Another Industry First: Music Royalties Fall 1%
For the first time, PRS for Music reported a 1% annual fall in total royalties. Why the decline? PRS suspects that digital piracy and a fall in high street sales are to blame. Royalties are down £7m to £611.2m in 2010, the Guardian says. Recorded media royalties also "fell 8.8%."
According to PRS CEO Robert Ashcroft, the loss of physical retailers, the decline in the music and the challenge of capturing the full value of music usage online is why the royalties collected have dipped for the first time. "In 2010 slower growth at home and abroad failed to fully mitigate the decline," Ashcroft said.
To turn the decline around, he believes that the record industry must work together to support the fledgling digital market, ensuring that consumers have legal music options, and creators receive income that's vital to their livelihood.