Music industry efforts to force Australian clubs to pay more for their music has seriously backfired.
Starting December 1, the Phonographic Performance Company of Australia wanted to boost tariffs it demanded from all Oz clubs, hotels, restaurants and cafes wanting to play background music.
By how much?
The Bendigo Club, with a “bistro capacity” of about 50, would see its fees soar from $62.04 to a mind boggling $3,075.80, says the Advertiser.
But rather than fork out, businesses have decided to switch off.
And indie artists will be the ones to benefit.
“Clubs Australia announced at its annual general meeting a new scheme that would allow clubs to bypass the license fee charged by record companies,” says the story, continuing:”
“Clubs Australia will set up a program to source and distribute the music of artists not signed to major record labels and who are consequently exempt from the restaurant tariff.
“As part of the new scheme, local musicians will be given the opportunity to sell their music in clubs, while money earned from the sale of background music CDs will be used to establish a fund for talented Australian musicians.”
Two years ago, “the PPCA increased the fee for recorded music in nightclubs by 1400 per cent as well as announcing it is increasing the fee for music played in gyms by 5000 per cent,” thas lubs Australia chief executive officer David Costello saying, adding:
“The music labels are working their way through the dozens of music tariffs paid by small businesses.
“It seems only a matter of time before the PPCA increases fees for music on hold, jukeboxes, conference and pool rooms, squash courts and even swimming pools.
“Clubs are today drawing a line in the sand … ”
November 5th, 2009 at 10:30 am
I tried to persuade Tim Westergren of Pandora to adopt this strategy a few years ago (and play only license-free music or the MP3s already on the listener’s PC), but my piddling powers of persuasion simply didn’t pass muster. Instead Pandora is simply absent from the UK. Such a pity.
Talking of jukeboxes, I wrote The Patron’s Jukebox to try and help people understand why prohibiting commercial use of their music was not only counter-productive, but denied the artist potential income from their fans.
Something pertinent to ponder with respect to recent discussions and the temptation to compel rather than invite payment where artists’ music is played.
November 6th, 2009 at 2:14 pm
This is what happened in my area with the local clubs.
Get greedy, get nothing.