Collective Management Organizations Thrive as Streaming Music Model Boosts Public Performance Royalties
The music industry is booming as the subscription streaming music model continues to raise public performance royalties. Big collective management organizations are reaping the benefits, with the UK CMP PRS for Music announcing record-breaking revenue in 2023.
On May 28, PRS for Music revealed that it had taken in £1.08 billion ($1.34 billion) in 2023, marking a 12% increase and breaking the billion-pound barrier. The organization also paid out a record £943.6 million ($1.17 billion).
CEO Andrea Czapary Martin attributed this success to the hard work of the team behind the scenes of the music industry. PRS has managed to keep its cost to income ratio below 10%, a significant achievement for the organization.
Over the last decade, PRS has more than doubled its revenue, experiencing a 111% increase since 2014. The organization, which is celebrating its 100th anniversary this year, also saw a membership growth of 10,000 members.
PRS received the most revenue from online licensing, followed by distribution, international, and public performance royalties. The organization’s strong financial performance and enviable cost to income ratio set it apart from its peers in the industry.
With the music business undergoing a significant shift, PRS for Music is at the forefront of driving innovation and success in the industry. The organization’s success in 2023 is a testament to its dedication to supporting music creators and ensuring a sustainable future for the industry.
