PRS for Music prepares for 'the road to recovery' with a bold vision of the future

 

PRS for Music Chair of the board Nigel Elderton and CEO Andrea C Martin both reflected on the "unprecedented" year that the British right society and its members went through last year and the challenges ahead during the organisation's virtual AGM.  

  
  Elderton (pictured, below) noted that the pandemic resulted in the "decimation of live sector" and with an 80% decline of live royalties collected. But, overall, PRS responded to the challenges of the time by delivering "delivering efficiencies and cost saving" measures, while preparing for "the road to recovery out of the pandemic." 

  "PRS is build on a strong foundation and we have the ability to adapt quickly," said Elderton, who said 2020 was a year during which PRS made significant changes in its governance, in particular in establishing its Members' Council, and a reduction of members on the Council, to create a "more nimble structure."

Be more than simply a collecting society

  A few weeks ago, in an interview with Creative Industries Newsletter, Martin (pictured, below) said she was expecting the society to become a billion pounds business within the next five years. Speaking at PRS' virtual AGM, Martin elaborated on her five-year plan to reach that target.  



  "To secure our renewed purpose we need a new vision," she said. "A vision to be more than simply, a collecting society. We will cement PRS For Music’s place as a world-leading rights management organisation. This requires ambition. Which is why we have set ourselves the target of becoming a billion-pound organisation by 2026. Not in revenues, but in royalties paid. That is an over 40% increase compared to 2020."

  She elaborated: "This requires tackling head on the challenges of the digital and tech market. To oppose those who seek to weaken your rights, to challenge services which build their businesses on giving your works away for free. And to secure a market where the full value of the song and composition is properly respected and paid. To demand the highest standards of reporting from users. No longer can poor data be an excuse for poor royalties. Where users will not willingly play their part, then governments can and must act." 

Transparency and efficiency

  The achieve her goal, Martin invited staff and members to embrace an ambitious vision. "Just because we have existed for over a hundred years doesn’t mean we have some divine right to go on doing so," she warned. "Everyday we must consistently earn the right and privilege to represent your works, by negotiating the best commercial terms, diligently protecting your rights, paying royalties with transparency and efficiency and ensuring more money is returned to you through our rigorous financial discipline."

  For Martin, who has been at PRS for the past two years, PRS must tackle "head on the challenges of the digital and tech market: to oppose those who seek to weaken your rights, to challenge services which build their businesses on giving your works away for free. And to secure a market where the full value of the song and composition is properly respected and paid."

  She also noted that "more diverse companies are more successful companies." She added: "New people bring with them new ideas and experiences. They challenge old established assumptions and bring new perspectives and skills. This is our shared future."

Collective diligence of the team

  Martin congratulated her team for delivering a record year, despite the pandemic. "That we were able to announce record royalty payments for 2020, the most difficult of years, is due to the team’s collective diligence, efficiency and flexibility," she said in her speech.

  Martin also revealed that PRS was in the final stages of an agreement with mechanical rights society MCPS. "We will very shortly conclude the renewal of the service agreement with MCPS," she said. "Therefore, PRS For Music will continue to support MCPS in the management of its members’ mechanical rights. My thanks to everyone at MCPS for their continued commitment to our shared vision."

  The rights society represents 155,000 songwriters, composers and music publishers. It distributed a record £699.4m to its members in 2020, up 2% y-o-y, but collections were affected by the pandemic and declined by 19.7% to £650.5m.