Performing Rights in the 21st Century
Every time a song is played on radio, every time a song is played on the TV, or in the cinema, or onstage at the theatre, even at a football match, a fee is due to be paid to the composer of the song. As you might imagine, it would be extremely difficult, if not impossible for a composer of a song to collect the money due to them if that involved going round to each and every venue to check whether they had played the composer’s song that week. Instead, composers join collection societies which do this work for them.
What is the PRS?
The PRS is the Performing Right Society, a company formed in 1914 dedicated to collecting the money due to a composer for the performance of their music. ‘Performance’ in this case includes the reproduction of a composition from a recording such as a CD or music file, and so includes the use of a song on a radio program.
Composers join the PRS and give the company a ‘blanket licence’ which enables the PRS to grant rights to venues to use music composed by that composer.
How does the PRS collect money for composers?
Every venue or broadcaster that uses music must apply to the PRS for a licence to reproduce that music for public consumption. The venue or broadcaster pays the PRS a fee, the size of the fee is usually dependant on the amount of people who are likely to hear the music being used in the venue or on the radio station. A small clothes shop or pub is likely to pay a much smaller fee than a radio station.
How does this relate to Music Publishing?
The PRS traditionally accounts directly to the writer of a composition whether or not they have a relationship with a publisher. However, if a writer does have a publishing agreement it is typical for the PRS to pay 50% of the money they collect for the writer directly to the writer’s publisher, paying the remaining 50% to the writer.
It is typical for a publisher to then double their publisher’s share in this payment to account for the fact that they have only received half of the money due for the use of that song. For example: Publisher’s cut of song ‘x’= 25% Payment from PRS to publisher for use of song ‘x’= £50 of a total of £100 Publisher is owed £25 for the use of the song, so takes 50% of the sum paid from the PRS (50%x50% of £100 equals 25% of 100% of £100 i.e. £25).