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Reservoir Media on Wednesday reported that revenues grew by 13% during its most recent fiscal year, as investments in record labels and artists rights in the Middle East added to its growth from acquiring works by North American artists like Louis Prima and Dion.
Reservoir reported $122.3 million in revenue for their fiscal year 2023 ending March 31, driven by a 9% increase in music publishing revenue and an 18% increase in recorded music revenue, both helped by the digital release of De La Soul‘s first six studio albums in early March. The legendary rap trio’s catalog netted 12.5 million U.S. song streams and sold 28,000 albums in its first week streaming, according to Luminate.
Founded in 2007, Reservoir said it grew by 8% organically and finished at the top-end of its financial targets in fiscal 2023 despite a 1%-decline in fourth quarter revenue driven by lower performance, sync and other revenues in its music publishing division, which suffered from a tough comparison to a strong year-ago quarter.
Fourth quarter music publishing revenue of $23.2 million was off 8% from the year-ago quarter when Reservoir benefitted from a one-off event in Dubai. Recorded music revenue in the quarter rose 10% to $10.8 million, in part due to the outsized performance of De la Soul’s catalog.
Reservoir has made investing in emerging markets a key prong of its growth and diversification strategy, and on a call with analysts, Reservoir CEO Golnar Khosrowshahi referred to it as “highly important to our overall strategy … as we work to become the largest holder of Arabic music copyrights.”
With its partner PopArabia, an independent music company headquartered in the United Arab Emirates, Reservoir has acquired stakes in the Egyptian label 100COPIES, the Lebanese label and music publisher Voice of Beirut and signed publishing deals with Egypt’s Mohamed Ramadan, Lebanon’s Zeid Hamdan and Moroccan hip-hop star 7liwa. In January, Reservoir announced signed publishing deals for the catalogs and future works of Indian rappers MC Altaf and D’Evil and the producer Stunnah Beatz.
Funds like Reservoir also grow inorganically through acquisitions of song catalogs, and over its past fiscal year it acquired rights by “the Saxophone Colossus” Sonny Rollins and Dion, best known for “Runaround Sue” and “The Wanderer.”
Reservoir’s chief financial officer Jim Heindlmeyer told analysts that the company expects 6% revenue growth f 9% growth for adjusted earnings before interest, tax, depreciation and amortization for this fiscal year, compared to midpoint of its 2023 guidance ranges.
“Our outlook includes strong top-line growth expectations and margin expansion across our business segments as we continue to see a positive impact on profitability from our strategic acquisitions and benefit from secular tailwinds across the music industry,” Heindlemeyer said.
Warner Music Group’s share price fell nearly 10% on Tuesday (May 9) following the release of the company’s second quarter earnings report, which showed that revenue from the recorded music division was effectively flat over last year ($1.143 billion vs. $1.147 billion in the year-ago quarter).
On Tuesday, Warner’s stock fell from $28.50 at the start of the day to $25.76 at the market’s close — a 9.58% drop.
This marks the second straight quarter of disappointing results in recorded music for Warner, the world’s third-largest label. Last quarter, revenue in the division fell 10.6%, or 5.6% in constant currency, on lower digital, physical and artist services and expanded rights revenue.
In the current quarter, streaming revenue was down 0.4% (or, in constant currency 2.2% higher) on fewer releases and a slowdown in ad-supported revenue due to macroeconomic uncertainty. By contrast, music publishing revenue grew 12% to $257 million, up from $230 million a year ago.
“While our publishing was best in class, we underperformed in recorded music,” said CEO Robert Kyncl on an earnings call Tuesday.
In attempts to bolster confidence, WMG executives on the call stressed that the company is already seeing improvement with the late-April releases of Jack Harlow’s Jackman., Tïesto’s Drive and Ed Sheeran’s Subtract, which was released earlier this month. CFO Eric Levin noted that the label’s release slate “was a little lighter in the first two quarters of the year and will be weighted to (the third quarter) and (the fourth quarter),” with upcoming releases expected from Dua Lipa‘s Barbie soundtrack, among others.
“We absolutely expect this to improve our results in recorded music streaming in the second half of the year,” Levin added.
Nonetheless, investors appear to be growing skittish over the lackluster performance. Tuesday’s closing price marked a sharp drop of nearly 20% of Warner’s stock over the past month, with the share price falling from $32.12 on April 10.
Warner Music Group reported quarterly revenues grew 1.7% to $1.399 billion (4.6% in constant currency) as strong revenues from its music publishing revenue helped offset a slow quarter for recorded music releases.
