Music industry sees rise in royalty payments

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• Performance rights payments provide financial boost
• Increase in music licences and US revenues take the lead

Sweet release: Duffy's track Mercy was the most played song according to figures from Music & Copyright

Record companies and artists enjoyed a significant rise in royalty payments from the playing of their music last year, bringing some welcome respite from falling sales.

Thanks to new collecting bodies, more music users buying licences, and a big rise in US revenues, global performance rights payments increased by 16% to $1.5bn (£940,000) in 2008, according to industry newsletter Music & Copyright.

Performance rights revenues come from the public playing of music across various locations and platforms, from radio stations and nightclubs to supermarkets and hair salons.

Such income has become more important in recent years as music sales have fallen. The UK is the largest territory in terms of performance rights distributions and total payments rose 11.5% to $220m (£138m) in 2008, according to Music & Copyright. It compiled its global figures through data from collecting societies worldwide, including PPL in the UK. The most played song was Mercy by Duffy.

The largest increase was in the US, with payments surging by 176% to $100m (£62.7m) as digital and internet radio services were licensed.

But US revenues remain small and Europe is by far the largest region for performance rights: accounting for 72% of the total worldwide.