Phonographic Performance Company of Australia (PPCA) wins 1500% increase in royalties, the new rate rising from 96.8 cents to either $15.00 per fitness class or $1.00 per attendee.
Artist royalty collecting societies continue to squeeze society for more and more signs of profit, and is especially pressured to do so in light of ever decreasing physical media sales. The Phonographic Performance Company of Australia (PPCA) has been one of the more profligate examples of this behavior, a fact made more evident by its recent success in convincing the country’s Copyright Tribunal to dramatically hike fitness class licensing fees.
After hearing evidence over five weeks, the Tribunal ruled to raise the fee from a modest 98.6 cents per class to a new rate of $15.00 per class or $1.00 per attendee. For an average-size fitness centre with 1,500 members and running 30 fitness classes per week, the decision means an annual cost increase from the current $1,510 per year to $23,400 per year, or an increase of 1,500%!
“Today’s decision by the independent umpire represents an important improvement for artists and labels whose music is widely used in fitness classes to attract and motivate participants,” said PPCA Chief Executive Stephen Peach. “The Tribunal has recognized the previous scheme undervalued the undoubted contribution music makes to the fitness industry.”
It justified the dramatic price hike by noting that music is an “essential accompaniment” that without which would not be able to function appropriately.
From the ruling:
This application to the Tribunal has permitted the first comprehensive examination of the use of music in fitness classes. It has revealed that recorded music is an essential accompaniment to such classes. Without it the classes would not function in the manner in which they are presently conducted and which fitness class attendees have come to expect. No evidence was provided of satisfactory alternatives to the provision of music as an accompaniment to the classes. In the Tribunal’s view, the amount currently being paid does not reflect this essential nature of music in classes. The Tribunal believes that it is appropriate that users of recordings in fitness classes should pay an amount that reflects the value of music to such classes.
The scariest part is that the Tribunal wants the music to “reflect the value” it has to fitness classes, and doesn’t take into account the fact that it’s essentially a tax on programs that serve to better the public health. Not only that, it’s a reminder of a scary pattern that seems to be emerging where individuals are expected to pay a fee every time they hear music throughout the day, be it directly or indirectly.
Fitness Australia, an umbrella organization that represents thousands of fitness centers and exercise professionals throughout the country, says many of its members plan to switch to less costly music alternatives, including the use of music free of PPCA copyright fees.
“The international record companies, who are represented by the PPCA, have shot themselves in the foot by demanding outrageously high copyright licensing fees from the fitness industry, the majority of which go straight into record company coffers,” says Lauretta Stace, Fitness Australia Chief Executive Officer. “To mitigate the impact of such a decision, Fitness Australia members are already beginning to use music in their gyms that is free of PPCA copyright.”
As usual, groups that claim to represent the best interests of artists really care most about profits.
The PPCA already managed to convince the Tribunal to raise the club licence fee to $1.05 per person, and sadly based it on the club’s capacity and not the actual number of people present at any given time.
Last year it then moved forward with plans for a licensing fee hike for cafes, restaurants and gyms. For mid-sized restaurants with 120 seats it wants them the tab to increase from $125 to $19,344 per year. It even wanted gyms to add a $4.54 fee to the price of a membership so that artists would no longer have to “subsidize a profitable industry.”
I guess thee PPCA would rather see the rest of society subsidize an unprofitable business model instead.
Stay tuned.








then again some paintings are lent , they may have been bought from a painter but so do musicians get paid for making songs,,,could go on forever,,cost less than .50cents to make a cd n they charge $30 dollars at the counter,,shopkeeper makes about $6 then pays wages rent yada yada,,big business gone mad,,bring on the fall of the roman empire
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