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MCPS Announces Commission Rate Increases After Split with MCPS-PRS Alliance

With the MCPS leaving the MCPS-PRS Alliance, a certain amount of realignment was always going to take place, with the MCPS board having to make some tough decisions about their income. This has resulted in an increased commission rate on various sources of mechanical income, which will come into play on 1st August 2014. Physical mechanicals are the first affected, many of which were moderated and set in accordance with the Cannes agreement. The agreement expired at the end of 2013, and though a short-term extension appears to be on the cards, once the agreement expires there will be some changes for the MCPS. After MCPS’ agreement to supply mechanical rights to EMI was terminated, the MCPS was downgraded to a ‘band B’ society, which means they must take a higher commission on physical mechanicals. Audio-visual mechanical product will also be affected. MCPS’ commission rates for BBC DVD product have always been famously lower than other societies, the new rates which come into effect from August will see an increase in commission to keep them in line with other DVD producers under the AVP scheme. Central Licensing Agreements for Audio and Music DVDs will see an increase of 0.325%, the same as DVD1 broadcast schemes and AP1. Beggars Banquet will see a small increase of 0.025, but other schemes have not been as lucky. AP2 and Enforcement will rise by 2.5%, and AVP licensing for BBC will go up by 2.25%. MCPS has made it clear that, in spite of the rebranding there will be no company policy changes and no changes to rights for mechanical or performance usage. The brand change in which MCPS effectively becomes a ‘customer’ of PRS, rather than a co-owner, is designed to make the brand stronger, allowing it to become a market-responsive organisation. Costs will be reduced across the board, with efficient operations the main aim.