WMG, the music industry’s third largest major label, reported revenue from its recorded music revenue was effectively flat at $1.143 billion for the second fiscal quarter ending March 31, compared to $1.147 billion in the year ago quarter. (In constant currency, recorded music revenue rose 2.5%.) Streaming revenue in the quarter was down 0.4% (or, in constant currency 2.2% higher) on fewer releases and a slowdown in ad-supported revenue due to macroeconomic uncertainty.
In contrast, music publishing revenue rose 12% to $257 million from $230 million a year ago.
“While our publishing was best in class, we underperformed in recorded music,” Robert Kyncl, chief executive officer, said on a conference call.
WMG executives have said throughout this fiscal year that the label’s major releases of the year would come in the second half, and on the call, they stressed they are already seeing improvement with the late-April releases of Jack Harlow’s Jackman., Tïesto’s Drive and Ed Sheeran’s Subtract, released in early May.
“Our release slate was a little lighter in the first two quarters of the year and will be weighted to (the third quarter) and (the fourth quarter),” Warner chief financial officer Eric Levin said, flagging releases expected from Dua Lipa with her Barbie soundtrack track, among others.
“We absolutely expect this to improve our results in recorded music streaming in the second half of the year.”
Key Points From WMG’s Q2:
WMG’s revenues grew 1.7% (or 4.6% in constant currency, a measure that standardizes foreign exchange fluctuations) to $1.399 billion
Digital revenue increased 1.2% (or 3.7% in constant currency) to
Streaming revenue increased 1.9% (or 4.5% in constant currency) on growth in music publishing streaming
Music publishing revenue increased 12%, or 14.2% in constant currency
Music publishing streaming revenue grew 16.4% (18.3% in constant currency)
Recorded music streaming revenue decreased 0.4% (an increase of 2.2% in constant currency) on a lighter release schedule, foreign exchange currency fluctuations and slowdown in ad-supported revenue.
Net income was $37 million this quarter, down 60% from $92 million one year ago, primarily driven by the negative impact of currency fluctuations on the company’s Euro-denominated debt. Adjusted net income up 5% to $116 million from $111 million a year ago.
Operating income was $124 million, down 25% from $166 million a year ago, with adjusted operating income up 10% to $203 million from $185 million.
Adjusted net income of $116 million was up 5% from $111 million in the year ago quarter.
After teeing up Wall Street for a difficult fiscal second quarter, the tech giant Apple beat analyst expectations for the quarter, delivering revenue of $94.8 billion (expectations were for $92.9 billion), down 3 percent year over year, and earnings per share of $1.52, flat compared to last year (expectations were for an EPS of $1.43).
Apple’s services segment, which includes Apple TV+, Apple Music, Apple Arcade and other offerings, continues to grow at a rapid clip, reporting revenue of $20.9 billion, a new record.
The company reported net income of $24.16 billion, down from $25 billion a year ago.
“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” said Apple CEO Tim Cook. “We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030.”
Apple also increased its dividend and announced an additional $90 billion in share repurchases.
This article was originally published by The Hollywood Reporter.
LONDON — French music company Believe’s recent investments in Europe, Asia Pacific and Africa helped boost digital sales across its key markets and drive overall revenues up 22% from January through March, despite a slowdown in ad-funded streaming revenue.
The company reported Thursday (April 27) that revenues grew 22.2% to 198.6 million euros ($218.9 million) compared to the prior year’s quarter. The Paris-headquartered company’s premium solutions business — which includes label services, marketing, distribution, promotions and sync — rose 23% year-on-year to 186 million euros ($205 million), while its automated solutions, which includes the TuneCore distribution platform, increased 11.2% to 12.7 million euros ($14 million).
Digital revenue also grew by 22.2% during the quarter, with non-digital sales up 21.8%. Believe didn’t provide financial figures for either market segment, nor an indication of overall net profit or loss for the quarter. The company’s shares, traded on France’s Euronext, fell 2.41% on Thursday to close at 9.70 euros ($10.70).
The company said ad-funded streaming revenue slowed to single digit growth at the start of the year — in line with the challenging global advertising market — but didn’t report financial values or the percentage increase.
Non-digital revenue benefitted from merchandising, branding and live activities in France and India, as well as a film project in Turkey, which Believe said collectively offset the fall in physical sales, most notably in Germany.
