Sound Credit and PPL strike North America neighbouring rights collections partnership

Photo Credit: Sound Credit
Photo L-R: Pictured at the 65th Annual Grammy Awards in Los Angeles on February 5, 2023: Peter Leathem OBE, CEO of PPL; Gebre Waddell, CEO & Founder of Sound Credit; and Tim Smith, Bee Partners

Music credit and information services provider Sound Credit and its sister brand Soundways have teamed up with UK-based music licensing company PPL to bring international neighboring rights collection to North American creators working with Sound Credit.

PPL is a collective management organization (CMO) for artists and record companies. Formed in 1934, the company licenses recorded music in the UK when it is played in public venues like shops, bars, nightclubs, or aired via BBC, commercial radio or TV.

Under the new partnership, Sound Credit and its sister brand Soundways will offer their North American performer community access to PPL’s international collections service.

PPL represents more than 100,000 performers and record labels and its clients include John Legend, eight-time Grammy winner Anderson Paak, and British singer-songwriter and presenter, Rita Ora.

Back in August, PPL signed Steve Angello, one third of Swedish House Mafia, for his international neighbouring rights collections.

In the Q4 2022, PPL paid out £43.2 million ($52.5 million) to more than 148,000 performers and recording rightsholders.

The latest alliance between Sound Credit and PPL builds on their existing partnership that goes back to 2019 when the companies inked a deal to improve the quality and accuracy of performer line-up data on recordings.

“Our partnership will help ensure that artists and rights holders are properly compensated for their work, and that the process of collecting and distributing neighbouring rights royalties is as smooth as possible.”

Gebre Waddell, Sound Credit/Soundways

Sound Credit’s North American performers will benefit from PPL’s expertise in royalty collections and distribution. They can also sign up for PPL’s international collections service that gathers and shares metadata and recording information with PPL. This information is then distributed throughout the music industry supply chain.

The companies say that they finalized the terms of their new alliance during Grammy’s Week in Los Angeles.

To mark the new partnership, Sound Credit launched a $30 million advance facility to help artists and industry professionals manage their neighbouring rights royalties.

The advance on future earnings will help artists cover expenses, invest in new projects or provide a financial cushion as they build their career, said Sound Credit.

US-based Sound Credit provides its services to over 15,000 labels, publishers, administrators, and independent artists in the music industry. Its services are available via a desktop app, two mobile apps, a kiosk, and connects to over 150 major music organizations.

“We are thrilled to be working with PPL to provide our community in North America with access to PPL’s expertise in the international collection of neighbouring rights royalties. Our partnership will help ensure that artists and rights holders are properly compensated for their work, and that the process of collecting and distributing neighbouring rights royalties is as smooth as possible,” said Sound Credit/Soundways CEO and founder Gebre Waddell.

Commenting on the alliance, PPL CEO Peter Leathem, added:  “I am delighted that we will be further developing our relationship with Sound Credit to provide neighbouring rights international collections for the performers that work with Sound Credit.”

“This agreement is the next logical step in working together to ensure performers and recording rightsholders get paid swiftly and accurately for the use of their music around the world.”

Peter Leathem, PPL

“We are aligned in our ambition to improve data quality across the global music industry and have been impressed by the suite of services offered by Sound Credit to support the music community. This agreement is the next logical step in working together to ensure performers and recording rightsholders get paid swiftly and accurately for the use of their music around the world.”

Grammy Award-winning producer Lawrence “Boo” Mitchell added: “I have long encouraged artists to sign up with PPL. I’ve seen so many people receive checks from PPL for neighbouring rights royalties that they never would have gotten from any other organization.”

Khari Wynn, a member of the iconic hip-hop group Public Enemy, said: “It was only when I received notice from PPL that I realized that I was owed a fairly life-changing amount of money from neighbouring rights royalties.”

Music Business Worldwide