Tiny Mix Tapes

Playoffs Update: Performance and Digital Royalties Trounce Mechanicals in Pivotal Series Win

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Boy, oh boy, what a win, folks! A real barn-burner! If you're just joining us, the collecting arm for U.K. mechanical and performance rights societies MCPS and PRS reported last week that combined revenue from those lovable underdogs, broadcasting and digital uses, have out-performed revenue from recorded physical product for the first time in league history in a dramatic, come-from-behind win in the late innings!

Yessiree! The MCPS-PRS Alliance, which collects performance and mechanical royalties from broadcasters, online service providers, record companies, and other performance businesses, dug in deep this post-season and announced that online royalties have managed to put up some big-time numbers! How big? Try L10 million ($20 million), an increase of 54% since last year. Oh, doctor! Can you say "triple crown?"

This year's MVPs? We here at TMT are attributing it to both a 20% increase in royalties from live pop concerts and improved licensing activity among leisure and industrial premises for their unmatchable contributions to the increase in overall public performance revenue.

But let’s take a look at the losing team this year. What went wrong for the Mechanicals? Many coaches and analysts are pointing fingers from the 11% decrease in royalties from the worldwide downturn in physical unit sales to £151.8 million ($303.9 million) squarely in the face of what they call "improvements in licensing other new formats," such as pre-loaded USB sticks and musical novelties. In other words, this is a classic example of a franchise being too interested in packing the seats and marketing t-shirts than with signing winning players. Are you listening, Chicago Cubs?

Still, the general managers of both teams seem pleased with the league's overall exposure as of late. "Much is written about the state of the music industry, but these results show a healthy story about the increased use of music in almost all areas of our business," says Alliance chief executive Steve Porter. And before we get carried away with Performance/Digital fever, this reporter would just like to remind our readers that, while the number of transactions processed by the Alliance increased by 40% since the prior year, the cost of collecting and distributing royalties was just over 10% of total revenues. So, you know, don't go doing anything stupid like flipping over juke boxes and torching CD racks. We are trying to live in a civilized society, after all. You listening, Boston?