotions via non-traditional channels.

Artist-Related Income – Artist-related merchandising, concerts, touring, artist-related digital products (except ringtones), music-related sales via artist and label websites, artist-related sponsorship and endorsement, and other artist-related income.

Other Income – Record company share of revenue from shows or films, record company income from music-related TV productions, deals with hardware manufacturers, unearned advances and other one-off payments received.

Broadcast & Public Performance Licensing – Copyright licensing received by UK record companies from domestic broadcast and public performance of recordings from PPL and VPL – for example, blanket BBC licence, commercial radio, commercial TV, video play on MTV, online, and public use of music in pubs, clubs and shops.

A full version of this press release (including data) is downloadable here.

About BPI



The BPI is the representative voice of the UK recorded music business. The BPI is a trade organisation funded by its members - which include hundreds of independent music companies and the UK’s four major record labels. The BPI’s members account for approximately 90% of all recorded music sold in the UK, and globally the UK's recorded music market is the fourth biggest.  

The BPI also organises the annual BRIT Awards show as well as the Classic BRIT Awards show. The organising company BRIT Awards Limited, is a fully owned subsidiary of the BPI. Substantial proceeds from both shows go to the BRIT Trust, the charitable arm of the BPI that has donated almost £15m to charitable causes nationwide since its foundation in 1989.

About PPL


PPL 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. 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.

PPL’s role and remit increases year on year. The company receives details electronically on a weekly basis for an average of 10,200 new recordings. Once this data has been fed into PPL’s databases, it is then passed on to PRS for Music for it to administer the relevant copying rights on behalf of the songwriters, composers and publishers. PPL also provides that data to the BPI and IFPI (International Federation of Phonographic Industry) to assist with their anti-piracy activities.

For further information please visit www.ppluk.com.

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