’360′ deals brought in extra revenue worth £76m to UK record companies last year, according to new BPI research – as sync income continued to grow.
Revenues generated outside of CD, DVD and digital services (i.e. from music synchronisation, ’360′ artist deals, concerts, music-related TV production, broadcasting and public performance) grew strongly for labels in 2011 to £205.3m, accounting for a fifth (20.5%) of record industry trade turnover.
The market for music synchronisation – the use of recordings in films, TV programmes, adverts and games – grew substantially to £18m, an increase of 11.9% year-on-year.
This was achieved despite a fall in games-related synchronisation deals, from £5.4m to £3.6m, as sales of games centred on music softened in 2011.
Artist-related revenues from multiple-rights ’360′ deals – including concerts, merchandising, touring and sales of music direct from artist and label websites – remained strong during 2011.
Almost £76m was generated from these additional income streams at labels in 2011, an increase of 14% on the previous year.
Licensing income from television, radio and online broadcast in addition to public performance revenues, collected by PPL, combined with VPL revenue increased to £83.2m.
Commenting on the annual figures, BPI Chief Executive Geoff Taylor said:
“British music companies have reinvented their businesses for the digital age, marketing and promoting music intelligently through every channel available. They have diversified their revenue base and this has established a solid platform for future growth as the transition to a majority digital business continues.
“British music is on a global high and the UK’s creative industries have enormous potential to generate new jobs and economic growth, if Government gets serious about tackling online theft of content.”
That’s an extra 76m that artists are not making from these deals. Makes you think, right?
Check out below some of our interviews discussing the fairness of 360 deals for artists.
- Industry Talk: “7 Rules For The Record Labels To Learn”
- What A Record Contract From A Major Label Looks Like (Long Read)
- Why Everyone But The Artist And The Music Fan Is Doomed
- Ways for you to get paid as an artist (Must Read)
- Industry News: Weekly album sales plummet to record 21st Century low (Check the numbers here)