PPL extending its global footprint in Hungary

In order to maximise your revenues from around the world, PPL is constantly working with its international counterparts to develop and maintain positive relationships and to ensure that quality data is being exchanged to facilitate greater collections. Earlier this year, we visited Hungary to meet with EJI and MAHASZ.

International Focus: Working in Hungary

In Hungary, collections are managed by EJI (the performer society), MAHASZ (the recording rightsholder society) and ARTIJUS (the authors’ society).  January’s trip to Budapest to meet with EJI and MAHASZ was an opportunity to build on the existing relationships we have with the organisations as well as discuss ongoing operations and agree payment schedules for 2018.

Hungary has a thriving music market where local acts are particularly popular and well supported. Radio stations have a quota system for local home-grown music, where at least 35 per cent of all music broadcast has to be local Hungarian repertoire. Hungarian bands also have lots of opportunities to play at a variety of festivals hosted by the country, including Sziget Festival, one of the largest festivals held in Europe.

About EJI and MAHASZ

EJI is the Hungarian CMO for performers, collecting and distributing royalties for public performance, broadcast and private copying. The organisation will be celebrating its 30th anniversary in 2018. PPL first signed an agreement with EJI in 2013 and has been receiving steady payments ever since.

MAHASZ is the Hungarian CMO for recording rightsholders, also collecting and distributing royalties for public performance, broadcast and private copying. MAHASZ’s annual collections continue to show healthy growth, with collections for sound recordings reaching €5.8 million in 2016. PPL first signed an agreement with MAHASZ in late 2015 and, after the initial data exchanges, received a first payment in 2016. In 2017, building on the preliminary work with MAHASZ, PPL was able to collect six payments which represented a significant increase on the revenue received previously.

  • Broadcasting revenue is collected by EJI and MAHASZ in co-operation together and split equally between the two societies. In 2016, €2,248,270 was collected and split 50/50 between the two societies.
  • Public performance revenue is collected on behalf of both EJI and MAHASZ by ARTISJUS. EJI’s share of 2016 revenue was €1,426,921 whilst MAHASZ’s share of 2016 revenue was €1,829,778.
  • Private copying rates are set jointly by the Hungarian societies; however, these are distributed separately. EJI’s share of this right amounted to € 4,670,576 in 2016 whilst MAHASZ’s share of this right amounted to €2,837,786 in 2016.

Working with EJI in 2018

Hungarian law imposes a system of copyright levies for the purposes of collecting royalties relating to private copying. With this revenue stream, playlists do not exist to aid the distribution of revenue. Instead, 70.5 per cent of EJI revenue is distributed using playlists from broadcasters; 23 per cent on the basis of repeated broadcasts of TV programmes; and 5 per cent on the basis of audio visual programmes communicated to the public by TV stations. The remaining 1.5 per cent is distributed amongst sound recordings released over the last 50 years that were published in Hungary.

EJI confirmed that they would be releasing 2017 played recordings in March 2018, with the intention of distributing revenue for sound recordings in July 2018. Later in the year PPL will also have the opportunity to make additional claims for EJI’s full 5-year limitation period. 

During the recent visit, PPL and EJI were able to discuss how performer mandate conflicts are managed between the two societies. Currently, when a conflict is identified by EJI, revenue for the performer is put on hold. EJI has agreed to give PPL full transparency regarding held revenue of this nature. This will allow PPL to work with our members closely in order to resolve conflicts in Hungary.

Working with MAHASZ in 2018

Over the last 12 months PPL has made quarterly repertoire declarations to MAHASZ, amounting to 750,000 lines of data. Using control data and MAHASZ’s list of unregistered recordings, we have been able to ensure the recordings with reported usage by Hungarian licensees have been declared.

MAHASZ is one of the nine recording rightsholder CMOs that PPL has a bilateral agreement with, who collect Sales Data as a means to distribute certain revenue streams. On our visit, MAHASZ explained how they will continue to distribute 40 per cent of public performance and 62 per cent of private copying collections using sales data.

With private copying being MAHASZ’s largest revenue stream in 2016, the success of last year’s sales data campaign helped PPL increase collections from Hungary and this reinforces the importance of members submitting sales data each year.

MAHASZ also confirmed that they would be launching a new tool for managing dual claims in 2018. This is a good opportunity for PPL to look into recordings owned by our members, but also being claimed by another party. Importantly, up until this date, revenue for dual claims has been placed on hold by MAHASZ.

Speaking to EJI and MAHASZ in person supports the continued development of positive relationships and allowed us time to discuss the activities that support the reciprocity of our bi-lateral agreement. This was a very positive visit and PPL looks forward to sharing the progress made in 2018 in future communications.