WMF Statement regarding changes to PRS payments
Date Posted: 23rd November 2007
Many of you may have seen in the press the changes
regarding PRS (Performing Rights Society, collection agency for songwriters and
publishers) that have affected Welsh language publishers and writers in
particular. Here we try to give an overview of the situation.
What has changed is the royalty allocation distribution
policy. PRS have moved towards pay-per-play for radio, rather than taking
samples, making the allocation of money more accurate. Around two thirds of
allocations are now pay-per-play.
These changes also affect how money gathered from general
venues that have PRS licences - places ranging from clubs and pubs to
hairdressers and gyms – is distributed.
This money is distributed by comparing the data they have
from visits to such venues and the ‘music being broadcast’ to gauge what music
is popular and therefore likely to be played in these general venues.
For Welsh companies the main issue. Previously the ‘music being broadcast’ was ascertained by sampling stations and working out an average within a cluster of 50 radio stations– including Radio Cymru. By switching to pay-per-play wherever possible and treating each radio station individually, the money from licences from general venues is distributed more accurately but in the case of many Welsh companies, means a lower allocation.
The rate per play for broadcast on Radio Cymru remains
unchanged. The station has not been ‘declassified’ to a regional station under
these changes but has in fact always been regarded as a regional station.
Welsh PRS members were not notified of these changes before
they were put in place, and PRS were unaware of any significant effect on their
Welsh members. An impact analysis was
not carried out. Many only found out
when their PRS statements were considerably lower that usual – on average
around 85% in the case of publishers.
WMF Board were approached to look into the matter.
- WMF contacted PRS asking why the distribution policy was changed, the effect this will have on writers and publishers in Wales and what consultation and impact analysis took place before the decision was made.
- Welsh publishers were contacted by a collective, headed by Sain, highlighting the issue and asking for input and opinions on a possible establishment of a Wales-based collection society that would look after the interests of Welsh language publishers and writers.
- WMF enlisted the legal advice of a music lawyer to ensure that the action of PRS was legal. As PRS are acting in the best interests of the majority of their 50,000 members in making the distribution more accurate, they acted legally.
PRS entered into talks with Welsh publishers. The results of which are:
- PRS state their need to act in the interest of the majority of their members – accurate distribution is part of this pledge.
- PRS recognised the immediate impact on Welsh language writers and publishers and agreed to introduce a transitional period. Payments will be phased in over three years (reduced approximately by a third each year).
- Welsh language writers and publishers should receive back payments to a level of approx 88% of what they would have received under the old system over the first year, backdated to when the new system was implemented.
- Welsh publishers and writers have recognised that there may be a separate issue regarding the classification of Radio Cymru as a regional not national station.
- Welsh publishers and writers have asked the PRS Board to consider upgrading the Radio Cymru rate. The Board met to discuss this on Monday, Nov 19th.
Following the Board meeting PRS have responded to the Welsh Publishers and Composers' Alliance stating that they have commissioned a report looking at the "economic and cultural aspects" of the classification of Radio Cymru. The report is to be presented to the PRS Board in the new year, date yet to be set.
On 28 November, the Welsh Publishers and Composers' Alliance formally replied the PRS Board's response, reiterating that the PRS Board had not yet addressed the points raised. In particular how PRS will ensure it understands, appreciates and represents the ethnic and cultural diversity of PRS members in Wales. The status of Radio Cymru and number of visits by PRS staff to Welsh language members (by Welsh language speakers) were also points raised.
They await a response.
If you would like more information on the Welsh Publishers and Composers' Alliance, please contact dmr@sainwales.com or 01286 831111. If you would like to contact PRS please contact writerquery@mcps-prs-alliance.co.uk or publisherquery@mcps-prs-alliance.co.uk or you can call 020 7580 554.
We have tried to relay an accurate and unbiased account of the situation here, as a means to inform rather than influence opinion.
