Last March YouTube had decided to block all premium music supplied by record lables as PRS (the society which collects Royaliets on behalf of composers and Musicians) was demanding high royalty payments without giving signs that it wanted to review its royalty prices.
Google, owner of YouTube, thus decided to take a hard decision...stop all premium music from being streamed, thus blocking any royalties to PRS. This eventually lead PRS to the discussion table and this month a decision has been finally made...
Under the PRS's new pricing structure any digital sites will have to pay 0.0085p per track streamed online. This is a sharp decrease from the 0.22p that digital sites were asked to pay before this agreement came into force. According to PRS, this new pricing policy was necessary as the prices were previously set in 2007 and were never reviewed. Now given the expansion of the digital music market this review became necessary and potentially could lead to higher returns for PRS as more tracks will be played and more digital companies will be attracted to the market thus adding the return for artists and composers alike.
The PRS is moving ahead and changing as market needs change...will other industries follow suit?