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Background to the Campaign 

PRS collects royalties on behalf of their members in Wales from numerous different sources. Up to and including April 2007, a large part of the royalty came from payments for public use (in clubs, pubs, shops and leisure centres for example). A small percentage of the income (around 10%) came from payments for songs played on Radio Cymru. 

Allocations up to and including April 2007

Before April 2007, PRS estimated individual payments for the use of songs by comparing two types of data: 1) data collected for the public use of songs, that is a census of venues across the UK, such as clubs, pubs, shops and leisure centres; and 2) radio station play lists. By comparing which songs appeared in the two sets of data, it was decided which radio stations best matched the data and on this basis public performance royalties were paid on the back of these stations' 'analogies. Payments, or allocations, based on this type of comparison are called 'analogies.'  

Up to and including April 2007, the system has been rather ambiguous because the data on Welsh songs was mixed with data for the rest of the UK. For example, Radio Cymru playlists were included with the playlists of a group of 50 BBC regional and local radio stations, and the data collected in venues in Wales was considered as part of the census for the whole of the UK. Therefore, Welsh members of PRS were receiving analogies payments at a rate based not only on Radio Cymru and Welsh venues data, but based on an average of the whole group of 50 stations and data from all UK venues. It is obvious, therefore, that the data did not reflect the real use of Welsh songs. Different to the vast majority of Anglo-American music that dominates the UK media, Welsh music is generally played on one radio station only, that is Radio Cymru. 

Allocation of Analogies after April 2007

After April 2007, PRS began comparing the data collected at venues with individual radio station play lists in stead of as a cluster of 50. The result of this showed that Radio Cymru play lists rarely corresponded with the census data on venues for the whole of the UK. 

The consequence of the change in PRS' payments policy is that the data collected for Welsh music is not substantial enough to be considered for any analogies payments. Therefore, since April 2007, Welsh PRS members have relied solely on broadcasts by Radio Cymru, S4C and a few other radio stations for their income. This is a decrease of around 90% for the whole of the Welsh music industry. 

BBC minute rates

Because Welsh music is no longer considered for analogies payments, we shall consider the remaining income, the majority of which is royalties from Radio Cymru. PRS receives a blanket payment by the BBC centrally for their whole use of music on all of their services, that is television, radio and on-line. PRS then share this payment amongst their members according to the rates that they set. Here are the new rates published by PRS in August 2008: 

Station  Per Minute by December 2010
Radio 1  £11.53
Radio 2 £19.64 
Radio 3 £9.28 
Radio 4 £16.45
Radio Cymru £00.47

 

From October 2008 the minute rate will decrease gradualy until December 2010 when it will be 00.47 per minute.

 As can be seen, in comparison with Radio 1, 2, 3 and 4, Radio Cymru's rate is very low. Historically, the degree of analogies payments has hidden the fact that the payment rate for Radio Cymru was of no real substance.

 Consequences of the Changes

It is estimated that the total loss to the Welsh music industry is close £1.8 million a year. As can be seen, the fall in the total amount of royalties is enormous, with a decrease of around 95% for the whole industry every year. 

In response to this substantial threat to their income, an ad hoc alliance was formed by Welsh composers and publishers in October 2007, as a means of pressurizing PRS to restore the payments lost. During discussion with PRS it became apparent that the society was totally unaware of the effect their change in policy has had on the industry in Wales. The sums of money under consideration are relatively small when compared to PRS' yearly cash flows. It was very disheartening to realize that PRS had not once seen the need to consider the effects of these changes on their Welsh members. 

Because of recent lobbying by The Cynghrair, PRS has agreed to gradually reduce the analogies payments over three years. These gradual payments began in December 2007 (backdated to July 2007). By December 2010 the fall in income will have reached 95%, therefore the serious threat to the industry in Wales continues. 

The Welsh Music Publishers and Composers Alliance was formally founded in a meeting in Aberystwyth in February 2008, when a steering committee was elected to supervise the PRS campaign and to consider various responses to the disaster that is swiftly approaching. The current members of the steering committee are:  Geraint Davies, Kevin Davies - Fflach, Gethin Evans, Bryn Fon, Geraint Griffiths, Osian Gwynedd, Tudur Morgan, Gwilym Morus, Rhys Mwyn, Dafydd Roberts - Sain (Chair), Gai Toms, Kerry Walters - Cofi Bach, Elwyn Williams and Emyr Williams - Ankst.

The Effect in Wales 

The Industry in Wales

The dramatic change in income is a massive threat to the Welsh language music industry, and the future of the whole industry is very uncertain. Individual composers who have come to rely on this income are facing the fact that a substantial part of their livelihood will completely disappear over the next two years.  Record companies, who rely on this income from their publishing departments to make up for a restricted CD sales market, have to consider making large cuts in jobs, and in the case of small businesses it is very likely that they will have to close completely. In truth, a fall in production has already been seen due to the uncertainty regarding the industry. Without a meaningful income to promote and secure it, it is certain that the professional industry will disappear in a short time, with a severe effect on standard of cultural produce in Wales. 

The Culture in Wales

It can not be stressed enough the effect of PRS' new policy. It is only necessary to consider the further implications of the degradation of the music industry on the culture of Welsh speakers: Welsh language music is a cornerstone to their culture, and a daily part of their lives, young and old. 

Welsh music provides access to the wider culture of the Welsh language for the young, never mind adults and audiences through out the world. Without new products available for the mass media a meaningful music scene cannot exist in the Welsh language, and because of this an important cornerstone of the culture will disappear.           

In truth, the situation so dire that any available solution must be considered, including leaving PRS and licensing Welsh works directly, that is, creating a Welsh licensing, collecting and distributing body.

 

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© y gynghrair 2008