PPL International Neighbouring Rights Revenues Climb 6%
U.K. music licensing company PPL collected £36.4 million ($54 million) of international revenues in 2014, an increase of 6% on the previous year (12% on a currency neutral basis).
The U.S. was biggest single source of international neighboring rights revenue with collections totaling £9.6 million ($14.3 million). Belgium was the second-highest contributor with £5.6 million ($8.3 million), followed by the Netherlands, where collections totaled £3.9 million ($5.8 million).
The majority of revenue received was collected on behalf of the performers -- £30.7 million ($45.6 million) -- with the remaining amount attributed to independent record companies. According to PPL, the organization now collects more than 50% of all performer neighboring rights payments moving between Collective Management Organisations (CMOs) across the globe, making it the leading playing in international rights collections.
Since 2003, PPL says that it has collected over £230 million ($341 million) in international revenues for performers and record companies. The London-based, not-for-profit organization attributes the year-on-year growth in neighboring rights to an increase in the number of record companies and performers it represents, which has now crossed the 90,000 mark.
In recent years, PPL has also grown the number of CMOs that it has reciprocal agreements with. In 2014, nine new partnerships were agreed bringing the total to 75 in 35 countries. Improvements in PPL’s data and IT systems and the sharing of good practice with its international partners have also contributed to the rise in collections, says Laurence Oxenbury, PPL’s director of international.
“PPL has really driven this market over the last eight years, which has caused many people to sit up and take note of the potential of this revenue stream," Oxenbury said in a statement.
He added: "We are delighted with the progress that we made in 2014 in growing our international collections while remaining at the forefront of addressing the many challenges associated with international rights management so as to ensure growth in the future as well.”
According to IFPI’s most recent figures, global neighboring rights income surpassed $1 billion in 2013, accounting for 7% of total industry revenues.