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Record industry’s public performance revenue to top £600 million, says Deloitte

By | Published on Wednesday 15 January 2014

Deloitte

For all the talk about sync and streaming in recent years, we’ve noted before that public performance income is the often the fastest growing revenue steam in the music rights sector, and especially the record industry, as music is played in more places and by more broadcasters than ever before, and as labels get better at collecting the royalties they are due.

And it’s that trend that Deloitte has honed in on for the music business in its latest set of predictions for the media and entertainment sectors. Commenting on expected worldwide public performance income this year, Deloitte’s lead media partner Neil Allcock told CMU: “In 2014, Deloitte predicts revenues from music performance rights, a license payable for the right to play recorded music to the public, should exceed £600 million for the first time”.

He goes on: “This may seem insignificant relative to other parts of the technology, media and telecommunications sector, but for the £10 billion recorded music industry, this will make a difference. Performance rights, which are collectable from all sizes of company, from bars to broadcasters, should continue to grow over the next few years and are likely to be the fastest growing industry segment. Over time performance rights revenues should reach £1.2 billion, although the timing for this is uncertain as yet”.

Elsewhere in the latest Deloitte media report, the accountancy and consultancy firm reckons that 50 million homes worldwide will have two or more separate pay-television subscriptions by the end of the year, as the range of video-on-demand services grows, with at least a million such households in the UK. Meanwhile the value of sport broadcast rights worldwide will increase to £16 billion this year, partly fuelled by pay-TV firms competing for access to exclusive sports content to make their offers unique.

More on the report here.



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