Growth of Believe’s core digital business, which focuses on markets and music genres where artist promotion and marketing are predominantly online, was driven by the global rise in paid music steaming and the company’s expanding international portfolio of artists and labels, CEO and founder Denis Ladegaillerie said during Thursday’s earnings call.
Recent investments include partnerships with Filipino label Viva Music and Artists Group (VMAG), India-based imprints Think Music and Panorama Music, French pop label Structure and Germany-based Madizin Music. Last month, Believe acquired U.K.-based publisher Sentric from Switzerland-based Utopia Music in a €47 million ($51 million) deal that marks the French company’s first major entry into the publishing industry. (Sentric is expected to add about 3% to annual revenue growth, the company said Thursday.)
Notable Believe artist signings cited include Thai acts TimeThai and Reinizra, Belgian rapper Hamza and a new multi-album deal with French hip-hop star Jul.
Globally, revenue from Asia Pacific and Africa, which Believe groups together in its earnings report, grew 40% year-on-year to 56.1 million euros ($61.8 million), representing 28.2% of the company’s earnings, compared to 24.7% in the first quarter of 2022.
Within the Asia Pacific and Africa region, Believe said it recorded strong growth in India, Greater China and Southeast Asia, driven by its growing roster of local artists and labels, sustained investment in on-the-ground teams and the rollout of its full label and artist solutions offer in most markets.
Europe, excluding France and Germany, recorded a revenue increase of 21.1% to 54.4 million euros ($60 million), representing around 27% of total revenue.
Believe’s operations in the Americas rose 25.2% to 29.4 million euros ($32.4 million), representing 14.8% of all income, with the company saying that it had a particularly strong sales quarter in Latin America, most notably in Brazil.
The company’s two strongest individual markets, France and Germany, also grew by 13.2% to 32.1 million euros ($35.4 million) and 3.7% to 26.6 million euros ($29.3 million), respectively. France generates 16.2% of the company’s total revenue, while Believe said its performance in Germany was impacted by a “strong decline in physical sales linked to the lowered exposure to physical sales-heavy contracts.”
Over the past 12 months, Believe has made significant moves into the dance music sector with the launch of global label solutions brand b:electronic, which has signed deals with electronic music imprints Hospital Records and Rinse in the U.K.; Big Top Amsterdam, Blackout Music and Mixmash in the Netherlands; and Cercle and Roche Musique in France.
On Wednesday, the company announced that its TuneCore distribution platform had teamed up with Beatport, enabling TuneCore artists to distribute their songs on the world’s largest electronic music platform for working DJs.
“This great start to the year, marked by strong operational milestones and solid organic performance, shows that we are well on track to deliver another year of profitable growth,” Ladegaillerie says in a statement. Believe’s increasing global reach combined with a “successful investment strategy” was enabling “artists and labels to thrive in the digital ecosystem,” he says.
Ladegaillerie says the company is looking to make further acquisitions in the year ahead. Believe, which operates in more than 50 countries and has over 1,600 employees worldwide, says it expects to generate positive free cash flow for the full year and expects to record organic revenue growth of around 18% in 2023. The company says it will “monitor its investment pace and focus on improving efficiency” to reach an adjusted EBITDA (earnings before interest and taxes, depreciation and amortization) margin of 5% for fiscal year 2023.
SiriusXM CEO Jennifer Witz‘s predictions last year that the first two quarters of 2023 would be “softer” proved right, as the audio entertainment company reported that revenues and subscribers edged lower in Q1.
SiriusXM reported revenues of $2.14 billion for the quarter ending March 31, marking a 2% drop, as revenue from subscribers and advertisers both fell between 1% and 2% compared with a year ago.
Still, those modest moves downward were better than the company had predicted for the start of the year, and executives raised their full-year guidance for adjusted earnings before interest, taxes, debt and appreciation (EBITDA) to $2.75 billion from $2.7 billion. They also raised their free cash flow guidance to $1.1 billion from $1.05 billion for the year.
“We outperformed our initial financial expectations, putting us in a strong position to increase our full-year guidance,” Witz said on a call discussing earnings. “We intend to make prudent decisions to remain a very profitable business that continues to serve as a primary audio subscription service to certain audio segments while being complimentary to others.”
The company’s cost-cutting campaign — which has impacted its real estate footprint, workforce and marketing spend — helped allow for continued investment in tech improvements Witz says will improve future growth. Costs related to the new product launches, expected later this year, reached $68 million in the quarter, up 15% from a year ago.
