UK music licensing company PPL has reported a £27.1 million (12%) increase in revenues in 2021 to £252.8 million.
All three revenue streams – International, Broadcast and online, and Public performance and dubbing – grew year-on-year, with International and Broadcast and online licensing revenues hitting record annual amounts. The latest figures represent the company’s second highest annual revenue total, following 2019’s total of £271.8 million.
PPL’s international revenues were £94.0 million last year - PPL’s highest annual revenue amount since international collections began in 2006, up by £8.1 million (9.4%) on the £85.9 million collected in 2020. The organisation has 105 agreements with collective management organisations (CMOs) in Africa, Asia, Europe and North and South America and in 2021 established new deals with CMOs in India and Indonesia. In 2021, a number of CMOs also fast-tracked up or brought forward payments to support performers and recording rightsholders impacted by COVID-19, adding further to 2021’s international revenue amount.
Broadcast and online licensing revenue rose by £4.4 million (5.3%) last year, rising from £82.3 million in 2020 to a record annual total of £86.7 million in 2021. This reflects the recovery of the commercial radio sector’s advertising revenues in 2021, whose licence fees are calculated as a share of each station’s revenue. Indeed, total radio revenues were higher in 2021 than in 2019, before the pandemic.
Revenue from the playing of music in public at venues such as pubs, bars, clubs, shops and offices grew by £14.6 million (25.4%) to £72.1 million in 2021, up from £57.5 million in 2020. Licensees were able to trade more freely than in 2020 due to the easing of COVID-19 restrictions, although revenues are yet to return to their pre-pandemic level of £99.6 million.
PPL PRS Ltd, the joint licensing venture operated by PPL in partnership with PRS for Music, worked with licensees and their trade bodies to support them with their music licensing. In addition to not charging fees for periods when premises were closed, support included temporarily changing payment policies to allow for deferred payments and suspending late payment charges.
Whilst PPL distributions decreased by £31.5 million (15.2%) to £228.7 million in 2021 due to the pandemic’s impact on 2020 collections, a record number of performers and recording rightsholders were paid – 147,000 received at least one payment in 2021, an increase of 35,000 (31.3%) on 2020.
Peter Leathem, CEO, PPL, commented on the latest results: “2021 was a strong year for PPL. We achieved our second highest annual revenue total and saw our best ever year for both International revenue and Broadcast and online revenue. Being able to deliver this while in the middle of the COVID-19 pandemic, with all of its adverse impact on the economy, is testament to the strength of PPL’s business. PPL now pays more than three times as many performers and recording rightsholders than ten years ago when I became CEO and is collecting nearly double the revenue. We collect more international neighbouring rights royalties than anyone else, and PPL PRS Ltd, our joint public performance licensing venture with PRS for Music, launched in 2018, is streamlining the collection of public performance royalties.
“PPL has been able to achieve such successful growth because of the talented and dedicated team I have with me at PPL. Thank you to our members, licensees and industry partners for working so collaboratively with us and we look forward to continuing to develop the neighbouring rights sector for the benefit of performers and recording rightsholders.”