Phonographic Performance Company of Australia scores massive increase in royalties coming up to 1500%, with the new rate increasing from 97 cents to $15.00 per one fitness class.

Copyright collecting groups go on looking for more signs of profit within the society, and work harder in light of constantly decreasing sales of physical media. PPCA can be considered the most profligate example of their attitude to the means of reaching their goal after succeeding to convince the Australian Copyright Tribunal to rule in favor of dramatic fitness class royalty fees increase.


The Tribunal has been hearing evidence almost six weeks and later came to a decision to allow the hike of the licensing fee from reasonable 97 cents per each class to $15.00 (or $1.00 per attendee). When it comes to figures, an annual cost increase can be as much as 1,500% with fees amounting to $23,400 against the current $1,510 per year. And this is estimated just for the middle-sized fitness center having around 1,500 members attending about 30 classes a week.

PPCA justifies the decision by an unquestionable improvement for copyright owners whose music is usually used during fitness classes for motivating and attracting members and confirms that the Tribunal admitted that the scheme used before really undervalued the contribution of music to the fitness industry. Talking about the scale of the price hike it points out that music used in classes is an essential accompaniment without which they can�t function appropriately.

That part where Tribunal wants music to reflect the value it adds to fitness classes can be reduced to an absurdity, as it never takes into account that a tax on attending would serve better to the public health. Moreover, it can come to a point where people are required to pay a fee for music every single time they hear it, either directly or indirectly.

The international record labels represented by the PPCA are probably expecting profits increasing due to the Tribunal�s decision. However, an umbrella organization for numerous fitness centers all over the country said its members are going to turn to using the music which is free of Phonographic Performance Company of Australia�s copyright fees in order to mitigate the impact of the Tribunal�s decision, as they consider it not to be very attractive both to themselves and their customers.




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Bo pen nyang.

Yep this is just another example of the traditional record industry killing themselves off. Goodbye ... music will continue without them. They are not trying to serve the musician they are just simply trying to sustain their own profitability. Sorry that day has passed. Sure some collection mechanism is needed but not like this.

And I am a member of APRA ( Australasian Performing Right Association ) http://www.apra-amcos.com.au that collects and distributes payments for music usage in Australia and I have never heard of the PPCA .... I guess they are just another organization milking musicians.



[This message has been edited by Nigel (edited 05-29-2010).]

http://www.ppca.com.au/
http://www.ppca.com.au/Licensing-FAQ.html

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Bo pen nyang.