PRS Raises Fees

After deciding not to increase royalties it levies on live music events, the UK’s PRS will bring in a little more money by charging artists higher collection fees.

The administration rates on all royalty sources will increase by about 1 percent as of July 1.

The collection society claims the price hike is necessary. It says that without a fee increase, MCPS, which collects mechanical royalties and is suffering from a shrinking market, might be forced out of business.

MCPS is looking into cutting costs and trying to identify new sources of royalty income but still faces a struggle to break even in 2012.

It will also increase the commission rate for AP1, the code that covers the license for audio product, will increase from 6.25 percent to 7 percent. The rate for DVD 1, which covers videos and DVDs, will rise from 7 percent to 8 percent.

Both rises become effective July 1 in the UK and Aug. 1 in Ireland and will be subject for review at six-month intervals.

The boards of both PRS and MCPS and the management team at PRS for Music are certain that this decision, while difficult, is in the best interests of all of their members and the future stability of PRS for Music.