New PRS-MCPS downloads policy

January 2005

Internet, Record Labels

The PRS-MCPS Alliance have agreed a new distribution policy for download services. Under the new policy, data will be collected in electronic format which will then be matched to the Alliance’s new PRS processing system, hopefully indetifying almost all works registered with those downloaded electronically. The licence revenue collected by the Alliance will then be distributed over works successfully matched on a quarterly basis commencing December 2004. The Alliance commission will be 12%. The Alliance will maintain the current allocation of the online share split with ‘download’ royalties – from the paid for download of tracks as a ‘sale’ – being allocated 75% to MCPS and 25% to PRS (as the mechanical right predominates) whilst being allocated 25% to MCPS and 75% to PRS for webcasting services and streaming (as this is treated in a like manner to performance or broadcast income). Revenue is allocated 50:50 between the two collection societies for other online revenue sources.

Source: M Business December 2004, Issue 14, p 27 and see :

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