[Fmpro] Wow. did you know.........PRS changes?

[leshurdle]

Posters,

Please see the note from PRS in the UK below.

How many of you knew that PRS only pays 20% at distribution time?

This I believe is actually more like 35% if you add in admin [then  
add in the deduction from your local US PRO]

One must wonder what ASCAP/BMI/SESAC withhold .. and consequently  
little wonder we never see a gross amount at source !!

Also note tax withheld in Japan [and other overseas countries].......  
did you know?  Does your PRO or PUBLISHER statement indicate such?

FPV. Fixed Point Value  .... akin to ASCAP's    credit value



This is a bit like the Capital One credit Card commercial.....  
'What's in your wallet'?

Obviously not as much as there should be ;-)



I wonder do PRO staff only get paid 65% of their gross pay?

Les



The BBC pay PRS a set fee to use all Alliance controlled repertoire  
under a blanket licence.  Therefore there is no specific negotiated,  
collected and paid value for this work. The value of the work is  
derived on the basis of the duration of the work which generates a  
number of ‘points’ in the PRS Repertoire system. These points (in the  
case of the BBC and all other broadcasting suppliers) have a fixed  
point value set.  Fixed Point Values (FPVs) are derived annually  
based upon the Licence fee paid by the supplier and an estimate of  
the music minutes that the supplier will provide in the year. The  
revenue is then divided into the total music minutes and generates a  
per minute value.

As a business we reduce the FPV to be approximately 80% of its  
calculated value as a cushion against changes in the actual reported  
music minutes. Where we have monies left over at the end of the  
period (i.e. end of the Licence year) we perform a FPV Reconciliation  
which generates (generally) huge number of adjustments crediting  
everyone who featured in that years distributions on the usage in  
question with their share of the ‘cushion’.

With regard to taxation being deducted on your July statement I would  
like to clarify that this is not the case.  As page two of your PRS  
statement states 'No United Kingdom tax has been deducted from this  
payment'.  You maybe referring to the 'Tax Withheld' column on your  
usage summary.  These figures indicate that payments from some of our  
affiliated societies now show how much tax has been paid on your  
royalties by that society in their particular territory.  For example  
in your July statement you received a total of £*****8 under the  
section 'Japanese (JASRAC General & Broadcasting'.  In Japan JASRAC  
would have paid £****6 tax on these royalties.  The figures for  
withheld tax are useful as you can indicate that tax has already been  
paid for overseas performances when completing your tax return.