‘Music licensing is the bridge which connects creators and users – a connection that encourages new ideas and increased value.’

MBW Views is a series of exclusive op/eds from eminent music industry people… with something to say. In the following op/ed, Dan Gopal, Chief Commercial Officer of UK-based collection society, PRS For Music, comments on how music licensing has expanded and evolved.

The perception of music licensing being merely transactional is tired and outdated. Today there is far greater understanding that music licensing is the essential bridge which connects creators and users – a connection that encourages new ideas and increased value.  

Over our 110-year history, PRS for Music has led from the front, developing solutions for an increasingly digital and global market. Yes, remaining true to our founding purpose – to ensure songwriters and composers are paid fairly for the use of their works – but also forging new and stronger partnerships with customers. 

The licensing landscape has rarely stood still. More and more services are competing for our eyes and ears, for our precious ‘free time’. Broadcast and video game companies, no longer limited by physical or linear models, are embracing the possibility to provide users more interactive and personalised experiences. Fans have never had more choice or control over how they access the music, film, TV and video games they love. 

While parts of our industry were forced to close during the pandemic, the demand for music from fans and customers accelerated. PRS for Music had to adapt swiftly and seamlessly to accommodate that demand, finding new licensing solutions for previously non-existent markets and the rapid expansion of historically smaller services and sectors. 

During this time, we quickly developed the new Online Live Concert Licence – a licence specifically tailored to the necessity for livestreamed concerts, from virtual stadium shows broadcast around the world, to small intimate gigs from the artists’ bedrooms.

By being flexible, understanding the needs of customers, we could give our customers the chance to try new ideas in the most uncertain of circumstances. At the same time, by being responsive and adaptable, we ensured members would continue to receive live royalties at a time when they needed them the most. 

Today, our bespoke licensing agreements continue to provide maximum freedom for customers to grow, innovate and engage their users. With PRS for Music now representing over 41 million songs and compositions, our licences offer businesses greater choice than ever, allowing them to find the right music for them and their brand. 

A multifaceted platform like the BBC, for example, will utilise the broadest range of music rights possible, across a full suite of services, including television, radio, iPlayer, and Sounds in the UK, as well as BBC Studios internationally. Each year, PRS for Music processes around 100 billion lines of music uses from the BBC’s platforms, reflecting the critical role music plays in the BBC. In turn, the BBC is a leading champion of new music, introducing PRS members’ music to national and international audiences. 

For more than a century, the partnership between the BBC and PRS has been instrumental in the success of the UK’s music and broadcast sectors. In 2022, the industry trade association UK Music calculated the music industries contributed £6.7 billion to the UK economy. 

Most of the time we spend with our customers is not spent talking about the next deal; it’s spent discussing their business, the market needs and progression. PRS for Music works hard to understand the pressures and challenges they have, what their music strategy looks like and what their aspirations are for the future. 

Some deals will be straightforward, and we have worked to standardise, automate and systemise these relations to deliver efficiencies to all parties. But, for those requiring a more bespoke approach, we are constantly adapting the way we work. 

“Customers take pride in knowing that the royalties collected by PRS for Music go directly into the pockets of songwriters and composers.”

We’ll crunch a lot of data and analyse our approaches to get a complete picture: How much of our repertoire is being used, how often, and in what way? Are the current licensing terms right? How can we refine further to enhance the value of the music used? For brand-new platforms or fresh product launches from established partners, we’ll work with the company to understand its business model, its price point and music content needs, before building a flexible licence that can flex and change as it evolves and grows.

Flexibility is built on trust and transparency. The more information we have, the better we understand a customer’s objectives and business models, the better we can support them. Importantly, transparency also ensures the songwriters and composers we represent can have the confidence they need to invest their greatest assets, their music. They must trust in the aspirations and intention of customers.    

This symbiotic approach gives PRS for Music and our customers the time and space to find a shared vision, the ‘sweet spot’, where both customers and creators are maximising the value of the music. 

Netflix is a great example of a customer where a strong partnership approach has supported the diversification of their business model. From its inception nearly two decades ago, Netflix has gone through huge evolution, and we have been with them every step of the way; from physical to digital, subscription to ad tier models. Most recently PRS for Music has supported the inclusion of livestreaming and gaming into their already diverse consumer offering.

We don’t need to preach to the converted: the likes of BBC and Netflix know the value of music, it’s integral to everything they do and they are themselves rights-holders. But, for other customers, it’s important to always highlight the transformational impact that music can have on their business. 

The worth of a music licence can’t be measured in monetary terms alone, this fails to capture the real impact that music can have on a business. The emotive value music delivers for consumers within any business is well documented. It portrays a strong sense of a company’s brand and culture and, ultimately, creates an environment where consumers want to spend their time and money. 

Customers also take pride in knowing the royalties collected by PRS for Music go directly into the pockets of songwriters and composers. With a PRS licence they are helping to fuel the music economy and support new and existing talent.

As we look to the future, the potentially disruptive effects of artificial intelligence have been debated extensively. In practice, however, while music AI is at the cutting edge of technology, the arguments which surround its licensing are anything but new. The suggestion by AI developers that music licensing is a barrier to innovation, too difficult or, inaccurately, not necessary, are echoes of that outdated perception of transactional licensing. History shows us this approach is not in anyone’s interest and is the real barrier to progress.   

As our customers evolve, PRS for Music evolves with them. Over the past five years, we have invested in building the systems necessary to meet the changing needs and expectations of music users. Underpinned by a PRS team commitment to facilitating a shared understanding of the opportunities and challenges on both sides of the table. 

There are perhaps always going to be tensions within the licensing ecosystem. PRS certainly makes no apology for always seeking the best possible terms for the songwriters and composers we represent. But 110 years at the cutting edge of licensing has proven that partnership, rather than adversity, and engagement, rather than avoidance, are the ingredients which allow customers and music creators to grow together. 

Music Business Worldwide