The move will enable significant cost saving within MCPS, the society that represents mechanical rights, while continuing licensing administration, royalty processing and account management for members.
As announced in 2012, MCPS faces significant market pressures as the consumer market moves from CDs and DVDs to downloads and streaming. The plan will allow the business to operate more efficiently and maintains its ability to license and administer mechanical rights, still a vital source of members’ income.
The key components of the plan agreed include:
Guy Fletcher OBE, Chairman of PRS, said: ‘With this deal we will continue to act in the interests of all of our members, ensuring the business manages its costs appropriately and delivers stability of royalty income in an ever changing world.’
Peter Cornish, Chairman of MCPS, added: ‘Despite collecting royalties of almost £176m for MCPS in 2012, we have been unable to reduce costs as quickly as we’d like with our current structure. Contracting with PRS will allow us to become more efficient and continue to serve the needs of members.’
All PRS for Music members were notified in 2012 of changes to administration and commission rates in order to allow the business time to agree a restructuring and recovery plan. The change to administration rates will remain in place until December 2013. Members will be notified of changes following the new deal in the coming weeks.
As announced in 2012, MCPS faces significant market pressures as the consumer market moves from CDs and DVDs to downloads and streaming. The plan will allow the business to operate more efficiently and maintains its ability to license and administer mechanical rights, still a vital source of members’ income.
The key components of the plan agreed include:
- A change in the ownership of the operating company known as PRS for Music; MCPS has agreed to sell its shares to PRS
- PRS, as owner of PRS for Music, will deliver royalty processing services to MCPS members under a service agreement
- A commitment by both societies to further reduce costs, enabling more efficient operations
Guy Fletcher OBE, Chairman of PRS, said: ‘With this deal we will continue to act in the interests of all of our members, ensuring the business manages its costs appropriately and delivers stability of royalty income in an ever changing world.’
Peter Cornish, Chairman of MCPS, added: ‘Despite collecting royalties of almost £176m for MCPS in 2012, we have been unable to reduce costs as quickly as we’d like with our current structure. Contracting with PRS will allow us to become more efficient and continue to serve the needs of members.’
All PRS for Music members were notified in 2012 of changes to administration and commission rates in order to allow the business time to agree a restructuring and recovery plan. The change to administration rates will remain in place until December 2013. Members will be notified of changes following the new deal in the coming weeks.
