March 5, 2018

The UK’s two music licensing bodies, PPL and PRS for Music, have this week launched their joint venture to create one single company, PPL PRS Ltd, to administer the licensing of music performed or played in public, known as “public performance”.

In 2016, the two companies generated almost £270 million through the licensing of live and recorded music to businesses and organisations, from bars, pubs and clubs to hairdressers, fitness centres and hotels. After running costs, this revenue is distributed to their respective members, performers and record companies for PPL and songwriters, composers and publishers for PRS for Music, and acts as an important income stream for the music business. PRS for Music says that the new joint venture will be the biggest of its kind in the world.

The 200-person company is based in Leicester and is equally owned by PPL and PRS for Music. It has been created to provide customers with a streamlined service, a single point of contact, and one licence covering both companies’ respective rights, thereby simplifying the administration and making it easier to play and perform music in public. The joint licence is called TheMusicLicence and brings to an end the need for customers to purchase separate PPL and PRS for Music licences from each individual organisation.

The joint venture was initially announced in February 2016. Later that year, competition clearance from the Competition and Markets Authority was given, and PPL and PRS for Music were able to sign a shareholders agreement that sets out how the joint venture company will be owned and operated. The Board of the new company will comprise PPL PRS senior management team members as well as representatives from both PPL and PRS for Music.

PPL and PRS for Music will continue to operate separately in the other areas of their businesses, including representing their members, collecting royalties from international societies, developing, setting and consulting on their respective tariffs and licensing schemes, and licensing broadcast, online and recorded media customers. To read PRS for Music’s press release in full, click here.