[Archive 2011-03-29] British music royalties suffer first ever decrease

Historical archive — originally published 2011-03-29. This report records what was known on that date. It is not current news; subsequent events may have changed the situation. Wikinews closed in May 2026.

In the United Kingdom, PRS for Music has announced that the total royalties that artists in the music industry receive has decreased by 1%. This is the first time that such a decline has ever occurred.

The company has reported that the total was £611.2 million (US$977.8 million, €693.9 million) in 2010, a decrease of overall annual revenue of 1%, or £7 million (US$11.2 million, €7.9 million), from 2009. PRS for Music has claimed that this fall was due to lower sales of Compact Discs and DVDs, as well as digital copyright infringement.

The collection society, which is a representation of seventy-five thousand writers, composers and publishers of music, gathers royalties from music being used in excess of twenty-five billion times annually by various means, including television / radio, commercial businesses, musical venues, Compact Discs and DVDs.

In 2010, the sales of music physically and digitally grew by 7% to achieve 120 million units. Meanwhile, sales of compact discs fell by 12.4% to a total of 98.5 million. British global entertainment retail chain HMV has attempted to save money by closing down sixty of its shops in the UK. In 2010, royalties' growth reduced in speed to 4.3%.

PRS for Music has stated that its payout to its members was decreased by £800,000 (US$1,3 million, €900,000), due to improved society efficiency and a reduction in costs related to administration. According to Newsbeat, the small royalty drop may trigger a larger decline, causing new musical composers and writers to avoid joining the music industry. The company believes that further action needs to be taken to prevent the lack of CD sales and compete with illegal downloads, including the development of legal download services.

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