Music industry bodies such as the Featured Artists Coalition (FAC), Music Venue Trust (MVT) and the Music Managers Forum (MMF) have spoken out against the Performing Rights Society’s For Music (PRS) decision to implement a licence fee for ticketed small-scale live-streamed concerts.
In December, the PRS proposed a tariff of between 8% and 17% gross revenues for live-streamed events. This is a big increase from the usual 4.2% gross takings from in-person gigs. At the time, the FAC and MMF wrote an open letter urging the PRS to reconsider their decision. Its signatories included representatives for Dua Lipa, Arctic Monkeys and Liam Gallagher.
Today we’ve announced the launch of a new Online Live Concert licence for small-scale livestreamed gigs > https://t.co/7iV80wifd8
Find out what this means for our members > https://t.co/EZ9WYsLtrD pic.twitter.com/TRU9FmGbuS
— PRS for Music (@PRSforMusic) January 27, 2021
In spite of this, the PRS has now implemented those tariffs and announced a flat fee for live-streamed shows that generate less than £500. Event organisers of shows taking up to £250 will pay the PRS £22.50 plus VAT, the fee doubles for shows grossing between £251 and £500.
Mark Davyd, the CEO of MVT spoke to the Guardian, describing the tariffs as disgraceful and predicted that small artists would stop doing live-streamed shows. He continued by saying; “It is a tax in the middle of a crisis on people who need the money. No venues or promoters are making money [from live-streamed gigs] – it’s for artists or for charities they care about.”
Responding to the new tariffs, the Music Venue Trust said; “It is extremely important to the grassroots sector that the songwriters whose work sit at the heart of our ecosystem are adequately and reasonably paid for their work. A fixed rate Tariff is not a mechanism by which that will be achieved, and the methodology and rate proposed by PRS for Music will not result in grassroots songwriters being paid for their work.” They went on to ensure people that they are available to talk with PRS about these measures and to come to a conclusion together about it.
MUSIC VENUE TRUST OFFICIAL RESPONSE TO @PRSforMusic ANNOUNCEMENT OF NEW ONLINE STREAMING TARIFF
Read on Facebook: https://t.co/gMKM27YLooStatement: pic.twitter.com/wey3e9TOzz
— Music Venue Trust (@musicvenuetrust) January 27, 2021
A PRS spokesperson spoke about the concerns, explaining that the launch of the tariffs are designed to simplify the process and ensure that writers will get paid for their work. They went on to say; “It goes without saying our songwriter and composer members, and those who don’t perform and therefore only earn from their songwriting and composing, have seen a significant impact on their incomes from the closure of the live music sector. It is essential that they can fairly share in the value being generated by online live concerts which are using their works.”
