PRS PAY IS MUSIC TO THEIR EARS

11th June 2007, 2:20pm

People setting up a new restaurant often do not realise that they need a licence to provide background music for their diners. The Performing Rights' Society, in charge of issuing licences, highlights what this involves

The good news as far as the Performing Right Society and its artist members are concerned is that in the last two years, 24% more restaurants and cafes in the UK have bought a PRS music licence.  
But there are still many operators continuing to play music in their venues without realising that to do this they need to be licensed.  
The Performing Right Society, is a not-for-profit membership organisation creating a future for music, and ensuring composers, songwriters and music publishers are paid royalties when their music is used.
They point out that "music is everywhere, every day, whether its live performance, or on TV and radio, CDs, DVDs, downloads and everything in between." Royalties create a future for music by supporting creators while they continue to write.
Siena Pakington, head of PRS public performance sales marketing says: "The fact that operators acquiring our licences has risen by a quarter shows that the music we represent has never been more in demand in this sector.
"Music is a key element to creating atmosphere, motivating staff, differentiating from competitors, attracting customers, enhancing their experience and influencing their spending behaviour.    
"If restaurants and cafes play music they need clearance to do so from the owners of that music. PRS represents the owners and can get the permission needed to enable restaurateurs to access the world's music in the most efficient way.

ENHANCED ENVIRONMENT
 "Many restaurants recognise that playing the right kind of music can enhance the environment they provide for customers and staff and often increase profits.    
"By buying a PRS music licence an operator has access to 10 million pieces of music and at a competitive rate.    
"The cost of playing music to create this better atmosphere is less than most people think and can be as little as 27p a day. This money is paid back to the people who have created the music."
Siena realises that the situation has changed in recent years with a lot more operators having professional training and realising their legal obligations. At the same time British dining trends are changing with a rise in the numbers of those eating out.
To target the venues where these people are enjoying themselves, PRS undertakes direct marketing activities ranging from mailed leaflets and telephone calling as well as extensive advertising campaigns.
They are keen for their income figures to be transparent to the public (see box below) while stressing that not all members are McCartney-type millionaires. "A lot don't earn a fortune and rely on income, such as that provided by PRS as a revenue stream."
But as well as supporting the composers and people on the music side of the equation, there are also numerous benefits for the retail businesses acquiring licences.
"Our research shows very positive feedback and has shown that staff moral can be raised by background music and in one retail chain it lead to an increase in work rate," says Siena.
PRS is hosting the Band Stand at the Taste of London Festival on June 21-24.


INCOME FROM 2006
The total PRS income for the year, including broadcast (radio, TV etc), online and overseas licensing, as well as public performance, was £341,127k net.
A breakdown of the £1 distribution from this figure was:

67.1p - To writer & publisher members of PRS (with 57.1% receiving less than £250; 17.2% between £250 - £1,000; 13.8% between £1,000 - £5,000; 7% between £5,000 - £20,000 and 4.9% more than £20,000

18.3p - Distributed to writer & publisher members of affiliated societies

14.2p - Licensing, tax and administration costs

0.4p - Donation to the PRS Foundation, the UK's largest independent funder purely for new music of any genre. Its main aim is to stimulate and support the creation and performance of new music in the UK.

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