Music Venues Are Threatening To Boycott Australian Music Over Royalty Payments

Music Venues Are Threatening To Boycott Australian Music Over Royalty Payments

There was a bit a kerfuffle last week with the reporting draft changes being made to music licensing rules and in turn royalties paid by music venues around Australia with the changes thought to possibly double operating costs and resulting in a potential boycott Australian music being played in venues.

Why is this important? Well, if venues are having to pay more to play recorded music in their venues it’s obviously going to put a hurt on margins and reduce the pritability and reasons to continue operating. With less bars, clubs and venues any sort cultural and social scene is going to evaporate and before long there really won’t be much left.

, the new organisation behind the changes is a joint venue between APRA AMCOS and PPCA and an attempt to streamline how the group collect royalties from venues playing recorded music with that money then paid to labels and groups representing artists.

They are proposing a core change how royalties would be collected and paid based on capacity versus attendance over the course any given day or night the venue is operating.

Understandably on the surface this crucial change would result in a massive increase in overheads and operating costs if venues were to continue to open outside typically busier days and nights and unlikely to hit capacity and result in being closed more ten at a crucial time when new artists need places to perform and promoters to throw parties.

In an effort to clear the air, APRA AMCOS Head Revenue and Licensing said in an ficial press release;

“The proposed scheme sees fees based on venue capacity. If a venue operates at varying capacities on different nights the week, that is taken into account eg: if a two level club operates only one level on a Tuesday – Thursday, their fee will be based on one level capacity, not the full capacity the club, for those evenings. If a 100 capacity venue sees 500 people come and go in a night they are still only charged at the 100 capacity rate.”

While that does seem like a good idea in theory and a way to reduce the complexities licensing and royalty collection in Australia there still seems to be a ways to go to find a middle ground between venues and OneMusic where everyone is happy.