High note: Music industry group books record revenues amid 'dramatic' post-Covid recovery

PRS for Music, the organisation representing the rights of more than 165,000 writers, composers and music publishers, collected a record £964 million in 2022, up by more than a fifth on the year before, following a “dramatic” post-pandemic recovery and rebound in live music, new figures reveal.

The bumper haul is also an increase of almost 19 per cent on the previous high of £810m achieved in 2019, prior to the onset of the Covid-19 crisis and lockdowns that effectively silenced live music for months on end. Last year, PRS for Music paid out £836.2m of royalties, a 23.5 per cent increase on 2021. The quarterly distribution in October alone was in excess of £211m, the largest single distribution in the organisation’s 108-year history.

Inevitably, music streaming continues to be the most popular way for fans to access music, contributing £284.3m to overall online royalties of £334m, up by a quarter on 2021. PRS writer members featured on many of the most streamed hits of 2022 on the official UK charts, including Go by BRIT Award nominee Cat Burns and synth-pop track As it Was by Harry Styles. The dominance of streaming was reflected in the continued decline in music downloads, with royalties in 2022 falling by a hefty 75 per cent to just £600,000.

However, the big story of 2022 was the strength of the rebound in live music, as royalty collections generated £62.7m of royalties, a surge of 683 per cent compared to 2021 and 16.1 per cent up on 2019. More than 128,000 live events were reported to the organisation across the year in the UK, including major tours from the likes of Dua Lipa, Ed Sheeran, Little Mix, N-Dubz, The Cure and The Rolling Stones, among others. PRS said it had taken “active steps” to support the live music sector’s return last year, with the launch of its Back to Live Music Venue Prize competition. Six independent music venues across England, Scotland, Northern Ireland and Wales were awarded a total of £60,000 of financial support to improve live music experiences for performers and for the local communities they serve.

Overall revenues from public performance, music played or performed in public areas such as shops, restaurants and bars, represented a year-on-year increase of 66.4 per cent, to £228.9m. Royalties collected from public performance were 3 per cent higher than 2019, the last full year unaffected by lockdowns. Through 2022, customers were supported as they fully reopened their businesses by PPL PRS, the joint licensing venture established by PRS for Music and PPL.

Andrea Czapary Martin, chief executive of PRS for Music, said: “In 2021, PRS for Music set out its vision to pay out over £1 billion in royalties within the next five years. Last year we accelerated progress towards, and beyond, this milestone. Through our ambitious licensing strategy and utilising our joint ventures we have maximised the value of members' works at every opportunity. While our investment in new technologies and services means we can pay out royalties more quickly and accurately, delivering the best possible service to members at a market leading low cost-to-income ratio.”

The latest results were delivered at an “historically low” cost-to-income ratio of 9.3 per cent, excluding charitable donations and subsidies, meeting the target of achieving a cost-to-income ratio below 10 per cent four years earlier than the body’s five-year plan.

PRS members scored music for many of the year’s blockbusters, including Grammy Award winner Lorne Balfe (Top Gun: Maverick), Steve Angello (Avatar: The Way of Water) and U2 (Sing 2). Members’ compositions ensured overall royalties collected from cinemas, as the film industry returned to more normal operations, were up by 325 per cent compared to 2021.

PRS for Music, which represents the rights of more than 165,000 writers, composers and music publishers, has released its 2022 report.

PRS said it had concluded new agreements with Apple TV+ and Amazon for its Freevee service. The increase in revenues from video-on-demand platforms by 16.5 per cent contributed £40.2m to online royalties. UK music creators scored many of the “standout moments” in 2022, the organisation noted, including Emmy-nominated Martin Phipps (The Crown) and Natalie Holt (Obi-Wan Kenobi, Loki) and Kate Bush, who achieved global acclaim and captured the attention of new audiences with the song Running Up That Hill when it was featured in hit Netflix sci-fi drama Stranger Things.

As audiences continue to diversify the way they access media, revenue from traditional UK broadcast television fell by 2.4 per cent, compared to 2021, totalling £76.5m in 2022. Commercial radio royalties, driven by advertising, continued to show signs of growth, nudging up 2.6 per cent year-on-year to £52.2m.

Meanwhile, international revenues showed strong signs of recovery following the pandemic, totalling £272.4m in 2022, a year-on-year increase of 8.8 per cent, with restrictions and lockdowns differing from territory to territory throughout the period. Key international chart successes saw Glass Animals’ song Heat Waves go multi-platinum in Australia, Canada, New Zealand and in the US. PRS members also had writing credits on hits achieving significant success on US Radio, including Woman by Doja Cat, The Motto by Tiësto & Ava Max and Essence by Wizkid.

The European market grew 7.5 per cent to £148.3m, predominantly due to the recovery in live touring, particularly those using PRS’s major live concert service, including Coldplay, heavy metal powerhouse Iron Maiden and iconic songwriter Sting. The organisation welcomed almost 7,000 new writer, composer and publisher members in 2022. At the beginning of 2023, PRS confirmed a new agreement with its charity arm PRS Foundation, ensuring the next generation of songwriters and composers will “continue to create world-leading music in the decades to come”.