However, the 17% reduction in sales and marketing spend, combined with lower numbers of customers starting trial subscriptions late last year, contributed to 347,000 fewer SiriusXM self-pay subscribers for the quarter. The company ended the quarter with 7.2 million trial users, compared to 6.9 million a year ago.
Self-pay subscribers of Pandora Plus and Premium tiers increased by 7,000 from the previous quarter, but the total number of subscribers edged 2% lower, to 6.2 million in the first quarter from a year ago.
“We are still expecting modestly negative [subscriber growth] for the year,” Witz said. “I would expect the second half to be positive, and that nets us out to the modestly negative.”
The company is in the process of updating the back-end technology and its SiriusXM app, tools Witz says will make it easier to find specific genres, make purchases in the car and elsewhere, and further personalize the experience. The hope is that this will enable the company to introduce new products to the app faster, a key part of its growth strategy.
“We are really focused on investing in this new platform and making sure that positions us for growth going forward,” Witz said on the earnings call.
Key SiriusXM Financial Highlights:
Overall
The company forecast it will generate approximately $9 billion in total revenue for 2023, along with $2.75 billion in adjusted EBITDA and $1.1 billion in free cash flow.
The company reported $2.14 billion in revenue, down 2% from the prior year.
Adjusted EBITDA was down 9% from the year-ago quarter at $625 million.
SiriusXM Segment
SiriusXM reported segment revenues of $1.7 billion, down 2% from the prior-year period, due to lower ad revenue and vehicle paid promotional revenue.
Average revenue per user (ARPU) fell $0.24 to $15.29.
Self-pay subscribers decreased by 347,000.
SiriusXM’s total cost of services rose 2% to $664 million in the quarter on higher programming and royalty costs.
SiriusXM’s gross margin of 61% slipped one percentage point from the prior year.
Pandora and Off-Platform Segment
The Pandora and off-platform segment generated $462 million in revenue, down a slight 1% from the year-ago quarter’s $467 million.
Advertising revenue in the segment held roughly flat from a year ago.
The segment’s gross margin was 24%, down 5 percentage points from the prior-year period.
Universal Music Group’s revenues rose 11.5% to 2.45 billion euros ($2.71 billion) last quarter, as sales generated by Morgan Wallen, Taylor Swift, TOMORROW X TOGETHER bolstered results in both recorded music and music publishing.
The world’s biggest music company reported revenue from its recorded music division rose 11.7% to 1.92 billion euros ($2.1 billion) in the quarter ending March 31 compared to the same period a year ago. Revenue from subscriptions and streaming rose by nearly 10% to 1.33 billion euros ($1.47 billion) and physical revenue rose a whopping 32% to 313 million euros ($346 million), while revenue from downloads and other digital revenue — the smallest line item in the division — fell by 19.1% to 55 million euros ($60 million).
The publishing division’s overall revenues rose 13.3% to 425 million euros ($469 million), with digital revenue contributing the most, increasing by nearly 21% from a year ago to 231 million euros ($255 million). Synchronization revenue rose around 11% to 69 million euros ($76 million), while performance revenue slipped 1% to 90 million euros ($99 million).
“Our strong start to the year demonstrates our consistency in developing great artists and introducing their music to fans around the world,” UMG chairman and chief executive Lucian Grainge said in a statement. “We look forward to building on this momentum and furthering our track record of transforming disruptive technologies into opportunities to accelerate our business for our artists, fans and shareholders.”
Overall earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter fell by nearly 43% to 261 million euros ($288 million), driven primarily by equity-based compensation expenses UMG began rolling out in the fourth quarter of 2022. Stripping out those compensation expenses, UMG reported adjusted EBITDA rose 14.7% to 522 million euros ($576 million) compared to the year-ago quarter, and adjusted EBITDA margin grew 0.6 percentage points to 21.3%.
UMG’s Earnings Highlights:
Revenue rose 11.5%, or 9.3% in constant currency, to 2.45 billion euros ($2.71 billion) versus the year ago quarter.
