Playing Music In A Nightclub Just Got Ridiculously More Expensive In Australia

from the and-that's-just-the-start dept

We've pointed out in the past how ridiculous it is to have "collections societies" for music, which basically act as big bureaucracies for taxing any kind of music usage. These societies -- both the for-profit and non-profit ones -- have pretty much one goal and one goal only: to increase how much money they get. So when you hear about new schemes, like Choruss, to set up a new such collection society, you know it's just a blatant money grab, rather than allowing for real business models to be developed. We've seen this all over the world, with SoundExchange in the US sitting on millions of dollars it collected, PRS in the UK trying to charge a stable for horses listening to the radio or calling up small businesses and threatening them if they hear music in the background.

The latest -- sent in by a bunch of you -- is that the various collections societies in Australia are looking for massive increases in what they can collect. Apparently, the Phonographic Performance Company of Australia is gleeful after the Australian Copyright Tribunal allowed somewhat insane increases to yearly fees. The new fees will almost certainly put some nightclubs out of business while making sure some restaurants no longer play any music at all:

Buoyed by the nightclub ruling, the PPCA is now targeting eateries. It wants to increase licensing fees in a 120-seat restaurant to $19,344 a year -- up from $125. Small cafes would be slugged with a 4729 per cent yearly increase from $124 to $5860.

Just look at those numbers for a second. And then try not to laugh as the PPCA defends the numbers by claiming "we are looking to establish a fair return."

Meanwhile, that may not be all. Thanks to this ruling, the Australasian Performing Right Association, which collects a separate fee for composers and artists, is asking for its own massive increase in fees.

All this really does is highlight another ridiculous aspect to collections societies: their rates aren't set by the market or any effort to become more efficient/offer a better product. Instead, the rates are set by various copyright boards, courts or tribunals who get pushed heavily by industry interests for such increases. Even so, while we've seen crazy numbers from around the world, I've never seen percentage increases like those being discussed in Australia. It's as if the collections societies there don't want anyone ever playing music again.

Filed Under: australia, collection societies, music, nightclubs