HomeInsightsPPL explains how it allocates distributions following its largest ever distribution

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PPL distributed £150.7 million to performers and record companies in June 2018, which is its largest ever distribution to performers and record companies. More than 86,000 performers and record companies received a payment. This figure was 12% higher than the previous record distribution of £135 million in June 2017.

PPL calculates how much each member has earned after money has been collected from licensees in the UK. PPL then distributes the money to the relevant performers and recording rights holders, taking into consideration the deduction of costs and any other adjustments. This process differs slightly for international collections. The calculations for these are carried out by collective management organisations that have agreements with PPL. The final calculated amount is then provided to PPL for distribution.

PPL receives reporting and information on recorded music played by TV and radio broadcasters, music suppliers and UK businesses. From the information gathered, its matches the recorded music played against the PPL repertoire database, which contains information on more than 12 million commercially released recordings.

The allocation amount is then calculated for each recording depending on how often it has been played in public or broadcast. The amount paid is affected by a range of factors such as, for example, on which radio station or TV channel the recording has been played, the amount of airplay it has received and the size of the audience.

The total allocated amount for a single recording is divided between the rights holders and performers according to PPL’s distribution rules. Usually, performer allocations are divided between the performers listed on a single recording, either based upon their contribution to that recording or as agreed privately between those involved in the recording.

PPL also says that the June distribution incorporated, for the first time, the use of music recognition technology (MRT) in licensed bars and clubs across the UK, to inform some of the payments in an initial pilot phase. To read PPL’s explanation in full, click here.

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