Future for local and regional media - Culture, Media and Sport Committee Contents

Written evidence submitted by PPL

  Thank you for your letter dated 4 November 2009 with enclosure.

  Yes, indeed, my colleagues and I are very keen and will be only too pleased to respond to the assertions made by Andrew Harrison on behalf of RadioCentre.

  In the meantime, I would just like to point out that the rights in relation to broadcast and public performance of recorded music which are vested in PPL by its 5,000 record company members and 42,000 individual performer members, are fundamentally important and the PPL income streams absolutely crucial to all our constituents.

  Crocodile tears are often shed by many who purport to talk on behalf of "small businesses". It is interesting to note that these small businesses invariably pay 30p (thirty pence) or less per day for the privilege of having access to the entire vast library of recorded music from the entire world. I hope you would agree that this is not a price which could be described as unreasonable, let along excessive by any stretch of the imagination.

  By contrast, I would also like to draw your attention to the fact that 90% of the tens of thousands of individual performers registered with PPL earn from music less than £15,000 per year. This is not a demonstration of the musicians' desire or determination to be martyrs but rather, it is a reflection of their passion for music which is in their hearts and souls. Because of their poor earnings from their music-related activities, many performers have to supplement their annual earnings by doing other jobs including cleaning, child minding, cab driving, etc., etc.

  As a private individual, I think you might possibly agree with me if I say that the situation outlined above is a sad reflection on our society and an indictment of which we should not be proud.

  As far as the record companies are concerned, the vast majority of them (numerically speaking) are independent record labels and therefore, very small businesses in their own right. Their reliance on PPL income from broadcast, public performance and other sources is increasing each year. The importance of the PPL income streams to all our constituents cannot be overstated as it has now become a crucial factor in making it possible for some degree of continued annual investment to take place as far as finding, nurturing and developing new talent and making new recordings is concerned.

  Once again, thank you for writing and we shall be delighted to respond fully in due course.

Fran Nevrkla

Chairman & Chief Executive Officer

November 2009

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