UK collection society PRS for Music have written to members explaining an increase in administration rates for TV collections to cover the expected cost of a Copyright Tribunal referral by ITV, one of the UK's leading broadcasters and home to X-Factor, Coronation Street, Midsomer Murders and UEFA Cup football. Rates range from 12.5% for BBC collections to 16% for Channel 5, MTV and other satellite and cable channels. A peak hour's one minute play on BBC1 would currently generate £90.35 for the rights holder, whereas on Channel 5 it would generate £11.95. The letter reads:
"After careful consideration by the Executive Board, it has been agreed that there will be a temporary rise to our TV admin rates by an additional one percent for one year. This will be implemented to cover the expected costs associated with defending the recent Copyright Tribunal reference brought against PRS by the broadcaster ITV.
Following prolonged negotiations, ITV referred the new deal (covering broadcasts from 1 January 2015), to the Copyright Tribunal. This was due to disagreements over the details of our licence renewal. We feel it is vital that we fully participate and vigorously defend this referral to secure a fair return for the use of our members’ work. Copyright Tribunals are costly but it’s important to protect and champion your work and ensure you are fairly remunerated whenever it is used.
The Executive Board has therefore approved a proposal for a one percent increase in our TV admin rates for a period of one year, this being the fairest way of covering the expected costs in defending this referral. While the tribunal will only rule on the ITV licence, it is an important decision for all members whose music is played on TV, meaning we are sharing the cost across all our TV revenues.
The increase is expected to take effect from October 2015.