MBW’s Stats of the Week is a series in which we highlight a data point worthy of the global music industry’s attention. This week’s statistics are powered by music data analytics company Chartmetric.
2023 has been a record-breaking year for PRS for Music, the British collection society.
On Tuesday (May 28), PRS reported revenue of £1.08bn in 2023, making it the ‘billion pound society’ last year, with year-on-year growth Annual increase of 12.5% This is an increase of £120.9 million compared with 2022.
The London-based association had revenue of £1.08bn last year US$1.343 billion Calculated based on average annual rates for 2023 published by the IRS.
PRS said on Tuesday the milestone was achieved two years ahead of schedule. As part of its “five-year plan”, the organization set a revenue target of £1 billion for 2026 at its 2021 annual general meeting, which also includes pay To pay £1 billion in royalties to its members by 2026 and achieve a cost-to-income ratio of less than 10%.
PRS also informed on Tuesday that pay a record £943.6 million By 2023, royalties from songwriters, composers and music publishers will be converted to US$1.17 billion Calculated based on the annual average exchange rate published by the IRS.
Association’s royalty distribution numbers rise Annual increase of 12.8%This is an increase of £107.4 million ($133.58 million) compared with 2022.
PRS also reported that more than 6,000 Songwriters and composers will be paid for the first time in 2023, receiving a total of £1.5 million ($1.86 million) royalties. PRS said it was able to achieve this “by migrated its distribution system to Oracle Cloud, [becoming] The first society to do so”.
Speaking to MBW about these latest results, PRS chief executive Andrea Czapary Martin said it was “incredible” to achieve the organisation’s £1 billion collections target two years ahead of schedule.
Martin added: “We haven’t paid yet. But we are very close. I wouldn’t be surprised if we hit [the £1 billion payout target] This year.
Additionally, PRS reported that its cost-to-income ratio will be below 10% in 2023, marking the second consecutive year that the organization has achieved this goal.
PRS for Music’s cost-to-income ratio hits new low in 2023 9.2%down from 9.3% the previous year.
The PRS noted on Tuesday that the cost-to-income ratio is an “important measure of social efficiency” and 9.2% The targets achieved by 2023 demonstrate that “PRS for Music’s targeted investments in people, technology and services are delivering significant return on investment for members”.
Commenting further on how PRS reduced its cost-to-income ratio last year, Martin noted that the organization has been focused on upgrading its “technology and data” capabilities since joining as CEO in 2019.
“We are automating as much as possible to ensure that we can reduce costs but also ensure that employees are focused on areas where we can really increase revenue,” Martin added.
Photo credit: Garry Jones/PRS For Music
“Not only have we surpassed financial milestones with the lowest cost-to-income ratio in our industry; we are orchestrating a major transformation of the music industry. My vision of being part of a billion-pound royalty-paying society is not just a goal, it reflects our commitment to A commitment from music creators around the world.
Andrea Czapary Martin, PRS Music
PRS also breaks down 2023 revenue and distributions by source.
According to results released on Tuesday, the PRS collected £366.5m ($455.84 million) from music used online in 2023, with reported increases Annual increase of 8.5% (£28.7m) at constant exchange rates.
royalties pay Growth of online music (music streaming, video on demand and video games) Annual increase of 23.2% or £67.9 million to £360.3 million ($448.13 million), driven by “the continued growth of streaming and the shift from broadcast to on-demand consumption”, according to PRS.
Internationalincome Meanwhile, by 2023, total £339.3 million ($422.01 million),increased Annual increase of 25.9% (£69.9m) at constant exchange rates.
International distributed Reached £283.4 million ($352.48 million), annual growth An increase of 19.35% compared with the same period last year.
Europe Remains the largest market for PRS member music in 2023, with revenue exceeding £181 million ($225.12 million)up An increase of 23% compared with the same period last year.
Total royalties come from northUSAwhile adding 25% annual increaseor £21.1 million, over £105 million 2023 ($130.59 million).
International revenue comes from LatinUSA Reaching £15.8 million ($19.65 million) in 2023 An annual increase of 77.5%, revenue generated simultaneously middleEast&Africa grown up Annual increase of 118.8% arrive £3.5 million ($4.35 million).
International royalties collected through Major Live Concert Services (MLCS) reached £19 million ($23.63 million), an increase Annual increase of 210% 2023.
Revenue from public performances reached £251.7 million (US$313.05 million), an increase from the same period last year 10% annual increasewhile rRoyalties paid for public performances, including live music, reached £188.2 million ($234.07 million), up from the same period last year An increase of 2% compared with the same period last year.
Commenting on the 2023 results, Andrea Czapary Martin, chief executive of PRS for Music, said on Tuesday: “Our outstanding performance in 2023 is testament to the hard work of the team behind the scenes in the music industry.
“Not only have we surpassed our financial milestone with the lowest cost-to-income ratio in our industry; we are orchestrating a major transformation of the music industry. My vision of being part of a £1bn royalty paying society is not just a goal, it reflects our A commitment to music creators around the world.
“Through our focus on innovation and strategic partnerships, including most recently the groundbreaking Nexus project, we are shaping the future of our business and redefining how global rights are managed. For 110 years, we have been committed to ensuring every music Creators receive fair compensation for their artistry wherever and whenever their music is played.
All EUR/USD exchange rates in this report are based on annual average rates provided by the IRS.
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