Memorandum submitted by PPL
By way of background, PPL is a music industry
organisation collecting and distributing airplay and public performance
royalties in the UK on behalf of over 3,400 record companies and
38,000 performers and we also represent overseas rights holders
through 42 bilateral agreements. We are a not-for-profit company
that collects domestic and global broadcast, new media and public
performance income which is then distributed and paid to record
company and performer members.
During the public debate for the new Royal Charter
for the BBC, we played an active role because the BBC is such
a significant player in the creative industries. It is impossible
to imagine BBC Radio and TV without music. Music makes up around
60% of radio programming and underscores most TV output. Equally,
these channels are effectively major distribution outlets for
performers and record companies.
This is particularly apparent overseas, where
BBC is arguably Britain's most successful brand globally. This
brand strength, combined with the quantity and quality of output
enables BBC Worldwide to compete effectively with other global
media players. Music is an integral part of BBC Worldwide's offering
which creates a shared interest in exploiting global markets,
using BBC Worldwide's concentrated sales point and accounting
facilities.
The use of sound recordings on the BBC's radio
and television services (and those of its commercial competitors)
is licensed by PPL. The overseas exploitation of sound recordings
in BBC programmes is also licensed by PPL and we therefore enjoy
a commercial relationship with BBC Worldwide, one which benefits
the performers and record companies whose music is broadcast abroad.
But, overseas sales do not just benefit rights-holders—they
also have an important role in generating a return for licence-fee
payers more widely. New technologies increase the scope for mutual
benefits even further. As distribution moves increasingly towards
digital output the commercial possibilities for UK musical talent
grow almost exponentially. Whereas prior to the development of
the digital format release of archived material was limited only
to output that could sell in sufficient quantities to cover the
costs of physical distribution and leave a profit margin, online
output offers greater flexibility to release more music even more
widely. Music services that operate through the Internet currently
offer up to 3 million tracks, compared to just tens of thousands
in most High Street record stores. Working with the BBC to ensure
that content and format work together in the context of new digital
technology is a key interest for the music industry in ensuring
that artists benefit from this export capacity.
It is for these reasons that there is a clear
interest for the UK in the ongoing success of BBC Worldwide, not
just for musicians and the creative industries, but for licence-fee
payers more generally.
Finally, we note that BBC Worldwide does not
have the same market impact issues as the BBC's free services
domestically. Since Worldwide is operating commercially, it is
already on a level playing field with its commercial competitors
(provided of course there is commercial transparency between BBC
and BBC Worldwide) and, as a result, that continued freedom to
operate and innovate commercially should be afforded to BBC Worldwide.
October 2008
| 
