PRS for Music Squeezes Out Another $8 Million for Songwriters After Dropping Administration Rate

PRS for Music
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PRS for Music
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Photo Credit: Phil Rose, Mike Stobbie, Pete Woodroffe, Laura Young / PRS for Music

PRS for Music finds an extra $8 million to be paid out to songwriters after reducing its admin rate and announces its newly elected council members.

Composers and songwriters are looking to receive an additional $8 million (£6 million) in royalties from online services each year from PRS for Music. CEO Andrea Czapary Martin announced a 20% reduction in the administration rate from multi-territory online (MTOL) royalties’ collection — the result of the collective management organization surpassing its targets and delivering historic distributions and revenues.

Announced at its 2024 Annual General Meeting (AGM) on June 4, PRS estimates the reduction will see a “massive £1.5 million more,” paid out to members in each of its quarterly royalty distributions beginning in October this year, to total £47 million more by 2030. Next year, the society will begin a comprehensive review of its administration rates across all revenue streams, with a view to reducing and simplifying them, according to Martin.

PRS for Music’s focus on efficiency has delivered consistent year-on-year growth while maintaining a cost-to-income ratio below 10% for a second year running.

“We have achieved so much over the last year with radical and technological developments, that last year we paid out a record-breaking £943.6 million in royalties; an increase of nearly 13% on the previous year. We also broke the billion-pound revenue threshold,” says Martin.

“I believe that the success of the society should be defined by the success we pass on to songwriters and composers,” Martin concludes. “I am delighted to announce that the reduction in multi-territory online licensing admin fees is a real tangible example of how we are constantly working on behalf of members to be competitive, and to get more money to them, more quickly.”

PRS also announced the appointment of four newly elected members to the council: Publisher Council Members Phil Rose (Sentric Music) and Laura Young (S2K Music), and Writer Council Members Mike Stobbie and Pete Woodroffe, the latter having been appointed for a second term.

“A vital component of PRS’s achievements is the role the Members’ Council serves in representing the concerns and needs of songwriters, composers, and music publishers,” said Julian Nott, Chair of the PRS Members’ Council. “Congratulations to newly elected Directors Phil Rose, Laura Young, and Mike Stobbie, and Pete Woodroffe on his reappointment, whose combined knowledge and expertise will be an asset in the next chapter of the society.”

This year’s AGM also saw the ratification of several resolutions designed to promote fairness, including expansion of the Members’ Council to ten writers and ten publisher representatives, a new “Voting Plus” category to encourage more writer members to “engage with the democratic process,” and an enhanced Annual Transparency Report.