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MCPS Announce 10% Reduction in Commissions

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MCPS is delighted to announce a reduction in its commission rates by 10%* for all of its publisher, direct composer and songwriter members, effective Monday 1st August.

Why is MCPS reducing its commissions?
Performing Rights Organisations (PROs) and Collective Management Organisations (CMOs) around the world tend to operate their businesses based on either administrative rates (also known as Admin Rates), which are reviewed and set annually to assure appropriate funding to run the organisation each year, or on a fixed commission structure basis. MCPS has always operated on a fixed commission basis.

Having carefully considered business performance, including year on year growth in member distributions over the past three years and MCPS’ forecast commission earnings over the next few years, the MCPS Board have approved a 10%* reduction in its commission rate structure.

What does this mean?
This means, by way of example, if members were charged a 10% commission on their digital distributions (e.g., Subscription Video on Demand (SVOD) services like Netflix or Amazon Prime) across prior periods, they will now be charged 9% from 1st August 2022. This will apply to all revenue types* (e.g., Recorded Media, Broadcast and International, alongside Online). 

What can members expect in the future?
MCPS will continue to assess its commission rates with the prospect of further reductions in future, as it strives to prioritise increased returns to its members at competitive commission rates.

MPA Group & MCPS CEO, Paul Clements, is delighted to share this development with the entire MCPS Membership community: “We believe in constantly driving up distributions, standards, efficiencies and leaving nothing on the table due to songwriters, composers and publishers. We encourage all CMOs and PROs worldwide to adopt this same attitude.”

If you have any queries about MCPS or your commission rates, please contact gavin.burness@mpagroup.com.

* save for royalties held in suspense or those subject to Audio Product Central Licence Agreement terms

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