EBIDTA fell 42.5% to to 261 million euros ($288 million)
Adjusted EBITDA rose 14.7% to 522 million euros ($576 million)
Adjusted EBITDA margin grew 0.6 percentage points to 21.3%
Recorded Music Division Highlights:
Recorded music revenue overall rose 11.7% to 1.92 billion euros ($2.1 billion)
Subscriptions and streaming revenue rose by nearly 10% to 1.33 billion euros ($1.47 billion)
Physical revenues rose 32% to 313 million euros ($346 million)
License and other revenue rose 9.2% to 226 million euros ($250 million)
Downloads and other digital revenue fell by 19.1% to 55 million euros ($60 million)
Music Publishing Highlights:
Music publishing revenues overall rose 13.3% to 425 million euros ($469 million)
Digital revenues rose by nearly 21% from a year ago to 231 million euros ($255 million)
Performance revenues slipped 1% to 90 million euros ($99 million)
Synchronization revenues rose around 11% to 69 million euros ($76 million)
YouTube brought in $6.69 billion in advertising revenue to start the year, continuing a downward trend for the video giant after past quarters of explosive growth during the earlier years of the pandemic.
The first-quarter revenue figure, reported as part of parent company Alphabet‘s quarterly earnings on Tuesday, is roughly a 2.6 percent decline compared to the $6.87 billion in revenue reported during the first quarter of 2022. The video platform previously reported $7.96 billion in ad revenue during the holiday season, falling short of Wall Street expectations and representing an 8 percent year-over-year decline.
In a call with investors, Alphabet CFO Ruth Porat said the company was “encouraged by progress” in monetization for YouTube Shorts, which rolled out its revenue-sharing program with creators in February. The executive also said there was “significant ongoing subscriber growth” in YouTube Music Premium and YouTube TV, though the company has not disclosed subscriber numbers.
YouTube is now led by Neal Mohan, the former chief product officer who assumed the CEO role in February after longtime executive Susan Wojcicki said she was stepping down to focus on her family and “personal projects.”
In his first public message released on March 1, Mohan said his top priorities included supporting YouTube’s creators by improving monetization tools, increasing accessibility on the platform and focusing on growth in areas like gaming and podcasting. Included in those areas were YouTube’s short-form offering, Shorts, and its streaming products like YouTube TV and Primetime Channels.
The executive also noted YouTube will continue to contend with an advertising downturn that notably impacted the company’s revenue growth last year. “This is a pivotal moment for our industry. We face challenging economic headwinds and uncertain geopolitical conditions. AI presents incredible creative opportunities, but must be balanced by responsible stewardship. Creators, viewers, and advertisers have more choices about where to spend their time than ever before and platforms like YouTube need to deliver across a range of formats while investing in the policies that protect platforms from real-world harm,” Mohan said in his letter at the time. “As I look ahead to what’s next for YouTube, I’m confident we’ll put our full energy into what matters most for creators and viewers.”
Parent company Alphabet saw modest growth during the first quarter, with total revenue increasing 3 percent year over year to hit $69.79 billion. The company said it took $2.6 billion in charges related to the January layoffs that resulted in 12,000 employees — or around 6 percent of Alphabet’s workforce — losing their jobs.
This article was originally published by The Hollywood Reporter.
Annual revenue for Round Hill Music Royalty Fund grew 32% to $32.4 million in 2022, driven by strong performances of the Guernsey-based company’s rights management and synchronization business, coupled with underlying growth in the global recorded music industry, according to year-end financial results published Tuesday (Apr. 25).
Income from music publishing rights grew 12% year-on-year to $17 million, a rise of 12% on 2021, accounting for 69% of Round Hill’s annual revenue. Master rights revenues, derived from music streaming, CD and vinyl sales and downloads, grew by 70% to $10.9 million.
The fair market value of Round Hill’s portfolio — which includes the rights to over 120,000 songs across 51 catalogs, including tracks by Celine Dion, Bush, The Offspring, Carrie Underwood, The Supremes, Wilson Pickett and Whitesnake — was up 13% year-on-year to $602.6 million.
Economic net asset value also increased 13% to $519.6 million. The valuations are based on a report by the company’s independent valuer, Citrin Cooperman, and a second independent valuation by FTI Consulting, says Round Hill.
Almost half (44%) of the company’s publishing revenue came from performance rights royalties generated by music being played on radio and television, live concerts or in public spaces such as shops, bars and restaurants, Round Hill said.
Breaking down the company’s publishing revenue, more than a quarter (27%) was generated by synch deals, including the placement of “All by Myself,” by singer-songwriter Eric Carmen, in advertisements for Adobe Photoshop; Spacehog‘s “In the Meantime” featuring in the trailer for Marvel Studios’ Guardians of the Galaxy Volume 3; and Alice In Chains‘ “Rooster” being spotlighted in the Netflix series Super Pumped.
