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.
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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
I read that some gyms have gone to having people bring their own personal music players, but that would only be good if you’re doing a round on the solo machines. If it’s a class you need some heavy beat music on the speakers.
That is interesting, a museum doesn’t keep paying an artist for the painting, even though it brings in customers for a tour. I guess it’s the way it’s set up, the museum would pay a lot of money for the painting, but it then has total ownership of it.
Music sells for a low price in whatever form, but then it can be made into sheet music, recordings, tabs, piano rolls or whatever, and those can have further value and be sold, but they are the same notes that the composer wrote, or that the publisher put out.
There’s a big trickle up effect, where users all along the line are supposed to keep paying upwards, and it’s especially scrutinized if any profit is being made by the use of the music.
That’s why a gym would be slammed, because music is a tool for them, it sets the mood and timing of the exercise, warm up, cool down period. To be hit with a sudden fee seems pretty harsh though, and I hope that it brings change, like a gym paying a local artist directly for tracks or videos to use free and clear, or maybe even a gym network with artists that can supply special music much cheaper. There are thousands of gyms in the world, more than there are radio stations, so it could be a big market.
I read that some gyms have gone to having people bring their own personal music players, but that would only be good if you’re doing a round on the solo machines. If it’s a class you need some heavy beat music on the speakers.
I guess the thing of it is, you never really own music, and when you think of it, it’s a pretty sad state of affairs all around, dealing with rights issues it’s just hard to do the right thing no matter how much you try.
Listeners can have their rights to listen taken away at any moment, or be fined big for downloading it or playing it at their business. Creators always have to be worried about someone stealing from them, sampling, remixing. It puts a lot of tension in the air, and gets a lot of folks mad at each other over something that’s supposed to be a creative thing.
Change needed.
I’ve noticed that the australian judicial system often seems to rule in this greedy totalitarian fashion. I figure thats why their culture is so stunted.
How many films or music artists from australia have made a worldwide impact? Other than mad max and the bee gees?
I also find it telling that their other most famous export besides those two examples is rupert murdoch.
I can live without them personally.
There must be more jews in Aussie than the USA LOL.. they are beyond ridiculous. Eat pork you bastards. What’s next? Charging for having your favorite song in your head?
ppca say that the music adds to the class, well when i was djing I also worked in a record store so how about they get some bills for advertising by us (djs gyms,restaurants etc) nearly every monday I would get 3 to 5 people asking about songs I played sat nite at the club,and this would go on till thursday.also this tribunal is an independant body ,what made up of failed musos as is the ppca . we have allready paid for the music but arent allowed to play it unless we pay again,so does this mean going on copyrite crappology if i look at a painting does the family of the painter get some money or because its been sold to a museum the museum has to pay a copyright ass because paintings are not allowed to be reproduced,,dont get me wrong im all for the artist getting a fair share but didnt the company pay them(never enough) anyway,
I used to be in bands (failed singer)and one the guys went on to a bit bigger thing in a city . he was a great songwriter but didnt get far,,years later tells me he gets a royalty check jus because he registered his songs,they dont get playedbut he registered them..
Lets have a lilttle dig into whose running apra ppca, where the money goes and whats the law on this, otherwise lets just send every rec company bills for advertising
dj ramjet
Start now Rob, get some of the royalty free tracks into the playlists to get members used to them, and cultivate relationships with royalty free music producers so that they will keep you up on their latest releases. You might even be able to find soundalike tracks you can use in place of Kylie Minogue’s music, since that is so extremely popular.
In the USA I believe that gyms, cafes, clubs and other places that deliberately play music pay fees to ASCAP and BMI once a year and are done with it. I don’t know if that’s set by the capacity of the place or what, but I think it’s been done the same way for years.
OOOOppps hit enter before completing above…
I will look for atists who would benefit from air-play in our clubs and bypass the whole structure if they bring this approach into NZ. I believe clubs have been paying a fair fee up to this point and that most would accept a reasonable increase over time but this is ridiculous.
These levels will simply encourage business owners to be more creative in finding ways around this music tax.
Dear Australians,
I will write you some crappy techno music to play during your workout classes. That way you can tell these bozos that you don’t have to pay them and their insipid lawyers a penny.
Actually, there’s plenty of royalty-free creative-commons dance music out there. So I don’t have to write any of it for you.. which is best for all of us, really.
Still, you should totally quit playing Kylie Minogue while you make people exercise. Exercise is tiresome enough without having to listen to Kylie Minogue.
Great comment mRuss. I agree with the Kylie comment too!
I currently operate a couple of gyms