What are the benefits and challenges of the joint venture of PPL and PRS for Music?

Within the UK music industry copyright is a crucial component. Any use of copyrighted protected music to the public requires TheMusicLicence under the Copyright Designs and Patents Act 1988. This is issued by PPLPRS Ltd. the joint venture of PPL and PRS who collect and distribute royalties for their members. With the launch of the joint venture in 2018, both challenges and benefits have come from it, such as a negative effect on their reputation, general confusion between the companies, along with an increase of correctly licenced businesses, resulting from the easier processes to gain the licence. The joint venture overall has increased the amount of royalties to be efficiently given to those behind the music but continue to face challenges such as education on the requirement to the public.  

PPL founded in 1934, represents performers and recording rightsholders for the use of recorded music. And PRS founded in 1914, represents songwriters, composers and publishers for the use of musical composition and lyrics for both recorded music and live performance. 

PPLPRS ltd. Launched in 2018, with the product of TheMusicLicence, which Provides a streamlined music licensing service, with a single point of contact, to make it easier to legally play and perform music in public

Under the Copyright Designs and Patents Act 1988 it is a legal requirement to obtain this licence to do the following:

• Copy music
• Issue, lend or rent copies to the public
• Perform, show or play to the public
• Communicate the music to the public
• Make an adaptation

Previously to the JV businesses had to obtain sperate licences from both PPL and PRS, which was a lengthier process and confusing to customers which led to people being incorrectly licenced.

Copyright protects original literary, dramatic, musical and artistic works. It allows an original work to be considered a property that is owned by somebody In the UK this lasts for a period of 70 years commencing from the end of the calendar year in which the author dies. UK Music states that “The success of the UK’s music industry is built on a strong copyright framework” With the Music industry contributing £7.6 billion to the UK economy and over 216,000 full time employments in 2023. With PPL and PRS being the organisations in the UK to distribute these royalties along with the JV collecting those royalties, the success and work of these three organisations help to build a strong copyright framework in the industry.

When the joint venture first went live, lots of things went wrong such as systems not working, lack of information on customers and incorrectly licenced businesses. These caused negative customer experiences, hindering the reputation of the JV. But with further development of the JV, the increase of technology and customer data, that due to competition law wasn’t legally allowed to be shared between the parent companies beforehand, is now able to be shared via PPLPRS.

Competition law plays a large role in the way the JV is run and what is shared between the parent companies. Competition law is in place to prevent a monopoly. The Competition and Markets Authority (CMA) describe a monopoly as any firm with more than 25% of the industry’s market shares. The CMA found that the PPL and PRS “operate in separate markets and do not overlap… therefore no direct horizontal unilateral effects arising from the JV. Competition law effects the process as it prevents certain information being shared between the parent companies and makes the process of things a lot more complicated

Participants of a survey were asked about their music usage and the importance of music to them, 84.3% listen daily, with 75.8% of responses, ranking the importance to be an 8 or above. Showing that music is an important factor of people’s life. Although when asked whether they knew how artists, songwriters and composers get paid, the answer was “no” and 72.9% of participants having not heard of PPLPRS before. The lack of education and awareness is hindering the number of organisations licenced, as people know the need for one but not where and how to gain one. 

PPLPRS went through many challenges when first initiated, including negative customer feedback, lack of initial information and incorrectly licenced businesses. Even though some may still be present issues, they have since developed procedures to consistently review and improve these to further the efficiency of the JV.

Overall, the JV is a benefit within the industry, due to the process of obtaining TheMusicLicence having become easier, leading to an increase of businesses becoming correctly licenced. This enables more people to enjoy and be moved by the music they love, along with more royalties to reach the people behind the music, therefore continued fulfilment of their mission statement.