Speaking of Alice in Chains, Round Hill — which is listed on the main market of the London Stock Exchange — acquired a majority share of the band’s publishing catalog, neighboring rights and master recording rights from remaining living members Jerry Cantrell, Sean Kinney, Mike Inez and William Duvall in February. The estates of the late singer Layne Staley and late bassist Mike Starr sold their rights and income streams to Primary Wave at the same time.
The start of last year also saw Round Hill acquire master and publishing rights to the catalog of David Coverdale, the Whitesnake frontman and former lead singer of Deep Purple. In its financial results, Round Hill says the two acquisitions marked “the full deployment” of the $85 million the company raised through a share placement in July 2021.
In total, Round Hill said it successfully placed 560 songs across a range of high-profile films, television series and brand campaigns last year, fueling 33% year-on-year growth in synch revenues.
New two-year license agreements with TikTok and Meta on more favorable terms in 2022 also contributed to the strong financial results, generating higher digital revenues in the second half of last year, the company said.
Josh Gruss, CEO of Round Hill Music, tells Billboard the company’s strong financial results are attributable to its “very in-demand repertoire” and an experienced team of 70 employees in the U.S. and Europe, including London, Los Angeles, New York and Nashville, “sweating that repertoire really hard.”
Going forward, he says, the focus is on narrowing the gap between Round Hill’s economic net asset value of $519.6 million and its current stock price, which was trading at between $0.64 and $0.66 on Tuesday. In terms of new catalog acquisitions, Gruss says Round Hill will have to raise more equity before it can make “meaningful” additions to its portfolio and adds that the company will remain focused on songs recorded and released in the early 2010s and before.
“We like to be really conservative in how we approach acquisitions and the problem we have with younger music is that it’s just really hard to forecast how those songs pan out over the next 10 years,” says Gruss. “Good music is timeless and it’s really important that we have timeless music. We don’t want to have the flavor of the [month] — a song that’s going to be popular today, but gone tomorrow. You can make a big mistake in those type of investments.”
PRS for Music, the U.K. collecting society that represents composers and publishers, announced Monday (April 24) that it collected a record-high 964 million pounds ($1.20 billion) in 2022, a 22.9% increase over the previous year and an 18.9% increase over the previous high of 964 million pounds reached in 2019. The organization also distributed a record 836.2 million pounds ($1.04 billion) in 2022, an increase of 23.5% over 2021, while reducing its cost ratio to 9.3%.
“Live revenue came back,” says PRS for Music CEO Andrea Czapary Martin — up 683% from 2021 as the concert business rallied after the worst of the pandemic, and 16.1% compared to 2019. “At the same time, we saw a huge increase in music streaming — 25% — that exceeds market growth.”
PRS for Music is not the only collecting society that’s doing well as live music returns and streaming continues to thrive: In early March, ASCAP announced a 14% increase in collections to $1.52 billion and three weeks ago the German rights body GEMA posted 13% growth to 1.178 billion pounds ($1.25 billion).
Even by those standards, PRS’ results are impressive, although currency fluctuations and differences in accounting make exact comparisons between international collecting societies difficult. And it is rare to see a cost ratio below 10% for a society that collects for publishers and songwriters. PRS says it hit its goal to get its cost ratio below 10% four years ahead of its five-year plan.
“I run this like a commercial company, except we’re owned by the members and profits are distributed to our members,” says Martin, who joined PRS in mid-2019. Martin, a newcomer to the music business, worked for a variety of data- and subscription-focused businesses, including Reader’s Digest Association and the U.K. Royal Mail. “My background,” she says, “is in tech and data.”
Other highlights of 2022 include new and renewed licenses — “better agreements and new agreements,” Martin says. Revenue from video-on-demand services rose 16.5%, while that of linear television declined 2.4% and commercial radio, driven by advertising, grew 2.6%. “A TikTok agreement paid out last year,” Martin says, “and we doubled video game royalties.”
ICE, the Berlin-based music licensing hub that PRS owns as a joint venture with GEMA and Sweden’s STIM, is also “helping PRS immensely,” Martin says. “ICE is the biggest growth opportunity for PRS.” Expansion elsewhere is also a priority, Martin says, including in Africa.
PRS, like most of its sister societies, has a monopoly over U.K. collections — at concert venues, bars and restaurants, for example. Starting a few years ago, though, it also competes to represent composers and publishers online, to streaming services. ICE gives PRS the reach and resources to compete with SACEM. And PRS’ push toward efficiency gives it a solid competitive position.
“I’m very optimistic for the future,” Martin says. “But that doesn’t mean there aren’t challenges.”